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Probi Interim / Quarterly Report 2023
3099_10-k_2024-01-26_a4605e7e-7c3b-4bd0-9202-5b54cefa32fa.pdf
Interim / Quarterly Report
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Year-end report January-December 2023
Eventful quarter caps transformative year
Important events during the fourth quarter
- Net sales increased by 8% (9% adjusted for currency effects) to SEK 156 m (144).
- The EBITDA margin amounted to 12% (11) or 15% adjusted for items affecting comparability.
- Probi launched Probi® Sensia, a brand new product concept in mental health.
- Probi launched two new scientifically proven synbiotic solutions together with Clasado Biosciences at Supply Side West in Las Vegas.
- Per Lindblad took over as CFO on November 1st .
- The Board of Directors proposed a dividend for the fiscal year 2023 of a total of SEK 14,8m, corresponding to SEK 1,30 per share.
Important events during the full year 2023
- Anita Johansen was appointed CEO.
- Probi established its own B2C market organization and took over the distribution and sales of the Probi® brand in Sweden. Probi also expanded into Norway.
- Probi strengthened its position in North America by becoming sole distributor of BLIS K12™ and BLIS M18™ in the US and Canada.
- Probi launched the spore-forming probiotic Weizmannia coagulans GX-1, a Probi strain with high stability fit for beverages and confectionary type formats.
- Probi published results of the 3rd clinical study on HEAL9™ in gut-brain area.
- Probi was granted 23 new patents in 2023.
Financial overview
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK m | 2023 | 2022 | 2023 | 2022 |
| Net sales | 156.1 | 144.0 | 627.7 | 618.3 |
| Growth, % | 8.4% | -15.3% | 1.5% | -6.1% |
| Currency adjusted growth, % | 9.1% | -26.9% | -2.0% | -16.7% |
| Gross margin, % | 31.6% | 36.8% | 35.1% | 41.3% |
| EBITDA | 19.1 | 15.8 | 107.5 | 136.3 |
| EBITDA margin, % | 12.3% | 10.9% | 17.1% | 22.0% |
| Operating profit (EBIT) | -5.3 | -7.6 | 11.3 | 50.6 |
| EBIT margin, % | -3.4% | -5.3% | 1.8% | 8.2% |
| Net income | -2.6 | -5.7 | 16.8 | 40.6 |
| Earnings per share before and after dilution, SEK | -0.23 | -0.50 | 1.48 | 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. The information was submitted for publication, through the agency of the CEO and CFO, on January 26, 2024 at 08:00 CET. This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.
156 m Net sales
SEK
EBITDA margin 12 %
Concluding a year of decisive and transformative action
Rounding off my first year leading Probi it is clear that 2023 was recognized by both challenges and remarkable achievements. I am particularly proud of the launch of our new concept Probi® Sensia, as well as the partnership with Clasado Biosciences around Synbiotics – both marking historical milestones for Probi.
Overall, 2023 was a tough year characterized by a general market softness, especially in the North American market. Our sales totaled SEK 628 m, an increase of 1.5% compared to the previous year (-2.0% adjusted for currency effects). A stabilization of the market was seen throughout the second half of 2023, and in the fourth quarter our sales amounted to SEK 156 m, which was 8.4% higher than the same period last year (9.1% adjusted for currency effects).
By region, the full-year result in North America was on par with last year. EMEA declined, mainly due to the reduction of safety stock levels with some of our B2B customers. In APAC the full-year growth was an impressive 26%, and we see further potential to grow.
Probi's EBITDA margin for the full year was 17.1%. Adjusted for costs affecting comparability, the profitability amounted to 20.4%. The reduced margin primarily relates to our ongoing optimization program in manufacturing, which adds some temporary expenses as we address certain unwanted inefficiencies and prioritize long-term improvements. The program is progressing, and we are confident that this is a worth-while investment that will gradually contribute to greater profitability over time.
Q4 was largely characterized by "Probi Reinforced", our new strategic direction alongside revised financial targets for 2024-2028. In general, we have put a lot of effort into strengthening our strategy and organizational capabilities for the coming years. These initiatives are expected to start coming into effect by 2025, as 2024 is expected to mainly be a transitional year.
In terms of commercialization, several major events took place in Q4. First, we hosted a 2-day customer workshop in Thailand for APAC customers and partners. Later in October we exhibited at the leading event for food supplements, Supply Side West, in Las Vegas. At both events we introduced new innovations that underline our ability as pioneers in probiotics.
Probi launched Probi® Sensia, a whole new concept within cognitive health, based on a strong clinically proven effect. We also launched two new synbiotic solutions in partnership with Clasado Biosciences, combining their scientifically proven prebiotic with the extensively studied strains of Probi Defendum® and Probi Digestis®. These new concept launches in cognitive health and synbiotics represent major milestones for the company and holds significant commercial potential.
The initial feedback from our customers has been very positive. Sales cycles to implement new ingredients into our customers brands however are long, and our teams will continue supporting these key launches with activities throughout 2024.
Additionally, several changes were made to reinforce the organization over the year. During Q4 we further strengthened our new management team with CFO Per Lindblad. He has highly relevant financial and business development experience from specialty ingredients industries, including probiotics, and his contributions will be important in further developing our business.
Overall, we have laid a strong foundation and readied the organization for accelerated growth in the coming years. Our focus remains steadfast on innovation, customer focus, and achieving operational excellence on our continued journey. As we now enter a new chapter I am filled with optimism, looking forward to continuing pushing boundaries and pioneering the probiotics market with effective solutions that improve people's health.
Anita Johansen
Year-end report January-December 2023
Net sales
October – December (fourth quarter)
During Q4, net sales amounted to SEK 156.1 m (144.0) corresponding to an increase of SEK 12.1 m or 8%. Adjusted for currency effects, net sales amounted to SEK 157.1 m, corresponding to an increase of 9%.
The increase of SEK 12.1 m is mainly due to a 54% growth in EMEA, totaling SEK 11.7 m, driven by the strategic B2C insourcing and quarterly dynamics. APAC also saw a 24% rise, gaining SEK 3.4 m while Americas experienced a 3% drop, decreasing by SEK 3.0 m.
The share of total net sales in the Americas during Q4 was 67%. EMEA accounted for 21% and APAC 11%.
Net Sales distribution per segment
January – December (full year)
Net sales amounted to SEK 627.7 m (618.3), which is an increase of 2%. Adjusted for currency effects, this corresponded to a decrease of 2%. Sales in EMEA were SEK 6.5 m (-6%) lower than the previous year due to a weaker underlying market. A major customer also postponed its orders due to the reduction of its buffer stock. The Americas region increased by SEK 1.7 m (0%), but adjusted for currency effects, the region decreased by 4% due to a weaker market. Sales in APAC increased by SEK 14.2 m (26%).
Net sales per segment
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % |
| Americas | 105.1 | 108.1 | -2.8% | 456.2 | 454.5 | 0.4% |
| EMEA | 33.3 | 21.6 | 54.2% | 103.1 | 109.6 | -5.9% |
| APAC | 17.7 | 14.3 | 23.8% | 68.4 | 54.2 | 26.2% |
| Net sales | 156.1 | 144.0 | 8.4% | 627.7 | 618.3 | 1.5% |
Earnings
Operating profit/loss (EBIT)
The operating profit for Q4 amounted to SEK -5.3 m (-7.6), corresponding to an increase of SEK 2.3 m. Adjusted for currency effects, the operating profit was SEK -4.4 m. The gross margin was impacted by both high inventory scrapping and consulting costs related to Probi's remediation program in the manufacturing process.
Sales and marketing costs amounted to SEK 28.2 m (27.1), where the increase is explained by strengthening of our sales and marketings teams and increased marketing expenses to support the Swedish BTC business.
Research and development expenses were slightly lower than last year and amounted to SEK 9.4 m (11.8). This is mainly explained by how the phasing of various research projects runs over the year and is not reflecting underlying activity.
Administration expenses amounted to SEK 17.0 m (21.7). Last year was impacted by restructuring costs.
Operating profit/loss
| Oct-Dec | ||||||
|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % |
| Gross profit Americas | 20.9 | 35.8 | -41.6% | 121.6 | 167.4 | -27.4% |
| Gross profit EMEA | 18.8 | 9.5 | 97.9% | 58.4 | 56.5 | 3.4% |
| Gross profit APAC | 9.6 | 7.7 | 24.7% | 40.2 | 31.5 | 27.6% |
| Gross profit | 49.3 | 53.0 | -7.0% | 220.2 | 255.4 | -13.8% |
| Sales and marketing expenses | -28.2 | -27.1 | 4.1% | -113.9 | -100.9 | 12.9% |
| Research and development expenses | -9.4 | -11.8 | -20.3% | -36.4 | -38.3 | -5.0% |
| Administration expenses | -17.0 | -21.7 | -21.7% | -58.6 | -65.8 | -10.9% |
| Other operating income | 0.0 | 0.1 | -100.0% | 0.0 | 0.3 | -100.0% |
| Operating profit (EBIT) | -5.3 | -7.6 | -30.3% | 11.3 | 50.6 | -77.7% |
Financial result
The financial result for Q4 amounted to SEK 1.1 m (1.0). Net financial items excluding exchange rate results amounted to SEK 2.1 m (0.5) and consisted mainly of interest on bank balances and leasing contracts. The exchange rate result amounted to SEK -0.9 m (0.5) in Q4 and refers to the translation of cash and cash equivalents into foreign currency.
Profit/loss for the period
The period's profit for the quarter amounted to SEK -2.6 m (-5.7). Tax for the period amounted to SEK 1.6 m (0.9).
Earnings per share
Earnings per share for Q4 amounted to SEK -0.23 (-0.5).
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 3% and amounted to SEK 105 m. Adjusted for currency effects, net sales amounted to SEK 106 m, corresponding to a decrease of 2% in the quarter.
Despite a challenging underlying market, the performance in the region was relatively stable with a steady order intake.
The region's sales organization was strengthened during Q4, which is expected to lead to positive effects in future development.
The gross margin for Q4 was 20% (33) and was in line with the previous quarter because of inventory scrapping but also process development activities. Customer order dynamics and product mix also impact profitability significantly from quarter to quarter.
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % |
| Net Sales | 105.1 | 108.1 | -2.8% | 456.2 | 454.5 | 0.4% |
| Cost of goods sold | -84.2 | -72.3 | 16.5% | -334.6 | -287.1 | 16.5% |
| Gross profit | 20.9 | 35.8 | -41.6% | 121.6 | 167.4 | -27.4% |
| Gross margin | 19.8% | 33.1% | -13.3 ppt | 26.7% | 36.8% | -10.1 ppt |
EMEA
Net sales in EMEA increased by 54% in Q4 to SEK 33 m compared to SEK 22 m last year.
The increase in sales in the quarter is mainly a consequence of timing between quarters. Yet, the insourcing of the BTC business on the Swedish market, because of the company's takeover of the distribution of the Probi® brand, implies both higher sales prices but also added costs.
The gross margin for Q4 was 57% (44). Gross profit was also favorably impacted as the B2C insourcing implying increase in sales and gross profit. Noted net impact on EBIT is lower due to added marketing & sales costs also.
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % |
| Net Sales | 33.3 | 21.6 | 54.2% | 103.1 | 109.6 | -5.9% |
| Cost of goods sold | -14.5 | -12.1 | 19.8% | -44.7 | -53.1 | -15.8% |
| Gross profit | 18.8 | 9.5 | 97.9% | 58.4 | 56.5 | 3.4% |
| Gross margin | 56.5% | 43.9% | 12.6 ppt | 56.6% | 51.6% | 5.0 ppt |
APAC
Net sales in APAC developed well and increased by 24% to SEK 18 m. The increase is mainly explained by the continued strong development in the Chinese market. Probi continue to invest significant resources in this region.
The gross margin in Q4 was 54% (54) which is in line with last year.
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEK m | 2023 | 2022 | Change, % | 2023 | 2022 | Change, % |
| Net Sales | 17.7 | 14.3 | 23.8% | 68.4 | 54.2 | 26.2% |
| Cost of goods sold | -8.1 | -6.6 | 22.7% | -28.2 | -22.7 | 24.2% |
| Gross profit | 9.6 | 7.7 | 24.7% | 40.2 | 31.5 | 27.6% |
| Gross margin | 54.0% | 54.1% | -0.1 ppt | 58.8% | 58.1% | 0.7 ppt |
Cash flow and cash and cash equivalents
Cash flow from operating activities before changes in working capital decreased to SEK 18.1 m (18.7) in Q4 as a result of a lower operating profit.
Working capital increased slightly during Q4 due to higher accounts receivable and the cash flow from operating activities amounted to SEK 46.9 m (25.0).
Cash flow from investment activities amounted to SEK -17.5 (-19.5) and mainly consisted of investments in intangible and tangible fixed assets.
Cash flow from financing activities was SEK 2.7 m (-2.8), and mainly consisted of bank interest received and amortization of leasing liabilities.
The period's cash flow was SEK 28.8 m (-4.4) and cash and cash equivalents amounted to SEK 329.7 m (323.7).
Investments
During Q4, investments in intangible fixed assets amounted to SEK 4.7 m (4.5), of which SEK 1.1 m (0.4) related to patents, SEK 1.6 m (0.8) to capitalized development expenses, SEK 2.0 m (1.5) to IT systems and SEK 0.0 m (1.8) to other intangible assets. Investments in tangible fixed assets amounted to SEK 12.9 m (15.0), which mainly related to investments in the manufacturing unit at Redmond.
Employees
At the end of the period, Probi had 160 (154) employees, of which 52% (52) were women. The average number of employees during Q4 amounted to 165 (168).
Transactions with related parties
During Q4, Probi reported SEK 1.9 m (0.9) in revenue from its largest shareholder, Symrise, and costs amounted to SEK 0.0 m (0.3). No other transactions with related parties occurred during the reporting period.
Significant risks and uncertainties
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 48–49 of the annual report for 2022.
Parent company
During Q4, the parent company's operating income amounted to SEK 70.0 m (61.3). The profit for the period was SEK 6.9 m (-9.8) and the increase was due to a better operating profit and net financial items. For further details, please see the information for the Group.
Financial calendar
| April 23, 2024 |
|---|
| May 7, 2024 |
| May 10, 2024 |
| May 15, 2024 |
| July 16, 2024 |
| October 22, 2024 |
| January 28, 2025 |
Invitation to teleconference
Probi's interim report for Q4 2023 was published on January 26, 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://conference.financialhearings.com/teleconference/?id=50047274. The presentation is available at www.probi.com and www.financialhearings.com.
Contact
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]
Annual General Meeting
The Annual General Meeting relating to the financial year 2023 will be held in Lund on Friday, May 7, 2024 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 Tuesday, March 19, 2024. 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.
Proposal for appropriation of the profit
Based on an assessment of Probi's business operations and strategic investment decisions, the Board of Directors proposal to the 2024 Annual General Meeting is for a dividend for the 2023 financial year of a total of SEK 148 m (14.8), which corresponds to SEK 1.30 (1.30) per share.
Assurance by the Board of Directors
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, January 26, 2024
Jean-Yves Parisot Chairman of the Board
Irène Corthésy Malnoë Board member
Jörn Andreas 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.
Consolidated statement of comprehensive income
| Oct-Dec | Jan-Dec | ||||||
|---|---|---|---|---|---|---|---|
| SEK 000 | Notes | 2023 | 2022 | 2023 | 2022 | ||
| Net sales | 2 | 156,121 | 143,983 | 627,687 | 618,285 | ||
| Cost of goods sold | 3 | -106,861 | -90,995 | -407,474 | -362,840 | ||
| Gross profit | 49,260 | 52,988 | 220,213 | 255,445 | |||
| Sales and marketing expenses | -28,195 | -27,115 | -113,908 | -100,936 | |||
| Research and development expenses | -9,388 | -11,848 | -36,438 | -38,348 | |||
| Administration expenses | -17,000 | -21,715 | -58,587 | -65,909 | |||
| Other operating income | 36 | 73 | 40 | 322 | |||
| Operating profit (EBIT) | -5,287 | -7,617 | 11,320 | 50,574 | |||
| Financial income | 2,529 | 1,079 | 8,048 | 1,705 | |||
| Financial expenses | -463 | -596 | -2,027 | -2,492 | |||
| Exchange result financing activities | 4 | -949 | 522 | 41 | 2,187 | ||
| Financial result | 1,117 | 1,005 | 6,062 | 1,400 | |||
| Earnings before income taxes | -4,170 | -6,612 | 17,382 | 51,974 | |||
| Income taxes | 1,580 | 879 | -563 | -11,352 | |||
| Net income | -2,590 | -5,733 | 16,819 | 40,622 | |||
| Other comprehensive income | |||||||
| Components to be reclassified to net income | |||||||
| Exchange rate differences resulting from the translation | |||||||
| of foreign operations | -74,528 | -66,484 | -36,028 | 139,908 | |||
| Cash flow hedge (currency hedges) | — | — | — | — | |||
| Income taxes payable on these components | — | — | — | — | |||
| Total components to be reclassified to net income | -74,528 | -66,484 | -36,028 | 139,908 | |||
| Components not to be reclassified to net income | |||||||
| Equity instruments at fair value through OCI | -4,977 | -6,335 | -7,466 | -20,691 | |||
| Total components not to be reclassified to net income | -4,977 | -6,335 | -7,466 | -20,691 | |||
| Sum of other comprehensive income | -79,505 | -72,819 | -43,494 | 119,217 | |||
| Total comprehensive income | -82,095 | -78,552 | -26,675 | 159,839 | |||
| 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 | -0.23 | -0.50 | 1.48 | 3.57 |
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.
Consolidated statement of financial position
| SEK 000 | 31 December | 31 December |
|---|---|---|
| 2023 | 2022 | |
| ASSETS | ||
| Capitalized development cost | 23,497 | 24,782 |
| Customer base | 211,718 | 248,452 |
| Technology and other intangible assets | 105,053 | 109,251 |
| Goodwill | 340,580 | 353,887 |
| Property, plant and equipment | 145,822 | 146,806 |
| Right-of-use assets | 49,010 | 65,546 |
| Interests in other entities | 73,044 | 80,510 |
| Deferred tax assets | 1,345 | 357 |
| Non-current assets | 950,069 | 1,029,591 |
| Inventories | 116,705 | 116,245 |
| Trade receivables | 79,792 | 89,295 |
| Other assets and receivables | 14,227 | 11,051 |
| Cash and cash equivalents | 329,650 | 323,706 |
| Current assets | 540,374 | 540,297 |
| Total assets | 1,490,443 | 1,569,888 |
| EQUITY AND LIABILITIES | ||
| Total equity | 1,369,080 | 1,410,567 |
| Deferred tax liabilities | — | 13,833 |
| Provisions | — | 13,833 |
| Non-current lease liabilities | 38,212 | 53,601 |
| Other non-current liabilities | 5,272 | 5,480 |
| Non-current liabilities | 43,484 | 59,081 |
| Trade payables | 34,376 | 34,424 |
| Current lease liabilities | 15,585 | 16,667 |
| Other current liabilities | 27,918 | 35,316 |
| Current liabilities | 77,879 | 86,407 |
| Total liabilities | 121,363 | 159,321 |
| Total equity and liabilities | 1,490,443 | 1,569,888 |
Consolidated changes in equity
| 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 | — | — | — | — | — | 40,622 | 40,622 |
| Other comprehensive income |
— | — | 139,908 | — | -20,691 | — | 119,217 |
| Total Comprehensive Income |
— | — | 139,908 | — | -20,691 | 40,622 | 159,839 |
| Dividends | — | — | — | — | — | -14,812 | -14,812 |
| Total transactions with shareholders |
— | — | — | — | — | -14,812 | -14,812 |
| Closing balance, 31 Dec 2022 | 58,221 | 600,205 | 169,322 | — | -28,412 | 611,232 | 1,410,567 |
| 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 | — | — | — | — | — | 16,819 | 16,819 |
| Other comprehensive income |
— | — | -36,028 | — | -7,466 | — | -43,494 |
| Total Comprehensive Income |
— | — | -36,028 | — | -7,466 | 16,819 | -26,675 |
| Dividends | — | — | — | — | — | -14,812 | -14,812 |
| Total transactions with shareholders |
— | — | — | — | — | -14,812 | -14,812 |
| Closing balance, 31 Dec 2023 | 58,221 | 600,205 | 133,294 | — | -35,878 | 613,238 | 1,369,080 |
Consolidated cash flow statement
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 |
| Net income | -2,590 | -5,733 | 16,819 | 40,622 |
| Adjustments to reconcile net income to cash from operating activities |
||||
| Income taxes | -1,580 | -880 | 563 | 11,352 |
| Interest result | -2,066 | -483 | -6,021 | 714 |
| Amortization, depreciation and impairment of non-current assets |
24,426 | 23,378 | 96,203 | 85,682 |
| Other non-cash expenses and income | -132 | 2,394 | -66 | 4,036 |
| Cash flow before working capital changes | 18,058 | 18,676 | 107,498 | 142,406 |
| Change in trade receivables and other current assets | 33,047 | 2,092 | 5,498 | 42,091 |
| Change in inventories | 6,348 | -10,532 | -4,444 | -8,936 |
| Change in trade payables and other current liabilities | -7,639 | 14,944 | -6,215 | -4,400 |
| Income taxes paid | -2,958 | -205 | -16,786 | -15,067 |
| Cash flow from operating activities | 46,856 | 24,975 | 85,551 | 156,094 |
| Payments for investing in intangible assets | -4,678 | -4,482 | -21,023 | -12,180 |
| Payments for investing in property, plant and equipment | -12,852 | -15,027 | -33,163 | -52,429 |
| Divestments of tangible assets | 0 | — | 15 | 20 |
| Cash flow from investing activities | -17,530 | -19,509 | -54,171 | -64,589 |
| Interest paid | -474 | -606 | -2,069 | -2,458 |
| Interest received | 7,029 | 1,481 | 8,048 | 1,705 |
| Repayments for lease obligations | -3,850 | -3,649 | -15,124 | -13,743 |
| Dividends paid | — | — | -14,812 | -14,812 |
| Cash flow from financing activities | 2,705 | -2,774 | -23,957 | -29,308 |
| Cash flow for the period | 32,031 | 2,692 | 7,423 | 62,197 |
| Effects of changes in exchange rates | -3,228 | -7,103 | -1,479 | 10,492 |
| Change in cash and cash equivalents | 28,803 | -4,411 | 5,944 | 72,689 |
| Cash and cash equivalents at opening balance | 300,847 | 328,117 | 323,706 | 251,017 |
| Cash and cash equivalents at closing balance | 329,650 | 323,706 | 329,650 | 323,706 |
Parent company's condensed financial statements
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 | |
| Operating revenue | 69,969 | 61,303 | 277,567 | 276,902 | |
| Operating costs | -22,232 | -21,194 | -74,820 | -79,694 | |
| Gross profit | 47,737 | 40,109 | 202,747 | 197,208 | |
| Operating profit (EBIT) | 14,029 | -3,961 | 68,156 | 56,564 | |
| Result from financial income and expenses | -3,879 | -6,082 | -870 | 31,568 | |
| Income before tax | 10,150 | -10,043 | 67,286 | 88,132 | |
| Net income | 6,864 | -9,757 | 51,519 | 75,295 |
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 | |
| Net income | 6,864 | -9,757 | 51,519 | 75,295 | |
| Sum of other comprehensive income | — | — | — | — | |
| Total comprehensive income | 6,864 | -9,757 | 51,519 | 75,295 |
| SEK 000 | 31 December 2023 |
31 December 2022 |
|---|---|---|
| ASSETS | ||
| Non-current assets | 1,033,004 | 1,042,975 |
| Current assets | 337,125 | 299,369 |
| Total assets | 1,370,129 | 1,342,344 |
| EQUITY AND LIABILITIES | ||
| Equity | 1,337,238 | 1,300,531 |
| Current liabilities | 32,981 | 41,813 |
| Total equity and liabilities | 1,370,129 | 1,342,344 |
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 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.
Parent company
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.
2. Revenue from contracts with customers
A breakdown by category of the Group's net sales from contracts with customers is presented below:
| Oct-Dec 2023 | Oct-Dec 2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 103,582 | 32,641 | 17,711 | 153,934 | 106,896 | 20,763 | 14,315 | 141,974 |
| Royalty | 1,482 | 704 | — | 2,186 | 1,165 | 843 | — | 2,008 |
| Net sales | 105,064 | 33,345 | 17,711 | 156,121 | 108,061 | 21,606 | 14,315 | 143,983 |
| Jan-Dec 2023 | Jan-Dec 2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK 000 | Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total |
| Goods | 449,763 | 100,714 | 68,402 | 618,879 | 448,507 | 106,434 | 54,181 | 609,121 |
| Royalty | 6,470 | 2,338 | — | 8,808 | 6,028 | 3,136 | — | 9,164 |
| Net sales | 456,233 | 103,052 | 68,402 | 627,687 | 454,535 | 109,570 | 54,181 | 618,285 |
3. Currency translation from operating activities
The following table shows the exchange gains and losses from operating activities that are recognized under costof goods sold:
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 |
| Exchange gains operating activities | 976 | 441 | 3,766 | 6,606 |
| Exchange losses operating activities | -1,646 | -1,289 | -4,711 | -4,052 |
| Exchange result operating activities | -670 | -848 | -945 | 2,554 |
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 | 2023 | 2022 | 2023 | 2022 |
| Exchange gains financing activities | 644 | 1,005 | 3,408 | 5,094 |
| Exchange losses financing activities | -1,593 | -483 | -3,367 | -2,907 |
| Exchange result financing activities | -949 | 522 | 41 | 2,187 |
5. Definition of alternative performance indicators not defined in IFRS
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:
Operating profit/loss (EBIT)
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.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 |
| Net income | -2,590 | -5,733 | 16,819 | 40,622 |
| Income taxes | -1,580 | -879 | 563 | 11,352 |
| Financial result | -1,117 | -1,005 | -6,062 | -1,400 |
| Operating profit (EBIT) | -5,287 | -7,617 | 11,320 | 50,574 |
EBITDA
EBITDA is defined as the operating profit (EBIT) before depreciation and impairment and is used as a measure of the company's profitability.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK 000 | 2023 | 2022 | 2023 | 2022 |
| Operating profit (EBIT) | -5,287 | -7,617 | 11,320 | 50,574 |
| Depreciation and amortization | 24,426 | 23,378 | 96,203 | 85,682 |
| EBITDA | 19,139 | 15,761 | 107,523 | 136,256 |
Year-end report January-December 2023
| Other alternative KPIs | 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 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 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.
