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Probi Interim / Quarterly Report 2024
3099_10-q_2024-04-23_7a3db016-5116-414d-a9c4-b47101bbedc9.pdf
Interim / Quarterly Report
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- Underlying sales were overall as expected, despite Q1 coming in 12% below Q1 LY (11% adjusted for currency effects) to SEK 152 m (172). The reduction compared to LY is primarily due to positive one-time effects from delayed deliveries in the Americas as a result of a severe snowstorm at the end of 2022. Additionally, APAC was affected by timing shifts in orders during the quarter.
- The EBITDA margin amounted to 15% (28). Adjusted for the above-mentioned snowstorm the comparison year margin is 23%.
- A new study showing synergistic benefits in Probi's and Clasado's joint synbiotic immune health concept was published in the International Journal of Nutritional Sciences.
- Probi was selected as a finalist in the annual NutraIngredients Awards for its pioneering Probi® Sensia concept, improving cognition, mood and sleep.
- Probi strengthened its brand position in the Nordic regions, by expanding the B2C operations into Denmark through a partnership with Matas.
- Probi attained silver status from EcoVadis, for its performance in sustainability.
| Jan-Mar | Full-year | |||
|---|---|---|---|---|
| SEK m | 2024 | 2023 | RTM | 2023 |
| Net sales | 151.7 | 171.8 | 607.5 | 627.7 |
| Growth, % | -11.7% | 11.1% | -3.2% | 1.5% |
| Currency adjusted growth, % | -11.5% | 2.1% | -4.4% | -2.0% |
| Gross margin, % | 32.7% | 42.5% | 32.4% | 35.1% |
| EBITDA | 22.0 | 47.3 | 82.3 | 107.5 |
| EBITDA margin, % | 14.5% | 27.5% | 13.5% | 17.1% |
| Operating profit (EBIT) | -2.0 | 23.6 | -14.3 | 11.3 |
| EBIT margin, % | -1.3% | 13.7% | -2.4% | 1.8% |
| Net income | 1.9 | 19.3 | -0.6 | 16.8 |
| Earnings per share before and after dilution, SEK | 0.16 | 1.69 | -0.05 | 1.48 |
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. The information was submitted for publication, through the agency of the CEO and CFO, on April 23, 2024 at 08:00 CET. This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.
The start of 2024 has been characterized by a whirlwind of activities and events, largely fueled by our strategic revamp introduced in the later part of 2023. Our sales were relatively stable and in line with our expectations for this transitional year, looking beyond some disadvantageous comparatives in Americas. In terms of efficiency, we are beginning to see encouraging signs of improvement in our manufacturing optimization program, which is an important step in strengthening our currently strained profitability. More has to be done before we reach our goals, but I am pleased with our progress in the first quarter, and we are taking steady steps in the right direction.
Commercially we have achieved several notable highlights. In March, our team in North America attended Expo West reporting significant interest in our recently launched Probi® Sensia offering, as well as our new synbiotic solutions and combination products. Probi's commercial team does a fantastic job gaining traction with existing key customers, as well as new ones. This applies to all regions, and we are currently seeing major activity and momentum in our sales and marketing initiatives overall, with more new customers signed up and further discussions underway. Moreover, several product launches took place through distribution partners, and additional customer launches are planned for 2024 and next year.
Probi's B2C business model, initially launched in Sweden and Norway, will now also be expanded to the Danish market through a commercial e-commerce collaboration with Matas, which is Denmark's largest beauty, personal care and health products retailer. Since the Swedish B2C launch a year ago, Probi has successfully managed to grow its market share. We are now ready to further elevate the Probi brand on the Nordic market, enhancing our category leadership and broadening our market presence.
In terms of scientific advancements, our collaboration with Clasado has progressed well. The R&D teams involved in our partnership have worked closely together to add further evidence of the synergistic benefits of combining our products. At the end of the quarter, we were proud to announce the publication of our findings in the International Journal of Nutritional Sciences, clearly demonstrating that the combination of Probi's Defendum® probiotics and Clasado's prebiotic can have an even greater benefit than either ingredient alone. Moreover, we recently learned that Probi has been selected as a finalist for the NutraIngredients Awards 2024 for our research on the LpHEAL9 strain in our Probi® Sensia psychobiotic. These accomplishments not only bolster our existing product range, but also confirm Probi's ability to deliver pioneering and innovative solutions anchored in scientific excellence.
As we progress into 2024, I remain firmly committed to cultivating a robust and adaptable organization united by a common purpose. Our primary focus is on establishing the optimal conditions for commercial success and sustainable profitable growth, in accordance with our outlined goals for 2024-2028. We are already witnessing positive developments from our strategic and operational revamps. As previously communicated, 2024 will be a transitional year with modest expectations on increased growth and profitability. While the financial outcomes are not expected in the immediate future, I am, however, confident that we are heading in the right direction.
Anita Johansen CEO
During Q1, net sales amounted to SEK 151.7 m (171.8) corresponding to a decrease of SEK 20.1 m or 12%. Adjusted for currency effects, net sales amounted to SEK 152.1 m, corresponding to a decrease of 11%.
The decrease of SEK 20.1 m is mainly due to a oneoff effect (18) in the comparative quarter for Americas regarding postponed orders from Q4 2022 into Q1 2023. Americas declined 12%, totaling SEK 15.5 m although underlying the business was stable. EMEA showed a growth of 11%, driven by the strategic B2C insourcing and quarterly dynamics. APAC declined by 33% due to sales phasing.
The share of total net sales in the Americas during Q1 was 76%. EMEA accounted for 15% and APAC 9%.
| Jan-Mar | |||
|---|---|---|---|
| SEK m | 2024 | 2023 | Change, % |
| Americas | 115.2 | 130.7 | -11.9% |
| EMEA | 22.2 | 20.0 | 11.0% |
| APAC | 14.2 | 21.2 | -33.0% |
| Net sales | 151.7 | 171.8 | -11.7% |
The operating profit/loss for Q1 amounted to SEK -2.0 m (23.6), corresponding to a decrease of SEK 25.6 m. Adjusted for currency effects, the operating profit/loss was SEK -2.0 m. The gross margin was impacted by various timing impacts including low production volume in Q1 but also by consulting costs related to Probi's current optimization program in the manufacturing process and higher depreciations related to increased investment in upgrading production processes.
Sales and marketing costs amounted to SEK 25.8 m (26.3) due to phasing cost. Underlying cost planned to increase year over year in line with the decision to strengthening our sales and marketings teams and marketing expenses to support the Swedish B2C business.
Research and development expenses were slightly higher than last year and amounted to SEK 10.7 m (9.7). This is mainly explained by planned incremental spending but also the phasing of various research projects runs over the year.
Administration expenses amounted to SEK 15.1 m (13.4). The increase is related to strengthening the organization and general inflation.
| Jan-Mar | |||
|---|---|---|---|
| SEK m | 2024 | 2023 | Change, % |
| Gross profit Americas | 31.1 | 48.1 | -35.3% |
| Gross profit EMEA | 10.6 | 11.0 | -3.6% |
| Gross profit APAC | 7.9 | 13.9 | -43.2% |
| Gross profit | 49.6 | 73.0 | -32.1% |
| Sales and marketing expenses | -25.8 | -26.3 | -1.9% |
| Research and development expenses | -10.7 | -9.7 | 10.3% |
| Administration expenses | -15.1 | -13.4 | 12.7% |
| Other operating income | 0.0 | 0.0 | — |
| Operating profit (EBIT) | -2.0 | 23.6 | -108.5% |
The financial result for Q1 amounted to SEK 3.9 m (0.5). Net financial items excluding exchange rate results amounted to SEK 2.3 m (0.8) and consisted mainly of interest on bank balances and leasing contracts. The exchange rate result amounted to SEK 1.5 m (-0.3) in Q1 and refers to the translation of cash and cash equivalents into foreign currency.
The Net income for Q1 amounted to SEK 1.9 m (19.3). Tax cost for the period amounted to SEK 0.0 m (4.8).
Earnings per share for Q1 amounted to SEK 0.16 (1.69).
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 Americas decreased by 12% and amounted to SEK 115 m. Adjusted for currency effects, net sales amounted to SEK 116 m. The gross margin for Q1 was 27% (37), negatively impacted primarily by higher depreciation, consulting cost and lower production volume in the quarter.
Overall, our sales in Americas were relatively stable and in line with the expected sales trend. The noted decrease in sales compared to the same period last year was caused by a delayed order in 2022, which was postponed into Q1 2023 due to bad weather conditions resulting in high one-off comparative figures.
Commercially the quarter was characterized by high activity and strong momentum. Our sales team leveraged Expo West, one of the leading natural products trade shows, to deepen Probi's relations with strategic B2B customers, showcase our products and establish numerous new leads. We also secured business with new customers during the quarter and are building our customer pipeline to work with going forward.
| Jan-Mar | |||
|---|---|---|---|
| SEK m | 2024 | 2023 | Change, % |
| Net Sales | 115.2 | 130.7 | -11.9% |
| Cost of goods sold | -84.2 | -82.6 | 1.9% |
| Gross profit | 31.1 | 48.1 | -35.3% |
| Gross margin | 27.0% | 36.8% | -9.8 ppt |
Net sales in EMEA increased by 11% and amounted to SEK 22 m. The gross margin for Q1 was 48% (55) due to a different product mix in the quarter compared to the same period last year.
Overall, our sales in EMEA were stable and increased compared to the same period last year, and in general we experience positive momentum and good traction in the market.
Several customers are evaluating our newest concepts, e.g. Probi® Sensia and our synbiotic solutions based on the collaboration with Clasado. We also see interest in our combination product, based on Probi Defendum® and BLIS strains. Probi has signed a new customer in France, a new customer operating in the DACH region and is also working on several projects with a new distributor partner focused on South and East of Europe.
| Jan-Mar | |||
|---|---|---|---|
| SEK m | 2024 | 2023 | Change, % |
| Net Sales | 22.2 | 20.0 | 11.0% |
| Cost of goods sold | -11.6 | -8.9 | 30.3% |
| Gross profit | 10.6 | 11.0 | -3.6% |
| Gross margin | 47.7% | 55.3% | -7.6 ppt |
Net sales in APAC were SEK 7 m lower than 2023 i.e. SEK 14 m for Q1 2024 due to timing of sales. The gross margin for Q1 was 56% (66). The decrease is caused by product mix.
Our sales in APAC are on par with the expected sales trend, although a decline is noted compared to the same period last year, which was the highest ever recorded quarter in the region. Given the early commercial phase in APAC such fluctuations are however expected. Overall, the trend in APAC is positive and we expect the growth to remain over time as we continue to cultivate the market.
Commercially we strengthened our presence in the Chinese online retail market through new collaborations with some major probiotic supplements brand owners, launching new products based on Probi's® Osteo concept. We are also set to launch the Probi FerroSorb® concept with a new customer in China. In South Korea, Probi launched several products during the quarter under the Probi Digestis® concept.
| Jan-Mar | |||
|---|---|---|---|
| SEK m | 2024 | 2023 | Change, % |
| Net Sales | 14.2 | 21.2 | -33.0% |
| Cost of goods sold | -6.3 | -7.2 | -12.5% |
| Gross profit | 7.9 | 13.9 | -43.2% |
| Gross margin | 55.6% | 65.8% | -10.2 ppt |
Organization
In addition to the dedicated manufacturing optimization program, Probi has continued to implement organizational adjustments to enhance efficiency and optimize performance as per the new business strategy employed in 2023. These changes are methodically calibrated to streamline ways of working, elevate productivity, and optimize the company's overall performance metrics. This is an ongoing transformation that will be maturing throughout the year, enabling the company to address current challenges, and positioning the company for growth in the coming years.
Sustainability
In January it was announced that Probi had attained silver status from EcoVadis, the global standard in business sustainability ratings, for our sustainability performance. The EcoVadis assessment evaluates criteria across four core themes: Environment, Labor & Human Rights, Ethics and Sustainable Procurement. Attaining the silver status not only highlights Probi's strengths but also identifies areas for improvement going forward. The Probi organization remains dedicated to continuing to reduce its environmental impact and advancing towards a more sustainable future.
Research & Development
A new study showing true synergistic benefits of Clasado's and Probi's synbiotic concept was published in the International Journal of Nutritional Sciences, available here. The results showed that Probi's probiotic strains L. plantarum HEAL9 (HEAL9™) and L. paracasei 8700:2® were able to utilize the Bimuno GOS for growth, resulting in increased levels of lactate and butyric acid, two well-known health-promoting compounds.
Additionally, Probi was a selected finalist for this year's NutraIngredients Awards in the Nutrition Research Project category, which rewards the best game-changing nutrition research projects that push the boundaries of nutritional science. The nomination is related to the probiotic strain LpHEAL9, for its potential to improve cognition, mood, and sleep in healthy individuals.
Cash flow from operating activities before changes in working capital decreased to SEK 23.6 m (47.0) in Q1 because of a lower operating profit.
Working capital increased slightly during Q1 due to lower accounts receivable and the cash flow from operating activities amounted to SEK 18.9 m (12.8).
Cash flow from investment activities amounted to SEK -7.5 m (-14.3) and mainly consisted of investments in intangible and tangible fixed assets.
Cash flow from financing activities was SEK -4.0 m (-3.8), and mainly consisted of bank interest received and amortization of leasing liabilities.
The period's cash flow was SEK 10.3 m (-5.8) and cash and cash equivalents amounted to SEK 340.0 m (318.0).
During Q1, investments in intangible fixed assets amounted to SEK 2.3 m (4.8), of which SEK 1.0 m (0.8) related to patents, SEK 0.5 m (1.8) to capitalized development expenses, SEK 0.8 m (2.0) to IT systems and SEK 0.0 m (0.0) to other intangible assets. Investments in tangible fixed assets amounted to SEK 5.1 m (9.6), which mainly related to investments in the manufacturing unit at Redmond.
At the end of the period, Probi had 167 (172) employees, of which 51% (52) were women. The average number of employees during Q1 amounted to 161 (163).
During Q1, Probi reported SEK 1.4 m (0.0) 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.
Probi pursues continuous efforts to identify and evaluate the various types of risks to which its operations are exposed. To mitigate risks associated with raw material procurement, Probi is securing long-term price agreements. Additionally, in response to rising inflation and cost pressures, Probi has adjusted its pricing strategies, although the full financial impact of these changes may manifest with a delay. Probi is also closely monitoring global geopolitical developments, such as the Russian invasion of Ukraine, for potential indirect impacts on our operations. Other risks and uncertainties to which Probi's operations are exposed are described on pages 46–47 of the annual report for 2023.
During Q1, the parent company's operating income amounted to SEK 63.7 m (82.0). The profit for the period was SEK 10.0 m (28.8) and the decrease was due to a lower operating profit and net financial items. For further details, please see the information for the Group.
| Interim report Q1 2024 | April 23, 2024 |
|---|---|
| Annual General Meeting 2024 | May 7, 2024 |
| Record date for dividend | May 10, 2024 |
| Payment date for dividend | May 15, 2024 |
| Interim report Q2 2024 | July 16, 2024 |
| Interim report Q3 2024 | October 22, 2024 |
| Year-end report 2024 | January 28, 2025 |
Probi's interim report for Q1 2024 was published on April 23, 2024, at 8:00 a.m. On the same day at 10:00 a.m., a teleconference is held with Anita Johansen, CEO and Per Lindblad, CFO, who will present the report. The telephone conference can be accessed via the link https://ir.financialhearings.com/probi-q1-report-2024
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] Per Lindblad, CFO Tel: +46 (0)73-851 29 60 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, April 23, 2024
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 interim report has not been subject to review by the company's auditors.
| Jan-Mar | |||
|---|---|---|---|
| SEK 000 | Notes | 2024 | 2023 |
| Net sales | 2 | 151,674 | 171,819 |
| Cost of goods sold | 3 | -102,082 | -98,815 |
| Gross profit | 49,592 | 73,004 | |
| Sales and marketing expenses | -25,782 | -26,306 | |
| Research and development expenses | -10,740 | -9,721 | |
| Administration expenses | -15,134 | -13,397 | |
| Other operating income | 21 | — | |
| Operating profit (EBIT) | -2,043 | 23,580 | |
| Financial income | 2,751 | 1,391 | |
| Financial expenses | -417 | -543 | |
| Exchange result financing activities | 4 | 1,537 | -348 |
| Financial result | 3,871 | 500 | |
| Earnings before income taxes | 1,828 | 24,080 | |
| Income taxes | 25 | -4,806 | |
| Net income | 1,853 | 19,274 | |
| Other comprehensive income | |||
| Components to be reclassified to net income | |||
| Exchange rate differences resulting from the translation of foreign operations | 57,217 | -7,999 | |
| Cash flow hedge (currency hedges) | — | — | |
| Income taxes payable on these components | — | — | |
| Total components to be reclassified to net income | 57,217 | -7,999 | |
| Components not to be reclassified to net income | |||
| Equity instruments at fair value through OCI | -2,019 | 3,732 | |
| Total components not to be reclassified to net income | -2,019 | 3,732 | |
| Sum of other comprehensive income | 55,198 | -4,267 | |
| Total comprehensive income | 57,051 | 15,007 | |
| Number of outstanding shares at end of the reporting period | 11,394,125 | 11,394,125 | |
| Average number of shares | 11,394,125 | 11,394,125 | |
| Earnings per share before and after dilution | 0.16 | 1.69 |
The period's result 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 | 31 March 2024 |
31 December 2023 |
|---|---|---|
| ASSETS | ||
| Capitalized development cost | 22,040 | 23,497 |
| Customer base | 217,515 | 211,718 |
| Technology and other intangible assets | 107,510 | 105,053 |
| Goodwill | 361,400 | 340,580 |
| Property, plant and equipment | 152,491 | 145,822 |
| Right-of-use assets | 47,259 | 49,010 |
| Interests in other entities | 71,025 | 73,044 |
| Deferred tax assets | 4,850 | 1,345 |
| Non-current assets | 984,090 | 950,069 |
| Inventories | 126,692 | 116,705 |
| Trade receivables | 70,806 | 79,792 |
| Other assets and receivables | 15,573 | 14,227 |
| Cash and cash equivalents | 339,974 | 329,650 |
| Current assets | 553,045 | 540,374 |
| Total assets | 1,537,135 | 1,490,443 |
| EQUITY AND LIABILITIES | ||
| Total equity | 1,426,132 | 1,369,080 |
| Deferred tax liabilities | — | — |
| Provisions | — | — |
| Non-current lease liabilities | 36,905 | 38,212 |
| Other non-current liabilities | 5,597 | 5,272 |
| Non-current liabilities | 42,502 | 43,484 |
| Trade payables | 22,749 | 34,376 |
| Current lease liabilities | 15,290 | 15,585 |
| Other current liabilities | 30,462 | 27,918 |
| Current liabilities | 68,501 | 77,879 |
| Total liabilities | 111,003 | 121,363 |
| Total equity and liabilities | 1,537,135 | 1,490,443 |
| 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 | — | — | — | — | — | 19,274 | 19,274 |
| Other comprehensive income | — | — | -7,999 | — | 3,732 | — | -4,267 |
| Total Comprehensive Income | — | — | -7,999 | — | 3,732 | 19,274 | 15,007 |
| Dividends | — | — | — | — | — | — | — |
| Total transactions with shareholders |
— | — | — | — | — | — | — |
| Closing balance, 31 Mar 2023 | 58,221 | 600,205 | 161,323 | — | -24,680 | 630,506 | 1,425,575 |
| 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 2024 | 58,221 | 600,205 | 133,294 | — | -35,878 | 613,238 | 1,369,080 |
| Net income | — | — | — | — | — | 1,853 | 1,853 |
| Other comprehensive income | — | — | 57,217 | — | -2,019 | — | 55,198 |
| Total Comprehensive Income | — | — | 57,217 | — | -2,019 | 1,853 | 57,051 |
| Dividends | — | — | — | — | — | 0 | 0 |
| Total transactions with shareholders |
— | — | — | — | — | 0 | 0 |
| Closing balance, 31 Mar 2024 | 58,221 | 600,205 | 190,511 | — | -37,897 | 615,092 | 1,426,132 |
| Jan-Mar | ||
|---|---|---|
| SEK 000 | 2024 | 2023 |
| Net income | 1,853 | 19,274 |
| Adjustments to reconcile net income to cash from | ||
| operating activities | ||
| Income taxes | -25 | 4,806 |
| Interest result | -2,334 | -849 |
| Amortization, depreciation and impairment of non-current assets | 24,049 | 23,686 |
| Other non-cash expenses and income | 66 | 42 |
| Cash flow before working capital changes | 23,609 | 46,959 |
| Change in trade receivables and other current assets | 10,484 | -28,133 |
| Change in inventories | -3,715 | -12,694 |
| Change in trade payables and other current liabilities | -8,395 | 10,980 |
| Income taxes paid | -3,099 | -4,323 |
| Cash flow from operating activities | 18,884 | 12,789 |
| Payments for investing in intangible assets | -2,349 | -4,753 |
| Payments for investing in property, plant and equipment | -5,102 | -9,585 |
| Divestments of tangible assets | — | — |
| Cash flow from investing activities | -7,451 | -14,338 |
| Interest paid | -428 | -553 |
| Interest received | 367 | 431 |
| Repayments for lease obligations | -3,907 | -3,681 |
| Dividends paid | — | — |
| Cash flow from financing activities | -3,968 | -3,803 |
| Cash flow for the period | 7,464 | -5,352 |
| Effects of changes in exchange rates | 2,860 | -399 |
| Change in cash and cash equivalents | 10,324 | -5,751 |
| Cash and cash equivalents at opening balance | 329,650 | 323,706 |
| Cash and cash equivalents at closing balance | 339,974 | 317,955 |
| Jan-Mar | ||
|---|---|---|
| SEK 000 | 2024 | 2023 |
| Operating revenue | 63,738 | 82,011 |
| Operating costs | -17,387 | -18,850 |
| Gross profit | 46,351 | 63,161 |
| Operating profit (EBIT) | 11,433 | 31,199 |
| Result from financial income and expenses | 1,802 | 4,266 |
| Income before tax | 13,235 | 35,465 |
| Net income | 9,990 | 28,818 |
| Jan-Mar | ||
|---|---|---|
| SEK 000 | 2024 | 2023 |
| Net income | 9,990 | 28,818 |
| Sum of other comprehensive income | — | — |
| Total comprehensive income | 9,990 | 28,818 |
| SEK 000 | 31 March 2024 |
31 December 2023 |
|---|---|---|
| ASSETS | ||
| Non-current assets | 1,029,145 | 1,044,916 |
| Current assets | 344,653 | 320,849 |
| Total assets | 1,373,798 | 1,365,765 |
| EQUITY AND LIABILITIES | ||
| Equity | 1,347,227 | 1,329,349 |
| Current liabilities | 26,571 | 36,416 |
| Total equity and liabilities | 1,373,798 | 1,365,765 |
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 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 65–66 of the annual report for 2023.
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:
| Jan-Mar 2024 | Jan-Mar 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 113,473 | 21,817 | 14,217 | 149,507 | 128,670 | 19,035 | 21,167 | 168,872 |
| Royalty | 1,759 | 408 | — | 2,167 | 2,029 | 918 | — | 2,947 |
| Net sales | 115,232 | 22,225 | 14,217 | 151,674 | 130,699 | 19,953 | 21,167 | 171,819 |
The following table shows the exchange gains and losses from operating activities that are recognized under costof goods sold:
| Jan-Mar | |||||
|---|---|---|---|---|---|
| SEK 000 | 2024 | 2023 | |||
| Exchange gains operating activities | 1,116 | 987 | |||
| Exchange losses operating activities | -914 | -613 | |||
| Exchange result operating activities | 202 | 374 | |||
| Interim report January-March 2024 | |||||
| 15 (17) |
The following table shows the exchange gains and losses from financing activities that are recognized in the financial results:
| Jan-Mar | ||
|---|---|---|
| SEK 000 | 2024 | 2023 |
| Exchange gains financing activities | 2,020 | 837 |
| Exchange losses financing activities | -483 | -1,186 |
| Exchange result financing activities | 1,537 | -349 |
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.
| Jan-Mar | ||
|---|---|---|
| SEK 000 | 2024 | 2023 |
| Net income | 1,853 | 19,274 |
| Income taxes | -25 | 4,806 |
| Financial result | -3,871 | -500 |
| Operating profit (EBIT) | -2,043 | 23,580 |
EBITDA is defined as the operating profit (EBIT) before depreciation and impairment and is used as a measure of the company's profitability.
| Jan-Mar | ||
|---|---|---|
| SEK 000 | 2024 | 2023 |
| Operating profit (EBIT) | -2,043 | 23,580 |
| Depreciation and amortization | 24,049 | 23,686 |
| EBITDA | 22,006 | 47,266 |
| Defined as gross profit divided by net sales |
Used to measure product profitability |
|---|---|
| Defined as EBITDA divided by net sales |
Used to measure the company's profitability before depreciation and impairment of tangible and intangible assets |
| 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 |
| 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 |
| 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 628 m in 2023. Probi's shares are listed on Nasdaq Stockholm, Mid-cap, and there were around 3,400 shareholders on December 31, 2023.
