BioGaia AB Interim report 1 January – 30 June 2013
“The efforts to break into the major markets are starting to pay off. In the second quarter we signed an agreement with the state-owned company Beijing Keyuan Xinhai Pharmaceutical in China”, says Peter Rothschild, President of BioGaia AB.
“To a large extent, our sales work is focused on the large highly populated countries and we hope that these activities will result in new agreements and relatively rapid launches during the current and coming year. We remain committed to achieving continued healthy growth in sales, both through increased sales among our existing distribution partners and by entering new markets where our products have not previously been sold,” adds Peter Rothschild.
Period from 1 January to 30 June 2013
(Figures in brackets refer to the same period of last year)
- Net sales reached SEK 163.5 million (154.0¹), an increase of SEK 9.5 million (6%). Excluding foreign exchange effects, net sales improved by 11%.
- Net sales of finished consumer products amounted to SEK 134.6 million (121.8), representing growth of SEK 12.8 million (11%). Excluding foreign exchange effects, net sales improved by 15%.
- Net sales of component products amounted to SEK 27.9 million (31.3¹), a decrease of SEK 3.4 million (11%). Excluding foreign exchange effects, net sales fell by 8%.
- Operating profit was SEK 44.1 million (45.5¹), down by SEK 1.4 million (-3%). Excluding foreign exchange effects, operating profit rose by 4%.
- Profit after tax was SEK 34.5 million (37.5¹), a decrease of SEK 3.0 million (8%).
- Earnings per share totalled SEK 1.85 (2.08¹).
- The period’s total cash flow was SEK -125.5 million (243.1). Last year’s cash flow included payment of SEK 356.0 million in licence revenue from Nestlé. Cash and cash equivalents at 30 June 2013 totalled SEK 249.6 million (414.5). Cash flow since 30 June 2012 includes dividends of SEK 172.7 million, tax payments of SEK 65.6 million and investments in TwoPac of SEK 14.8 million.
Second quarter of 2013
- Net sales amounted to SEK 85.3 million (75.7), up by SEK 9.6 million (13%). Excluding foreign exchange effects, net sales increased by 17%.
- Net sales of finished consumer products totalled SEK 69.0 million (67.1), an increase of SEK 1.9 million (3%). Excluding foreign exchange effects, net sales grew by 8%.
- Net sales of component products amounted to 16.0 million (8,3), an improvement of SEK 7.7 million (93%). Excluding foreign exchange effects, net sales increased by 98%.
- Operating profit was SEK 26.3 million (19.4) million, an increase of SEK 6.9 million (36%). Excluding foreign exchange effects, operating profit rose by 43%.
- Profit after tax was SEK 16.9 million (16.7), an increase of SEK 0.2 million (1%). Financial items include of loss of SEK 4.7 million on outstanding foreign exchange contracts (a gain of SEK 1.6 million in the year-earlier period).
Key events in the second quarter of 2013
- Agreements for the sale of ProTectis drops and ProTectis and Gastrus digestive health tablets in South Korea and China.
- New significant agreement with Nestlé for new category of products.
Key events after the end of the second quarter
- BioGaia acquires remaining 50% of TwoPac.
- FDA approves BioGaia’s request for orphan drug designation.
- New study shows that Lactobacillus reuteri Prodentis improves periodontal treatment
1) Excluding license revenue from Nestlé. Net sales and profit for the previous year also included license revenue of SEK 356.0 million from Nestlé for a perpetual license to use Lactobacillus reuteri Protectis in infant formula during the remaining term of the patent, which is regarded as non-recurring revenue. Including license revenue from Nestlé, net sales for the first half of 2012 amounted to SEK 510.0 million, operating profit to SEK 401.5 million, profit after tax to SEK 299.9 million and earnings per share to SEK 17.27.
Teleconference: You are welcome to take part in a teleconference on the interim report that will be held today at 10:00 a.m. by President Peter Rothschild. To participate in the conference, please see www.biogaia.com/agenda for telephone numbers.
BioGaia has published this information in accordance with the Swedish Securities Market Act. The information was issued for publication on 22 August 2013, 8:00 a.m. CET.
This is a translation of Swedish version of the interim report. When in doubt, the Swedish wording prevails.
Latest press releases from BioGaia:
2013-08-16 New study shows: Lactobacillus reuteri Prodentis improves periodontal treatment
2013-08-06 FDA approves BioGaia’s request for orphan drug designation
2013-06-18 BioGaia acquires remaining 50 per cent of TwoPac AB