“First-quarter sales rose by 49%, or by 37% after adjustment for foreign exchange effects. While the figures for the quarter are, obviously, satisfactory, a rolling 12-month review gives a far better picture. Also this, shows impressive rates of growth: 23% growth in sales and 19% growth in operating profit, both of these figures after adjustment for foreign exchange effects. The background to these strong results is continued success in all our key markets, with the sole exception of war-torn Ukraine. The strongest engine for growth is our Paediatrics business unit, but sales of our Adult Health products are also starting to pick up again after a few less satisfactory quarters,” says Peter Rothschild, CEO of BioGaia AB.
Reporting period 1 January – 31 March 2015
- Net sales totalled SEK 138.3 (93.2)¹ million, an increase of SEK 45.6 million; this corresponds to a 49% rise, or 37% after adjustment for foreign exchange effects. Last year’s sales of SEK 188.6 million included a non-recurring licence revenue payment of SEK 95.4 million from Nestlé.
- Sales for the Paediatrics business unit totalled SEK 112.9 (76.7)¹ million, an increase of SEK 36.2 million; this corresponds to a 47% rise, or 34% after adjustment for foreign exchange effects.
- Sales for the Adult Health business unit totalled SEK 19.8 (15.0) million, an increase of SEK 4.8 million; this corresponds to a 32% rise, or 20% after adjustment for foreign exchange effects.
- Operating profit was SEK 52.6 (28.4)¹ million, an increase of SEK 24.2 million; this corresponds to an 85% rise, or 54% after adjustment for foreign exchange effects. If costs in the subsidiary IBT are excluded, operating profit for the period was SEK 56.3 million.
- Profit after tax was SEK 43.2 (22.6)¹ million, an increase of SEK 20.6 million or 91%.
- Earnings per share were SEK 2.50 (1.32)¹.
- Cash flow for the period was SEK 37.8 (108.4) million. Cash and cash equivalents on 31 March 2015 totalled SEK 250.0 (342.7) million. A proposal will be made at the 2015 AGM to pay a shareholders’ dividend totalling SEK 86.4 million.
Key events in the first quarter 2015
- Agreement for the sale of drops in Vietnam.
- Nestlé launches new product with BioGaia’s probiotic.
- BioGaia subsidiary IBT gets Orphan Drug Designation in Europe and starts trial already this year.
- Study published showing that Lactobacillus reuteri Prodentis is effective for patients with dental implants.
- Agreement for the sale of oral health tablets in Mexico.
Key events after the first quarter 2015
- Publication of a Chinese study showing the efficacy of BioGaia’s drops for infant colic.
1) Excluding licence revenue from Nestlé. If licence revenue from Nestlé is included, sales for the first quarter of 2014 totalled SEK 188.6 million, sales for the Paediatrics business unit totalled SEK 172.1 million, operating profit was SEK 123.8 million, profit after tax was SEK 97.0 million and earnings per share were SEK 5.63.
Telephone conference: You are invited to take part in a teleconference about this interim report that will be held at 09:30 a.m. today by CEO Peter Rothschild. To participate in the teleconference, please see www.biogaia.com/agenda.
BioGaia has published this information in accordance with the Swedish Securities Market Act. The information was released for publication at 08:00 a.m. on 7 May 2015.
This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording shall prevail.