Probi’s Q2 report shows 10% growth, APAC region emerges strongest
15 Jul 2022 --- Expecting a “flat market” for the remainder of the year due to uncertain macroeconomic events is set to pose a challenge in predicting consumer behavior, according to Swedish probiotic solutions manufacturer Probi’s Q2 report.
Presenting a net income of SEK20 million (US$1.9 million), the company highlights the Asia-Pacific region (APAC) markets demonstrating their“strongest quarters” since the early stages of the COVID-19 pandemic.
Probi reports 10% growth for Q2, driven by “favorable exchange rates.” Sales are reported at SEK 174.5 million (US$16,4 million), approximately on par with last year’s figures.
Although an increase in sales was reported at 10% with -1% for adjusted currency effects, the report emphasizes this as an “important step on their way back to showing growth as a company,” as previous quarters reported negative sales growth.
Across the globe
The company aims to continue expansion by “investing in the future.”
EBIT margin was 14,5%, and EBITDA was at 26%, underscored as “slightly lower than the financial target.”
The company mentions that this year, the focus was on investing in developing the product pipeline and further expanding sales in the Americas region. However, this also brought on increased costs as higher customer interaction was required in all markets.
Due to this, sales in the Americas were up by 14% in comparison to last year, mentioned to be driven by currency effects. With the adjustment for currency change, the sales resembled the previous year's.
“Our product portfolio and future launches have good market potential, and we will continue to invest in our future during the year,” says the report.
Previously, Probi told NutritionInsight that its strategy is to be the “leader in research and innovation,” especially in gastric and immune health. However, new areas are being explored, such as women’s health.
Similarly, for EMEA, sales were on par with 2021, although Q2 showed 10% growth when adjusted for milestone-related revenue in the previous year. Demand increased, “largely driven by more normal market conditions following the easing of COVID-19 restrictions”.
The APAC region showed the strongest quarter since Q2 in 2022 as it was “significantly affected by stockpiling resulting from the COVID-19 pandemic.”
“COVID-19-related restrictions in China have eased somewhat, and our team is again able to meet with customers and partners for additional demand creation,” says the report.
Bringing new products to the market
In collaboration with Symrise, the quarter delivered the first batches of SymFerment, a skincare product based on a “by-product from Probi's production process.” SymFerment is the ingredient made from Probi's upcycled Lactiplantibacillus (Lactobacillus) fermentation
“Sinopharm’s rollout is underway, and the third ClinBac concept, Probi Ferrosorb, will be launched during the autumn. COVID-19-related restrictions in China have eased somewhat, and our team is again able to meet with customers and partners for additional demand creation,” the company highlights.
Probiotics are attractive to consumers due to their driven interest in gut health. The industry has previously highlighted the need for continued innovation in this dynamic space.
By Beatrice Wihlander
