BioGaia AB – Year-end report 2017
Comments from the Managing Director:
“2017 was yet another successful year for BioGaia. With growth of 15%, we were able to boost our sales by SEK 80 million and achieve an annual turnover of SEK 615 million. We have thus continued our excellent trend of expanding our share of a market that is expected to grow by around 7% annually. Our operating profit exceeded 200 million for the first time and reached SEK 234 million, an increase of 17% that resulted in an operating margin of 38%. With the proof at hand, it is clear that we have very successfully managed to combine our development initiatives with a focus on sales,” says Axel Sjöblad, Managing Director BioGaia AB.
Fourth quarter 2017
(The figures in brackets and comparative figures in the text refer to the same period of last year.)
- Net sales amounted to SEK 170.1 million (138.8), an increase of 23% (excluding foreign exchange effects, 27%).
- Net sales in the Pediatric segment reached SEK 138.6 million (119.2), an increase of 16%.
- Net sales in the Adult Health segment amounted to SEK 31.0 million (15.9), an increase of 95%.
- Operating profit was SEK 64.7 million (46.4), an increase of 40% (excluding foreign exchange effects, 48%).
- Profit after tax was SEK 48.4 million (47.0), an increase of 3%. The figures for the previous year included a deferred tax revenue of SEK 10.4 million. Excluding the deferred tax, profit after tax rose by 32%.
- Earnings per share totaled SEK 2.79 (2.71). No dilutive effects arose.
- The period’s cash flow was SEK 65.5 million (41.6).
Key events in the fourth quarter of 2017
- Study showing that Lactobacillus reuteri reduces bone loss in older women was presented.
- Study showing that BioGaia’s probiotic promotes growth and prevents recurring diarrhea was published.
Key events after the end of 2017
- Two new meta-analyses confirm the effectiveness of BioGaia’s probiotic in infant colic.
- BioGaia Protectis with vitamin D to be launched on the Swedish market.
- Agreement with Abbott for the rights to sell BioGaia Protectis tablets in China.
Full year 2017
- Net sales amounted to SEK 615.0 million (534.7), an increase of 15% (no material dilutive effects arose).
- Net sales in the Pediatric segment reached SEK 492.6 million (433.0), an increase of 14%.
- Net sales in the Adult Health segment amounted to SEK 116.2 million (85.3), an increase of 36%.
- Operating profit was SEK 233.8 million (199.4)¹, an increase of 17%. (No material dilutive effects arose.)
- Profit after tax was SEK 180.6 million (159.3)¹, an increase of 13%.
- Earnings per share totaled SEK 10.42 (9.19)¹. No material dilutive effects arose.
- The period’s cash flow was SEK 63.5 million (14.0). Cash and cash equivalents at December 31, 2017, amounted to SEK 305.9 million (243.1).
- The Board proposes that the upcoming AGM on April 25, 2018, approve an ordinary dividend according to the policy of SEK 4.31 (3.16) per share and an extraordinary dividend of SEK 4.69 (4.34) per share, amounting to a total dividend of SEK 9.00 (7.50) per share.
- The Board also proposes that the upcoming AGM approve a provision of SEK 2.7 million for the “Foundation for the fight against antibiotic resistance.”
1) Excluding the former subsidiary Infant Bacterial Therapeutics (IBT) AB, which was distributed to the shareholders in March 2016.
Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim report that will be held today, February 8, 2018, at 9:30 a.m. CET by Managing Director Axel Sjöblad. To participate in the teleconference, see www.biogaia.com/investors/agenda for telephone numbers. The teleconference can also be followed at https://tv.streamfabriken.com/biogaia-q4-2017.
This information is information that BioGaia AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Security Markets Act. The information was submitted for publication, through the agency of the Managing Director, at February 8, 2018, 8:00 CET.