Food and Beverage Business
Finance

Midsona aims for more sustainable growth with revised sales targets

Midsona aims for more sustainable growth with revised sales targets Midsona Food and Beverage Business

Sweden-based food group Midsona has revealed new financial targets significantly lower than previously guided.

The revised figures are part of a new growth strategy focused on “promoting synergies and developing offerings”. Midsona specializes in organic and sustainable food products and now targets organic growth of 3%-5% annually, down from the previous target of over 15%. The new EBITDA margin target is 8% by the end of 2027, lower than the previous aim of above 12%.

Company CEO Peter Åsberg outlined the rationale behind the updated plans, stating, “Midsona has made significant strides in its transformation over the past year. We are now setting new financial targets and launching a strategy to strengthen our position and offerings based on our strong brands.”

He added, “We aim to improve the operating margin significantly and exceed the peak year of 2020 by 2027. Our focus is on markets, brands, and products with the best potential for profitable growth.”

Midsona’s product range includes bars, rice cakes, shakes, and coconut milk, catering to the increasing demand for healthy lifestyle options in the Western world.

The company stated, “There is a growing interest in organic and sustainable products driven by shifting consumption patterns and dietary recommendations. Midsona is well-positioned to meet the demand for high-quality healthy foods as economic prospects improve.”

Midsona’s new strategy is built on three pillars. Firstly, to enhance its position and expand offerings within organic foods by leveraging synergies and streamlining operations to improve consumer experience.

Secondly, the company aims to grow with its health brands in existing and new markets, focusing on profitable organic growth with its prioritized brands: Friggs, Earth Control, and Gainomax.

Thirdly, Midsona will streamline the value chain to meet market needs efficiently, from procurement to logistics, creating a harmonized product range.

In 2023, Midsona reported revenue of SKr3.79bn ($369.2m), slightly lower than the previous year, while EBITDA increased from SKr191m to SKr217m.