Probi - Americas continues to deliver strong growth

Q4’20: 20% organic growth Product mix and higher costs weighs on profitability Positive wording for 2021 Americas +21% y-o-y; gross margin weighed by product mix Probi delivered sales of SEK 185m (5. 6% vs. ABGSCe 175m), growing 11% y-o-y (20% organic). Americas continues to deliver, growing 21% y-o-y (SEK 154m 9% vs.

ABGSCe). Americas consisted of 84% of the sales mix in the quarter (normally ~75%). COVID-19 continued to pressure EMEA (-19% y-o-y) and APAC (-24% y-o-y), and Probi now expects a recovery in the regions during 2021.

Gross margin was 42. 5% (-3. 3pp vs ABGSCe), negatively impacted by product mix in Americas and lower volumes in APAC.

The lower gross margin and higher opex base, particularly relating to R&D, led to an EBITDA of SEK 47m (-12% vs ABGSCe) for a margin of 25. 4% (-5. 1pp vs.

ABGSCe). Probi also announced a raised DPS of SEK 1. 1 (vs.

ABGSCe SEK 1. 15), corresponding to a payout ratio of 14% (vs. 13% 2019 and ABGSCe 13%).

This is in-line with the financial target of a 10-30% payout ratio. EBITDA margin of 25% below targeted =29% Probi continues to invest for growth, which hampered profitability in the quarter. We believe this could lead to a higher cost base for 2021 as well, but we note that the upgrade program in the US manufacturing site is now largely completed, expected to boost gross margins as of H2’21.

Americas continues to be a key driver for Probi to reach its financial targets ( 7% annual organic growth, an annualized EBITDA margin =29%). Expect to achieve its financial targets in 2021 Probi continues to execute on its growth ambitions, and expects to reach its financial targets that were established in the Q2’20 report during 2021. We expect further details on the webcast at 10.

00 CET; call-in details: Sweden: +46 8 50 55 83 53; UK: +44 33 33 00 92 67; US: +1 83 35 26 83 47. Link: https://tv. streamfabriken.

com/probi-q4-2020.