Midsona Interim Report January-March 2026

January–March 2026 (first quarter)

• Net sales amounted to SEK 893 million (937), corresponding to a change of –4.7 percent (0.9). The organic change in net sales amounted to –1.3 percent (1.4).

• Gross profit amounted to SEK 266 million (268), corresponding to a margin of 29.8 percent (28.6).

• Operating profit/loss amounted to SEK 101 million (24), corresponding to a margin of 11.3 percent (2.6), and operating profit/loss, before items affecting comparability, amounted to SEK 45 million (37), corresponding to a margin of 5.0 percent (3.9). SEK 56 million of items affecting comparability were included in operating profit/loss, partly as a result of Midsona receiving an insurance compensation payment of SEK 57 million in March 2026 under its property insurance, for property damage linked to the fire at the production facility in Castellcir, Spain, in July 2025.

• Profit/loss for the period amounted to SEK 82 million (7), corresponding to earnings per share of SEK 0.57 (0.05) before and after dilution.

• Cash flow from operating activities amounted to SEK 34 million (35).

• Niclas Lundin was appointed the new CFO of Midsona. He took up his position on 1 March 2026 and has been a member of Group Management since this date.

• The current Director Sustainability, Beatrice Perlman Ewert, was appointed Director Communication & Sustainability. She took up her position on 1 April 2026 and has been a member of Group Management since this date.

• On 31 March 2026, Midsona concluded an agreement to acquire Risenta, one of Sweden's best-known healthy food brands, with an expected closing date of 1 June 2026.

Comment by CEO

Improved margins and a strengthened financial position
During the first quarter, we worked intensively to strengthen the business’ efficiency and increase its profitability, while continuing our efforts aimed at brand-driven growth. Margins improved and our savings programme was fully implemented by the end of the quarter, which is expected to reduce the cost base by SEK 20 million on an annual basis. At the same time, we have taken an important step forward by acquiring the well-known Risenta brand in Sweden. The acquisition is a clear part of our work to put Midsona's strategy into action and strengthen our healthy product offer. Risenta is a good complement to the portfolio and strengthens our position in several growing categories, such as seeds, grains and healthy snacks.

Operating profit, before items affecting comparability, amounted to SEK 45 million (37), a clear improvement over the previous year. The operating margin, before items affecting comparability, also improved during the period, to 5.0 percent (3.9), as a consequence of both a stronger gross margin and a lower cost base, which, in its turn, is due to the savings programme that we have implemented. The improved gross margin was driven by a more favourable product mix, a positive net price effect and increased efficiency at our production facilities.

Net sales amounted to SEK 893 million (937), and organic growth was slightly negative during the period, amounting to –1.3 percent, mainly due to reduced contract manufacturing linked to the earlier fire in Spain. In line with the refined strategy of focusing on investing in selected strong brands, several prioritized own consumer brands achieved a good level of growth, especially within the category of organic products, which overall resulted in modest growth for own consumer brands.

Cash flow from operating activities amounted to SEK 34 million (35) and was positively affected by the insurance compensation paid for the fire in Spain, which was offset, however, by inventory build-up related to the uncertainty in the Middle East and preparations for launches in the second quarter. A certain undesirable increase of working capital from higher operating receivables also impacted the quarter, but is expected to normalise in the second quarter.

The net debt to adjusted EBITDA ratio amounted to 0.9 x (1.5) at the end of the quarter.

Growth for organic brands in the Nordics – measures produce results in the North and South
For the Nordics, the organic change in net sales amounted to –3.3 percent. Sales growth remained strong for several major brands in the organic products category, while there were some challenges for health foods and consumer health products, partly due to the moving of a launch window from the first to the second quarter in the Swedish grocery trade and changes in promotional campaign patterns. The cost savings programme implemented reduced the cost base during the quarter, which, together with a favourable product mix, led to a clearly improved EBIT margin. Operating profit, before items affecting comparability, amounted to SEK 55 million (48).

For North Europe, organic net sales growth amounted to 4.2 percent, driven by strong growth for own consumer brands, and a continued strong sales performance for contract manufacturing. The organic sales performance was negatively impacted by the fact that the division is carrying out a transformation in the B2B business, where less profitable contracts have been terminated, with a focus on improving the business mix going forward. The EBIT margin was slightly negatively impacted by an unfavourable mix in contract manufacturing, and active work to optimise the range for increased profitability is ongoing. Operating profit/loss, before items affecting comparability, amounted to SEK 7 million (8).

For South Europe, the organic change in net sales amounted to –5.9 percent. Sales were negatively impacted by a decrease in contract manufacturing, mainly due to terminated contracts following the fire in Spain during the previous year. Work in Spain is progressing, and in the first half of the year we will establish a long-term plan for operations, as well as determine whether, and if so to what extent and in what form, the production facility will be rebuilt. At the same time, we saw a clear improvement in profitability as a result of a strong performance in the French market, where our grocery trade brands continued to perform well. Operating profit/loss, before items affecting comparability, amounted to SEK 3 million (0).

A stronger basis for future value creation
The external environment remains highly uncertain, with volatile energy and transport costs caused by increased geopolitical tensions in the Middle East. A more protracted conflict in the region could eventually also affect raw material markets. Despite a challenging outlook, we are confident in our ability to continue building profitable growth. By having a clearer strategy, a stronger operational foundation and a robust financial position, we are creating scope for action to both manage turbulence and seize organic and non-organic growth opportunities, not least given the continued strong health-related market trends that we are seeing.

Midsona's base in healthy and sustainable products also means that achieving growth while considering people and the environment is integral to our work. In conjunction with the publication of the Annual Report in April, we launched our new sustainability framework, A Healthier tomorrow. The framework clarifies the material sustainability topics that are helping us to strengthen our long-term future and our business. It also contributes to the transparent and clear sharing of our ambitions and progress in the sustainability area with our stakeholders. To further improve our transparency, we have also chosen to include selected KPIs in this area, starting from this quarterly report.

We are continuing to develop our position and our offering while focusing on profitable and sustainable growth. The acquisition of Risenta, which we look forward to enhancing and developing further in the future, is an important step in this direction.

Henrik Hjalmarsson
President and CEO