Industry in brief | Karo, Probi, Enzymatica

Industry in brief | Karo, Probi, Enzymatica

23 July 2021 - Deborah Wilkes

Karo Pharma, Probi and Enzymatica have released financial results.

Karo Pharma achieves growth

Sweden’s Karo Pharma reported sales of SEK748 million (USD86.7 million) in the second quarter of 2021, representing a rise of 9% compared to the same period a year earlier.

Excluding the impact of portfolio and currency changes, sales increased by 8% on an organic basis. The company noted that acquisitions had contributed growth of 1% in the period while currency changes had had no impact.

Chief executive officer Christoffer Lorenzen said the rise reflected the comparison with the second quarter of 2020 when Karo’s sales had been negatively impacted by lockdowns associated with the COVID-19 pandemic.

Karo’s Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) dropped by 20% to SEK181 million in the second quarter of 2021.

The 9% sales growth in the second quarter came after a fall of 10% in the first quarter (click here to read the News story). As a result, sales in the first half of 2021 were down by 1% to SEK1.46 billion.

Sweden was the company’s largest market in the first half with sales of SEK360 million, accounting for 25% of the total. Norway and Denmark generated a further 19% and 10% respectively.

In the first half of 2021, around 70% of Karo's sales were generated by OTC products.

Karo’s pain, cough and cold products – led by Paracet painkillers – experienced a 32% drop in sales as social distancing measures to control the COVID-19 pandemic reduced the incidence of coughs, colds and flu.

Probi reports sales decline

Swedish probiotics specialist Probi reported worldwide sales down by 12.2% to SEK158 million (USD18.3 million) in the second quarter of 2021.

On a constant-currency basis, sales decreased by 3.1% compared to the same period a year earlier.

The fall followed a rise of 8.6% as reported and 20.3% on a constant-currency basis in the first quarter of the year (click here to read the News story).

Chief executive officer Tom Rönnlund commented that the performance in the second quarter was “not in line with our expectations”.

Rönnlund said the fall had been driven by the Americas region where sales had dropped by 17% as reported and by 5% on a constant-currency basis.

Sales had not occurred at a few of Probi’s larger customers, he explained, adding that this was due to delayed orders and changes in customers’ product portfolios.

Around 68% of Probi’s sales were generated in the Americas where sales dropped to SEK107 million.

By contrast, sales in Europe, the Middle East and Africa (EMEA) increased by 6.7% as reported to SEK35.0 million. Perrigo’s launch of the Probify range of dietary supplements had contributed “significantly” in the region, noted Rönnlund.

Sales in the Asia-Pacific region were down by 15.2% as reported to SEK15.6 million.

Probi’s Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) decreased by 32.9% to SEK39 million, giving an EBITDA margin of 24.7%.

Enzymatica records large drop in sales

Enzymatica reported sales of SEK6.1 million (USD0.7 million) in the second quarter of 2021, representing a fall of 56.1% compared to the same period a year earlier.

The Swedish company behind the ColdZyme common cold spray said measures to control the COVID-19 pandemic had resulted in fewer common colds.

Furthermore, the comparison was with the second quarter of 2020 when Enzymatica said it had received large orders from the German, Austrian and Belgian markets.

According to Enzymatica, the cold remedy market in Sweden and other countries had started to recover during the quarter. The company said it believed cold remedy markets would continue to recover in the second half of 2021 as vaccination campaigns were completed in various countries.

Enzymatica recently warned that sales of ColdZyme might be lower in 2021 than in 2020 due to the impact of the COVID-19 pandemic (click here to read the News story).

The company reported a loss after tax of SEK19.7 million.

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