Midsona

In this fundamental analysis report, analysts Sebastian Brock and Joséphine Lindestam take a closer
look at Midsona AB, a Swedish manufacturer of healthy and sustainable foods. Following several years
of acquisition-driven growth under prior management, weak brand development and deteriorating
market conditions significantly pressured margins, leading to a re-rating of the stock. As a result,
Midsona is currently priced as if no operational improvement will occur. However, following a
management overhaul and strategic pivot toward decentralization, Midsona is poised for a
turnaround. Improved operational efficiency is expected to increase EBIT margins from 3.4% to 7.0%
by 2027E, while more efficient marketing initiatives provide optional top-line growth of up to 3.5%. An
equally weighted DCF and peer valuation imply an upside of 48.0% from current levels.

Investment Thesis
● Management overhaul enables operational turnaround and disciplined execution
● Decentralized supply chain reduces inefficiencies and drives margin expansion
● Improved marketing efficiency provides optional revenue growth