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Probi — Interim / Quarterly Report 2021
Jul 16, 2021
3099_ir_2021-07-16_c6f05aec-916b-4822-8e95-c02993980356.pdf
Interim / Quarterly Report
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- Net sales decreased by 12% (-3% adjusted for currency changes) to SEK 158 m (180) in Q2 and decreased by 3% (+8% adjusted for currency changes) to SEK 329 m (338) in H1.
- EBITDA margin was 25% (32%) in Q2 and 26% (26%) in H1.
- New partnership with Oriflame and launch of product based on Probi Digestis® .
- New long-term research collaboration focusing on vaginal health with the Estonian company Tervisetehnoloogiate Arenduskeskus AS.
- The number of shares and voting rights has been reduced by cancellation of the 250,000 company's treasury shares in accordance with the decision of the Annual General Meeting on May 7, 2021. The number of shares and votes in Probi amounts to 11,394,125.
• Investment of around NZD 9 m (about SEK 56 m) in newly issued shares in New Zealand's Blis Technologies, corresponding to an ownership of 13%, in connection with a long-term strategic partnership.
| Apr-Jun | Jan-Jun | Full-year | |||||
|---|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | 2021 | 2020 | RTM | 2020 | |
| Net sales | 158.0 | 180.0 | 329.3 | 337.8 | 708.7 | 717.2 | |
| Growth, % | -12.2% | -0.2% | -2.5% | 6.1% | -1.2% | 14.5% | |
| Currency adjusted growth, % | -3.1% | -2.2% | 7.9% | 3.6% | 6.8% | 16.9% | |
| Gross margin, % | 40.9% | 45.0% | 42.2% | 42.2% | 43.2% | 43.2% | |
| EBITDA | 39.0 | 58.1 | 86.1 | 87.9 | 194.7 | 196.5 | |
| EBITDA margin, % | 24.7% | 32.3% | 26.2% | 26.0% | 27.5% | 27.4% | |
| Operating profit (EBIT) | 21.1 | 38.9 | 51.2 | 49.8 | 125.1 | 123.7 | |
| EBIT margin, % | 13.4% | 21.6% | 15.6% | 14.8% | 17.7% | 17.2% | |
| Net income | 15.8 | 27.0 | 38.4 | 37.7 | 93.4 | 92.7 | |
| Earnings per share before and after dilution, SEK | 1.39 | 2.37 | 3.37 | 3.31 | 8.20 | 8.14 |
See note 5 for definitions of ratios not defined according to IFRS.
This information is information that Probi AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the CEO and CFO, on July 16, 2021 at 08:00 CET. This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.
After a strong start to the year, the second quarter was not in line with our expectations. Currency-adjusted growth was -3% and nominal net sales decreased by 12% over the quarter. The EBITDA margin was 25%, which was lower than the unusually strong Q2 figure last year. It was mainly lower sales volumes that are behind Q2's lower EBITDA margin.
The Americas region explains a large part of the performance during the quarter. Net sales decreased by 17% (-5% adjusted for currency effects) and was mainly attributable to a few of our larger customers where sales have not occurred. This was due to delayed orders, but also to changes in customers' product portfolios. Developments with our largest customer in the region were positive after the upgrade of their product range last year and we see the potential for further growth with them in the future.
The positive trend continued in the EMEA region, which equaled its record level from Q1 and saw growth of 7% despite a strong quarter last year. The roll-out of Perrigo is going according to plan and contributed significantly to the performance in the region. We have also started an exciting collaboration with Oriflame on a joint product that will be launched in their Wellness category. During Q2, we also signed an agreement with a new customer in Italy for Probi Ferrosorb® and its potential looks promising.
In the APAC region, the trend is moving in the right direction. The stock accumulation at the customer level last year means that the comparative figures were tough in this quarter, but seen over the past three years, it was one of our strongest quarters in the region. It is particularly pleasing that we have signed a three-year agreement with a large Korean customer, which is expected to contribute with net sales of
around SEK 10 m during the current year.
We continue to have considerable ambition to grow both organically and through acquisitions. After the end of the quarter, we made an investment in the New Zealand company Blis Technologies. The investment is part of a long-term strategic partnership and an important piece of the puzzle to grow in new health areas and increase profitability through greater capacity utilization of our production resources. Through Blis, we have access to a portfolio of clinically documented bacterial strains within the ear, nose and throat health, which are areas that are relatively uncharted for Probi. In addition to the commercial agreement, we will collaborate within R&D to evaluate new attractive products. Blis is listed on the New Zealand stock exchange NZX and we will be an active owner, including through board representation.
We are fully focused on achieving our long-term financial targets and will intensify our work with customers during the second half of the year as our sales teams are expected to be able to start traveling again. At the same time, many of the important agreements and strategic collaborations we have had in place during the first half of the year will not see visible results until 2022.
After a challenging year marked by the pandemic, we are beginning to see a return to normalization on several levels. We can meet our customers and consumers and can again shop at pharmacies and stores. The underlying demand for our products remains strong and we will of course benefit from this.
Tom Rönnlund CEO
Interim report April-June 2021
During the quarter, net sales amounted to SEK 158.0 m (180.0), which corresponded to a decrease of SEK 22.0 m or 12%. Adjusted for currency effects, net sales amounted to SEK 174.5 m, corresponding to a reduction of 3%.
The decrease of SEK 22.0 m is explained by lower sales in the Americas, which declined by SEK 21.4 m (-17%). Adjusted for currency effects, the decrease was SEK 6.0 m (-5%). EMEA increased by SEK 2.2 m (7%) and APAC decreased by SEK 2.8 m (-15%).
The America's share of total net sales in Q2 was 68%. EMEA represented 22% and APAC 10% of total net sales.
Net sales amounted to SEK 329.3 m (337.8), which corresponded to a decrease of 3%. Adjusted for currency effects, this corresponded to an increase of 8%. The decrease is mainly explained by a few major customers in Americas where sales have not occurred due to delayed orders but also to changes in customers' product portfolios. The Americas region decreased by a total of SEK 14.0 m (-6%). EMEA had a strong performance during the first half of the year, driven by Perrigo's product launches among other things, and net sales increased by SEK 7.7 m (12%). Net sales in APAC decreased by SEK 2.1 m (-7%), as a result of the comparison period containing stock accumulation in connection with the start of the pandemic.
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % |
| Americas | 107.4 | 128.8 | -16.6% | 229.7 | 243.7 | -5.7% |
| EMEA | 35.0 | 32.8 | 6.7% | 70.2 | 62.5 | 12.3% |
| APAC | 15.6 | 18.4 | -15.2% | 29.4 | 31.5 | -6.7% |
| Net sales | 158.0 | 180.0 | -12.2% | 329.3 | 337.8 | -2.5% |
The operating profit for Q2 amounted to SEK 21.1 m (38.9), which corresponds to a decline of SEK 17.8 m or 46%. Adjusted for currency effects, the operating profit was SEK 21.5 m. The decreased operating profit was largely due to lower sales volumes.
Sales and marketing expenses amounted to SEK 22.2 m (21.5). The increase is explained by increased customer activities in the quarter in connection with it becoming possible again to travel in some regions.
Research and development costs were marginally higher than the previous year and amounted to SEK 8.7 m (8.0).
Administrative expenses were on a par with the previous year and amounted to SEK 12.5 m (12.8).
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % |
| Gross profit Americas | 35.8 | 53.2 | -32.7% | 82.3 | 88.9 | -7.4% |
| Gross profit EMEA | 18.8 | 18.4 | 2.2% | 39.0 | 36.8 | 6.0% |
| Gross profit APAC | 9.9 | 9.4 | 5.3% | 17.6 | 16.9 | 4.1% |
| Gross profit | 64.5 | 81.0 | -20.4% | 138.9 | 142.6 | -2.6% |
| Sales and marketing expenses | -22.2 | -21.5 | 3.3% | -44.1 | -47.1 | -6.4% |
| Research and development expenses | -8.7 | -8.0 | 8.7% | -18.4 | -17.3 | 6.4% |
| Administration expenses | -12.5 | -12.8 | -2.3% | -25.3 | -28.6 | -11.5% |
| Other operating income | 0.0 | 0.2 | 0.0% | 0.1 | 0.2 | -63.1% |
| Operating profit (EBIT) | 21.1 | 38.9 | -45.8% | 51.2 | 49.8 | 2.8% |
The Group's financial result for Q2 was SEK -0.8 m (-3.3). Net financial items excluding exchange rate results amounted to SEK -0.4 m (-0.5) and consist of interest on leasing contracts in accordance with IFRS 16. Exchange rate gains and losses on translation of cash and cash equivalents in foreign currency are reported in exchange rate results from financing activities. An exchange rate loss of SEK -0.3 million (-2.7) arose in Q2 as a result of a weaker Swedish krona.
The profit for the period for Q2 amounted to SEK 15.8 m (27.0). The tax cost was SEK 4.6 m (8.6).
Earnings per share for Q2 amounted to SEK 1.39 (2.37).
Probi's operating segments are based on a geographical division and consist of the Americas (North and South America), EMEA (Europe, the Middle East and Africa) and APAC (Asia and the Pacific).
Net sales in the Americas decreased by 17% to SEK 107.4 m. Adjusted for currency effects net sales amounted to SEK 122.8 m, corresponding to a decline of 5%.
The reduced net sales are mainly explained by a few major customers in the region where sales have not occurred due to delayed orders but also to changes in customers' product portfolios. Underlying demand remains good in the region. Fluctuations between quarters are expected to remain relatively large during the year.
The gross margin for the quarter was 33.3% (41.3%). The reduced gross margin is mainly due to lower net sales but also to an unfavorable product mix.
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % |
| Net Sales | 107.4 | 128.8 | -16.6% | 229.7 | 243.7 | -5.8% |
| Cost of goods sold | -71.6 | -75.6 | -5.3% | -147.4 | -154.8 | -4.8% |
| Gross profit | 35.8 | 53.2 | -32.7% | 82.3 | 88.9 | -7.4% |
| Gross margin | 33.3% | 41.3% | -8.0 ppt | 35.8% | 36.5% | -0.7 ppt |
Net sales in EMEA increased by 7% in Q2 to SEK 35.0 m compared with SEK 32.8 m the previous year. Development in the region remains strong and is driven, among other things, by new customer agreements.
The rollout of Perrigo's launch is going according to plan, which contributed to the strong quarter. During the quarter, the first order was received from Oriflame with a jointly developed product based on
Probi Digestis®. The launch of the probiotic dietary supplement will take place under Oriflame's "Wellness" segment and is a completely new product for the company. In Italy, an agreement was also signed with a new customer regarding Probi Ferrosorb® where the launch has started well.
The gross margin for the quarter was 53.7% (56.1%). The slightly lower margin is related to the product mix.
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % |
| Net Sales | 35.0 | 32.8 | 6.7% | 70.2 | 62.5 | 12.3% |
| Cost of goods sold | -16.2 | -14.4 | 12.5% | -31.2 | -25.7 | 21.4% |
| Gross profit | 18.8 | 18.4 | 2.2% | 39.0 | 36.8 | 6.0% |
| Gross margin | 53.7% | 56.1% | -2.4 ppt | 55.6% | 58.9% | -3.3 ppt |
The performance in the region continued to strengthen. Net sales in the quarter amounted to SEK 15.6 m, which was a decrease of 15% compared with the previous year. However, Q2 2020 was strongly characterized by stock accumulation at the customer level, which meant a high comparative figure.
During the quarter, the first order was received from Sinopharm Foreign Trade regarding Probi Defendum® and Probi® Osteo.
In South Korea, agreements were signed with two new customers, one of which is estimated to involve net sales for the current year of approximately SEK 10 m.
The gross margin was significantly higher than the previous year and amounted to 63.5% (51.1%). The improved gross margin is due to a favorable product mix.
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % |
| Net Sales | 15.6 | 18.4 | -15.2% | 29.4 | 31.5 | -6.7% |
| Cost of goods sold | -5.7 | -9.0 | -36.7% | -11.8 | -14.6 | -19.2% |
| Gross profit | 9.9 | 9.4 | 5.3% | 17.6 | 16.9 | 4.1% |
| Gross margin | 63.5% | 51.1% | 12.4 ppt | 59.9% | 53.7% | 6.2 ppt |
The cash flow from operating activities before changes in working capital decreased to SEK 39.7 m (57.0) in the quarter as a result of a lower operating profit.
Working capital decreased during the quarter as a result of reduced inventory and accounts receivable and cash flow from operating activities amounted to SEK 43.6 m (-14.5). The comparison period was negatively affected by stock accumulation connected with a product upgrade on behalf of a major customer.
The cash flow from investment activities amounted to SEK -10.9 m (-11.6) and consisted of investments in intangible and tangible fixed assets.
The cash flow from financing activities was SEK -15.3 m (-15.2), where the largest part consisted of a dividend of SEK -12.5 m (-11.4) and where the remaining part mainly consisted of amortization of leasing liabilities. The cash flow for the period amounted to SEK 14.3 m (-47.8) and cash and cash equivalents amounted to SEK 261.0 m (187.5).
During Q2, investments in intangible fixed assets amounted to SEK 1.5 m (3.2), of which SEK 1.0 m (1.1) was for patents, SEK 0.3 m (2.1) was for capitalized development expenses and SEK 0.2 m (-) was for IT systems. Investments in tangible fixed assets amounted to SEK 9.4 m (8.4), which primarily refers to investments in the manufacturing unit in Redmond.
At the end of the period, Probi had 178 (169) employees, of which 52% (52%) were women. The average number of employees during Q2 was 181 (167).
During Q2, Probi reported SEK 0.2 m (1.0) in revenue from its largest owner Symrise and the costs amounted to SEK 0.0 m (-). No other transactions with related parties occurred during the reporting period.
In connection with Covid-19, the main current issues are the risks of changes in consumer trends and the company's supply of goods which is becoming relevant. These risks, together with other risks and uncertainties to which Probi's operations are exposed, are described on pages 46–47 in the annual report for 2020.
During Q2, the parent company's operating income amounted to SEK 67.4 m (76.2). The profit for the period was SEK 53.8 m (17.2). Investments in tangible and intangible fixed assets amounted to SEK 1.8 m (4.4). During the period, the two dormant subsidiaries Probi Feed AB and Probi Food AB were liquidated. For further details, please see the information for the Group.
Interim report Q3 2021 October 22, 2021 Year-end report 2021 February 2, 2022
Probi's interim report for Q2 2021 was published on July 16, 2021 at 8.00 am. On the same day at 10.00, a teleconference will be held with Tom Rönnlund, CEO and Henrik Lundkvist, CFO, who will present the report. The conference call can be accessed on +46 (0)8 50 55 83 53 (PIN: 39394326#). The presentation is available at www.probi.com and www.financialhearings.com
Tom Rönnlund, CEO Tele: +46 (0)46 286 89 40 Email: [email protected]
Henrik Lundkvist, CFO Tele: +46 (0)46 286 89 41 Email: [email protected]
The Board of Directors and Chief Executive Officer declare that this interim report gives a true and fair view of the parent company and the Group's operations, financial position and results, and describes the significant risks and uncertainties facing the parent company and the Group.
Lund July 16, 2021
Jean-Yves Parisot Chairman of the Board Jörn Andreas Board member
Irène Corthésy Malnoë Board member
Charlotte Hansson Board member
Malin Ruijsenaars Board member
Tom Rönnlund CEO
THIS IS A TRANSLATION FROM THE SWEDISH ORIGINAL
Review report
Probi Aktiebolag corporate identity number 556417-7540
Introduction
We have reviewed the condensed interim report for Probi Aktiebolag as of June 30, 2021 and for the six months period then ended. The Board of Directors and the Chief Executive Officer are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Malmö July 16, 2021
Ernst & Young AB
Peter Gunnarsson Authorized Public Accountant
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK 000 | Note s |
2021 | 2020 | 2021 | 2020 | |
| Net sales | 2 | 157,962 | 179,983 | 329,275 | 337,750 | |
| Cost of goods sold | 3 | -93,422 | -99,011 | -190,407 | -195,196 | |
| Gross profit | 64,540 | 80,972 | 138,868 | 142,554 | ||
| Sales and marketing expenses | -22,196 | -21,549 | -44,140 | -47,089 | ||
| Research and development expenses | -8,678 | -7,958 | -18,373 | -17,282 | ||
| Administration expenses | -12,582 | -12,810 | -25,197 | -28,568 | ||
| Other operating income | 35 | 210 | 76 | 210 | ||
| Operating profit (EBIT) | 21,119 | 38,865 | 51,234 | 49,825 | ||
| Financial income | 36 | 16 | 62 | 219 | ||
| Financial expenses | -475 | -537 | -918 | -1,206 | ||
| Exchange result financing activities | 4 | -334 | -2,738 | 112 | 334 | |
| Financial result | -773 | -3,259 | -744 | -653 | ||
| Earnings before income taxes | 20,346 | 35,606 | 50,490 | 49,172 | ||
| Income taxes | -4,556 | -8,586 | -12,067 | -11,484 | ||
| Net income | 15,790 | 27,020 | 38,423 | 37,688 | ||
| Other comprehensive income | ||||||
| Components to be reclassified to net income | ||||||
| Exchange rate differences resulting from the translation of | ||||||
| foreign operations | -23,230 | -74,000 | 32,983 | 2,946 | ||
| Cash flow hedge (currency hedges) | — | 1,012 | — | -380 | ||
| Income taxes payable on these components | — | -217 | — | 81 | ||
| Sum of other comprehensive income | -23,230 | -73,205 | 32,983 | 2,647 | ||
| Total comprehensive income | -7,440 | -46,185 | 71,406 | 40,335 | ||
| Number of outstanding shares at end of the reporting period |
11,394,125 | 11,394,125 | 11,394,125 | 11,394,125 | ||
| Average number of shares | 11,394,125 | 11,394,125 | 11,394,125 | 11,394,125 | ||
| Earnings per share before and after dilution | 1.39 | 2.37 | 3.37 | 3.31 |
The profit for the period and comprehensive income are attributable in their entirety to the Parent Company's shareholders. The company has no outstanding convertible loans or warrants, so dilution does not occur.
| SEK 000 | 30 June 2021 | 31 December 2020 |
|---|---|---|
| ASSETS | ||
| Capitalized Development Cost | 36,472 | 39,620 |
| Customer base | 237,313 | 239,482 |
| Technology and other intangible assets | 113,193 | 116,604 |
| Goodwill | 289,065 | 278,238 |
| Property, plant and equipment | 72,462 | 60,058 |
| Right-of-use assets | 59,845 | 43,019 |
| Interests in other entities | 53,032 | 53,032 |
| Deferred tax assets | 41 | 28 |
| Non-current assets | 861,423 | 830,081 |
| Inventories | 98,830 | 98,396 |
| Trade receivables | 73,160 | 89,339 |
| Other assets and receivables | 14,296 | 6,525 |
| Cash and cash equivalents | 261,034 | 215,552 |
| Current assets | 447,320 | 409,812 |
| Total assets | 1,308,743 | 1,239,893 |
| EQUITY AND LIABILITIES | ||
| Total equity | 1,174,075 | 1,115,203 |
| Deferred tax liabilities | 7,471 | 3,906 |
| Provisions | 7,471 | 3,906 |
| Non-current lease liabilities | 46,183 | 30,575 |
| Other non-current liabilities | 4,468 | 4,299 |
| Non-current liabilities | 50,651 | 34,874 |
| Trade payables | 32,704 | 39,922 |
| Current lease liabilities | 15,842 | 13,873 |
| Other current liabilities | 28,000 | 32,115 |
| Current liabilities | 76,546 | 85,910 |
| Total liabilities | 134,668 | 124,690 |
| Total equity and liabilities | 1,308,743 | 1,239,893 |
| SEK 000 | Share capital |
Other contribution s received |
Cumulative translation differences |
Other reserves |
Accumulate d profit |
Total equity |
|---|---|---|---|---|---|---|
| Opening balance, 1 Jan 2020 | 58,221 | 600,205 | 59,969 | 217 | 433,514 | 1,152,126 |
| Net income | — | — | — | — | 37,688 | 37,688 |
| Other comprehensive income | — | — | 2,946 | -299 | — | 2,647 |
| Total Comprehensive Income | — | — | 2,946 | -299 | 37,688 | 40,335 |
| Dividends | — | — | — | — | -11,394 | -11,394 |
| Total transactions with shareholders |
— | — | — | — | -11,394 | -11,394 |
| Closing balance, 31 Mar 2020 | 58,221 | 600,205 | 62,915 | -82 | 459,808 | 1,181,067 |
| SEK 000 | Share capital |
Other contribution s received |
Cumulative translation differences |
Other reserves |
Accumulate d profit |
Total equity |
|---|---|---|---|---|---|---|
| Opening balance, 1 Jan 2021 | 58,221 | 600,205 | -58,034 | — | 514,811 | 1,115,203 |
| Net income | — | — | — | — | 38,423 | 38,423 |
| Other comprehensive income | — | — | 32,983 | — | — | 32,983 |
| Total Comprehensive Income | — | — | 32,983 | — | 38,423 | 71,406 |
| Dividends | — | — | — | — | -12,534 | -12,534 |
| Total transactions with shareholders |
— | — | — | — | -12,534 | -12,534 |
| Closing balance, 31 Mar 2021 | 58,221 | 600,205 | -25,051 | — | 540,700 | 1,174,075 |
| Apr-Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 | |
| Net income | 15,790 | 27,020 | 38,423 | 37,688 | |
| Adjustments to reconcile net income to cash from | |||||
| operating activities | |||||
| Income taxes | 4,556 | 8,586 | 12,067 | 11,484 | |
| Interest result | 412 | 493 | 792 | 813 | |
| Amortization, depreciation and impairment of non-current assets | 17,879 | 19,203 | 34,909 | 38,109 | |
| Other non-cash expenses and income | 1,016 | 1,700 | 1,580 | 2,599 | |
| Cash flow before working capital changes | 39,653 | 57,002 | 87,771 | 90,693 | |
| Change in trade receivables and other current assets | 18,027 | -38,102 | 17,453 | -33,438 | |
| Change in inventories | 10,270 | -36,227 | 3,035 | -27,983 | |
| Change in trade payables and other current liabilities | -16,171 | 8,177 | -12,653 | 10,113 | |
| Income taxes paid | -8,172 | -5,338 | -15,226 | -22,360 | |
| Cash flow from operating activities | 43,607 | -14,488 | 80,380 | 17,025 | |
| Payments for investing in intangible assets | -1,502 | -3,209 | -4,063 | -5,229 | |
| Payments for investing in property, plant and equipment | -9,401 | -8,415 | -14,124 | -13,464 | |
| Divestments of tangible assets | — | — | — | 0 | |
| Cash flow from investing activities | -10,903 | -11,624 | -18,187 | -18,693 | |
| Interest paid | -31 | -329 | -837 | -827 | |
| Interest received | — | 0 | — | 96 | |
| Repayments for lease obligations | -2,781 | -3,509 | -6,109 | -6,840 | |
| Dividends paid | -12,534 | -11,394 | -12,534 | -11,394 | |
| Cash flow from financing activities | -15,346 | -15,232 | -19,480 | -18,965 | |
| Cash flow for the period | 17,358 | -41,344 | 42,713 | -20,633 | |
| Effects of changes in exchange rates | -3,025 | -6,235 | 2,769 | 1,123 | |
| Change in cash and cash equivalents | 14,333 | -47,579 | 45,482 | -19,510 | |
| Cash and cash equivalents at opening balance | 246,701 | 235,029 | 215,552 | 206,960 | |
| Cash and cash equivalents at closing balance | 261,034 | 187,450 | 261,034 | 187,450 |
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 | ||
| Operating revenue | 67,394 | 76,159 | 146,725 | 156,133 | ||
| Operating costs | -23,267 | -25,499 | -45,162 | -54,506 | ||
| Gross profit | 44,127 | 50,660 | 101,563 | 101,627 | ||
| Operating profit (EBIT) | 14,941 | 24,050 | 40,717 | 39,498 | ||
| Result from financial income and expenses | 42,037 | -2,084 | 42,472 | 949 | ||
| Income before tax | 56,978 | 21,966 | 83,189 | 40,447 | ||
| Net income | 53,834 | 17,194 | 74,563 | 31,607 |
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 | ||
| Net income | 53,834 | 17,194 | 74,563 | 31,607 | ||
| Cash flow hedge (currency hedges) | - | 1,011 | - | -381 | ||
| Income taxes payable on these components | - | -216 | - | 82 | ||
| Sum of other comprehensive income | - | 795 | - | -299 | ||
| Total comprehensive income | 53,834 | 17,989 | 74,563 | 31,308 |
| 30 June 2021 | 31 December 2020 |
|---|---|
| 1,018,224 | 1,026,553 |
| 227,301 | 170,698 |
| 1,245,525 | 1,197,251 |
| 1,220,370 | 1,158,341 |
| - | 4,035 |
| 25,155 | 34,875 |
| 1,245,525 | 1,197,251 |
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The condensed financial statements in the interim report encompass pages 9-16. Disclosures according to IAS 34 Interim Financial Reporting are provided both here and elsewhere in the interim report. ESMA's guidelines apply to alternative performance measures.
The accounting policies applied in the preparation of these consolidated financial statements have been applied consistently for all presented periods, unless otherwise stated. The complete accounting policies can be found on pages 63-66 of the printed 2020 Annual Report.
The parent company's functional currency is the Swedish krona (SEK), which is also the reporting currency for both the parent company and the Group. All amounts stated have been rounded to the nearest thousand kronor, unless otherwise stated.
Amounts and figures in parentheses pertain to comparative figures for the year-earlier period. Amounts are stated in Swedish kronor (SEK), thousands of Swedish kronor (TSEK) or millions of Swedish kronor (SEK m) according to the unit stated.
The parent company applies the same accounting policies as the Group, with the exception of IFRS 16 Leases and the exemptions and supplements stipulated in RFR 2, Accounting for Legal Entities. The interim report complies with the Swedish Annual Accounts Act.
A breakdown per category of the Group's net sales from contracts with customers is presented below:
| Apr-Jun 2021 | Apr-Jun 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 105,708 | 31,859 | 15,543 | 153,110 | 127,284 | 32,032 | 18,411 | 177,727 |
| Royalty | 1,672 | 3,180 | — | 4,852 | 1,492 | 764 | 0 | 2,256 |
| Net sales | 107,380 | 35,039 | 15,543 | 157,962 | 128,776 | 32,796 | 18,411 | 179,983 |
| Jan-Jun 2021 | Jan-Jun 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 226,831 | 61,321 | 29,392 | 317,545 | 240,417 | 61,363 | 31,500 | 333,280 |
| Royalty | 2,841 | 8,889 | — | 11,730 | 3,283 | 1,169 | 18 | 4,470 |
| Net sales | 229,672 | 70,210 | 29,392 | 329,275 | 243,700 | 62,532 | 31,518 | 337,750 |
The following table shows the exchange gains and losses from operating activities that are recognized under cost of goods sold:
| Apr-Jun | Jan-Jun | |||
|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 |
| Exchange gains operating activities | 195 | 296 | 1,059 | 4,577 |
| Exchange losses operating activities | -461 | -1,467 | -960 | -4,167 |
| Exchange result operating activities | -266 | -1,171 | 99 | 410 |
The following table shows the exchange gains and losses from financing activities that are recognized in the financial results:
| Apr-Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 | |
| Exchange gains financing activities | 187 | 0 | 721 | 3,215 | |
| Exchange losses financing activities | -521 | -2,738 | -609 | -2,881 | |
| Exchange result financing activities | -334 | -2,738 | 112 | 334 |
The company presents some financial measures in the interim report that are not defined in IFRS. The company believes that these measures provide valuable supplementary information to investors and company management. Since not all companies calculate alternative performance measures in the same way, they are not always comparable with the measures used by other companies. However, these non-IFRS measures should not be considered substitutes for financial reporting measures prepared in accordance with IFRS. The following alternative performance measures are presented in the interim report:
The operating profit (EBIT) is defined as the profit before financial income, expenses and tax for the period and is used as a measure of the company's profitability.
| Apr-Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 | |
| Net income | 15,790 | 27,020 | 38,423 | 37,688 | |
| Income taxes | 4,556 | 8,586 | 12,067 | 11,484 | |
| Financial result | 773 | 3,259 | 744 | 653 | |
| Operating profit (EBIT) | 21,119 | 38,865 | 51,234 | 49,825 |
EBITDA is defined as the operating profit (EBIT) before depreciation/amortization and impairment and is used as a measure of the company's profitability.
| Gross margin | Defined as gross profit divided by net sales |
Used to measure product profitability |
|---|---|---|
| EBITDA margin | Defined as EBITDA divided by net sales |
Used to measure the company's profitability before depreciation/amortization and impairment of tangible and intangible assets |
| Currency adjusted net sales growth |
Defined as net sales for the year translated at the preceding year's exchange rates divided by the preceding year's net sales |
Used to measure underlying net sales growth |
| RTM | Rolling twelve months. Refers to full-year figure for the last four quarters |
Gives an indication of development without having to wait for the comparative period next year |
| Operating margin | Defined as the operating profit divided by net sales |
Used to measure the company's profitability |
Probi® is a global Group that focuses exclusively on research, manufacturing and delivery of probiotics in dietary supplements and food. The company is an expert in managing live bacteria from research through all stages of the manufacturing process and is dedicated to making the health-promoting benefits of probiotics available to people around the world. Since the company was founded in 1991 at Lund University in Sweden, Probi has expanded its operations to more than 40 markets and holds more than 400 patents worldwide. Probi had sales of SEK 717 m in 2020. Probi's shares are listed on Nasdaq Stockholm, Mid-cap, and there were around 4,200 shareholders on December 31, 2020.