Presentation

Probi is a health care company active in the probiotics space, with customers both within the consumer healthcare segment and the food industry. The company was founded in 1991 and is currently one of the largest probiotic companies in the world, active in over 40 markets. Probi has its own fermentation, formulation and production capacity in GMP-certified facilities and holds around 400 patents worldwide.

Recent highlights
In Q2, Probi performed net sales of SEK 175m, corresponding to a 10% growth q/q. The EBITDA margin was 26% (25%), which was below the target 29% margin. The margins were lower due to pipeline developments, expanded sales organization in America, and higher level of activity in customer interaction that drove costs.
In June, Probi introduced the new partnership with the cosmetic company Oriflame. The partners will develop and launch nutritional supplements in stomach health specially adapted for Oriflame. Moreover, did Probi invest NZD 9m in Blis Technologies stocks, corresponding to a 13% ownership share. This enables collaborative R&D, and a new license and distribution agreement that allows Probi to manufacture Blis bacterial strains to then offer these to customers.

Outlook
In accordance with the new growth goals, Probi target a 2x current revenue levels in 5-7 years, which would require a 10-15% annual revenue growth rate. To reap the full growth potential, Probi will increase its resources in regions such as China and Australia and expand its e commerce business, especially in USA where the demand is higher. Factset consensus expects sales and EBITDA figures to reach SEK 675m and SEK 183.6m respectively. This would imply a 2.6% sales growth y/y and EBITDA margin of 27.2%.