New Nordic Healthbrands Six month report January - June 2017
SIX MONTHS 2017
- Net sales amounted to MSEK 169.8 (150.5), an increase of 12.8 percent. In local currencies, the increase was 9.5 percent.
- Gross proft increased to MSEK 114.2 (98.0).
- EBITDA increased to MSEK 9.4 (5.3).
- Operating profit increased to MSEK 9.0 (4.7).
- Profit after tax for the period increased to MSEK 6.7 (3.8).
- Earnings per share increased to SEK 1.08 (0.62).
Q2 2017
- Net sales amounted to MSEK 88.9 (76.0), an increase of 17.0 percent. In local currencies, the increase was 12.8 percent.
- Gross profit increased to MSEK 59.7 (50.5).
- EBITDA increased to MSEK 5.3 (2.1).
- Operating profit increased to MSEK 5.1 (1.8).
- Profit after tax for the period increased to MSEK 3.8 (1.5).
- Earnings per share increased to SEK 0.61 (0.24).
COMMENTS BY KARL KRISTIAN BERGMAN JENSEN, CEO
We continued our growth in sales and earnings and reached record levels. We had a fine second quarter 2017 making the first half year a good half year with a nice growth of nearly 13 percent, increased earnings and further internationalization of our brand.
Sales amounted to 170 MSEK. Sales increased in all geographical regions fueled by innovations and effective marketing. Our gross margin reached 67.3 percent which is satisfactory. Costs have been kept well under control. Basically all increase in cost compared to last year is related to increase in marketing campaigns to back existing and new products world wide. The increase in cost first half 2017 amounted to 13 percent.
In our internationalization process, we have some countries where we are well-established in the local market and some countries where we work hard to gain market share to reach a more critical mass and a solid platform for future profits. Therefore, our EBITDA varies considerably from country to country. On a group level we reached a total EBITDA margin of 5.6 percent for the first half year which is below our long term ambitions but nonetheless increasing. With low debt and a low book value of our assets, financial costs and depre- ciation are comfortably low resulting in a profit after tax of 6.7 MSEK or 1.08 SEK per share for the first half year. Our balance is well trimmed and the inventory level is about right for our business.
Our three most important product categories: Vitality, Diet and Beauty are all developing well with a lot of international potential for further growth. During the first half year we have focused to prepare new innovative products for launch in the US market during the 2nd half of 2017. We also have some very exciting new products in preparation for test market in Scandinavia. Some of which will also introduce completely new technology to the industry.
The whole New Nordic team has made excellent efforts to reach the first half results and we are all excited about the second half of 2017. We are confident that we can take further market share in this growing food supplement market and increase our brand value and earnings.
The information in this press release is that which New Nordic Healthbrands AB (publ) is required to disclose under Sweden's Securities Market Act. and made public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 9.00 (CET) on July 31st, 2017.
Contact:
Karl Kristian Bergman Jensen, CEO +46 40-239520 (switchboard),
Marinus Blåbjerg Sørensen, CFO +45 46323344 (switchboard)
New Nordic Healthbrands AB (publ), SE-211 43 Malmö, Sweden Phone +46-40-239520, fax: +46-40-239522, email: [email protected]. Registered office: Malmö, Reg. No. 556698-0453.
New Nordic Healthbrands AB (publ) was founded in 1990 and is quoted on NASDAQ OMX Stockholm since 2007. The company's busi- ness concept is to offer the most effective and safe food supplements and natural medicines for specific health conditions. New Nordic's branded products are now available in 33 countries in pharmacies and health stores. The New Nordic Group has it's own small sales and marketing companies in most European Countries, Canada and the US, to organize local marketing campaigns, serve the pharmacy and health retailers and serve the end consumers. In 2016, sales were 306 MSEK. All New Nordic products sold worldwide are manufactured in Scandinavia. For further information, visit www.newnordic.com.
Om New Nordic
New Nordic är ett kosttillskottföretag som fokuserar på starka internationella varumärken inom specifika hälsomarknadssegment som sömn, åldersbekämpning och viktminskning, samt hår-, hud- och naglar.
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