PROBI ANNUAL AND SUSTAINABILITY REPORT 2023
FIRST IN PROBIOTICS
A challenging, yet eventful year
This year has been both challenging and rewarding for Probi. At large, we have seen a generally weak underlying market in North America, which is our largest market, having considerable impact on our overall results. Moreover, our commercial efforts in EMEA saw a negative impact from a reduction of safety stock levels with some of our B2B customers as well as one-time effects associated with our transition to take over the Probi® brand in Sweden, establishing our own B2C operations.
Since my appointment as CEO in the first quarter, we have also executed various operational changes and launched new strategic initiatives, including a dedicated optimization program in manufacturing – investing heavily into the future, as we are confident that these actions will gradually contribute to increased profitability. In APAC the growth was consistently strong throughout the year, totaling an impressive 26% increase, and we believe this positive trend will continue. Probi’s overall net sales for 2023 were on par with the previous year, while the EBITDA margin declined from 22% to 17%.
Anita Johansen
“A clear purpose, strategy and direction, along with new products and strengthened operational capacity, will put us back on track with stable growth and better profitability.”
Net Sales
EBITDA
Investments in R&D
Net sales
SEK m
Net sales
EBITDA, %
%
EBITDA, %
Investments in R&D
SEK m
Investments in R&D
North America remains the single largest market for probiotic supplements, accounting for around 29% of the total market. According to Euromonitor, growth in the US will be slightly lower than growth globally, at around 3% per year between 2023 and 2028. However, interest in probiotics remains in the consumer market and surveys conducted by the New Hope Network show that the health areas that consumers will prioritize most in the coming years are digestive health, immune health and mental health.
1
USA
2
CHINA
3
ITALY
Region Americas, 29%
Region APAC, 42%
Region EMEA, 23%
Rest of world, 6%
Region Americas, 24%
Region EMEA, 21%
Region APAC, 49%
Rest of the world, 7%
STRATEGY – STRONG BUSINESS ACUMEN WITH A CUSTOMER FOCUS
Our vision is to contribute to the well-being of people worldwide. The company will grow sustainably over time. We are achieving this goal by optimizing our entire sales and delivery process with more products and health areas based on in-depth consumer insights and understanding of market needs and trends. A key component of this process is close, continuous dialogue with our customers about their needs.
Sales Americas
Growth 2023
Sales EMEA
Growth 2023
Sales APAC
Growth 2023
STRATEGY – ADVANCEMENTS IN SCIENCE AND INNOVATION
Probi has been a probiotics market leader for a long time, with scientific roots dating back to the mid-1980s with the first patent of LP299V®. Probi's clinical research has led to about 400 approved patents since then.
The company aims to create pioneering science and innovation. We will remain first in probiotics by ensuring a continuous pace of innovation that is relevant to the market, increasing our speed to market and continuously expanding our portfolio of clinically proven probiotic offerings. We also intend to evaluate the scientific benefits and growth potential of other biotics.
Approved patents
covering Probi’s most important markets in the world
Number of clinical studies
initiated by Probi, published during 2019-2023
INVESTMENTS IN R&D
STRATEGY – DIFFERENTIATED HIGH-QUALITY PRODUCTS
Probi is among the few fully integrated players on the market to have its own advanced production of probiotics. We are therefore well-positioned to offer unique and high-quality products according to specific customer needs, formats and market preferences, while allowing us to adapt operations and optimize processes according to prevailing needs.
MANUFACTURING FACILITIES
Probi has two production facilities in the USA, in Redmond, Washington and in Lafayette, Colorado
Our main goal is to strengthen human health
At Probi, our mission is to promote healthy lives with probiotics. We believe that a company’s role in society is connected to its social responsibility. Companies must take responsibility for both social and environmental values; this is crucial in today’s world.
In 2023, Probi continued its mission to promote health and demonstrated a strong commitment to health, sustainability, well-being and innovation. Launching Probi® Sensia, a breakthrough psychobiotic, reinforces our focus on sustainable health solutions. This product improves mood, memory, sleep and learning ability while supporting holistic well-being and the UN Sustainable Development Goal for good health and well-being.
increased sales of ClinBac™ products in the Chinese market compared to 2022.
countries where Probi's products are sold.
Recall of products in 2023
Gender distribution - Total employees
Men, 48%
Women, 52%
Gender distribution - Managers
Men, 49%
Women, 51%
Gender distribution - Executives
Men, 50%
Women, 50%
