Probi praises Nutraceutix purchase, announces good Q4 results
January 24, 2017Probi, Swedish bioengineering company that develops probiotics has reported Q4 2016 financial results, pushed up by Nutraceutix October 2016 purchase.
The Swedish company reported net sales of €46,7 million in which €8 million from Nutraceutix acquisition were included. It also had the profit of €11,4 million. North America’s probiotics manufacturer was bought in October 2016.
Commenting on the acquisition, Probi’s CEO Peter Nählstedt said that the purchase of Nutraceutix was a major step forward for Probi, as it has seen North American market position improving. The CEO pointed out that the American presence increased the chances of global growth for the company.
Nählstedt said: “We have highlighted three of Probi’s proprietary probiotic strains that have not yet reached the market, and are using them to broaden our range in the US which has immediately created added value. We believe that the greatest synergy from the acquisition will initially come from the sales growth generated by these new strains. In addition to opportunities in the US, new agreements were also signed with several European markets during the year, and we are looking forward to the future with confidence.”
The acquisition doubled Probi’s current sales with pro forma net sales of €72.2* million for 2016. Total operating profit for the two operations for the full-year 2016 was approximately €20 million on a proforma basis.
“During the year, the ordinary operations continued to perform favourably. We set a quarterly sales record for three of the year’s four quarters. In the last quarter, we posted net sales of (more than) €12,4 million. Organic growth for the full-year was 71%. Operating profit for the full-year totalled €13.68, and was charged with transaction costs of €1.68, a partial impairment loss of €1.15 and integration costs of €526068.05, all of which are nonrecurring,” said Nählstedt.
(*Editor’s note: the values were converted from SEK to Euro.)
