Sweden-based food group Midsona has revealed new financial targets significantly lower than previously guided.

The revised figures sit alongside a new growth strategy linked to “promoting synergies and developing its offerings”.

Midsona, which specialises in organic and sustainable food products, is now targeting organic growth of 3%-5% on average per year, against a previous target of more than 15%, and EBITDA margin of 8% by year end 2027, against previous guidance of above 12%.

Outlining the thinking behind its updated plans, company CEO Peter Åsberg, said: “Midsona has taken several important steps on its journey of change over the past year. Now, we are taking the next step that sets the direction forward. We are presenting new financial targets and simultaneously launching a new strategy aimed at strengthening our position and our offerings based on our strong brands.

“We have plans to significantly improve the operating margin from our current level and, by 2027, to substantially exceed the peak year of 2020 when we reached 6.5%. We will work to further increase our efficiency and focus our business on the markets, brands and products that have the best potential for profitable growth.”

The company, which has a range including bars, rice cakes, shakes and coconut milk, said it still had “the desire to invest in a healthy lifestyle is increasing across the Western world”.

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It added: “There continues to be significant underlying interest in organic and sustainable products. Long-term societal development clearly indicates a shift in our consumption patterns towards greater awareness in consumption, where, for example, the new Nordic dietary recommendations to consume more plant-based foods are a sign of the times.

“Signals of brighter economic prospects indicate that Midsona is well positioned to meet the demand for high-quality healthy foods.”

Midsona said its new strategy is based on three pillars.

Firstly, to further strengthen its position, drive growth and develop its offerings within organic foods by working across markets with production, procurement, innovation, and communication.

“This involves leveraging synergies between brands to make it easier for consumers to navigate the range of products available,” it said.

Secondly, to grow with its strong health brands in both existing and new markets.

“Overall, this means that the group will focus on profitable organic growth in selected markets using Midsona’s three prioritised brands where significant potential exists: Friggs, Earth Control, and Gainomax,” it said.

And, thirdly, Midsona said aims to “streamline the value chain and harmonise the product range to develop an offering that meets market needs”, aiming for “high efficiency in everything, from procurement and brand development to production and logistics.”

For 2023, Midsona posted a revenue figure of SKr3.79bn ($369.2m), compared to SKr3.89 a year earlier. EBITDA was up from SKr191m to SKr217m.