Interim report, January-September 2015

Strong sales growth driven by acquired company Urtekram
JULY TO SEPTEMBER 2015 (THIRD QUARTER)

  ·
Net sales amounted to SEK 367 million (228).

  ·
EBITDA amounted to SEK 31 million (25) before non-recurring items

  ·
Operating profit, EBIT, amounted to SEK 25 million (22) before mon-recurring
items.

  ·
Non-recurring items burdened the operating profit in the amount of SEK 14
million (-).

  ·
Profit for the period was SEK 39 million (18).

  ·
Earnings per share before and after dilution amounted to SEK 1.63 (0.79).

  ·
Cash flow from continuing operations amounted to SEK 30 million (23).

JANUARY TO SEPTEMBER 2015 (NINE MONTHS)

  ·
Net sales amounted to SEK 822 million (692).

  ·
EBITDA amounted to SEK 60 million (57) before non-recurring items.

  ·
Operating profit, EBIT, amounted to SEK 47 million (47) before non-recurring
items.

  ·
Non-recurring items burdened the operating profit in the amount of SEK 22
million (negative 3).

  ·
Profit for the period was SEK 50 million (38).

  ·
Earnings per share before and after dilution amounted to SEK 2.16 (1.67).

  ·
Cash flow from continuing operations amounted to SEK 67 million (41).

Comment by the CEO

At the start of the third quarter, Midsona took possession of the acquired
company Urtekram. This is strategically important as it establishes us in the
expanding segment for organic foods. At the same time, we gain a platform in
Denmark, meaning we have a strong presence in all Nordic markets.

To maintain our focus on the business, during the quarter, we invested a great
deal of energy on generating confidence, a spirit of enterprise and commitment
to the organisation. Consequently, it is with particular pleasure and pride that
I can confirm that sales rose by 61 percent in the quarter, significantly more
than the 47 percent contributed pro forma by the acquisition.

Underlying operating profit, measured as EBITDA before non-recurring items, was
the best in Midsona’s history, although we have yet to realise any cost
synergies from the acquisition. We expect to see certain synergy effects in the
fourth quarter of 2015 and the full effects, largely, in the first quarter of
2016. Accordingly, we are ahead of our schedule. Cost synergies were previously
estimated at approximately SEK 15 million annually, but have now been revised up
to about SEK 20 million. Non-recurring costs of SEK 8 million for restructuring
and acquisition-related costs of SEK 6 million were charged against earnings for
the third quarter.

Many of our priority brands such as Friggs, MyggA and Miwana developed
favourably in the quarter. At the end of the quarter, however, the National Food
Agency published a report on the possible occurrence of inorganic arsenic in
rice and rice products. The EU is currently developing new legislation on limits
for inorganic arsenic levels in rice products. The rice cakes sold by Midsona
are below the EU’s proposed limits. Due to the publicity surrounding the
National Food Agency’s report, sales of Midsona’s rice cakes have been adversely
affected. We are now implementing several measures to counteract an expected
drop in sales. Among other things, Friggs launched a number of new maize-based
products in October.

The integration of Urtekram will continue in the fourth quarter. The cost
synergies that have been identified are to be realised, while, at the same time,
it is our ambition to maintain a high level of growth. Urtekram is well
positioned in the market for organic foods, which is currently expanding
strongly in all of the Nordic countries, and which is particularly strong in
Sweden. Consequently, we perceive favourable opportunities for continued strong
growth. Accordingly, we will continue to progress towards our vision of becoming
a leader in health and well-being in the Nordic region.

Peter Åsberg, President and CEO

This is information of the type that Midsona AB is obligated to disclose in
accordance with the Swedish Securities Exchange and Clearing Operations Act
and/or the Financial Instruments Trading Act. The information was published on
23 October 2015, at 8 am.
For further information: MD and CEO Peter Åsberg, 46 (0)730 26 16 32
About Midsona

Midsona holds a strong position in the Nordic market with own strong brands
within healthfoods, personal care and hygiene. Midsona also sells a number of
licensed internationally established brands.  Our products are sold through
grocery and convenience stores, pharmacies, health stores and internet.
Midsona’s priority trademarks are: DALBLADS, FRIGGS, MIWANA, MYGGA, NATURDIET,
SUPERNATURE, URTEKRAM and TRI TOLONEN. Midsona has annual sales of about MSEK
920 (2014). The Midsona share (MSON) is listed on NASDAQ OMX Stockholm, Small
Cap. For further information: www.midsona.com