Reduced sales due to covid-19
(Figures in brackets refer to the corresponding period of last year.)
In most countries BioGaia's sales depend on doctors and pharmacists recommending their patients to use BioGaia's products. Due to the covid-19 situation, BioGaia's distributors' sales forces have not to the same extent as before been able to visit doctors and pharmacy staff in most markets where BioGaia operates.
BioGaia therefore estimates that sales and earnings will be negatively affected both in quarter three and quarter four 2020. For the third quarter, sales are estimated to amount to approximately SEK 132 (167.1) million. Around SEK 6 million of the decrease in sales is due to negative currency effects. Operating profit for the third quarter is expected to amount to approximately SEK 27 (49.5) million. It is too early to comment on sales for the fourth quarter, but we estimate that sales will be lower than expected also in the fourth quarter. During the first half of the year, sales increased by 9% and operating profit by 25%.
“The decrease in sales is of course very unfortunate, but we believe that it is related to covid-19 and that this will not affect our long-term expectations. To reduce the effect on earnings, we are reviewing our costs to partially compensate for the decrease in sales,” says Isabelle Ducellier, CEO of BioGaia AB.
BioGaia will publish its Interim report for the third quarter 23 October 2020 at 08:00 CET, followed by a conference call at 09:30 CET.
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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, 12 October 2020 at 10:15pm CET.