2024-10-18
In this interview, Christian Östberg, CEO of Prebona, talks about the company's focus on odor elimination and surface protection with their products OdorControl and DuraClean. With patented and environmentally friendly technology, they aim to become cash flow positive in Q1 2025 and expand in markets such as Germany, North America and Asia.
What does Prebona do and what does the business look like?
Prebona is a Swedish company, which, based on advanced, patented material technology, markets products in the areas of odor elimination, surface protection, nutritional solutions and antimicrobial protection. The company has a growing number of customers primarily in the Nordic countries, Germany, South Korea, Singapore and North America.
The company sells its products both under its own brand and to companies that market the products under their own brands.
In which areas are your solutions used?
Prebona's product portfolio includes OdorControl (odor elimination) and DuraClean (surface protection), which are currently the Company's most established and revenue-generating products. Examples of areas of use are:
- Surface protection of wooden decks, roof tiles, facades, etc.
- Odor elimination in sports, pets, facility management, textiles, public transport, etc.
- Odor-eliminating products in healthcare such as sprays, wound dressings, incontinence protection, etc.
Over the past two years, Prebona has strategically prepared these products to accelerate the company's revenue in the short term through broad collaborations with established customers and retailers.
Who are Prebona's competitors?
Prebona's technology is unique and patented, but there are a number of competing technologies. In the field of odor elimination, perfumes are primarily used to mask bad odors. Ozone and enzymes are also used in various forms. These methods all have shortcomings that Prebona OdorControl does not have. Prebona OdorControl removes bad odors fundamentally by neutralizing the molecules that cause bad odors. The product is long-lasting and also very flexible, which means that it can be used in everything from sprays to textile impregnation. In addition, it is environmentally certified and free of any harmful substances.
Even in the area of surface protection of wooden decks, roofs, etc., there are a couple of competing technologies, including OrganoWood and Sioox. However, these require a more complicated 2-step treatment, while Prebona's products are performed in a single step.
Which customers does Prebona currently sell to?
Prebona's customers are mainly found in consumer products. Here the company has a large number of well-known companies as customers. The product OdorControl is sold to several customers in the textile area, such as Intersport, Scholl, North Face and Diesel. New customers have also been added in the pet industry, such as the world-leading company Trixie and DeoDog. The product DuraClean is sold to, among others, Finja and Jape in Sweden and Norway, as well as a South Korean company. Jape sells the product under the brand name Redo Ytskydd and has wide distribution to Colorama, Happy Homes, Bauhaus etc.
What strategy do you have for future growth?
Within the existing product portfolio, the strategy is to focus sales resources on two product areas; odor removal (OdorControl) and surface protection (DuraClean). These areas have enormous potential, while Prebona has all the prerequisites in place. Well-known reference customers, test data, patents, environmental certifications, etc. In addition, sales cycles in the area of odor removal are relatively short. Sales are made both through direct sales and through resellers.
When and how do you intend to achieve profitability?
The goal is to become cash flow positive on an ongoing basis during the latter part of Q1 2025. This will be achieved primarily by developing sales of the existing customer base and the potential customers that are currently being processed, but also through very clear cost control. We currently have a large customer base and a very cost-effective organization.
What should investors keep an eye on in 2025?
In 2025, Prebona is ready to break through in terms of sales - The goal is to accelerate sales of primarily OdorControl in Germany, North America and Asia where established customers are now located. Furthermore, the goal is to launch Inodorus towards healthcare in three additional markets outside the Nordics during 2025 and to develop the organization for optimal growth.
The company is in an exciting phase with several new customers and verified high-quality products in several different areas that each have great potential. Product launches have recently taken place in several different application areas and in several different geographical markets. This, combined with a low cost base, growing customer base and great scalability, makes 2025 a breakthrough year.
We thank Christian Östberg for the interview and wish the company great success in the future.
Disclaimer:
This is an interview that has been done on behalf of the company. Impala Nordic or people behind Impala Nordic own shares in the company at the time of the interview.
