BioGaia Interim report January – June 2021
Second quarter 2021
- Net sales amounted to SEK 203.1 million (244.7), a decrease of 17% (excluding foreign exchange effects, -8%). The change in sales was affected by higher comparative figures since the corresponding period last year was positively affected by Covid-19 related inventory build-up at many of our customers.
- Net sales in the Paediatrics segment reached SEK 161.1 million (199.2), a decrease of 19%.
- Net sales in the Adult Health segment amounted to SEK 40.9 million (44.4), a decrease of 8%.
- Operating expenses amounted to SEK 81.6 million (84.2), a decrease of 3%.
- Operating profit decreased by 31% to SEK 69.2 million (100.2), which corresponds to an operating margin of 34% (41%)
- Profit after tax was SEK 54.7 million (79.0), a decrease of 31%.
- Earnings per share amounted to SEK 2.71 (4.52) before and after dilution.
- Cash flow for the period was SEK -16.2 million (-38.7).
- Cash and cash equivalents at 30 June 2021 amounted to SEK 1,468.9 million (242.5).
Key events in the second quarter of 2021
- On 8 April, BioGaia announced that the company has signed an agreement with Minapharm Pharmaceuticals for exclusive rights to sell BioGaia Protectis drops in Egypt.
- On 13 April, BioGaia announced that a randomised, double-blind, placebo-controlled study in children showed that a supplement of two L. reuteri strains significantly reduced fever and pain in children with upper respiratory tract infections.
- On 20 May, the company announced that BioGaia’s products will be sold under the BioGaia brand in Finland.
First half 2021
- Net sales amounted to SEK 405.1 million (427.5), a decrease of 5% (excluding foreign exchange effects, +5%).
- Net sales in the Paediatrics segment reached SEK 322.8 million (341.6), a decrease of 6%.
- Net sales in the Adult Health segment amounted to SEK 79.6 million (84.5), a decrease of 6%.
- Operating expenses amounted to SEK 162.6 million (161.6), an increase of 1%. Operating expenses included costs of evaluation of acquisition candidates of SEK 2.5 million and restructuring costs of SEK 7.5 million. Excluding these costs, operating expenses amounted to SEK 152.6 million, a decrease of 6%.
- Operating profit decreased by 15% to SEK 133.5 million (155.9), which corresponds to an operating margin of 33% (36%). Profit after tax was SEK 105.1 million (120.8), a decrease of 13%.
- Earnings per share amounted to SEK 5.21 (6.91) before and after dilution.
- Cash flow for the period was SEK 1.1 million (28.7).
Key events after the end of the second quarter
- On 2 July, BioGaia announced that the company had become the owner of 100% of the shares in MetaboGen. Previously, BioGaia owned 92% of the shares. The purchase price amounted to SEK 11.4 million and is recognised in the half-year financial statements as a current liability to be settled in July.
"Currently and for over a year now, the Covid-19 situation continues to impact our sales and earnings. During the first and especially the second quarter of last year many of our distributors built up inventories to avoid being affected by the anticipated delivery difficulties connected to the Covid-19 crisis. This has resulted in greater fluctuations than normal in our sales as well as between our regions. Furthermore, the still relatively strong Swedish krona has also affected our earnings.
In the second quarter of 2020 we therefore achieved sales of SEK 245 million, our best-ever quarter. Under previous normal conditions, we consider a quarter with sales in excess of SEK 200 million to be a good quarter. In the second quarter of this year we landed at SEK 203 million (a decrease of 17% and excluding foreign exchange effects, -8%) despite the fact that the first quarter this year was relatively strong with orders from China that were delivered in the final days of March instead of in the second quarter.As usual and especially in view of the impact of the Covid situation on inventory and sales, the half-year figures are more relevant and here we see organic growth of 5%. We are not satisfied with this but at any rate it is heading in the right direction."
For more information and the entire CEO comment, see attached interim management statement.
Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim management statement to be held today 12 August 2021 at 09:30 CET with CEO Isabelle Ducellier and CFO Alexander Kotsinas. To participate in the teleconference, please see Financialhearings.com for telephone numbers. The teleconference can also be followed here.
This information is information that BioGaia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the CEO, on 12-08-2021 08:00 CET.