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Probi Interim / Quarterly Report 2023
3099_ir_2023-07-18_2bb33996-bf86-4f55-b4bd-2643564759d8.pdf
Interim / Quarterly Report
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- Net sales decreased by 18% (21% adjusted for currency effects) to SEK 144 m (175).
- The EBITDA margin amounted to 9% (26) and was burdened by items affecting comparability. Adjusted for these, the EBITDA margin was 17%.
- Approval of HEAL9™ in Thailand. Enables further expansion in APAC.
- Takeover of distribution of our own brand Probi® in Sweden and entry into Norway with new agreements with pharmacies.
- Exclusive distributor of BLIS K12™ and BLIS M18™ ingredients in the US and Canada as of August 1.
- New partnership with Clasado Biosciences for the development of synbiotics.
• Resignation of the CFO, Henrik Lundkvist. He will continue to work as CFO until a successor has been appointed or until the end of the year at the latest.
| Apr-Jun | Jan-Jun | Full-year | ||||
|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | 2023 | 2022 | RTM | 2022 |
| Net sales | 143.7 | 174.5 | 315.5 | 329.2 | 604.6 | 618.3 |
| Growth, % | -17.6% | 10.5% | -4.2% | 0.0% | -2.2% | -6.1% |
| Currency adjusted growth, % | -21.3% | -0.9% | -10.3% | -8.8% | -12.1% | -16.7% |
| Gross margin, % | 32.5% | 44.5% | 37.9% | 43.6% | 38.3% | 41.3% |
| EBITDA | 12.9 | 45.9 | 60.2 | 84.2 | 112.3 | 136.3 |
| EBITDA margin, % | 9.0% | 26.3% | 19.1% | 25.6% | 18.6% | 22.0% |
| Operating profit (EBIT) | -11.0 | 25.2 | 12.6 | 43.7 | 19.5 | 50.6 |
| EBIT margin, % | -7.6% | 14.5% | 4.0% | 13.3% | 3.2% | 8.2% |
| Net income | -6.3 | 20.0 | 13.0 | 34.0 | 19.6 | 40.6 |
| Earnings per share before and after dilution, SEK | -0.55 | 1.75 | 1.14 | 2.98 | 1.72 | 3.57 |
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 18, 2023 at 08:00 CET. This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.
Sales in the first half of the year were down 4% (10% adjusted for currency effects) as a result of weaker underlying demand in the Americas and EMEA. The EBITDA margin was 19% for the first six months of the year. Profitability in Q2 was negatively affected by some major costs affecting comparability for establishment costs relating to the takeover of distribution in Sweden along with personnel-related restructuring costs. Furthermore, we have experienced challenges in our manufacturing, which also affected the results in the quarter. To address this, a remediation program has been initiated focusing on optimizing our manufacturing processes and achieving further efficiencies. Adjusted for the above effects, the EBITDA margin amounted to 17% in Q2 and 23% for the first half of the year.
Our assessment is that net sales for the full year will be approximately on par with the previous year and that the reported EBITDA margin will be lower as a result of the additional cost connected to the initiated remediation program.
Both the Americas and EMEA declined in Q2 compared to the previous year and we saw a weaker underlying market with increased price sensitivity among end customers and a shift towards less premium priced products. Our customers also reduced their inventory levels, leading to lower order frequency. EMEA was affected by some major order delays and reduced buffer stocks at one of our larger customers.
On the positive side, we can state that the takeover of the distribution of our own brand in Sweden has been well received and had a consistently good impact. We also entered Norway with our own distribution and we see good opportunities for growth in that market. It is also very satisfying that during the quarter we secured a
multiyear supply agreement with our largest American customer.
APAC is developing well and in the first half of the year saw 27% growth compared to the previous year, with Australia and China accounting for the greatest growth in the region. During Q2, we received approval for HEAL9™ a in Thailand, which means we can expand with our concepts Probi® Osteo and Probi Digestis® in the growing Thai market.
In the area of product development and innovation, we have started an exciting collaboration with Clasado Biosciences. We will take advantage of our respective portfolios within pre- and probiotics to develop new synbiotic products, a market segment expected to grow.
To achieve our goal of sustainable growth, it is crucial that we have talented and passionate employees and a healthy corporate culture with clear purpose, strategy and direction. Therefore, I have spent a lot of time reviewing the organization and in the quarter we have made changes in the organizational design to better meet our customer needs. At the same time, I regret that our CFO Henrik Lundkvist has decided to leave his position. He will remain until a successor has been appointed or until the end of the year.
It is the highest priority that the remediation program we have initiated for manufacturing quickly shows results and that we establish a strong and dynamic organization that will return us to growth and good profitability. I have a strong belief in Probi and what we do and am convinced that we will succeed in overcoming these challenges.
Anita Johansen CEO
During Q2, net sales amounted to SEK 143.7 m (174.5), corresponding to a decrease of SEK 30.8 m or 18%. Adjusted for currency effects, net sales amounted to SEK 137.3 m, corresponding to a decrease of 21%.
The decrease of SEK 30.8 m is explained by lower sales in the Americas, which decreased by SEK 18.1 m (15%) and EMEA, which decreased by SEK 13.2 m (37%). APAC increased by SEK 0.5 m (3%).
The share of total net sales in the Americas during Q2 was 73%. EMEA accounted for 16% and APAC 11%.
Net sales amounted to SEK 315.5 m (329.2), a decrease of 4%. Adjusted for currency effects, this corresponded to a decrease of 10%. The decrease is mainly explained by the fact that sales in EMEA were SEK 23.4 m (-36%) lower than the previous year as a result of a weaker underlying market, at the same time as one large customer postponed their orders due to the reduction of their safety stock. The Americas region increased by SEK 1.6 m (1%), but adjusted for currency effects, the region decreased by 7%, which was due to a weaker market. Sales in APAC increased by SEK 8.1 m (27%).
| Apr-Jun | Jan-Jun | ||||||
|---|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % | |
| Americas | 104.8 | 122.9 | -14.7% | 235.5 | 233.9 | 0.7% | |
| EMEA | 22.4 | 35.6 | -37.1% | 42.3 | 65.7 | -35.6% | |
| APAC | 16.5 | 16.0 | 3.1% | 37.7 | 29.6 | 27.4% | |
| Net sales | 143.7 | 174.5 | -17.7% | 315.5 | 329.2 | -4.2% |
The operating loss for Q2 was SEK -11.0 m (25.2), corresponding to a decrease of SEK 36.2 m. Adjusted for currency effects, the operating loss was SEK -10.5 m. The declining operating loss was due to lower sales but also to inefficiency in manufacturing, which is addressed by a remediation program. Furthermore, Q2 was affected by high establishment costs due to distribution in Sweden being taken over on April 1, as well as personnel-related restructuring costs.
Sales and marketing expenses amounted to SEK 33.6 m (26.7), the increase being explained by high establishment costs connected with the takeover of distribution in Sweden, while Q2 was affected by personnel-related restructuring costs.
Research and development expenses were roughly at the same level as last year and amounted to SEK 9.7 m (10.4).
Administrative expenses decreased by SEK 1.1 m compared to last year and amounted to SEK 14.4 m (15.5). This reduction is mainly due to lower business development costs.
| Apr-Jun | Jan-Jun | ||||||
|---|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % | |
| Gross profit Americas | 25.3 | 51.5 | -50.9% | 73.4 | 91.0 | -19.3% | |
| Gross profit EMEA | 11.5 | 17.4 | -33.9% | 22.5 | 34.8 | -35.3% | |
| Gross profit APAC | 9.9 | 8.8 | 12.5% | 23.8 | 17.8 | 33.7% | |
| Gross profit | 46.7 | 77.7 | -39.9% | 119.7 | 143.6 | -16.6% | |
| Sales and marketing expenses | -33.6 | -26.7 | 25.8% | -59.9 | -50.1 | 19.6% | |
| Research and development expenses | -9.7 | -10.4 | -6.7% | -20.1 | -19.6 | 2.6% | |
| Administration expenses | -14.4 | -15.5 | -7.1% | -27.8 | -30.4 | -8.6% | |
| Other operating income | 0.0 | 0.1 | 0.0% | 0.7 | 0.2 | 250.0% | |
| Operating profit (EBIT) | -11.0 | 25.2 | -143.7% | 12.6 | 43.7 | -71.2% |
The financial result for Q2 amounted to SEK 2.3 m (-0.4). Net financial items excluding exchange rate results amounted to SEK 1.3 m (-0.6) and consisted mainly of interest on bank balances and leasing contracts. The exchange rate result amounted to SEK 1.3 m (1.0) in Q2 and refers to the conversion of cash and cash equivalents into foreign currency.
The loss for the quarter amounted to SEK -6.3 m (20.0). The tax for the period was SEK 2.4 m (-5.6).
Earnings per share for the quarter amounted to SEK -0.55 SEK (1.75).
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 15% and amounted to SEK 105 m. Adjusted for currency effects, net sales amounted to SEK 99 m, corresponding to a decrease of 20% in Q2. Net sales were negatively affected by a weaker underlying market and a lower order frequency.
After BLIS cancelled its agreement with its previous distributor, Probi will become the exclusive distributor of ingredients for BLIS K12™ and BLIS M18™ in the US and Canada as per August 1st .
During Q2, a multiyear supply agreement was secured with the largest customer in the region.
The gross margin in Q2 amounted to 24% (42). The margin was affected by the lower volumes and inefficiency in the manufacturing process, which led to higher costs over the quarter.
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % |
| Net Sales | 104.8 | 122.9 | -14.7% | 235.5 | 233.9 | 0.7% |
| Cost of goods sold | -79.5 | -71.4 | 11.3% | -162.1 | -142.9 | 13.4% |
| Gross profit | 25.3 | 51.5 | -50.9% | 73.4 | 91.0 | -19.3% |
| Gross margin | 24.1% | 41.9% | -17.8 ppt | 31.2% | 38.9% | -7.7 ppt |
Net sales in EMEA decreased by 37% in Q2 to SEK 22 m compared to SEK 36 m last year. A drop in order frequency indicates a weaker underlying market and reduced stock levels. One of the largest customers reduced their safety stock and a couple of larger orders were moved forward.
The takeover of the distribution of the Probi® brand in Sweden has progressed well and the first contracts with pharmacies in Norway have also been signed.
The gross margin for Q2 was 51% (49) and was slightly higher than last year.
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % |
| Net Sales | 22.4 | 35.6 | -37.1% | 42.3 | 65.7 | -35.6% |
| Cost of goods sold | -10.9 | -18.2 | -40.1% | -19.8 | -30.9 | -35.9% |
| Gross profit | 11.5 | 17.4 | -33.9% | 22.5 | 34.8 | -35.3% |
| Gross margin | 51.3% | 48.9% | 2.4 ppt | 53.2% | 53.0% | 0.2 ppt |
Net sales in APAC increased by 3% to SEK 17 m. The first half of the year was the strongest ever for the region with a year-on-year increase of 27% and Australia and China being the driving forces in the region.
During Q2, the Thai FDA approved HEAL9™, enabling the launch of Probi® Osteo and Probi Digestis® on the Thai market.
The region is still subject to large fluctuations but is expected to continue to grow.
The gross margin in Q2 was slightly higher than last year and amounted to 60% (55) as a result of a favorable product mix.
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % |
| Net Sales | 16.5 | 16.0 | 3.1% | 37.7 | 29.6 | 27.4% |
| Cost of goods sold | -6.6 | -7.2 | -8.3% | -13.9 | -11.8 | 17.8% |
| Gross profit | 9.9 | 8.8 | 12.5% | 23.8 | 17.8 | 33.7% |
| Gross margin | 59.7% | 55.0% | 4.7 ppt | 63.1% | 60.1% | 3.0 ppt |
Cash flow from operating activities before changes in working capital decreased to SEK 13.7 m (46.9) in Q2 as a result of a lower operating profit.
Working capital decreased slightly during Q2 as a result of lower accounts receivable and the cash flow from operating activities amounted to SEK 9.0 m (20.5).
Cash flow from investment activities amounted to SEK -9.2 (-15.3) and mainly consisted of investments in intangible but also tangible fixed assets.
Cash flow from financing activities was SEK -18.8 m (-18.8), of which SEK 14.8 m involved dividends paid and the remainder mainly consisted of amortization of leasing liabilities.
Cash flow for the period was SEK -16.6 m (-5.6) and cash and cash equivalents amounted to SEK 301.4 m (265.6).
During Q2, investments in intangible fixed assets amounted to SEK 5.6 m (1.9), of which SEK 1.0 m (0.9) related to patents, SEK 2.0 m (1.0) to capitalized development expenses and SEK 2.6 m (0.0) to IT systems. Investments in tangible fixed assets amounted to SEK 3.6 m (13.4), which mainly related to investments in the manufacturing unit at Redmond.
At the end of the period, Probi had 164 (166) employees, of which 53% (51) were women. The average number of employees during Q2 amounted to 165 (171).
During Q2, Probi reported SEK 0.1 m (2.9) in revenue from its largest shareholder, Symrise, and costs amounted to SEK 0.0 m (0.0). No other transactions with related parties occurred during the reporting period.
In February 2022, Russia launched an invasion of Ukraine. Probi has a limited exposure to Russia and Ukraine, and the company's assessment is that the effects at both supplier and customer levels are limited. The cost increases that have arisen in connection with increased inflation are mainly compensated by price increases to the customer. However, there may be a delayed effect until the price increases take full effect depending on the agreed terms. Other risks and uncertainties to which Probi's operations are exposed are described on pages 48–49 of the annual report for 2022.
During Q2, the parent company's operating income amounted to SEK 62.8 m (79.6). The profit for the period was SEK 2.2 m (51.3) and this decrease was due to a lower operating profit and a lower financial result. The decreased financial result was explained by lower dividends from the subsidiaries. Investments in tangible and intangible assets amounted to SEK 3.0 m (1.9). For further details, please see the information for the Group.
Interim report Q3 2023 October 23, 2023 Year-end report 2023 January 26, 2024
Probi's interim report for Q2 2023 will be published on July 18, 2023, at 8:00 a.m. On the same day at 10:00 a.m., a teleconference will be held with Anita Johansen, CEO and Henrik Lundkvist, CFO, who will present the report. The telephone conference can be accessed via the link
https://conference.financialhearings.com/teleconference/?id=200845. The presentation is available at www.probi.com and www.financialhearings.com.
Anita Johansen, CEO Tel: +46 (0)46 286 89 48 E-mail: [email protected] Henrik Lundkvist, CFO Tel: +46 (0)46 286 89 41 E-mail: [email protected]
The Board of Directors and CEO declare that this interim report provides a true and fair overview of the parent company's and Group's operations, financial position and results, and describes the significant risks and uncertainties facing the parent company and the Group.
Lund, July 18, 2023
Jean-Yves Parisot Chairman of the Board Jörn Andreas Board member
Irène Corthésy Malnoë Board member
Charlotte Hansson Board member
Malin Ruijsenaars Board member
Anita Johansen 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, 2023 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 18, 2023
Ernst & Young AB
Peter Gunnarsson Authorized Public Accountant
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| SEK 000 | Notes | 2023 | 2022 | 2023 | 2022 | |
| Net sales | 2 | 143,718 | 174,510 | 315,537 | 329,228 | |
| Cost of goods sold | 3 | -96,998 | -96,806 | -195,813 | -185,623 | |
| Gross profit | 46,720 | 77,704 | 119,724 | 143,605 | ||
| Sales and marketing expenses | -33,558 | -26,738 | -59,864 | -50,132 | ||
| Research and development expenses | -9,675 | -10,355 | -19,396 | -19,558 | ||
| Administration expenses | -14,422 | -15,468 | -27,819 | -30,364 | ||
| Other operating income | -26 | 93 | -26 | 176 | ||
| Operating profit (EBIT) | -10,961 | 25,236 | 12,619 | 43,727 | ||
| Financial income | 1,880 | 67 | 3,271 | 112 | ||
| Financial expenses | -518 | -638 | -1,061 | -1,263 | ||
| Exchange result financing activities | 4 | 975 | 949 | 627 | 663 | |
| Financial result | 2,337 | 378 | 2,837 | -488 | ||
| Earnings before income taxes | -8,624 | 25,614 | 15,456 | 43,239 | ||
| Income taxes | 2,364 | -5,643 | -2,442 | -9,249 | ||
| Net income | -6,260 | 19,971 | 13,014 | 33,990 | ||
| Other comprehensive income | ||||||
| Components to be reclassified to net income | ||||||
| Exchange rate differences resulting from the translation | ||||||
| of foreign operations | 47,427 | 96,296 | 39,428 | 118,838 | ||
| Cash flow hedge (currency hedges) | — | 238 | — | 238 | ||
| Income taxes payable on these components | — | -59 | — | -59 | ||
| Total components to be reclassified to net income | 47,427 | 96,475 | 39,428 | 119,017 | ||
| Components not to be reclassified to net income | ||||||
| Equity instruments at fair value through OCI | -4,859 | -14,235 | -1,127 | -18,563 | ||
| Total components not to be reclassified to net income | -4,859 | -14,235 | -1,127 | -18,563 | ||
| Sum of other comprehensive income | 42,568 | 82,240 | 38,301 | 100,454 | ||
| Total comprehensive income | 36,308 | 102,211 | 51,315 | 134,444 | ||
| 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 | -0.55 | 1.75 | 1.14 | 2.98 |
The period's results as well as comprehensive income is attributable in its entirety to the parent company's shareholders. There is no dilution effect, as the company has no outstanding convertible loans or warrants.
| SEK 000 | 30 June 2023 | 31 December 2022 |
|---|---|---|
| ASSETS | ||
| Capitalized development cost | 24,133 | 24,782 |
| Customer base | 243,543 | 248,452 |
| Technology and other intangible assets | 105,269 | 109,251 |
| Goodwill | 367,809 | 353,887 |
| Property, plant and equipment | 158,114 | 146,806 |
| Right-of-use assets | 59,899 | 65,546 |
| Interests in other entities | 79,383 | 80,510 |
| Deferred tax assets | 323 | 357 |
| Non-current assets | 1,038,473 | 1,029,591 |
| Inventories | 139,180 | 116,245 |
| Trade receivables | 102,563 | 89,295 |
| Other assets and receivables | 14,202 | 11,051 |
| Cash and cash equivalents | 301,357 | 323,706 |
| Current assets | 557,302 | 540,297 |
| Total assets | 1,595,775 | 1,569,888 |
| EQUITY AND LIABILITIES | ||
| Total equity | 1,447,070 | 1,410,567 |
| Deferred tax liabilities | 7,865 | 13,833 |
| Provisions | 7,865 | 13,833 |
| Non-current lease liabilities | 47,526 | 53,601 |
| Other non-current liabilities | 5,697 | 5,480 |
| Non-current liabilities | 53,223 | 59,081 |
| Trade payables | 31,864 | 34,424 |
| Current lease liabilities | 17,499 | 16,667 |
| Other current liabilities | 38,254 | 35,316 |
| Current liabilities | 87,617 | 86,407 |
| Total liabilities | 148,705 | 159,321 |
| Total equity and liabilities | 1,595,775 | 1,569,888 |
| SEK 000 | Share capital |
Other contri butions received |
Cumulative translation differences |
Hedging reserve |
Fair value reserve |
Accumulat ed profit |
Total equity |
|---|---|---|---|---|---|---|---|
| Opening balance, 1 Jan 2022 | 58,221 | 600,205 | 29,414 | — | -7,721 | 585,422 | 1,265,541 |
| Net income | — | — | — | — | — | 33,990 | 33,990 |
| Other comprehensive income | — | — | 118,838 | 179 | -18,563 | — | 100,454 |
| Total Comprehensive Income | — | — | 118,838 | 179 | -18,563 | 33,990 | 134,443 |
| Dividends | — | — | — | — | — | -14,812 | -14,812 |
| Total transactions with shareholders |
— | — | — | — | — | -14,812 | -14,812 |
| Closing balance, 30 Jun 2022 | 58,221 | 600,205 | 148,252 | 179 | -26,284 | 604,599 | 1,385,172 |
| SEK 000 | Share capital |
Other contri butions received |
Cumulative translation differences |
Hedging reserve |
Fair value reserve |
Accumulat ed profit |
Total equity |
|---|---|---|---|---|---|---|---|
| Opening balance, 1 Jan 2023 | 58,221 | 600,205 | 169,322 | — | -28,412 | 611,232 | 1,410,567 |
| Net income | — | — | — | — | — | 13,014 | 13,014 |
| Other comprehensive income | — | — | 39,428 | — | -1,127 | — | 38,301 |
| Total Comprehensive Income | — | — | 39,428 | — | -1,127 | 13,014 | 51,315 |
| Dividends | — | — | — | — | — | -14,812 | -14,812 |
| Total transactions with shareholders |
— | — | — | — | — | -14,812 | -14,812 |
| Closing balance, 30 Jun 2023 | 58,221 | 600,205 | 208,750 | — | -29,539 | 609,433 | 1,447,069 |
| Apr-Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 | |
| Net income | -6,260 | 19,971 | 13,014 | 33,990 | |
| Adjustments to reconcile net income to cash from | |||||
| operating activities | |||||
| Income taxes | -2,364 | 5,643 | 2,442 | 9,249 | |
| Interest result | -1,362 | 540 | -2,210 | 1,099 | |
| Amortization, depreciation and impairment of non-current assets | 23,909 | 20,656 | 47,595 | 40,443 | |
| Other non-cash expenses and income | -206 | 110 | -165 | 982 | |
| Cash flow before working capital changes | 13,717 | 46,920 | 60,676 | 85,763 | |
| Change in trade receivables and other current assets | 14,880 | -27,848 | -13,253 | 1,985 | |
| Change in inventories | -5,549 | 5,284 | -18,243 | -6,431 | |
| Change in trade payables and other current liabilities | -9,312 | 1,126 | 1,668 | -11,127 | |
| Income taxes paid | -4,777 | -4,972 | -9,100 | -11,766 | |
| Cash flow from operating activities | 8,959 | 20,510 | 21,748 | 58,424 | |
| Payments for investing in intangible assets | -5,619 | -1,935 | -10,373 | -4,169 | |
| Payments for investing in property, plant and equipment | -3,562 | -13,431 | -13,146 | -26,860 | |
| Divestments of tangible assets | 10 | 20 | 10 | 20 | |
| Cash flow from investing activities | -9,171 | -15,346 | -23,509 | -31,009 | |
| Interest paid | -528 | -616 | -1,081 | -1,229 | |
| Interest received | 310 | 8 | 741 | 11 | |
| Repayments for lease obligations | -3,751 | -3,363 | -7,432 | -6,593 | |
| Dividends paid | -14,812 | -14,812 | -14,812 | -14,812 | |
| Cash flow from financing activities | -18,781 | -18,783 | -22,584 | -22,623 | |
| Cash flow for the period | -18,993 | -13,619 | -24,345 | 4,792 | |
| Effects of changes in exchange rates | 2,395 | 8,040 | 1,996 | 9,808 | |
| Change in cash and cash equivalents | -16,598 | -5,579 | -22,349 | 14,600 | |
| Cash and cash equivalents at opening balance | 317,955 | 271,196 | 323,706 | 251,017 | |
| Cash and cash equivalents at closing balance | 301,357 | 265,617 | 301,357 | 265,617 |
| Apr-Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 | |
| Operating revenue | 62,773 | 79,551 | 144,784 | 152,999 | |
| Operating costs | -16,982 | -24,319 | -35,832 | -43,659 | |
| Gross profit | 45,791 | 55,232 | 108,952 | 109,340 | |
| Operating profit (EBIT) | 6,574 | 18,729 | 37,773 | 40,080 | |
| Result from financial income and expenses | -2,443 | 36,739 | 1,823 | 32,161 | |
| Income before tax | 4,132 | 55,468 | 39,597 | 72,241 | |
| Net income | 2,193 | 51,305 | 31,011 | 63,617 |
| Apr-Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 | |
| Net income | 2,193 | 51,305 | 31,011 | 63,617 | |
| Sum of other comprehensive income | — | — | — | — | |
| Total comprehensive income | 2,193 | 51,305 | 31,011 | 63,617 |
| SEK 000 | 30 June 2023 | 31 December 2022 |
|---|---|---|
| ASSETS | ||
| Non-current assets | 1,039,333 | 1,042,975 |
| Current assets | 316,121 | 299,369 |
| Total assets | 1,355,454 | 1,342,344 |
| EQUITY AND LIABILITIES | ||
| Equity | 1,316,729 | 1,300,531 |
| Current liabilities | 38,725 | 41,813 |
| Total equity and liabilities | 1,355,454 | 1,342,344 |
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 10-17. 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 principles applied when these consolidated accounts were prepared have been applied consistently for all periods presented, unless otherwise stated. Complete accounting principles can be found on pages 65–68 of the annual report for 2022.
The parent company's functional currency is Swedish kronor (SEK), which is also the reporting currency for both the parent company and the Group. All amounts stated are rounded to the nearest thousand kronor unless otherwise stated.
Amounts and figures in parentheses refer to comparative figures for the corresponding period of the previous year. Amounts are expressed in Swedish kronor (SEK), thousands (TSEK) or millions (SEK million) according to the unit stated.
The parent company applies the same accounting principles as the Group apart from IFRS 16 "Leasing" and with the exceptions and additions that appear in RFR 2 "Accounting for legal entities". The interim report complies with the Annual Accounts Act.
A breakdown by category of the Group's net sales from contracts with customers is presented below:
| Apr-Jun 2023 | Apr-Jun 2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 103,395 | 21,988 | 16,508 | 141,891 | 121,215 | 35,082 | 15,964 | 172,261 |
| Royalty | 1,418 | 409 | — | 1,827 | 1,715 | 534 | — | 2,249 |
| Net sales | 104,813 | 22,397 | 16,508 | 143,718 | 122,930 | 35,616 | 15,964 | 174,510 |
| Jan-Jun 2023 | Jan-Jun 2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 232,065 | 41,023 | 37,675 | 310,763 | 230,661 | 64,359 | 29,635 | 324,655 |
| Royalty | 3,447 | 1,327 | — | 4,774 | 3,270 | 1,303 | — | 4,573 |
| Net sales | 235,512 | 42,350 | 37,675 | 315,537 | 233,931 | 65,662 | 29,635 | 329,228 |
The following table shows the exchange gains and losses from operating activities that are recognized under costof goods sold:
| Apr-Jun | Jan-Jun | |||
|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 |
| Exchange gains operating activities | 1,694 | 2,609 | 2,681 | 4,341 |
| Exchange losses operating activities | -1,239 | -865 | -1,852 | -1,931 |
| Exchange result operating activities | 455 | 1,744 | 829 | 2,410 |
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 | 2023 | 2022 | 2023 | 2022 | |
| Exchange gains financing activities | 1,056 | 1,295 | 1,894 | 2,110 | |
| Exchange losses financing activities | -81 | -346 | -1,267 | -1,447 | |
| Exchange result financing activities | 975 | 949 | 627 | 663 |
Probi presents certain financial key performance indicators (KPIs) in the interim report that are not defined according to IFRS. Probi believes that these indicators provide valuable supplementary information to investors and the company's management. Since not all companies calculate alternative KPIs in the same way, these are not always comparable to indicators used by other companies. However, these indicators should not be considered as a substitute for financial indicators required in accordance with IFRS. The following alternative KPIs are reported in the interim report:
The operating profit/loss (EBIT) is defined as the profit/loss before financial income, expenses and tax for the periodand is used as a measure of the company's profitability.
| Apr-Jun | Jan-Jun | |||
|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 |
| Net income | -6,260 | 19,971 | 13,014 | 33,990 |
| Income taxes | -2,364 | 5,643 | 2,442 | 9,249 |
| Financial result | -2,337 | -378 | -2,837 | 488 |
| Operating profit (EBIT) | -10,961 | 25,236 | 12,619 | 43,727 |
EBITDA is defined as the operating profit (EBIT) before depreciation and impairment and is used as a measure of the company's profitability.
| Apr-Jun | Jan-Jun | |||
|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 |
| Operating profit (EBIT) | -10,961 | 25,236 | 12,619 | 43,727 |
| Depreciation and amortization | 23,909 | 20,656 | 47,595 | 40,443 |
| EBITDA | 12,948 | 45,892 | 60,214 | 84,170 |
| 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 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 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 around 400 patents worldwide. Probi had sales of SEK 618 m in 2022. Probi's shares are listed on Nasdaq Stockholm, Mid-cap, and there were around 3,700 shareholders on December 31, 2022
