| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 6.20 | -97 |
| Graham Formula | 1.10 | -99 |
Probi AB (publ) is a leading Swedish biotechnology company specializing in the research, development, and commercialization of probiotics for health, pharmaceutical, and food applications. Headquartered in Lund, Sweden, and operating as a subsidiary of Symrise AG, Probi focuses on gastrointestinal, immune, bone, and digestive health, as well as targeted solutions for women, children, and seniors. The company offers its probiotic strains in various forms, including dietary supplements, capsules, tablets, powders, and functional beverages, distributing its products across approximately 40 countries. Probi collaborates with academic institutions such as Örebro University and La Trobe University to advance clinical research, reinforcing its scientific credibility. With a market capitalization of SEK 2.31 billion, Probi operates in the fast-growing probiotics market, benefiting from increasing consumer demand for gut health and immunity-boosting products. Its strong R&D capabilities and strategic partnerships position it as a key player in the global probiotics industry.
Probi AB presents a niche investment opportunity in the expanding probiotics market, supported by growing consumer awareness of gut health and preventive healthcare. The company’s SEK 627.7 million revenue and SEK 16.8 million net income in FY 2023 reflect steady performance, though profitability remains modest. With a strong cash position (SEK 329.7 million) and manageable debt (SEK 38.2 million), Probi maintains financial stability. However, its low beta (0.464) suggests limited volatility but also muted responsiveness to broader market movements. The lack of dividends may deter income-focused investors. Key risks include reliance on a few large customers, regulatory hurdles in international markets, and competition from larger pharmaceutical and nutraceutical firms. Probi’s collaborations with academic institutions and its parent company Symrise AG provide R&D advantages, but scaling commercialization remains a challenge. Investors should weigh its long-term growth potential against near-term margin pressures.
Probi AB competes in the specialized probiotics sector, differentiating itself through clinically backed strains and partnerships with academic and industry players. Its focus on research (e.g., gut health, immunity) allows it to target high-margin segments like pharmaceuticals and functional foods. However, the company faces intense competition from larger firms with broader distribution networks and greater marketing resources. Probi’s subsidiary status under Symrise AG provides access to resources but may limit autonomy. Its geographic reach (~40 countries) is respectable but pales next to global giants like Chr. Hansen (now IFF) or DuPont. Probi’s strength lies in its scientific credibility and niche applications (e.g., Probi Osteo for bone health), but it lacks the scale to dominate mass-market segments. The probiotics industry is fragmented, with demand driven by consumer trends, requiring continuous innovation. Probi’s collaborations (e.g., Örebro University) bolster its IP portfolio, but rivals with deeper pockets could outpace R&D efforts. Its competitive edge hinges on maintaining scientific differentiation while expanding commercial partnerships.