News

Probi signs important deal, reports increased sales

1 Feb 2018

Swedish bioengineering company Probi has reported full year net sales up 38.2%, and announced that it had signed an agreement with an unnamed FMCG leader to launch a functional food product in North America in 2019.

Probi signs important deal, reports increased sales

Swedish bioengineering company Probi has reported full year net sales of SEK612.2m, up 38.2% from 443.5m. Net income was SEK69.1m, down from 101.8m. The company also announced that it had signed an agreement with an unnamed FMCG leader to launch a functional food product in North America in 2019.

“In the fourth quarter, the destocking programme of one of our largest customers continued and had a significant impact on our performance that could not be offset by other accounts,” said CEO Peter Nählstedt. “This resulted in a weak final quarter for the 2017 financial year which impacted our organic growth and profitability for the full-year. We expect the impact of this destocking to continue during the first quarter of 2018. Despite the weak end to the year, Probi delivered growth of 38% and a higher EBITDA margin than our long-range target for the full-year, and made further progress in several of our key strategic areas.”

“Probi signed a major agreement with a leading global FMCG company regarding the launch of our gastro bacteria in a category-leading brand in North America in 2019. The deal represents a major milestone for Probi and will have a significant impact on sales and profitability in the Functional Food segment. It is also recognition of our high scientific standard and application know-how in probiotic functional foods.”

We delivered important synergy deals in the fourth quarter. In the key North American market for consumer healthcare products, a new customer with a top brand is launching Probi’s premium iron uptake concept FerroSorb. Probi manufactures the turnkey product in its acquired operations in the US, and the first orders were delivered in December.”

“Probi has improved its sales focus further, expanded its sales capacity and pipeline in new geographies and strengthened its presence in Asia.”

“Probi is making steady progress towards its strategic objectives. We have an industry-leading range of probiotic products and a full value chain, including R&D, manufacturing, sales and marketing, and are looking forward to generating shareholder value in 2018 with confidence.”