Veg of Lund AB - Interim report Q2 2023
Increased sales at lower cost
April–June 2023
- Net sales amounted to TSEK 1,4580 (1 070).
- Operating profit before depreciation and amortization (EBITDA) amounted to TSEK
-7,824 (-11,291), and EBIT amounted to TSEK -7,842 (-11,343). - Net profit amounted to TSEK -8,069 (-11,183).
January–June 2023
- Net sales amounted to TSEK 3,281 (1 524).
- Operating profit before depreciation and amortization (EBITDA) amounted to TSEK
-16,102 (-29,004), and EBIT amounted to TSEK -16,173 (-29,107). - Net profit amounted to TSEK -16,687 (-29,182).
Summary of the Group’s indicators (see definitions on page 15)
| TSEK | Q22023 | Q22022 | H12023 | H12022 | Full year2022 |
| Net sales | 1,458 | 1,070 | 3,281 | 1,524 | 2,541 |
| Gross margin, % | 19 | 15 | 15 | 16 | 2 |
| EBITDA | -7,823 | -11,291 | -16,102 | -29,004 | -42,580 |
| EBITDA margin, % | Neg. | Neg. | Neg. | Neg. | Neg. |
| Operating profit (EBIT) | -7,843 | -11,343 | -16,173 | -29,107 | -42,787 |
| EBIT margin, % | Neg. | Neg. | Neg. | Neg. | Neg. |
| Net profit for the period | -8,070 | -11,183 | -16,687 | -29,182 | -45,279 |
| Profit margin, % | Neg. | Neg. | Neg. | Neg. | Neg. |
| Basic and diluted earnings per share, SEK | -0.33 | -2.33 | -0.68 | -0.87 | -3.41 |
| Solidity, % | -101 | -28 | -101 | -28 | 35 |
| Equity per share, SEK | -0.33 | -0.28 | -0.33 | -0.28 | 0.26 |
| Balance sheet total | 8,574 | 13,202 | 8,574 | 13,202 | 18,071 |
| Cash flow from operating activities | -7,104 | -10,765 | -15,491 | -20,183 | -33,677 |
| Average number of employees | 7 | 10 | 7 | 9 | 9 |
Significant events April–June 2023
- Salling Group in Denmark launches DUG in 101 Fotex and Bilka stores during May.
- Veg of Lund takes up loans of MSEK 7 with conversion options from existing shareholders and board member Eva Tornberg.
- Veg of Lund receives a Swedish Patent Protecting the company’s plant-based ice cream.
- Veg of Lund recruits Emil Bendroth as new CFO.
- Veg of Lund receives a Canadian Patent Protecting the company’s plant-based potato drink.
- The Annual General Meeting of Veg of Lund resolved, in accordance with the Nomination Committee’s proposal, on re-election of Anders Hättmark, Eva Tornberg, Rolf Bjerndell and Anders Gustafsson and election of Johan Möllerström as board members. Johan Möllerström was elected as the chairman of the Board of Directors. The AGM re-elected the audit firm KPMG AB as auditor.
- One of the lenders from the SEK 7 million loan, raised in the quarter, chose to convert the loan into shares. The increased number of shares in the company by 270,945 shares.
Significant events after the period
- Veg of Lund has signed a Letter of Intent (“LOI”) with Haofood Shanghai Food Technology Co., Ltd. The companies will cooperate with the common goal of selling, marketing and distributing Veg of Lund’s products under the DUG® brand in China and select other markets in the region during the first quarter 2024.
- Veg of Lund Enter Poland with Distributor
- The BoD of Veg of Lund Resolves on new issue of shares with pre-emptive rights for the shareholders of MSEK 23.7 and obtains and bridge facility of MSEK 3.3
- Veg of Lund has signed a Letter of Intent (“LOI”) with Romagnoli F.lli S.p.A. The companies will cooperate with the common goal of selling, marketing and distributing Veg of Lund’s products under the DUG® brand in Italy.
- Veg of Lund signs distribution agreements with Synergy Trading Corporation for the Japanese market.
A word from the CEO
The trend from quarter one continues into quarter two. Higher netsales with lower cost compared to the same quarter last year. Halfway through 2023, we have already surpassed the turnover for the full year of 2022. Compared to the first half of 2022, netsales increased by +115% while the cost of operating decreased by -44%. Cost-effective expansion continues to be the watchword in our work to take Veg of Lund out into the world.
Market by market. The expansion continous at good pace.
In April, DUG potato drink was launching in 486 Migros stores in Switzerland and last quarter netsales included their initial order to begin the launch. During the second quarter, they contnously ordered all three versions. Sales in stores have show taht above all our Barista and Unsweetened variants have performed well and going forward we will focus the range together, which was expected and part of the strategy and discussions.
During the month of May danish Bilka and Fötex also launched DUG potato drink in 101 stores and discussions are now underway regarding possible expansion to Sallings group third retail concept Netto which we hope will take place during the fall and give our brand additional cost-effective exposure to consumers in Denmark.
Germany is a future important market for us and during the spring we, together with our german distributor, started several discussions with leading chains that are positive and altough these processes take longer we hope to make our products available in the german market during fall. We clearly notice, via social media channels, consumer interest which is motivating.
In addition to the above, we are past the first step in a numer of other markets. In Europé we will launch, through our contracted distributor in Poland during the thrid quarter. Italy and Norway are other markets where we are in advanced discussions with potential distributor partners. In several other markets in Europé initial distributor discussions have been initiated. We look forward updating you on progress and agreements in the coming months.
The focus we apply in Sweden and England has proven to make sense and will continue for the foreseable future. The launch of a third smoothie flavour in Sweden have gone well and DUG Mango is ot the leader of our flavours in sales through the approx. 150 stores we are established in. In England, we continue to work on expansion with our existing customers in the food industry while for the first time in a long time we recently carried out marketing activities to attract new customers. The shift from 10 liter format to 20 liter format packaging that we made during the quarter will facilitate this while improving our gross margin.
It has turned out that the news of our imminent launch in Japan has been and important message for other parts of Asia and we have now established the intention to launch in China with selected distributor. At the same time our long gone discussion with potential license partner in Thailand continue. The next steps for our partner in Thailand is to conduct consumer market studies to find the right position locally for launch. Asia is a key market for us and in addition to the markets mentioned above, early discussions are underway in a handful of others.
We are can summarize that all three businessmodels are in play. Direct, via distributors and via licensing. We have already launched in additional markets during the quarter and have several others in the process of launching in the autumn.
Internationalization and commercialization is under way.
More for less is key.
At the same time we expand internationally and with our productportfolio, we keep a watchful eye on our cost. We can already see that it is possible to grow netsales without growing cost. During the quarter we generate +36% netsales growth while cost decreased by -32%. That, together with continously improving gross margin, is the key to profitability by 2025, which is our goal. During the second quarter 2023 the gross margin amounts to 19% which compared to the first quarter’s 12% is a significant improvement.
Continous focus on expansion of the product portfolio will ensure future relevance.
There is no doubt that here and now our potato dring and to some extent potato smoothie are the engines fo growth. That is how it will be for the foreseeable future, and that is likely to be enough for significant growth. In the long-term, we need to supplement these products with more, and therefor ongoing work is underway to expand the product and the patent portfolio. During the quarter we strengthened athe patent portfolio further with an approved patent for potato-baed ice cream in Sweden and and additional patent for the potato drink, now in Canada. At the same time, some of the most exciting commercial discussions are taking place with regards to our meat alternative. The start of sales of the meat alterantive is too early to update about, but the most likely approach will be through our license model when it happens.
Financial resources secured for continoud expansion.
We recently informed about the planned rights issue of approx. 24MSEK. Guaranteed at the 75%, it gives energy to continou our work and gives confidence in various discussionw we now are having. The commercial market believe in us and this is backed up by confidence from the financial market. It motivates and inspire us at Veg of Lund to continue work hard towards succeeding in taking our innovative and unique concept to become a natural part of food consumption worldwide.
Fredrik Carling
CEO
Financial overview
Development of sales
Second quarter 2023
During the second quarter, Veg of Lund's net sales totaled TSEK 1,458 (1 070), an increase of 36% percent. The increased sales is an effect of sales to new markets, as Migros in Switzerland compared to last year.
Operating expenses
Other external expenses
Other external expenses amounted to TSEK -5,695 (-9,247) for the second quarter. The expenses mostly comprise sales and marketing costs of TSEK -2,973.
Personnel expenses
Personnel expenses for the second quarter amounted to TSEK -2,408 (-2,674).
Depreciation/amortization
Depreciation/amortization for the second quarter amounted to TSEK -19 (-52), mostly attributable to amortization of intangible assets.
Profit
Operating profit (EBIT)
Operating profit for the second quarter 2023 amounted to TSEK -7,843 (-11,343) as a result of retrenchment and prioritization of costs.
Net financial items
The financial profit for the second quarter amounted to TSEK -227 (-160) and mainly comprised interest related to bridge loans and convertible bonds.
Net profit for the period
Net profit for the second quarter amounted to TSEK -8,070 (-11,183).
Earnings per share
Earnings per share for the second quarter amounted to SEK -0.33 (-0.87).
Cash flow, investments and financial position
Cash flow
Cash flow during the second quarter 2023 amounted to TSEK 1,532 (-2,918). Cash flow from operating activities amounted to TSEK -7,104 (-10,765).
Investments
During the second quarter, investments in intangible assets amounted to TSEK 38 (165), relating to the company’s patent application processes. No investments in property, plant and equipment were made during the quarter. No investments in financial fixed assets were made during the year (—).
Change in cash and cash equivalents
Cash and cash equivalents increased by TSEK 1,532 (-2,918) during the quarter, to TSEK 3,150 (3,819).
Capital position
After end of quarter The Board of Directors of Veg of Lund AB (publ) with support of the authorisation granted by the Annual General Meeting held on 14 June 2023 resolved on an issue of units consisting of shares of approximately MSEK 23.7 before issue costs (the “Rights Issue”) with subscription period 15 August 2023 - 29 August 2023. In connection with the Rights Issue, the Company has received subscription commitments of approximately MSEK 4.8 and underwriting commitments of approximately MSEK 13, corresponding to a total of approximately 75 percent of the Rights Issue. The issue proceeds from the Rights Issue are primarily intended to be used for continued international expansion, financing other operational costs and repayment of loans. Veg of Lund has on this day also obtained bridge loans of approximately MSEK 3.3 from the Chairman of the Board Johan Möllerström and one current shareholder to finance the Company’s operations until the Rights Issue has been completed.
The Board of Directors continues to actively pursue and evaluate various financing options to ensure the long-term financing and optimal capital structure of the company.
Equity
The group’s total equity amounted to TSEK -8,639 (-3,631) at the end of the quarter, and equity per share amounted to SEK -0.33 (-0.28). The change is attributable to the loss for the year.
The parent company
In addition to sales in Sweden, Veg of Lund AB’s operations include head office functions such as group-wide management and administration.
Second quarter 2023
During the first quarter 2023, net sales decreased to TSEK 1,058 (1,670), of which TSEK 0 (1,439) represented intra-group sales. Net profit for the period amounted to TSEK -5,279 (-6,876). Investments in tangible and intangible fixed assets amounted to TSEK 38 (165).
For other matters, see the information provided for the group.
The share and the shareholders
Veg of Lund's share, ticker VOLAB and ISIN SE0013281979, is listed on Nasdaq First North Growth Market since 10 February 2020. There are 25,795,321 shares outstanding, corresponding to 25,795,321 votes. The number of warrants outstanding amounts to 576,920.
For the period January–June 2023, the average number of shares amounted to 24,636,106. The diluted number of shares as of 30 June was 25,213,026.
As of 30 June 2023, Veg of Lund AB (publ) had 6,914 registered shareholders (7,181).
Trading in the share
Total liquidity in the share during the second quarter of 2023 amounted to MSEK 8,9 (11,4). The number of transactions for the same period totaled 4,374 (4,254). The average volume per transaction increased to 1,074 (245) shares. The average daily turnover for the Veg of Lund share during the second quarter 2023 was 79,600 shares, at an average share price of SEK 1.86.
Ownership structure on 30 June 2023
| Name | Number of shares and votes |
Share of capital and votes, % |
| Einar Haugland plus through company | 2,202,322 | 8.54% |
| Anders Färnqvist | 2,000,000 | 7.75% |
| Eva Tornberg through company | 1,472,006 | 5.71% |
| Torbjörn Malmsjö | 1,036,264 | 4.02% |
| Avanza Pension | 907,210 | 3.52% |
| Anders Hättmark through company | 801,329 | 3.11% |
| Kenneth Eriksson | 800 ,00 | 3.10% |
| Nordnet Pensionsförsäkring | 366,248 | 1.42% |
| Jan Emilsson | 278,299 | 1.08% |
| SWEDBANK FÖRSÄKRING | 271,651 | 1.05% |
| Other shareholders | 15,659,992 | 60.71% |
| Total | 25 795 321 | 100.00% |
Source: Euroclear and Veg of Lund
Certified adviser as of 1 January 2022 is Mangold Fondkommission AB,
telephone: +46 8 5030 15 50, email: [email protected]
Other disclosures
Employees
The average number of employees in the group amounted to 7 (10) during the quarter.
Annual General Meeting 2023
Veg of Lund's Annual General Meeting was held on 14 June 2023. As members of the board, Anders Hättmark, Rolf Bjerndell, Eva Tornberg, Anders Gustafsson were re-elected and Johan Möllerström newly elected. As Chairman of the Board, Johan Möller was newly elected. The general meeting further resolved to re-elect KPMG AB as the company’s auditors for the period up to the Annual General Meeting 2024.
Dividend
The general meeting resolved in accordance with the Board of Directors’ proposal that no dividend be paid for the financial year 2022 (-).
Dividend policy
Veg of Lund has not adopted a dividend policy and has not resolved to pay any dividend for the financial year 2022. The Board of Directors of the company has currently no intention to propose any dividend. Any future dividends will be decided by shareholders in connection with general meetings, and will be based, inter alia, on the company's profitability, development and/or financial position.
Upcoming publication dates
Interim report July–September 2023 9 November 2023
Year-end report 2023 15 February 2024
Significant related-party transactions
During the second quarter 2023, the company’s related-party transactions totaled TSEK 333 (336). All transactions were conducted on market conditions.
Accounting principles
The interim report is prepared in accordance with the Swedish Annual Accounts Act as well as the Swedish Accounting Standards Board BFNAR 2012:1 annual report and consolidated (K3).
Significant risks and uncertainties
Veg of Lund is working continuously to identify, assess and manage various risks and exposures faced by the group. Veg of Lund's financial position and performance are affected by various risk factors to be taken into account when evaluating the company and its future performance.
The risks and uncertainties that Veg of Lund’s operations are exposed to are described on page 29 of the company's annual report for 2022. In Veg of Lund’s assessment, there have been no significant changes to these risks or uncertainties after the presentation of the annual report.
Effects of the war in Ukraine
The war in Ukraine has financial repercussions, mainly involving trade and global raw material prices. This affects Veg of Lund as well as all other food companies. The main implications for Veg of Lund are increased raw material prices, shortage of certain inputs, and longer delivery times, which may disrupt production. The company makes continuous assessments that will be presented in future reports and, where appropriate, in additional disclosures via press releases.
Certified Adviser
Certified adviser for the company is Mangold Fondkommission AB, telephone: +46 8 5030 15 50, email: [email protected].
Assurance
The Board of Directors and the CEO confirm that this interim report provides a true and fair view of the group’s and the parent company's operations, position and performance and describes material risks and uncertainties faced by the parent company and the companies belonging to the group.
Lund, Sweden, 14 August 2023
Johan Möllerström Anders Gustafsson Anders Hättmark
Chairman of the Board Director Director
Rolf Bjerndell Eva Tornberg Fredrik Carling
Director Director Chief Executive Officer
This report has not been reviewed by the company’s auditors.
Consolidated income statement
| TSEK | Q22023 | Q22022 | H12023 | H12022 | Full year2022 |
| Net sales | 1,458 | 1,070 | 3,281 | 1,524 | 2,541 |
| Other operating income | 77 | 513 | 138 | 601 | 1,638 |
| Total income | 1,535 | 1,583 | 3,419 | 2,126 | 4,179 |
| Operating expenses | |||||
| Cost of goods sold | -1,188 | -910 | -2,786 | -1,280 | -2,500 |
| Other external expenses | -5,695 | -9,247 | -12,390 | -25,202 | -35,524 |
| Personnel expenses | -2,408 | -2 ,674 | -4,227 | -4,548 | -8,609 |
| Depreciation, amortization and impairment | -19 | -52 | -71 | -103 | -207 |
| Other operating expenses | -68 | -43 | -118 | -100 | -126 |
| Operating profit (EBIT) | -7,843 | -11,343 | -16,173 | -29,107 | -42,787 |
| Interest income and similar items | 260 | 228 | 312 | 497 | 630 |
| Interest expense and similar items | -487 | -68 | -826 | -572 | -3,122 |
| Result from financial items | -227 | 160 | -514 | -75 | -2,492 |
| Profit before tax (EBT) | -8,070 | -11,183 | -16,687 | -29,182 | -45,279 |
| Taxes | - | - | - | - | |
| Net profit for the period | -8,070 | -11,183 | -16,687 | -29,182 | -45,279 |
| Number of shares | 25,795,321 | 12,815,201 | 25,795,321 | 12,815,201 | 24,617,624 |
| Average number of shares | 24,654,385 | 12,815,201 | 24,636,106 | 12,527,930 | 13,293,494 |
| Basic and diluted earnings per share, SEK | -0.33 | -0.87 | -0.68 | -2.33 | -3.41 |
Profit for the period and total comprehensive income are fully attributable to the shareholders of the parent company.
The company has three warrant programs, 2020/2023, 2021/2024, and 2023/2026. More details on the first two programs are provided in the Annual Report for the financial year 2022.
Series 2023/2026 – to certain board members
The incentive program includes three of the Board members who were elected at Veg of Lund’s AGM, Johan Möllerström, Rolf Bjerndell and Anders Gustafsson. The incentive program entails that participants are offered to subscribe for warrants at market value calculated according to Black-Scholes valuation formula. After end of period all three have signed the warrants agreement and paid for their warrants to the company.
Each warrant shall entitle the holder to subscribe for one new share in the Company, during the period from and including 15 June 2026 to and including 15 July 2026, at an exercise price corresponding to 375 percent of the volume weighted average price of the Company’s share during the period of ten trading days commencing on the day after the AGM 2023, however, not less than the quota value of the Company’s share. The determined subscription price per share after above calculation base was set to SEK 7.60 and price per warrant SEK 0.09.
Consolidated statement of financial position
| TSEK | 30 June2023 | 30 June2022 | 31 Dec2022 | |
| ASSETS | ||||
| Intangible assets | ||||
| Capitalized expenditure for development | 0 | 99 | 33 | |
| Patents, trademarks and licences | 1,876 | 1,691 | 1,709 | |
| Total intangible assets | 1,876 | 1,790 | 1,742 | |
| Property, plant and equipment | ||||
| Equipment, tools, fixtures and fittings | 20 | 26 | 23 | |
| Total property, plant and equipment | 20 | 26 | 23 | |
| Non-current financial assets | ||||
| Non-current financial receivables | 15 | 15 | 15 | |
| Total non-current financial assets | 15 | 15 | 15 | |
| Total non-current assets | 1,911 | 1,831 | 1,780 | |
| Inventory, etc. | ||||
| Finished trade goods | 580 | 2,017 | 1,128 | |
| Raw materials | 823 | 1,350 | 1,441 | |
| Advances for goods and services | 171 | - | - | |
| Total inventory, etc. | 1,574 | 3,367 | 2,569 | |
| Current receivables | ||||
| Trade receivables | 484 | 1,871 | 342 | |
| Other receivables | 668 | 899 | 4,405 | |
| Prepaid expenses and accrued income | 787 | 1,415 | 698 | |
| Total current receivables | 1,939 | 4,185 | 5,445 | |
| Cash and cash equivalents | 3,150 | 3,819 | 8,277 | |
| Total current assets | 6,663 | 11,371 | 16,291 | |
| TOTAL ASSETS | 8,574 | 13,202 | 18,071 |
| TSEK | 30 June2023 | 30 June 2022 | 31 Dec2022 | |
| EQUITY AND LIABILITIES | ||||
| Shareholder's equity | ||||
| Share capital | 1,651 | 820 | 1,576 | |
| Other contributed capital | 113,802 | 86,702 | 112,207 | |
| Other equity | -124,092 | -91,153 | -107,413 | |
| Total equity | -8,639 | -3,631 | 6,370 | |
| LIABILITIES | ||||
| Current liabilities | ||||
| Financial liabilities | 10,902 | 8,000 | 3,847 | |
| Trade payables | 3,799 | 4,156 | 4,100 | |
| Other current liabilities | 488 | 586 | 423 | |
| Accrued expenses and prepaid income | 2,084 | 4,091 | 3,331 | |
| Total current liabilities | 17,213 | 16,833 | 11,701 | |
| Total liabilities | 17,213 | 16,833 | 11,701 | |
| TOTAL EQUITY AND LIABILITIES | 8,574 | 13,202 | 18,071 |
Consolidated changes in equity
| TSEK | Sharecapital | Other contributed capital | Other equityincluding net profit for the year |
Total equity |
|||||
| The beginning of the period, 1 Jan 2023 | 1,576 | 112,207 | -107,413 | 6,370 | |||||
| New issuance | 75 | 1,844 | - | 1,919 | |||||
| Convertible bonds issued | - | - | - | - | |||||
| Exercise of warrants | - | - | - | - | |||||
| Issuance of warrants | - | - | - | - | |||||
| Translation differences | - | -249 | -8 | -241 | |||||
| Net profit for the period | -16,687 | -16,687 | |||||||
| The end of the period, 30 June 2023 | 1,576 | 113,082 | -124,092 | -8,639 | |||||
| TSEK | Sharecapital | Other contributed capital | Other equityincluding net profit for the year |
Total equity |
||||||||
| The beginning of the period, 1 Jan 2022 | 782 | 80,642 | -61,985 | 19,529 | ||||||||
| New issuance | 38 | 6,060 | - | 6,098 | ||||||||
| Convertible bonds issued | - | - | - | - | ||||||||
| Exercise of warrants | - | - | - | - | ||||||||
| Issuance of warrants | - | - | - | - | ||||||||
| Translation differences | - | - | -76 | -76 | ||||||||
| Net profit for the period | -29,182 | -29,182 | ||||||||||
| The end of the period, 30 June 2022 | 820 | 86,702 | -91,153 | -3,631 | ||||||||
| TSEK | Sharecapital | Other contributed capital | Other equityincluding net profit for the year | Total equity |
||||||||
| The beginning of the period, 1 Jan 2022 | 782 | 80,642 | -61,895 | 19,529 | ||||||||
| New issuance | 775 | 22,215 | - | 22,990 | ||||||||
| Convertible bonds issued | - | 7,015 | - | 7,015 | ||||||||
| Exercise of warrants | 19 | 1,148 | - | 1,167 | ||||||||
| Issuance of warrants | - | 1,187 | - | 1,187 | ||||||||
| Translation differences | - | - | -239 | -239 | ||||||||
| Net profit for the period | - | - | -45,279 | -45,279 | ||||||||
| The end of the period, 31 Dec 2022 | 1,576 | 112,207 | -107,413 | 6,370 | ||||||||
Consolidated statement of cash flows
| TSEK | Q22023 | Q22022 | H12023 | H12022 | Full year2022 |
| Cash flow from operating activities | |||||
| Operating profit | -7,842 | -11,343 | -16,173 | -29,107 | -42,787 |
| Adjustment for non-cash items | 19 | 52 | 71 | 103 | 378 |
| Paid taxes | -14 | - | -24 | - | - |
| Paid interest | -484 | -68 | -774 | -109 | -838 |
| Cash flow from operating activities before changes in working capital |
-8,322 | -11,359 | -16,900 | -29,113 | -43,247 |
| Changes in working capital | |||||
| Changes in operating receivables | 1,493 | -1,051 | 1,258 | 3,664 | 6,591 |
| Changes in operating payables | -276 | 1,645 | 152 | 5,266 | 2,979 |
| Cash flow from operating activities | -7,104 | -10,765 | -15,491 | -20,183 | -33,677 |
| Investing activities | |||||
| Investment in intangible assets | -38 | -165 | -201 | -276 | -499 |
| Investment in property, plant and equipment | - | - | - | - | - |
| Investment in financial assets | - | - | - | - | - |
| Cash flow from investing activities | -38 | -165 | -201 | -276 | -499 |
| Financing activities | |||||
| Issues and other contributed capital | 2,507 | - | 5,876 | 6,535 | 20,570 |
| Issuance expenses | -402 | - | -1,921 | -437 | -3,871 |
| Warrants | - | - | - | - | 1,167 |
| Amortization | --465 | - | -465 | -3,000 | -7,000 |
| Borrowings | 7,035 | 8,000 | 7,035 | 8,000 | 18,380 |
| Cash flow from financing activities | 8,675 | 8,000 | 10,525 | 11,098 | 29,246 |
| CASH FLOW FOR THE PERIOD | 1,532 | -2,930 | -5,166 | -9,361 | -4,930 |
| Cash and cash equivalents at beginning of the period | 1,587 | 6,737 | 8,277 | 13,173 | 13,173 |
| Currency effect in cash and cash equivalents | 31 | 12 | 39 | 7 | 34 |
| Cash and cash equivalents at the end of the period | 3,150 | 3,819 | 3,150 | 3,819 | 8,277 |
Parent company’s condensed financial statements
| TSEK | Q22023 | Q22022 | H12023 | H12022 | Full year2022 | |||||
| Net sales | 1,058 | 1,670 | 2,527 | 2,978 | 4,725 | |||||
| Other operating income | 76 | 512 | 138 | 602 | 1,638 | |||||
| Total income | 1,135 | 2,182 | 2,665 | 3,580 | 6,363 | |||||
| Cost of goods sold | -772 | -1,635 | -2,021 | -2,951 | -4,642 | |||||
| Other external expenses | -3,732 | -4,829 | -8,036 | -12,898 | -23,780 | |||||
| Personnel expenses | -2,273 | -2,479 | -3,865 | -4,324 | -7,980 | |||||
| Depreciation,amortization and impairment | -19 | -52 | -71 | -103 | -207 | |||||
| Other operating expenses | -68 | -43 | -118 | -99 | -128 | |||||
| Operating profit (EBIT) | -5,729 | -6,856 | -11,445 | -16,795 | -30,370 | |||||
| Net financial items | -243 | 121 | -528 | -111 | -20,106 | |||||
| Profit before tax (EBT) | -5,972 | -6,735 | -11,973 | -16,906 | -50,476 | |||||
| Net profit for the period | -5,972 | -6,735 | -11,973 | -16,906 | -50,476 | |||||
| TSEK | 30 June2022 | 30 June2022 | 31 Dec 2022 |
|||||||
| Assets | ||||||||||
| Intangible assets | 1,876 | 1,790 | 1,742 | |||||||
| Property, plant and equipment | 20 | 26 | 23 | |||||||
| Non-current financial assets | 10,648 | 21,156 | 5,806 | |||||||
| Total non-current assets | 12,544 | 22,973 | 7,571 | |||||||
| Inventory, etc. | 1,112 | 2,170 | 1,505 | |||||||
| Current receivables | 996 | 2,365 | 4,564 | |||||||
| Cash and cash equivalents | 3,034 | 2,563 | 7,570 | |||||||
| Total current assets | 5,141 | 7,098 | 13,639 | |||||||
| Total assets | 17,685 | 30,070 | 21,210 | |||||||
| Equity and liabilities | ||||||||||
| Shareholder's equity | 1,138 | 18,500 | 11,191 | |||||||
| Current liabilities | 16,547 | 11,570 | 10,019 | |||||||
| Total equity and liabilities | 17,685 | 30,070 | 21,210 | |||||||
Definitions and glossary
| In general | All amounts in tables are stated in SEK thousands unless otherwise specified. Amounts in brackets refer to the corresponding period in the preceding year unless otherwise specified. | ||||
| Definitions of indicators | Veg of Lund's definitions of a number of alternative performance measures not defined or specified under BFNAR (“Alternative Performance Measures”) are set out below. Veg of Lund has made the assessment that these alternative performance measures are used by some investors, securities analysts and other stakeholders to supplement other measures of performance and financial position. Unless otherwise specified, these alternative performance measures have not been subject to audit and are not to be considered separately or as an alternative to indicators calculated in accordance with BFNAR. These Alternative Performance Measures, as defined by Veg of Lund, are not to be compared with other indicators with similar names used by other companies. This is because these alternative performance measures are not always defined in the same way, and other companies may calculate them in a different way to Veg of Lund. | ||||
| Margins | Definition/Calculation | Purpose | |||
| Gross margin, % | Gross profit in relation to net sales. | Used to measure product profitability. | |||
| EBITDA margin, % | EBITDA in relation to net sales. | The company considers the EBITDA margin to be a useful indicator, together with increase of net sales, to monitor value creation. | |||
| EBIT margin, % | Operating profit in relation to net sales. | The company considers the operating margin to be a useful indicator, together with net sales growth, to monitor value creation. | |||
| Profit margin, % | Net profit for the period in relation to net sales. | Indicator that shows how much value accrues to shareholders in the company. | |||
| Return | Definition/Calculation | Purpose | |||
| Solidity, % | Equity in relation to total assets. | The company has chosen to present the indicator Solidity as it demonstrates the status of the company as a going concern. | |||
| Data per share | Definition/Calculation | Purpose | |||
| Number of shares | Number of shares outstanding at the end of the reporting period. | ||||
| Average number of shares | Weighted average of the number of shares outstanding during the period plus a weighted number of shares that would be added if all dilutive potential shares were converted to shares. | ||||
| Equity per share | Equity divided by the number of shares outstanding after dilution. | Measure that shows the owners’ share of Veg of Lund's total net assets per share. | |||
| Basic and diluted earnings per share, SEK | Net profit for the period divided by the average number of shares outstanding before and after dilution. | ||||
| Other definitions | Definition/Calculation | Purpose | |||
| Net sales | The company’s revenue from ordinary operations. | ||||
| EBITDA | Operating profit excluding depreciation and impairment losses of property, plant and equipment and intangible assets. | The company has chosen to include the indicator EBITDA as it demonstrates the underlying operating performance with the effect of depreciation removed, which, since depreciation refers to historical investments, results in a more comparable performance measure over time. | |||
| Operating profit (EBIT) | Operating profit before financial items. | ||||
| Net profit | Net profit or loss for the year. | ||||
| Balance sheet total | The total of all the company’s assets. | ||||
| Cash flow from operating activities | Cash flow from operating activities, including change in working capital, before cash flow from investing and financing activities. | Cash flow from operating activities is used to measure the cash flow generated by the operations before investments and financing. | |||
| Average number of employees | Average number of employees in the company during the period. | ||||
Veg of Lund AB (publ) develops unique plant-based foods meeting consumers’ demands for taste and sustainability. The company has roots in research at Lund University and owns patented methods for developing new food categories in the fast-growing market for plant-based foods. Veg of Lund’s climate-smart and tasty products are sold in Europe and Asia under the DUG® brand. The company’s share is listed on Nasdaq First North Growth Market under the ticker VOLAB. Read more at ir.vegoflund.se.
Mangold Fondkommission AB is the company’s Certified Adviser and can be contacted via telephone: +46 8 5030 15 50 or e-mail: [email protected]
Objectives
Economic and financial objectives
Veg of Lund’s economic objective is to expand into new markets at a fast pace by means of its hybrid model.
The company’s financial objective is to achieve net sales of MSEK 420 with a positive operating result by 2025.
This information is such that Veg of Lund AB (publ) is obligated to disclose pursuant to the EU Market Abuse Regulation and the Market Securities Act. The information was submitted for publication, through the agency of the contact person set out below, at 8:30 am CET on 14 August 2023.
For more information, please contact:
Fredrik Carling, Chief Executive Officer
Tel: +46 703 121 942
E-mail: [email protected]