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Probi Interim / Quarterly Report 2021
3099_10-k_2022-02-02_f00d209f-0236-440c-8733-cab03a866734.pdf
Interim / Quarterly Report
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Year-end report January – December 2021
SEK
Net sales
EBITDA margin
32%
170 m
Strong development in EMEA, Americas affected by customer dynamics
Significant events during the fourth quarter
- Net sales decreased by 8% (-9% adjusted for currency effects) to SEK 170 m (185).
- The EBITDA margin was 32% (25%).
- Strong performance in EMEA and APAC during the quarter, while the Americas continued to be affected by earlier communicated customer dynamics.
Significant events during full-year 2021
- Net sales decreased by 8% (-3% adjusted for currency effects) to SEK 658 m (717).
- The EBITDA margin was 28% (27%).
- Several important partnerships were entered during the year, including Oriflame and Sinopharm Foreign Trade.
- The pan-European launch with Perrigo contributed to strong growth in EMEA
- Acquisition of shares in the New Zealand company Blis Technologies linked to a long-term strategic partnership.
- The Board of Directors proposal to the 2022 Annual General Meeting is for a dividend of SEK 1.30 (1.10) per share corresponding to SEK 14.8 m (12.5) for the 2021 financial year.
Financial overview
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | 2021 | 2020 | |
| Net sales | 170.0 | 184.8 | 658.2 | 717.2 | |
| Growth, % | -8.0% | 11.2% | -8.2% | 14.5% | |
| Currency adjusted growth, % | -9.4% | 19.8% | -3.3% | 16.9% | |
| Gross margin, % | 48.6% | 42.5% | 43.8% | 43.2% | |
| EBITDA | 54.1 | 47.0 | 182.5 | 196.5 | |
| EBITDA margin, % | 31.8% | 25.5% | 27.7% | 27.4% | |
| Operating profit (EBIT) | 34.1 | 29.8 | 109.2 | 123.7 | |
| EBIT margin, % | 20.1% | 16.1% | 16.6% | 17.2% | |
| Net income | 26.3 | 21.8 | 83.1 | 92.7 | |
| Earnings per share before and after dilution, SEK | 2.31 | 1.92 | 7.30 | 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 February 2, 2022 at 08:00 CET. This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.
Our fourth quarter largely reflects our performance in the whole of 2021. Total net sales for the year decreased by 3% adjusted for currency effects and can be completely explained by the performance in the Americas region. We did not entirely meet our long-term financial profitability target during the year, but given the lower sales volumes, an EBITDA margin of 28% is satisfactory. We ended the year with an improved EBITDA margin of 32% in Q4, which can largely be explained by a favorable product mix and increased volumes in our own manufacturing facilities.
During the year, the regional performance went in different directions. The Americas region had a challenging year compared to a strong 2020, which was affected by positive demand driven by Covid-19. During the year, we lost orders from two major customers and despite hopes of regaining ground here later in the year, we have to state that they will probably not return soon. These two customers accounted for around SEK 50 m of the deficit compared to 2020 over the year. All in all, this meant that the region experienced a challenging year with an exchange rate adjusted decrease in sales of 8%. The last quarter was certainly in line with the previous quarter but decreased by 19% adjusted for currency effects against the strong Q4 of 2020. We believe that the turbulence we have seen in the region in 2021 is temporary and the development going forward will be more stable.
The EMEA region performed well in 2021 and delivered its strongest year ever with growth of 17%. The year also ended strongly with growth of 27% in Q4. During the year, we built up important key customers and signed agreements with new customers, which we expect will develop strongly in the long term. We are therefore optimistic about future developments in the region.
A year of both challenges and strong development
The APAC region ended the year well and achieved yearon-year growth of 6%. Comparative figures for the second half of 2020 were weak due to stock accumulation during the first half of 2020. The region continues to be a priority market for Probi, and we see good opportunities for continued growth through new customers in 2021 and a strong pipeline of potential new customers.
To improve our research capacity and competitiveness, we also initiated a thorough rebuild and upgrade of our laboratory in Lund in 2021 and plan to move in during the first half of 2022. This is an important investment for us that strengthens our ability in pre-clinical research and lead to greater opportunities for product development.
After completing most of the upgrade of our manufacturing facilities in the USA, we have worked on streamlining and stabilizing production in parallel with the technological transfer from Blis Technologies. During the latter half of 2021 we have experienced some supply chain issues, but we expect this to stabilize in 2022. Greater production capacity is expected to have a positive effect on our margins in the future.
Overall, 2021 was a good but also a challenging year. We do not know what the world has to offer in 2022, but with a number of exciting partnerships underway, greater production capacity and a completely new laboratory on the starting blocks, I feel very confident about the future. We stand by our financial targets and together with all our fantastic employees, I am convinced that we will achieve them.
Tom Rönnlund CEO
Net sales
October – December (fourth quarter)
During the quarter, net sales amounted to SEK 170.0 m (184.8), which corresponded to a decrease of SEK 14.8 m or 8%. Adjusted for currency effects, net sales amounted to SEK 167.4 m, corresponding to a decrease of 9%.
The decrease of SEK 14.8 m is explained by lower sales in the Americas which declined by SEK 26.4 m (-17%), while EMEA increased by SEK 6.7 m (28%) and APAC increased by SEK 4.9 m (77%).
The America's share of total net sales in Q4 was 75%. EMEA represented18% and APAC 7% of total net sales.
January – December (full year)
Net sales amounted to SEK 658.2 m (717.2), which corresponds to a decrease of 8%. Adjusted for currency effects, this represents a decrease of 3%. The decrease is mainly explained by a few major customers in the Americas, where sales have been affected by stock accumulation, but also by changes in customers' product portfolios. The Americas region decreased by a total of SEK 80.0 m (-14%). EMEA had a strong performance during the year driven by product launches and sales increased by SEK 18.1 m (17%). Sales in APAC increased by SEK 3.0 m (6%) and growth was primarily from new customers.
Net sales per segment
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % |
| Americas | 127.8 | 154.2 | -17.1% | 484.6 | 564.6 | -14.2% |
| EMEA | 30.9 | 24.2 | 27.7% | 124.1 | 106.0 | 17.1% |
| APAC | 11.3 | 6.4 | 76.6% | 49.5 | 46.5 | 6.4% |
| Net sales | 170.0 | 184.8 | -8.0% | 658.2 | 717.2 | -8.2% |
Earnings
Operating profit (EBIT)
The operating profit for Q4 was SEK 34.1 m (29.8), which corresponds to an increase of SEK 4.3 m or 14%. Adjusted for currency effects, the operating profit was SEK 34.7 m. The improved operating profit was mainly due to a higher gross margin driven by the product mix and greater volumes at the production units.
Sales and marketing expenses amounted to SEK 24.0 m (24.2), which was on a par with the previous year.
Research and development costs were lower than the previous year and amounted to SEK 9.3 m (11.1), which is mainly explained by the phasing out of various research projects over the year.
Administrative expenses increased by SEK 3.4 m compared with the previous year and amounted to SEK 16.8 m (13.4). The quarter was affected by non-recurring business development costs amounting to SEK 3.9 m.
Other operating income includes the sale of a machine generating a profit of SEK 1.0 m during the quarter.
Operating profit
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % |
| Gross profit Americas | 60.2 | 60.9 | -1.1% | 193.2 | 223.8 | -13.7% |
| Gross profit EMEA | 16.3 | 14.6 | 11.6% | 66.9 | 62.0 | 7.9% |
| Gross profit APAC | 6.1 | 2.9 | 110.3% | 27.9 | 24.2 | 15.3% |
| Gross profit | 82.6 | 78.5 | 5.2% | 288.0 | 310.0 | -7.1% |
| Sales and marketing expenses | -24.0 | -24.2 | -0.8% | -88.9 | -95.8 | -7.2% |
| Research and development expenses | -9.3 | -11.1 | -16.2% | -37.1 | -36.3 | 2.2% |
| Administration expenses | -16.8 | -13.4 | 25.4% | -54.5 | -54.5 | 0.0% |
| Other operating income | 1.6 | 0.1 | 1,500.0% | 1.7 | 0.4 | 349.7% |
| Operating profit (EBIT) | 34.1 | 29.8 | 14.4% | 109.2 | 123.7 | -11.7% |
Financial result
The financial result for Q4 amounted to SEK -0.7 m (-1.7). Net financial items excluding exchange rate results amounted to SEK -0.5 m (-0.4) and consist mainly of interest on leasing contracts. The exchange rate effect amounted to SEK -0.2 m (-1.3) in Q4 and refers to the translation of cash and cash equivalents in foreign currencies.
Profit for the period
The profit for the quarter amounted to SEK 26.3 m (21.8). The tax cost was SEK 7.1 m (6.3).
Earnings per share
Earnings per share for Q4 amounted to SEK 2.31 (1.92).
Operating segments
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).
Americas
Net sales in the Americas decreased by 17% and amounted to SEK 127.9. Adjusted for currency effects, net sales amounted to SEK 125.3 m, corresponding to a decrease of 19% during the quarter. For the full year, net sales decreased by 14% to SEK 484.6 m and by 8% when adjusted for currency effects.
The decrease in net sales can be explained by a lack of orders from two major customers, which was announced in Q2. These corresponded to around
SEK 20 m in Q4 and around SEK 50 m over the full year.
Underlying demand remains good, but some fluctuation between quarters is also expected in the future.
The gross margin for the quarter was 47% (40%). The increased gross margin was mainly due to the product mix being favorable at the same time as the production volume increased.
| Oct-Dec | Jan-Dec | ||||||
|---|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % | |
| Net Sales | 127.8 | 154.2 | -17.1% | 484.6 | 564.6 | -14.2% | |
| Cost of goods sold | -67.6 | -93.3 | -27.5% | -291.4 | -340.9 | -14.5% | |
| Gross profit | 60.2 | 60.9 | -1.1% | 193.2 | 223.7 | -13.6% | |
| Gross margin | 47.1% | 39.5% | 7.6 ppt | 39.9% | 39.6% | 0.3 ppt |
EMEA
Net sales in EMEA climbed by 28% in Q4 to SEK 30.9 m, compared with SEK 24.2 million last year. For the full year, net sales increased by 17% to SEK 124.1 m.
There was strong development in the region during the year. Product launches with new customers took place according to plan and a number of new customers were also added during the year, who
could potentially become future key customers for Probi. Sales activity was high in the region in the last quarter with participation at trade fairs and customer meetings.
The gross margin for Q4 was 53% (60%). This lower margin was related to the product mix.
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % |
| Net Sales | 30.9 | 24.2 | 27.7% | 124.1 | 106.0 | 17.1% |
| Cost of goods sold | -14.6 | -9.6 | 52.1% | -57.2 | -44.0 | 30.0% |
| Gross profit | 16.3 | 14.6 | 11.6% | 66.9 | 62.0 | 7.9% |
| Gross margin | 52.8% | 60.3% | -7.5 ppt | 53.9% | 58.5% | -4.6 ppt |
APAC
Our performance in this region continues to improve. Net sales in Q4 amounted to SEK 11.3 m which was an increase of 77% compared with the previous year, which at the same time was a weak quarter in comparison. The quarter's net sales are on a par with the long-term average. For the full year, net sales increased by 6% to SEK 49.5 m, which are the highest annual net sales since 2018.
The partnership with Sinopharm Foreign Trade is developing well and in addition to previous orders for Probi Defendum and Probi Osteo, orders have also been received for Probi Ferrosorb. Although
there has been good activity among customers in China, Australia and Singapore, among others, net sales were somewhat below expectations as an order from one of our customers in South Korea did not materialize during Q4.
The region continues to experience large fluctuations in net sales and is greatly affected by individual customers' order patterns.
The gross margin was higher than the previous year and amounted to 54% (45%) and was driven by greater volumes.
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | Change, % | 2021 | 2020 | Change, % |
| Net Sales | 11.3 | 6.4 | 76.6% | 49.5 | 46.5 | 6.5% |
| Cost of goods sold | -5.2 | -3.4 | 52.9% | -21.6 | -22.3 | -3.1% |
| Gross profit | 6.1 | 2.9 | 110.3% | 27.9 | 24.2 | 15.3% |
| Gross margin | 54.0% | 45.3% | 8.7 ppt | 56.4% | 52.0% | 4.4 ppt |
Cash flow and cash and cash equivalents
Cash flow from operating activities before changes in working capital increased to SEK 54.2 m (46.2) in the quarter based on the higher operating profit.
Working capital decreased during the quarter, mainly due to reduced stock and increased accounts payable, and cash flow from operating activities amounted to SEK 71.5 m (85.9).
Cash flow from investment activities amounted to SEK -14.7 m (-66.3) and mainly consisted of investments in tangible assets, but also in intangible fixed assets.
Cash flow from financing activities was SEK -3.9 m (-5.1) and consisted mainly of amortization of leasing liabilities.
The cash flow for the period amounted to SEK 55.1 m (5.8) and cash and cash equivalents amounted to SEK 251.0 m (215.6) at the end of the period.
Investments
During the quarter, investments in intangible fixed assets amounted to SEK 1.7 m (4.5), of which SEK 1.1 m (0.8) related to patents, SEK 0.4 m (2.4) to capitalized development expenses and SEK 0.2 m (1.3) to IT systems. Investments in tangible fixed assets amounted to SEK 14.0 m (8.7), which relates to investments in the manufacturing unit at Redmond and rebuilding and upgrading of the laboratory in Lund.
Employees
At the end of the period, Probi had 175 (176) employees, of which 50% (51%) were women. The average number of employees during Q4 was 178 (179).
Transactions with related parties
During Q4, Probi reported SEK 1.7 m (-) in revenue from its largest shareholder Symrise and costs amounted to SEK 0.0 m (-). No other transactions with related parties occurred during the reporting period.
Significant risks and uncertainties
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.
Parent company
During the quarter, the parent company's operating income amounted to SEK 72.2 m (69.1). The profit for the period was SEK 4.9 m (15.4) and this decrease was due to an unfavorable product mix and increased costs for marketing and business development. Investments in tangible and intangible fixed assets amounted to SEK 6.8 m (4.7). For further details, please see the information for the Group.
Financial calendar
| Interim report Q1 2022 | April 26, 2022 |
|---|---|
| Annual General Meeting 2021 | May 5, 2022 |
| Record date for dividend | May 9, 2022 |
| Payment date for dividend | May 12, 2022 |
| Interim report Q2 2022 | July 15, 2022 |
| Interim report Q3 2022 | October 21, 2022 |
| Year-end report 2022 | January 27, 2023 |
Invitation to teleconference
Probi's Year-end report for 2021 was published on February 2, 2022 at 8.00 a.m. 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 56 64 27 03. The presentation is available at www.probi.com and www.financialhearings.com
Contact
Tom Rönnlund, CEO Telefon: +46 (0)46 286 89 40 Email: [email protected]
Henrik Lundkvist, CFO Telefon: +46 (0)46 286 89 41 Email: [email protected]
Annual General Meeting
The Annual General Meeting relating to the financial year 2021 will be held in Lund on Friday, May 5, 2022 at 15.00. The location will be announced later. Shareholders who wish to have a matter considered at the AGM are requested to report this to the Chairman of the Board no later than Friday, March 17, 2022. Such a proposal should be sent by email to [email protected] or by letter to: Probi AB, Bolagsstämma, Ideongatan 1A, 223 70 Lund.
Shareholders who wish to contact the Nomination Committee can do so by email to [email protected] or by letter to: Probi AB, Nomination Committee, Ideongatan 1A, 223 70 Lund.
Year-end report January-December 2021
Proposal for appropriation of the profit
Based on an assessment of Probi's business operations and strategic investment decisions, the Board of Directors and the CEO proposal to the 2022 Annual General Meeting is for a dividend for the 2021 financial year of a total of SEK 14.8 m (12.5), which corresponds to SEK 1.30 (1.10) per share.
Assurance by the Board of Directors
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, February 2, 2022
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 interim report has not been subject to review by the company's auditors.
Consolidated statement of comprehensive income
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEK 000 | Notes | 2021 | 2020 | 2021 | 2020 | |
| Net sales | 2 | 170,039 | 184,766 | 658,180 | 717,165 | |
| Cost of goods sold | 3 | -87,440 | -106,294 | -370,173 | -407,208 | |
| Gross profit | 82,599 | 78,472 | 288,007 | 309,957 | ||
| Sales and marketing expenses | -23,981 | -24,245 | -88,931 | -95,780 | ||
| Research and development expenses | -9,293 | -11,135 | -37,082 | -36,347 | ||
| Administration expenses | -16,793 | -13,388 | -54,443 | -54,524 | ||
| Other operating income | 1,561 | 93 | 1,692 | 376 | ||
| Operating profit (EBIT) | 34,093 | 29,797 | 109,243 | 123,681 | ||
| Financial income | 56 | 10 | 154 | 241 | ||
| Financial expenses | -508 | -440 | -1,882 | -2,123 | ||
| Exchange result financing activities | 4 | -231 | -1,267 | -76 | -1,712 | |
| Financial result | -683 | -1,697 | -1,804 | -3,594 | ||
| Earnings before income taxes | 33,410 | 28,100 | 107,439 | 120,087 | ||
| Income taxes | -7,142 | -6,269 | -24,294 | -27,394 | ||
| Net income | 26,268 | 21,831 | 83,145 | 92,693 | ||
| Other comprehensive income | ||||||
| Components to be reclassified to net income | ||||||
| Exchange rate differences resulting from the translation | 26,164 | -83,505 | 87,448 | -118,003 | ||
| of foreign operations | ||||||
| Cash flow hedge (currency hedges) | — | -76 | — | -280 | ||
| Income taxes payable on these components | — | 17 | — | 61 | ||
| 26,164 | -83,564 | 87,448 | -118,222 | |||
| Components not to be reclassified to net income | ||||||
| Equity instruments at fair value through OCI | -17,184 | — | -7,721 | — | ||
| -17,184 | — | -7,721 | — | |||
| Sum of other comprehensive income | 8,980 | -83,564 | 79,727 | -118,222 | ||
| Total comprehensive income | 35,248 | -61,733 | 162,872 | -25,529 | ||
| 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 | 2.31 | 1.92 | 7.30 | 8.14 |
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.
Consolidated statement of financial position
| SEK 000 | 31 December 2021 |
31 December 2020 |
|---|---|---|
| ASSETS | ||
| Capitalized development cost | 32,096 | 39,620 |
| Customer base | 239,887 | 239,482 |
| Technology and other intangible assets | 111,411 | 116,604 |
| Goodwill | 307,011 | 278,238 |
| Property, plant and equipment | 91,940 | 60,058 |
| Right-of-use assets | 74,739 | 43,019 |
| Interests in other entities | 101,201 | 53,032 |
| Deferred tax assets | 301 | 28 |
| Non-current assets | 958,586 | 830,081 |
| Inventories | 93,822 | 98,396 |
| Trade receivables | 119,060 | 89,339 |
| Other assets and receivables | 9,684 | 6,525 |
| Cash and cash equivalents | 251,017 | 215,552 |
| Current assets | 473,583 | 409,812 |
| Total assets | 1,432,169 | 1,239,893 |
| EQUITY AND LIABILITIES | ||
| Total equity | 1,265,541 | 1,115,203 |
| Deferred tax liabilities | 13,359 | 3,906 |
| Provisions | 13,359 | 3,906 |
| Non-current lease liabilities | 62,733 | 30,575 |
| Other non-current liabilities | 4,748 | 4,299 |
| Non-current liabilities | 67,481 | 34,874 |
| Trade payables | 46,244 | 39,922 |
| Current lease liabilities | 14,856 | 13,873 |
| Other current liabilities | 24,688 | 32,115 |
| Current liabilities | 85,788 | 85,910 |
| Total liabilities | 166,628 | 124,690 |
| Total equity and liabilities | 1,432,169 | 1,239,893 |
Consolidated changes in equity
| 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 | — | — | — | — | 92,693 | 92,693 |
| Other comprehensive income | — | — | -118,003 | -217 | — | -118,222 |
| Total Comprehensive Income | — | — | -118,003 | -217 | 92,693 | -25,527 |
| Dividends | — | — | — | — | -11,394 | -11,394 |
| Total transactions with shareholders |
— | — | — | — | -11,394 | -11,394 |
| Closing balance, 31 Dec 2020 | 58,221 | 600,205 | -58,034 | — | 514,811 | 1,115,203 |
| 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 | — | — | — | — | 83,145 | 83,145 |
| Other comprehensive income | — | — | 79,727 | — | — | 79,727 |
| Total Comprehensive Income | — | — | 79,727 | — | 83,145 | 162,872 |
| Dividends | — | — | — | — | -12,534 | -12,534 |
| Withdrawal of own shares | -1,250 | — | — | — | 1,250 | — |
| Bonus issue | 1,250 | — | — | — | -1,250 | — |
| Total transactions with shareholders |
— | — | — | — | -12,534 | -12,534 |
| Closing balance, 31 Dec 2021 | 58,221 | 600,205 | 21,693 | — | 585,422 | 1,265,541 |
Consolidated cash flow statement
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 | |
| Net income | 26,268 | 21,831 | 83,145 | 92,693 | |
| Adjustments to reconcile net income to cash from operating activities |
|||||
| Income taxes | 7,142 | 6,269 | 24,294 | 27,394 | |
| Interest result | 421 | 393 | 1,612 | 1,630 | |
| Amortization, depreciation and impairment of non-current assets | 19,981 | 17,250 | 73,285 | 72,780 | |
| Other non-cash expenses and income | 342 | 423 | 2,274 | 3,419 | |
| Cash flow before working capital changes | 54,154 | 46,166 | 184,610 | 197,916 | |
| Change in trade receivables and other current assets | -980 | 10,583 | -24,653 | -13,890 | |
| Change in inventories | 4,839 | 2,464 | 13,300 | -30,973 | |
| Change in trade payables and other current liabilities | 11,843 | 27,987 | -4,561 | 19,272 | |
| Income taxes paid | 1,608 | -1,263 | -14,501 | -28,961 | |
| Cash flow from operating activities | 71,464 | 85,937 | 154,195 | 143,364 | |
| Payments for investing in intangible assets | -1,656 | -4,546 | -7,416 | -13,334 | |
| Payments for investing in interests in other entities | — | -53,032 | -55,891 | -53,032 | |
| Payments for investing in property, plant and equipment | -14,015 | -8,705 | -35,147 | -30,036 | |
| Divestments of tangible assets | 973 | — | 973 | — | |
| Cash flow from investing activities | -14,698 | -66,283 | -97,481 | -96,402 | |
| Interest paid | -822 | -2,080 | -3,190 | -3,388 | |
| Interest received | 154 | 149 | 154 | 241 | |
| Repayments for lease obligations | -3,205 | -3,162 | -12,418 | -13,146 | |
| Dividends paid | — | — | -12,534 | -11,394 | |
| Cash flow from financing activities | -3,873 | -5,093 | -27,988 | -27,687 | |
| Cash flow for the period | 52,893 | 14,561 | 28,726 | 19,275 | |
| Effects of changes in exchange rates | 2,223 | -8,770 | 6,739 | -10,683 | |
| Change in cash and cash equivalents | 55,116 | 5,791 | 35,465 | 8,592 | |
| Cash and cash equivalents at opening balance | 195,901 | 209,761 | 215,552 | 206,960 | |
| Cash and cash equivalents at closing balance | 251,017 | 215,552 | 251,017 | 215,552 |
Parent company's condensed financial statements
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 | |
| Operating revenue | 72,183 | 69,114 | 285,364 | 288,617 | |
| Operating costs | -20,648 | -14,570 | -84,514 | -82,794 | |
| Gross profit | 51,535 | 54,544 | 200,850 | 205,823 | |
| Operating profit (EBIT) | 16,068 | 20,899 | 75,397 | 80,236 | |
| Result from financial income and expenses | -7,928 | -1,292 | 34,601 | -1,150 | |
| Income before tax | 8,140 | 19,607 | 109,998 | 79,086 | |
| Net income | 4,939 | 15,384 | 94,242 | 62,020 |
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 | |
| Net income | 4,939 | 15,384 | 94,242 | 62,020 | |
| Cash flow hedge (currency hedges) | — | -77 | — | -280 | |
| Income taxes payable on these components | — | 18 | — | 61 | |
| Sum of other comprehensive income | — | -59 | — | -219 | |
| Total comprehensive income | 4,939 | 15,325 | 94,242 | 61,801 |
| SEK 000 | 31 December 2021 |
31 December 2020 |
|---|---|---|
| ASSETS | ||
| Non-current assets | 1,065,635 | 1,026,553 |
| Current assets | 214,212 | 170,698 |
| Total assets | 1,279,847 | 1,197,251 |
| EQUITY AND LIABILITIES | ||
| Equity | 1,240,049 | 1,158,341 |
| Non-current liabilities | — | 4,035 |
| Current liabilities | 39,798 | 34,875 |
| Total equity and liabilities | 1,279,847 | 1,197,251 |
Notes
1. Accounting and valuation principles
The Group
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 are covered on pages 9-16. Disclosures in accordance with IAS 34 Interim Financial Reporting are provided both here and elsewhere in the interim report. The ESMA guidelines on alternative performance measures apply.
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 equivalent period the previous year. Amounts are stated in Swedish kronor (SEK), thousands of Swedish kronor (TSEK) or millions of Swedish kronor (SEK m) according to the unit stated.
Parent company
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.
2. Revenue from contracts with customers
A breakdown per category of the Group's net sales from contracts with customers is presented below:
| Oct-Dec 2021 | Oct-Dec 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 126,253 | 31,017 | 11,321 | 168,591 | 152,850 | 20,760 | 6,365 | 179,975 |
| Royalty | 1,600 | -152 | — | 1,448 | 1,371 | 3,420 | — | 4,791 |
| Net sales | 127,853 | 30,865 | 11,321 | 170,039 | 154,221 | 24,180 | 6,365 | 184,766 |
| Jan-Dec 2021 | Jan-Dec 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 478,668 | 114,587 | 49,474 | 642,729 | 558,294 | 100,721 | 46,484 | 705,499 |
| Royalty | 5,892 | 9,559 | — | 15,451 | 6,339 | 5,298 | 29 | 11,666 |
| Net sales | 484,560 | 124,146 | 49,474 | 658,180 | 564,633 | 106,019 | 46,513 | 717,165 |
3. Currency translation from operating activities
The following table shows the exchange gains and losses from operating activities that are recognized under cost of goods sold:
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 |
| Exchange gains operating activities | 1,259 | -982 | 3,053 | 3,474 |
| Exchange losses operating activities | -484 | -1,432 | -1,698 | -7,583 |
| Exchange result operating activities | 775 | -2,414 | 1,355 | -4,109 |
4. Currency translation from financial activities
The following table shows the exchange gains and losses from financing activities that are recognized in the financial results:
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 |
| Exchange gains financing activities | 510 | 28 | 1,332 | 3,963 |
| Exchange losses financing activities | -741 | -1,295 | -1,408 | -5,675 |
| Exchange result financing activities | -231 | -1,267 | -76 | -1,712 |
5. Definition of alternative performance measures not defined in IFRS
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:
Operating profit (EBIT)
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.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 |
| Net income | 26,268 | 21,831 | 83,145 | 92,693 |
| Income taxes | 7,142 | 6,269 | 24,294 | 27,394 |
| Financial result | 683 | 1,697 | 1,804 | 3,594 |
| Operating profit (EBIT) | 34,093 | 29,797 | 109,243 | 123,681 |
EBITDA
EBITDA is defined as the operating profit (EBIT) before depreciation/amortization and impairment and is used as a measure of the company's profitability.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK 000 | 2021 | 2020 | 2021 | 2020 |
| Operating profit (EBIT) | 34,093 | 29,797 | 109,243 | 123,681 |
| Depreciation and amortization | 19,981 | 17,250 | 73,285 | 72,780 |
| EBITDA | 54,074 | 47,047 | 182,528 | 196,461 |
| Other alternative performance measures |
Definition/Basis of calculation | Purpose |
|---|---|---|
| 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 |
About Probi
Probi® is a global Group that focuses exclusively on research, manufacturing and delivery of probiotics in dietary supplements and food. The company has expertise 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 658 m in 2021. Probi's shares are listed on Nasdaq Stockholm, Mid-cap, and there were around 3,800 shareholders on December 31, 2021.
