Midsona is launching a restructuring exercise to enhance the Spain-based organic and plant-based food company’s profit margins.
The programme is being rolled out by president and CEO Henrik Hyalmarsson, who replaced Peter Åsberg in October, and is aimed at generating annual savings of Skr20m ($2.1m) on a run rate basis.
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Publicly listed Midsona announced the project alongside its third-quarter results issued today (22 October) where the business posted an operating profit, before items affecting comparability, of Skr45m, up from Skr32m a year earlier.
The corresponding EBIT margin rose 150 basis points to 5%.
“It’s pleasing to see the profitability but our ambitions are higher and we need to accelerate the pace towards meeting our target margin,” the Vegetalia plant-based burger brand owner said in the results statement.
“The focus going forward is therefore on stepping up efforts to achieve higher profitability.”
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By GlobalDataMidsona is targeting an EBIT margin of 8% in 2027, compared to 3.4% last year and 1.6% in 2023. It also seeks to reach organic growth of 3-5%. That metric was down 0.7% and 6.6%, respectively in the past two years.
Organic growth was a negative 0.4% in the third quarter through September, slipping from a positive 2.6% in the previous months, as a fire at Midsona’s Castellcir, Barcelona plant-based factory in July took its toll on revenue.
Reported sales dropped 2.6% to Skr895m, a steeper decline than the 0.4% recorded in the corresponding quarter.
“The restructuring programme is part of a broader efficiency review that also includes evaluating our production and logistics structure to find sources of efficiency improvements,” Midsona said.
“This is a priority initiative that we will come back to in the future.”
As the Friggs crackers maker seeks to “accelerate improvements in the margin and strengthen the group’s competitiveness”, Midsona added that the restructuring exercise will cost the business around Skr15m.
“The programme’s measures do not include the ongoing cost adjustments within the Spanish business, which are experiencing lower production capacity following the fire at the Castellcir factory,” the company explained.
Just Food asked Midsona today whether the restructuring will lead to factory closures and job losses.
“The details of the programme are neither set nor announced yet,” Hyalmarsson responded. “We are working through the details and will proceed to consultations with the impacted unions before we can announce any details.”
Meanwhile, Midsona is aiming to “achieve the full run rate effect” from the project by the first quarter of next year, the CEO confirmed.
On the bottom line, Midsona posted a Skr15m loss for the third quarter compared to a Skr9m profit a year earlier. Earnings per share were also in the red at Skr0.11 versus a positive Skr0.07.
Hyalmarsson confirmed that Midsona operates eight manufacturing facilities but part of the Castellcir factory was destroyed in the fire. Production is continuing in other areas of the plant while the company has also sourced some manufacturing to third parties.
“We have not set the plans regarding the potential rebuild of lost capacity yet but are in the process of setting a long-term brand, assortment and supply chain plan for the Spanish business,” the CEO told Just Food.
As a result of the fire, Midsona estimates it lost Skr75m in sales on an annualised basis.
Midsona’s operating profit over the first nine months of 2025 dropped to Skr86m from Skr92m, while the EBIT margin dipped to 3.2% versus 3.3%.
The business registered sales of Skr2.7bn, down 2.5% in reported terms against a decline of 0.9% a year earlier. Organic sales fell 0.3%, compared to a 0.2% increase in the corresponding nine months.
A net loss of Skr23m was posted year to date, reversing from a Skr28m profit a year earlier. EPS was a negative Skr0.16 versus a positive Skr0.19.
