Probi - EMEA staging a comeback

Q1’21: 20% organic growth vs. ABGSCe 16% Growing above financial target, EBITDA slightly below Continued positive outlook for 2021 and beyond Solid organic growth y-o-y: Americas +22%, EMEA +19% Probi delivered sales of SEK 171m (1.4% vs. ABGSCe 169m), growing 9% y-o-y (20% organic). Hampered by FX, Americas grew 6% y-o-y (SEK 122m, -3% vs.

ABGSCe). After several quarters of COVID-19 pressure, EMEA staged a solid comeback with sales of SEK 35m (+16% vs. ABGSCe SEK 30m) and growth of 19% y-o-y.

APAC delivered sales of SEK 14m (+15% vs. ABGSCe SEK 12m), growing 5% y-o-y. Management guides for continued high fluctuation between quarters in 2021, but a continued strong underlying demand, bolstered by new collaborations.

EBITDA margin of 27.5% slightly below targeted =29% The gross margin was 43.4% (-2.6pp vs ABGSC 46.0%), an improvement versus the pressured 39% Q1’20, but below our estimates as we expected a more rapid margin improvement in Americas. Bolstered by solid cost control, EBITDA was SEK 47m (in-line w. ABGSC 47m), for a margin of 27.5% (-0.4pp vs ABGSC 27.9%).

Management expresses intention to increase investments in R&D during the year. Probi remains committed to reach its financial targets ( 7% annual organic growth, an annualized EBITDA margin =29%). Starting 2021 with several new customer collaborations The company continues to execute on its growth ambitions, and has started 2021 with collaborations with large partners such as Perrigo in EMEA and Sinopharm in APAC.

Probi’s shares are up ~10% the last 30 days, likely supported by the partnership announcement with Sinopharm in late March. We expect further details on the webcast at 10.00 CET; call-in details: Sweden: +46 8 50 55 83 56; UK: +44 33 33 00 92 64; US: +1 83 35 26 83 96. Link: https://tv.streamfabriken.com/probi-q1-2021.