INTERIM REPORT, JANUARY-SEPTEMBER 2014

Strong operating profit and improved operating margin in the third quarter
JULY TO SEPTEMBER 2014 (THIRD QUARTER)

  · Net sales amounted to SEK 228 million (229).
  · The gross margin was 46.1 percent (46.3).
  · Operating profit amounted to SEK 22 million (19).
  · Profit for the period was SEK 18 million (17).
  · Earnings per share amounted to SEK 0.79 (0.75).
  · Cash flow from continuing operations amounted to SEK 23 million (19).

JANUARY TO SEPTEMBER 2014 (NINE MONTHS)

  · Net sales amounted to SEK 692 million (691).
  · The gross margin was 45.8 percent (46.3).
  · Operating profit amounted to SEK 50 million (48).
  · Profit for the period was SEK 38 million (39).
  · Earnings per share amounted to SEK 1.67 (1.71).
  · Cash flow from continuing operations amounted to SEK 41 million (53).

Comment by the CEO
Midsona’s operating profit improved to SEK 22 million, compared to SEK 19
million for the equivalent quarter last year. The operating margin rose to 9.6
percent (8.3) and was therefore close to the long-term target of 10 percent.

The favourable profit trend is mainly attributable to cost savings. However,
sales fell marginally to SEK 228 million (229). Sales rose by just under 4
percent in Sweden and Finland and fell by more than 4 percent in Norway. It is
likely that the unusually warm summer had a negative impact on sales for several
major product groups. Sales were weak in July and August but significantly
better in September.

In Sweden, profitability improved due to cost savings deriving from the
reorganisation that was implemented. Price increases have partially offset the
effect of the euro’s strengthening against the Swedish krona. In Norway, good
cost control allowed profitability to improve despite sales declining somewhat.
Profits weakened in Finland, although the comparison period included a capital
gain from the divestment of a brand. Adjusted for the brand divestment, profit
was in line with last year.

In general, the Group’s priority brands have performed well, both during the
quarter and the over year to date. The trend has been particularly positive for
the brands Friggs, Dalblads and Miwana, which all show double-digit growth to
date this year. The first two of the aforementioned brands are well positioned
in the growing health food segment. On the other hand, Naturdiet has continued
to lose volumes as the weight control market has generally been weak.

As previously announced, we are, during the autumn, launching a number of new
products under our well-known brands. This represents an important part of our
strategy to generate organic growth by frequently offering innovative new
products in the areas of health and well-being. This is the Group’s most
extensive launch period ever and has been very well received among retailers,
with good shop listings.

The Group’s strategy of focusing on priority brands in the areas of health and
well-being has been successful. We are continuing our efforts to generate
organic growth in our priority brands while actively analysing potential
acquisitions. We will approach and, in time, achieve all of our financial
targets – this will allow us to deliver on the vision of becoming the Nordic
leader in health and well-being.
Peter Åsberg, President and CEO


For further information:
MD and CEO Peter Åsberg, +46 (0)730 26 16 32
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
24 October, 2014, 8