A successful year increases our opportunities for continued growth
A year ago, my ambition was for Probi to have double-digit growth in 2020. To clarify this ambition, we decided on new financial goals during the year. It has been an extremely challenging year that put many of us to the test. I am therefore happy and proud that we are now showing that Probi is genuinely a growth company and end this year with organic growth of 15%. We did not completely reach our profitability target, but many of the measures we are taking, including upgrading production, will show that we can reach our targets in 2021.
”I’m proud and happy that we are back in double-digit growth figures again.”
Net Sales SEK m
Operating profit SEK m
Market and products
The global market for probiotic supplements had a turnover of approximately EUR 5.9 bn at the consumer level in 2020. The largest market is the USA where the value of probiotic supplements amounted to approximately EUR 2,103 m 2020. The US market for probiotic supplements had a strong growth of over 10% by 2020 The second largest market was China, which amounted to EUR 656 m. Italy is the world's third largest market with a value of EUR 643 m.
Global sales of probiotic supplements 2020
North America, 37%
Rest of world, 6%
Probi Net Sales per market
Region Americas, 79%
Region EMEA, 15%
Region APAC, 6%
Probi sales per category
Product sales, 98%
Probi will be a growth company and the goal is to double sales in the long-term.
To achieve the goal of doubling the size of our sales, we are investing major resources in strengthening our market presence and increasing our market shares by focusing on our ClinBac ™ products. Sales growth will be generated from both expanded collaborations with existing customers and completely new customers. This is complemented by long-term strategic partnerships and acquisitions in areas that supplement or strengthen Probi’s business. In 2020, we increased sales by 15% to SEK 717 m. 20% of the growth came from completely new customers.
Sales increase of ClinBac™ in USA
Increase in sales of ClinBac™ products in the US market in 2020
Of the increase in sales, 20% comes from new customers
Net sales growth YoY
Our driving force is to find and develop new probiotic solutions that can contribute to a healthier life.
We are research-driven and constantly evaluate new health areas in probiotics in collaboration with both industry partners and independent university groups around the world. Our main research areas include gastrointestinal health, immune systems, bone health, stress and mental health, as well as iron absorption and women’s health. We strongly believe in clinically proven effects and invest continuously in preclinical and clinical studies to document the positive health effects of probiotics. We carry out our research with high demands on ethical principles and of course follow international and local regulations.
Number of patents
About 30 new patents were approved in 2020
Initiated studies in 2020
Three clinical trials were initiated in 2020. In gastric health, gut-brain and bone health.
Investments in R&D
Investments in research and development 2020, corresponding to 6% of net sales.
Our manufacturing is a complex process that requires knowledge, accuracy and skill.
With many years of experience of continuous improvements and careful process development, our probiotic production is today of the highest quality. Over the last two years, we have invested over SEK 50 m in production. With our production facilities, both of which are located in the US, we have a fully-integrated production process and can offer a complete range of probiotic products through the combination of in-house manufacturing and external production partners. At our plant in Redmond (Washington), we operate probiotic fermentation and the freeze-drying of probiotic cultures. This bulk powder is then processed further through mixing and production of the con-sumer-ready end products at our plant in Lafayette (Colorado). We work in accordance with GMP and have been certified by the authorities in each state. We are regularly inspected by our clients, partners, authorities and independent third-party auditors.
Investments in manufacturing
Investments in manufacturing facilities in the USA during 2020, SEK m.
Employees in production and product development.
Probi has two own production facilities in the USA.
How we work with sustainability
Every advanced probiotic solution begins with an important but simple question: How can Probi improve people’s health and well-being? With this goal in mind, Probi is continually searching for new insights and perspectives that lead to innovative probiotic solutions.
Cases of corruption
Probi operates in many parts of the world and must therefore ensure that anti-corruption laws and trade sanctions are upheld. Employees who were identified as requiring knowledge of relevant trade sanctions received training during the year, and no violations were reported in 2020.
Percentage female managers
All employees regardless of gender, ethnic and religious background have the same prerequisites to be successful at Probi.
Energy consumption, CO2
Electricity and gas are used in the production processes of the manufacturing units in Probi USA. The decrease in kWh from previous year is due to the fact that certain production steps have been outsourced.
Gender distribution, executive mgmt
Gender distribution, managers
Gender distribution, all employees