BioGaia AB Interim management statement 1 January – 30 September 2019
Comments from the CEO:
“Sales in the third quarter decreased by 4% (excluding foreign exchange effects, 9%) compared to the corresponding period last year. As earlier mentioned the reduction was due to delivery delays from our supplier in Belgium and lower royalty revenues. Sales of products increased by 3% (excluding foreign exchange effects a decrease of 1%). Our increased focus on Asia Pacific (APAC) and Americas continues to yield results. Sales in the region rose 16% and 17% respectively during the quarter.
In the past 12-month period, sales rose by 10%, driven by higher consumer demand as well as product launches in both existing and new markets. Due to delivery problems at our supplier in Belgium, sales of primarily BioGaia Protectis tablets to our distribution partners decreased. These delivery delays are of course very unfortunate but we believe that the decline in sales is temporary and that the delays will not affect our long-term expectations and sales and marketing strategies. We are continuing our close cooperation with our suppliers in order to reduce the risk of similar problems in the future,” says Isabelle Ducellier, President and CEO of BioGaia.
Third quarter 2019
- Net sales amounted to SEK 167.1 million (174.7), a decrease of 4% (excluding foreign exchange effects, 9%). Product sales, net sales excluding royalty revenues, amounted to SEK 161.9 million (156.5), an increase of 3% (excluding foreign exchange effects, a decrease of 1%).
- Net sales in the Paediatrics segment reached SEK 128.0 million (138.3), a decrease of 7%. Product sales within Paediatrics amounted to SEK 124.3 million (121.3), an increase of 3%.
- Net sales in the Adult Health segment amounted to SEK 38.8 million (36.0), an increase of 8%.
- Operating profit amounted to SEK 49.5 million (66.2), a decrease of 25%.
- Profit after tax was SEK 38.0 million (51.4), a decrease of 26%.
- Earnings per share totalled SEK 2.19 (2.97). No dilutive effects arose.
- Cash flow amounted to SEK 51.4 million (44.3).
Key events in third quarter of 2019
- New agreement with Abbott for exclusive rights to sell BioGaia’s products in Uruguay.
- Additional products launched in Ghana, Greece, Mexico and the USA.
1 January – 30 September 2019
- Net sales amounted to SEK 560.7 million (532.2), an increase of 5% (excluding foreign exchange effects, 0%). Product sales, net sales excluding royalty revenues, amounted to SEK 544.8 million (476.6), an increase of 14% (excluding foreign exchange effects, 8%).
- Net sales in the Paediatrics segment reached SEK 442.7 million (438.5), an increase of 1%. Product sales within Paediatrics amounted to SEK 431.0 million (386.5), an increase of 12%.
- Net sales in the Adult Health segment amounted to SEK 117.4 million (92.6), an increase of 27%.
- Operating profit amounted to SEK 174.4 million (202.3).
Operating profit excluding revaluation of former associate shareholding amounted to SEK 174.4 million (195.3)1), a decrease of 11%.
- Profit after tax amounted to SEK 134.7 million (150.3)1), a decrease of 10%.
- Earnings per share totalled SEK 7.78 (8.70)1). No dilutive effects arose.
- Cash flow amounted to SEK -75.1 million (-49.8). Cash and cash equivalents at 30 September 2019 amounted to SEK 213.0 million (285.0).
Key events after the end of the third quarter
- Study published shows that BioGaia Gastrus tablets are effective as an adjunct to patients with Helicobacter pylori infections.
1) Excluding revaluation of former associate shareholding in MetaboGen of SEK 7.0 million.
Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim management statement to be held today 23 October 2019 at 9:30 CET with CEO Isabelle Ducellier. To participate in the teleconference, please see https://www.biogaia.com/investors/financial-calendar for telephone numbers. The teleconference can also be followed at https://tv.streamfabriken.com/biogaia-q3-2019.
This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording shall prevail.
Latest press releases from BioGaia:
15 October 2019 BioGaia’s probiotic effective as adjunct in patients with Helicobacter pylori infection
10 October 2019 Reduced sales due to delivery delays
8 August 2019 BioGaia AB Interim Report 1 January – 30 June 2019