New Nordic Healthbrands AB Full year report January - December 2017
TWELVE MONTHS 2017
- Net sales amounted to MSEK 344.8 (305.8), an increase of 12.7 percent. In local currencies, the increase was 12.3 percent. · Gross margin increased to 67.4 percent (65.3).
- EBITDA increased to MSEK 28.5 (14.1).
- Operating profit increased to MSEK 27.7 (13.0).
- Profit after tax for the period increased to MSEK 20.3 (9.6).
- Earnings per share after tax increased to SEK 3.28 (1.55).
- Net sales amounted to MSEK 86.6 (70.6), an increase of 22.8 percent. In local currencies, the increase was 27.9 percent. · Gross margin increased to 68.2 percent (65.3).
- EBITDA increased to MSEK 9.9 (1.4).
- Operating profit increased to MSEK 9.7 (1.2).
- Profit after tax for the period increased to MSEK 6.6 (0.3).
- Earnings per share increased to SEK 1.07 (0.05).
COMMENTS BY KARL KRISTIAN BERGMAN JENSEN, CEO
2017 was another good year for New Nordic.
We increased revenue by 12 per cent in local currency, driven by product innovation and increased marketing. Transformed into Swedish Kronor the sales increased with nearly 13 per cent.
Fourth quarter showed a particularly strong growth in revenue with 27 per cent in local currencies and record earnings.
We increased in all geographical areas an I am particularly enthusiastic about the ne growth we have had in the US. Our cooperation with Walgreens, CVS and Amazon is expanding and our distribution in pharmacies, health food stores and online stores in general is moving forward as planned.
Our assortment consists of nearly 50 products grouped into four main categories, Vitality, Beauty, Diet and Sport. All but the sport cate- gory increased satisfactory. We rede ned the tactics for the sport cate- gory and we will now focus on digital marketing, sports in uencers and online sales for this category.
Gross pro t has increased to more than 67 per cent as a result of focus on the most pro table products as well as increased economies of scale in procurement and production. We managed to keep the increase in xed costs close to one per cent. All cost are well under control. Our pro tability increased and pro t after tax more than doubled to 20 million SEK. This is equivalent to earnings per share of 3,28 SEK. Our margins are strong and increasing but the net margin after tax which amount- ed to nearly 6 per cent is still a bit below our long term ambitions. We had a ne generation of cash with a positive cash ow from operations of 4.7 million SEK.
The balance sheet is very well trimmed and we are extremely asset light. By year end the total net inter- est bearing debt to EBITDA amounted to 0.3. Return on equity amounted to 33.4 per cent and return on capital employed to 39.8. per cent.
All employees have made a great e ort to execute our strategy e ectively and I am very grateful.
In 2018 we will focus on growth through continued product innovation, increase in marketing and increased distribution through speci- alty trade retailers. Online as well as o ine and omni-channels. Our marketing will continue to be centered around traditional print media but with increasing use of TV advertising and digital marketing with a high one-to-one focus in order to establish digital brand experience for an increasing number of our end consumers. We will also continue our e orts to ex- pand our geographical reach in Europe and Asia.
As we grow we will further strengthen our cooperation with existing and new manufacturing part- ners and we will be introducing new technologies and dispensing forms. We will continue to value manufacturing and material sourcing in Scandinavia but will look globally for the best manufactur- ing solutions.
New Nordic is one of the very few listed food supplement companies in the world with a global brand strategy. A unique global invest- ment opportunity. We expect the global food supplement market to grow 5-8 per cent yearly over the coming years and we have a proven strategy which the whole New Nordic team is focused on executing e ectively. I am very optimistic that we can increase revenue and pro t in 2018 and further create value and earnings for our shareholders.
Malmö March 2, 2018
Karl Kristian Bergman Jensen, CEO
New Nordic Healthbrands AB Södra Förstadsgatan 3 C SE-211 43 Malmö Sweden
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] newnordic.com. Registered office: Malmö, Reg. No. 556698-0453.
The information in this press release is that which New Nordic Healthbrands AB (publ) is required to disclose under Sweden's Securi- ties 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 March 2nd 2018.
New Nordic Healthbrands AB (publ) was founded in 1990 and is quoted on NASDAQ OMX Stockholm since 2007. The com- pany's business 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 cam- paigns, serve the pharmacy and health retailers and serve the end consumers. In 2017, sales were 345 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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