FULLTEXT DEL 1 AV 1

Kvartalsrapport Q1 2023

Dokumentindex

===== SIDA 1 =====

Q1 2023
BioGaia AB (publ) Interim management statement, January – March 2023.

BioGaia AB

Interim Management
Statement
January – March 2023

===== SIDA 2 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

FIRST QUARTER 2023
Figures in parentheses refer to the corresponding period last year,
unless otherwise specified.
Net sales amounted to SEK 365.8 million (283.9), an increase of SEK
82.0 million, or 29% (excluding foreign exchange effects, 19%).
Net sales in the Paediatric s segment amounted to SEK 306.0 million
(222.5), an increase of 37% (excluding foreign exchange effects,
27%).
Net sales in the Adult Health segment amounted to SEK 56.6 million
(60.8), a decrease of 7% (excluding foreign exchange effects a
decrease of 1 4%).
Operating expenses amounted to SEK 114.5 million (106.9), an
increase of SEK 7.6 million (7%). Operating ex penses, excluding items
affecting comparability, increased by 10% to SEK 112.1 million
(102.2).
Operating profit increased by 55% to SEK 148.0 million (95.3), which
corresponds to an operating margin of 40% (34%).
Adjusted operating profit increased by 5 0% to SEK 150.4 million
(100.0), which corresponds to an adjusted operating margin of 41%
(35%).
Profit after tax amounted to SEK 115.9 million (76.3), an increase of
52%.
Earnings per share amounted to SEK 1.15 (0.76) before and after
dilution. 1)
Cash fl ow amounted to SEK 93.7 million (85.8).
Cash and cash equivalents at 31 March 2023 amounted to SEK
1,580.8 million (SEK 1,571.7 million at 31 March 2022).

Key events in the first quarter of 2023

On 29 March, BioGaia announced that the company’s CEO Isabelle
Ducellier intends to leave the company and take up employment with
another company. Isabelle Ducellier will remain in her position until 30
September 2023.
On 31 March, BioGaia announced that the company is launching a
probiotic skin ointment for infants and children, Aldermis.

Key events after the end of the first quarter
On 26 April, BioGaia presented the preliminary results for the first
quarter of 2023.
On 27 April, BioGaia announced that the company is launching the
Prenatal Care product for women before and during pregnancy.

Jan–Mar 2023 Jan–Mar 2022
Net sales, SEK 000s 365,821 283,855
Growth in net sales 29% 41%
Operating profit, SEK 000s 147,998 95,295
Operating margin 40% 34%
Profit after tax, SEK 000s 115,945 76,297
Number of shares, thousands 100,982 100,982
Earnings per share, before and after dilution, SEK 1)
2)
1.15 0.76

1) In view of the 5:1 share split, which took place in May 2022, historical key ratios based on the number of shares have been restated.
2) Key ratio defined according to IFRS. For definitions of other key ratios, see page 16.

This information is information t hat BioGaia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted
for publication, through the agency of the CEO, at 8:00 a.m. CEST on 5 May 2023.

Jan–Mar
2023
Operating
margin
40%
Change in
sales
29%
19% excl.
foreign exchange
effects
Operating
profit
148
SEK million
Net sales
366
SEK million

===== SIDA 3 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

CEO’s comments
Following on from another record year in 2022, when sales passed
SEK 1 billion, our multi -year growth has continued with a very strong
first quarter when we reported net sales of SEK 366 million. This is an
increase of 29% compared with the year -earlier period (19%
excluding changes in foreign exchange rates) driven by two regions,
the Americas and APAC. When we concluded 2022, our five markets
with direct sales accounted for about one quarter of total sales. Now
with the addition of direct sales in Canada, we can realise important
synergies with the USA market.
In the Americas, we can see continued growth of 64%, driven by
BioGaia Canada, the new subsidiary that was established following
the termination of the agreement with our former distributor Ferring. As
I have said, we can already see operating synergies with BioGaia USA
and our online channels. BioGaia USA has continued its double -digit
growth, driven by sales via Amazon. For the first time in the history of
BioGaia in the USA, we sold for more than USD 1 million via Amazon
during a single month. We also decided to launch our own first
cosmetic probiotic product, Aldermis, a skin ointment for infants and
children with dry and sensitive s kin, as a good complement to our
Paediatrics product portfolio. LATAM is overperforming thanks to the
successful regional launch of Gastrus and the continuing success of our
Protectis drops in Brazil.
With net sales of SEK 81 million, the APAC region is on ce again
growing with an impressive sales increase of 72%, mainly due to the
reopening of China after another wave of Covid. South Korea, the
Philippines, Malaysia and Thailand also made significant contributions
to total growth. Sales on Amazon Japan note d a strong upswing during
the first quarter supported by a number of influencer campaigns in
conjunction with the relaunch of BioGaia Prodentis. As a result, the
product was ranked number one in Amazon Japan’s Drugstore
category for a whole week. This succ ess reinforces our conviction that
the implementation of our omnichannel strategy with Amazon is working
and will be highly beneficial in many more Amazon marketplaces
worldwide.

After a surge in sales of 52% in EMEA in 2022 due to the recovery
from Covid, sales of SEK 143 million during the first quarter represents
a year -on-year decrease of 5%. Some inventory accumulation also
occurred during the fourth quarter prior to the price increase.
Excellent results in Turkey, Poland, France and Belgium, as well as a
slowdown in Italy (following very strong growth in 2022) and Romania
are also events worthy of note.
Despite cautious consumer spending during times of high inflation and
the concern about the future economic outlook, demand for clinically
proven probiotics products remains healthy.
It is also worth noting that BioGaia’s financial situation is very robust,
and during times such as these with limited access to new capital in the
biotech sector, we have no such needs in order to drive our growth,
develop new products, finance possible acquisitions, and continue to
disburse attractive dividends.
Lastly, as announced on 29 March, I have, with mixed feelings, decided
to leave BioGaia and instead join Orkla as CEO of the Orkla Health
portfolio company. To ensure a smooth
transition, I will remain in my current
position until the end of September
2023. I am leav ing a BioGaia
that is in a good position to
develop into the world’s most
trusted probiotic brand, led
by a highly competent and
completely dedicated
team around the world. I
have no doubt that
BioGaia will continue on
its successful journey. I am
deeply g rateful for these
five years of intensive
transformation from a
business -to-business
company to a business -to-
consumer company.

Isabelle Ducellier
President and CEO BioGaia

5 May 2023

BioGaia AB (publ.) interim management statement 2023
The Board of Directors and the CEO of BioGaia AB hereby present the interim management statement for the period 1 January – 31
March 2023.

Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim
management statement to be held today, 5 May 2023, at 9:30 a.m. CEST with CEO Isabelle Ducellier and CFO
Alexander Kotsinas. More information about the teleconference is available
here: https://financialhearings.com/e vent/46020 .

===== SIDA 4 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Revenue

SALES FIRST QUARTER
Consolidated net sales amounted to SEK 365.8 million (283.9), which is
an increase of SEK 82.0 million, or 29% (excluding foreign exchange
effects, 19%).
Sales in EMEA totalled SEK 143.3 million (150.4), down 5% due to
decreased sales in both the Paediatrics and Adult Health segments. In
EMEA, sales decreased mainly in Spain, Russia and Italy. BioGaia has
no sales to Russia since the first quarter of 2022. The decline in sales
was partially due a certain degree of inventory accumulation among
some distributors during the fourth quarter of 2022 prior to the price
increase.

Sales in APAC amounted to SEK 80.8 millio n (46.9), an increase of
72%. The Paediatrics segment increased while the Adult Health
segment decreased slightly. Sales increased primarily in China as
restrictions attributable to the pandemic were removed and due to
quarterly variations for individual o rders.

Sales in Americas totalled SEK 141.7 million (86.6), up 64% due to
increased sales in both the Paediatrics and Adult Health segments.
Sales growth was strongest in the USA, Canada and Brazil. The sales in
Americas were positively impacted by certain one -time effects related
to BioGaia starting t o sell through its own subsidiary, BioGaia Canada.

SEKm Jan–Mar Jan–Mar Change

2023 2022

Paediatrics 306.0 222.5 37%

Adult Health 56.6 60.8 -7%

Other 3.3 0.6 461%

Total 365.8 283.9 29%

SEKm Jan–Mar Jan–Mar Change

2023 2022

EMEA 143.3 150.4 -5%

APAC 80.8 46.9 72%

Americas 141.7 86.6 64%

Total 365.8 283.9 29%

SEKm

Change
2022 283.9

Foreign exchange 27.1 10%
Organic growth 54.8 19%
2023 365.8 29%

===== SIDA 5 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Paediatrics

The Paediatrics segment accounts for approximately 80% of BioGaia’s total sales. BioGaia Protectis drops remain the most sold product and are sold in
more than 100 countries. Other key products within the Paediatrics segment include Protectis tablets, oral rehydration soluti on as well as cult ures to be
used as ingredients in licensee products.

SALES FIRST QUARTER
Sales in the Paediatrics segment amounted to SEK 306.0 million
(222.5), an increase of 37% (excluding foreign exchange effects,
27%). Over the past 12-month period, sales rose 43%.

Sales of BioGaia Protectis drops increased compared to the
corresponding period last year. Sales increased in the Americas,
primarily in the USA and Canada, but also in APAC, mainly in China.
Sales decreased slightly in EM EA, mainly in Spain.

Sales of BioGaia Protectis tablets within Paediatrics increased
compared to the corresponding period last year. Sales increased in the
Americas and APAC but decreased in EMEA. Sales increased mainly in
Brazil and South Korea.

SEKm Jan–Mar 2023 Jan–Mar 2022
2022
Change
Paediatrics 306.0 222.5 37%

===== SIDA 6 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Adult Health

The Adult Health segment accounts for approximately 20% of BioGaia’s total sales. Sales mainly comprise BioGaia Protectis, Bi oGaia Gastrus, BioGaia
Prodentis, BioGaia Osfortis, as well as cultures as an ingredient in a licensee’s dairy products and Nutraceutics’ own products.

SALES FIRST QUARTER
Sales in the Adult Health segment amounted to SEK 56.6 million
(60.8), a decrease of 7% (excluding foreign exchange effects a
decrease of 14%). Over the past 12-month period, sales rose 14%.
Sales of BioGaia Protectis tablets decreased compared to the
corresponding period last year. Sales declined primarily in Italy,
Eastern Europe and South Africa.
Sales of BioGaia Gastrus increased compared to the corresponding
period last year. Sales increased mainly in the USA and France.
Sales of BioGaia Prodentis increased compared to the corresponding
period last year. Sales increased mainly in the USA and Japan.

SEKm Jan–Mar 2023 Jan–Mar 2022
2022
Change
Adult Health 56.6 60.8 -7%

===== SIDA 7 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Earnings
First quarter

Gross margin
The total gross margin for the quarter amounted to 72% (71%). The
gross margin is still adversely affected by rising purchase prices
despite price increases by BioGaia. BioGaia intends to continue to
raise prices to offset higher costs and to defend its gr oss margin.
The gross margin for the Paediatrics segment amounted to 73% (73%)
and for the Adult Health segment to 63% (65%).
Operating expenses and operating profit
Operating expenses amounted to SEK 114.5 million (106.9), an
increase of SEK 7.6 million (7%). Operating expenses, excluding items
affecting comparability, increased by 10% to SEK 112.1 million
(102.2). Items affecting comparability in the quarter include primarily
restructuring costs for personnel.
Selling expenses amounted to SEK 88 .1 million (72.0), an increase of
22%, mainly due to higher costs for sales and marketing activities.
R&D expenses amounted to SEK 18.7 million (24.9), a decrease of
25%. The decrease in R&D expenses is attributable to lower study
expenses during the peri od.
Administrative expenses amounted to SEK 9.8 million (11.1), a
decrease of 12% .
Other operating expenses refers to exchange losses/gains on
receivables and liabilities of an operating nature and amounted to SEK
-2.1 million ( -1.1).
Operating profit amounted to SEK 148.0 million (95.3), an increase of
55%. The operating margin was 40% (34%).
Adjusted operating profit amounted to SEK 150.4 million (100.0), an
increase of 50%. The adjusted operating margin was 41% (35%).
Profit after tax and ear nings per share
Profit after tax amounted to SEK 115.9 million (76.3), an increase of
52%. The effective tax rate was 23% (22%).
Earnings per share amounted to SEK 1.15 (0.76). There are no dilutive
effects.

===== SIDA 8 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Balance sheet and cash flow
Balance sheet 31 March 2023
Total assets at 31 March 2023 amounted to SEK 2,324.0 million (SEK
2,214.0 million at 31 December 2022).
Goodwill from the acquisition of Nutraceutics was adjusted for
currency translation, and amortisation of other surplus values identified
in the acquis ition. The financial liability for the additional purchase
price was value adjusted. For more information, see Note 4. Compared
with the preceding year, trade receivables and trade payables
increased while inventories decreased.
Cash and cash equivalents a t 31 March 2023 amounted to SEK
1,580.8 million (SEK 1,488.4 million at 31 December 2022).
Cash flow first quarter
Cash flow amounted to SEK 93.7 million (85.8).
Cash flow from operating activities amounted to SEK 98.4 million
(93.1). The increase in cash flow in operations compared with the year -
earlier period is due to higher operating profit despite a negative
change in working capital.
Investments in property, plant and equipment amounted to SEK 1.3
million (5.1).
Other disclosures
Employees
The number of employees in the Group at 31 March 2023 totalled
211 (189 at 31 March 2022).
The company has an incentive programme for all employees based
partly on the company’s sales and profit and partly on qualitative
targets. The maximum bonus is equa l to 12% of annual salary. In
addition to this programme BioGaia has also implemented a
subscription warrants programme as resolved by the 2021 Annual
General Meeting.
Future outlook
BioGaia’s goal is to create strong value growth and a good return for
the shareholders. This will be achieved through a greater emphasis on
the BioGaia brand, online sales, increased sales to both existing and
new customers and a controlled cost level.
The long -term financial target is an operating margin (operating profit
in relation to sales) of at least 34% with continued strong growth and
increased investments in research, product development, brand
building and the sales organisation. BioGaia’s dividend policy is to
pay a shareholder dividend equal to 50% of profit after t ax in the
Group excluding non -recurring items.
In view of the company’s strong portfolio consisting of an increased
number of innovative products that are sold predominantly under the
BioGaia brand, successful clinical trials and a strong distribution
network that covers a large share of key markets for BioGaia,
BioGaia’s future outlook remains bright.
Significant risks and uncertainties – Group and Parent
Company
Significant risks and uncertainties are described in the administration
report of the annual report for 2022 on pages 92 and 93 and in
Notes 27 and 28. No significant changes in these risks and
uncertainties are assessed to have taken place at 31 March 202 3.
Related party transactions
The Parent Company owns 100% of the shares in BioGaia Probiotics
Canada Inc, BioGaia UK Ltd, BioGaia Finland Oy, BioGaia Invest AB,
MetaboGen AB, BioGaia Biologics Inc. USA, BioGaia Japan Inc,
BioGaia Production AB, CapAble A B and Tripac AB. The Parent
Company also owns 96% of the shares in BioGaia Pharma AB and
80% of the shares in Nutraceutics Inc.
Annwall & Rothschild Investment AB owns 3,703,340 class A shares and
500,000 class B shares, corresponding to 4.2% of the share capital
and 27.9% of the voting rights in BioGaia AB. Annwall & Rothschild
Investment AB is owned by Peter Rothschild and Jan Annwall. Peter
Rothschild is Chairman of the Board of BioGaia AB and receives a
director’s fee of SEK 705,000 per year. During th e quarter, Peter
Rothschild received additional remuneration for significant working
duties, in addition to his assignment on the Board, of SEK 150,000 in
accordance with the decision of the Annual General Meeting and the
Board of Directors.
Key events in the first
quarter of 2023
Launches in the first quarter of 2023
Distributor Country Product
Abbott Paraguay BioGaia Protectis tablets with
vitamin D
J Health Hong Kong Protectis tablets with vitamin D
Pharma Ace Malaysia BioGaia Protectis minipack
United Life Sciences Taiwan BioGaia Protectis tablets with
vitamin D

Management changes in BioGaia. On 29 March, BioGaia announced
that the company’s CEO Isabelle Ducellier intends to leave the
company and take up employment with another company . Isabelle
Ducellier will remain in her position until 30 September 2023.
BioGaia launches probiotic skin ointment for infants and children.
On 31 March, BioGaia announced that the com pany is launching its
own cosmetic probiotic product, Aldermis, which helps combat dry and
sensitive skin. The ointment contains BioGaia’s patented bacteria strain
L. reuteri DSM 17938.
Key events after the end of the first quarter of 2023

BioGaia presents preliminary results. On 26 April, BioGaia
presented the preliminary results for the first quarter of 2023.
BioGaia launches probiotic food supplement for women before and
during pregnancy. On 27 April, BioGaia announced that the company
is launching the Prenatal Care product, a probiotic food supplement
for expect ing mothers as well as women planning to conceive .
Accounting policies
This interim management statement was prepared in all material
respects in accordance with Nasdaq OMX Stockholm’s guidance for
preparing interim management statements. Disclosures according to IAS
34 Interim Financial Reporting are provided both in notes a nd
elsewhere in the interim management statement. The accounting policies
applied in the consolidated income statement and balance sheet are
consistent with the accounting policies applied in preparation of the
most recent annual report.
The financial acc ounts and segment information correspond to the
statements used in interim financial reporting prepared in accordance
with IAS 34 to provide comparability in the presentation between
quarters. The interim management statement includes a Message from
the CEO, even if this is not a requirement of Nasdaq Stockholm’s
guidance. The information is nevertheless deemed important in
satisfying user needs.
New accounting standards
Management’s assessment is that new and amended standards and
interpretations that ca me into force in 2023 have not had a material
effect on the Group’s financial statements. Management’s assessment is
that new and amended standards and interpretations that have not yet
come into effect will not have a material effect on the Group’s
financ ial statements for the period of initial application.

===== SIDA 9 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Summary consolidated statements of comprehensive income
(Amounts in SEK 000s) Jan–Mar
2023
Jan–Mar
2022
Jan–Dec
2022
Apr 2022 –
Mar 2023
Apr 2021 –
Mar 2022
Net sales (Note 1) 365,821 283,855 1,103,957 1,185,923 866,990
Cost of sales -103,309 -81,647 -302,028 -323,690 -227,033
Gross profit 262,512 202,208 801,929 862,233 639,957
Selling expenses -88,114 -72,035 -320,798 -336,877 -221,223
Administrative expenses -9,773 -11,063 -39,818 -38,528 -37,914
Research and development expenses -18,684 -24,904 -106,805 -100,585 -103,192
Other operating income/expenses 2,057 1,089 26,951 27,919 7,160
Operating profit 147,998 95,295 361,459 414,162 284,788
Financial income 2,758 3,769 91,540 90,529 3,854
Financial expenses -195 -1,697 -5,386 -3,884 -2,610
Profit before tax 150,561 97,367 447,613 500,807 286,032
Tax -34,616 -21,070 -73,840 -87,386 -63,904
Profit for the period 115,945 76,297 373,773 413,421 222,128
Gains/losses arising on translation of the statements of foreign
operations -1,079 3,188 25,722 21,455 4,230
Comprehensive income for the period 114,866 79,485 399,495 434,876 226,358
Profit for the period attributable to: Owners of the Parent Company 115,945 76,297 373,773 413,421 222,128
Non-controlling interests – – – – –

115,945 76,297 373,773 413,421 222,128
Comprehensive income for the period attributable to:
Owners of the Parent Company
114,866 79,485 399,495 434,876 226,358
Non-controlling interests – – – – –

114,866 79,485 399,495 434,876 226,358
Earnings per share

Earnings per share before dilution, (SEK) *) 1.15

0.76 3.70 4.09 2.20
Earnings per share after dilution, (SEK) *) 1.15 0.76 3.70 4.09 2.20
Number of shares (thousands) 100,982 100,982 100,982 100,982 100,982
Average number of shares before dilution, (thousands) *) 100,982 100,982 100,982 100,982 100,982
Average number of shares after dilution, (thousands) *) 100,982 100,982 100,982 100,982 100,982

*) In view of the 5:1 share split, which took place in May 2022, historical key ratios based on the number of shares have bee n restated.

===== SIDA 10 =====

Q1 2023
BioGaia AB (publ) Interim management statement, January – March 2023.

Consolidated balance sheets
Summary (amounts in SEK 000s) 31 Mar
2023
31 Mar
2022
31 Dec
2022
Assets

R&D projects in progress 46,128 47,713 46,075
Goodwill 170,084 152,730 171,517
Right-of-use assets 10,614 13,075 13,557
Property, plant and equipment 141,679 140,186 144,168
Financial assets 25,793 22,229 25,793
Deferred tax assets 7,170 4,970 15,325
Deposits 49 44 50
Total non -current assets 401,517 380,947 416,485
Current assets excl. cash and cash equivalents 341,664 277,522 309,115
Cash and cash equivalents 1,580,822 1571 693 1,488,366
Total current assets 1,922,486 1,849,215 1,797,481
Total assets 2,324,003 2,230,162 2,213,966

Equity and liabilities

Equity attributable to owners of the Parent Company 2,086,866 1,956,644 1,972,416
Non-controlling interests 2 2 2
Total equity (Note 2) 2,086,868 1,956,646 1,972,418
Deferred tax liability 12,532 14,190 12,552
Non-current liabilities 38,328 106,308 64,005
Current liabilities 186,275 153,018 164,991
Total liabilities and equity 2,324,003 2,230,162 2,213,966

===== SIDA 11 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Consolidated cash flow statements

Summary (amounts in SEK 000s) Jan–Mar
2023
Jan–Mar
2022
Jan–Dec
2022
Operating activities

Operating profit 147,998 95,295 361,459
Depreciation/amortisation 6,519 6,049 23,890
Other non -cash items -44 -1,136 -9,103
Paid tax -34,995 -17,512 -54,910
Interest received and paid 2,562 -1,698 2,248

Cash flow from operating activities before changes in
working capital 122,040 80,998 323,584
Changes in working capital -23,606 12,067 -4,641

Cash flow from operating activities 98,434 93,065 318,943
Purchase of property, plant and equipment -1,279 -5,081 -17,916
Purchase of intangible assets -53 – -225
Cash flow from investing activities -1,332 -5,081 -18,141
Dividend – – -301,331
Repayment of lease liability -2,943 -2,005 -9,143
Provision to Foundation to Prevent Antibiotic Resistance – – -2,900
Repurchase of warrants -417 -206 -214
Cash flow from financing activities -3,360 -2,211 -313,588
Cash flow for the period 93,742 85,773 -12,786
Cash and cash equivalents at the beginning of the period 1,488,366 1,484,680 1,484,680
Exchange difference in cash and cash equivalents -1,286 1,240 16,472
Cash and cash equivalents at the end of the period 1,580,822 1,571,693 1,488,366

===== SIDA 12 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Note 1 Reporting by segment – Group
Executive Management has analysed the Group’s internal reporting
and determined that the Group’s operations are monitored and
evaluated based on the following segments:
– Paediatrics segment (drops, gut health tablets, oral rehydration
solution (ORS) and cultures to be used as ingredients in licensee
products (such as infant formula) as well as royalty revenues for
paediatric products.
– Adult Health segment (gut and bone health tablets, oral health
lozenges and cultures as an ingredient in a licensee’s dairy products,
Nutraceutics’ own products as wel l as royalty revenues for Adult Health
products).

– Other segment (smaller segments such as royalty from packaging
solutions).
For the above segments BioGaia reports revenue and gross profit,
which are monitored regularly by the CEO (who is regarded as the
chief operating decision maker) together with the Executive
Management. There is no monitoring of the company’s total assets and
liabilities against the segments’ assets.

(Amounts in SEK 000s)
Revenue by segment
Jan–Mar
2023
Jan–Mar
2022
Jan–Dec
2022
Apr 2022 –
Mar 2023
Apr 2021 –
Mar 2022
Paediatrics 305,957 222,520 868,355 951,792 664,601
Adult Health 56,613 60,756 230,205 226,062 198,890
Other 3,251 579 5,398 8,069 3,499
Total 365,821 283,855 1,103,957 1,185,923 866,990

Gross profit by segment
Paediatrics 224,403 161,837 643,607 706,172 499,913
Adult Health 35,535 39,792 153,298 149,040 136,600
Other 2,574 579 5,025 7,020 3,444
Total 262,512 202,208 801,929 862,232 639,957

Selling, administrative, R&D expenses -116,571 -108,002 -467,421 -475,990 -362,629
Other operating expenses/income 2,057 1,089 26,951 27,919 7,160
Operating profit 147,998 95,295 361,459 414,162 284,788
Net financial items 2,563 2,072 86,154 86,645 1,244
Profit before tax 150,561 97,367 447,613 500,807 286,032

Sales by geographical market
Sales by geographical market

APAC

Paediatrics 51,132 17,343 118,684 152,473 99,191
Adult Health 27,338 29,014 100,226 98,550 117,423
Other 2,299 507 4,074 5,865 2,349
Total APAC 80,769 46,864 222,983 256,888 218,963

EMEA
Paediatrics 132,752 135,390 450,159 447,521 343,249
Adult Health 10,143 14,976 60,190 55,357 47,775
Other 434 35 1,126 1,525 993
Total EMEA 143,329 150,401 511,475 504,403 392,017

Americas
Paediatrics 122,072 69,787 299,512 351,798 222,161
Adult Health 19,133 16,766 69,788 72,154 33,691
Other 518 37 198 680 158
Total Americas 141,723 86,590 369,499 424,632 256,010
Total 365,821 283,855 1,103,957

1,185,923 866,990

===== SIDA 13 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Note 2 Summary consolidated statement of changes in equity

(Amounts in SEK 000s)
Jan–Mar
2023
Jan–Mar
2022
Jan–Dec
2022
Opening balance 1,972,418 1,877,367 1,877,367
New issue and repurchase of warrants -417 -206 -214
Dividend – – -301,331
Provision to Foundation to Prevent Antibiotic Resistance – – -2,900
Comprehensive income for the period 114,866 79,485 399,495
Closing balance 2,086,868 1,956,646 1,972,418

Note 3 Largest shareholders at 31 March 2023 (source: Monitor)
A shares B shares Share capital No. of votes Capital Votes
1 Annwall & Rothschild Investments AB 3,703,340 500,000 840,668 37,533,400 4.2% 27.9%
2 EQT 11,164,630 2,232,926 11,164,630 11.1% 8.3%
3 Fjärde AP -fonden 7,840,182 1,568,036 7,840,182 7.8% 5.8%
4 Premier Miton Investors 6,215,183 1,243,037 6,215,183 6.2% 4.6%
5 TIN Fonder 3,144,175 628,835 3,144,175 3.1% 2.3%
6 Cargill Inc 3,000,000 600,000 3,000,000 3.0% 2.2%
7 Handelsbanken Fonder 2,600,081 520,016 2,600,081 2.6% 1.9%
8 AMF Pension & Fonder 2,395,985 479,197 2,395,985 2.4% 1.8%
9 Tredje AP -fonden 2,037,716 407,543 2,037,716 2.0% 1.5%
10 Juno Investment Partners 1,977,135 395,427 1,977,135 2.0% 1.5%

Other shareholders 56,403,883 11,280,777 56,403,883 55.9% 42.0%

Total 3,703,340 97,278,970 20,196,462 134,312,370 100% 100%

Date of recognition
Performance obligations met on specific date (Product
sales)

Jan–Mar

2023
Jan–Mar

2022
Jan–Dec

2022

Paediatrics 305,957 221,668 867,503
Adult Health 54,762 57,900 213,360
Other 2,887 587 4,488
Total 363,606 280,155 1,085,352

Performance obligations met over time (Royalty)

Paediatrics 0 852 852
Adult Health 1,851 2,856 16,844
Other 364 -8 909
Total 2,215 3,700 18,606

Total 365,821 283,855 1,103,957

===== SIDA 14 =====

Q1 2023
BioGaia AB (publ) Interim management statement, January – March 2023.

Note 4 Fair value
Financial liabilities
BioGaia has a financial liability relating to the additional purchase
price in business acquisitions that is measured at fair value through
profit or loss. The additional purchase price is due to the acquisition of
Nutraceutics and is based on sales in Nutraceutics in 2026 or 2027.
The amount, which will be settled in April 2027 or 2028, may also be
adjusted if the agreed budget for marketing costs is exceeded.

Revaluation took place during the first quarter of 2023 and BioGaia’s
best assessment of fair value of the financial liability related to the
additional purchase price at 31 March 2023 was therefore adjusted to
SEK 34.8 million. Estimates of fair value are based on Level 3 of the
hierarchy for fair value, which means fair value is determined using
valuation models where significant inputs are based on unobservable
data. The measurement was based on anticipated future cash flows
discounted with a market -based interest rate. The value adjustment is
recognised as a financial expense of SEK 1.5 million in the quarter.

(Amounts in SEK 000s) Jan–Mar
2023
Jan–Dec
2022
Opening balance 33,627 100,591
Value adjustment 1,494 -80,013
Exchange differences -302 13,049
Closing balance 34,819 33,627

Financial assets
BioGaia owns shares in the companies Boneprox AB and Skinome AB
through BioGaia Invest at a cost of SEK 22.2 million. These financial
assets are measured at fair value through profit or loss. Estimates of
fair value are based on Level 3 of the hierarchy fo r fair value, which
means fair value is determined using valuation models where
significant inputs are based on unobservable data.

During the period, no transactions occurred in Boneprox AB or Skinome
AB to indicate a change in value. Fair value of these financial assets
therefore corresponds to cost for Boneprox AB and value adjustment
value in previous years for Skinome AB.
The fai r values of other receivables, cash and cash equivalents, trade
payables and other liabilities are estimated to be equal to their
carrying amounts (amortised cost) due to the short maturities.

===== SIDA 15 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Consolidated key ratios
Jan–Mar 2023 Jan–Mar 2022 Jan–Dec 2022
Net sales, SEK 000s 365,821 283,855 1,103,957
Growth of net sales 29% 41% 41%
Operating profit, SEK 000s 147,998 95,295 361,459
Adjusted operating profit, SEK 000s 150,400 99,959 366,526
Profit after tax, SEK 000s 115,945 76,297 373,582
Return on equity 6% 4% 19%
Return on capital employed 7% 5% 23%
Capital employed, SEK 000s 2,099,400 1,970,836 1,984,779
Number of shares, thousands 100,982 100,982 100,982
Average number of shares before dilution, thousands 1) 100,982 100,982 100,982
Average number of shares after dilution, thousands 1) 100,982 100,982 100,982
Earnings per share before dilution, SEK 1) 1.15 0.76 3.70
Earnings per share after dilution, SEK 1) 1.15 0.76 3.70
Equity per share, SEK 1) 20.67 19.38 19.53
Equity/assets ratio 90% 88% 89%
Operating margin 40% 34% 33%
Adjusted operating margin 41% 35% 33%
Profit margin 41% 34% 41%
Average number of employees 215 189 203

1) Key ratio defined according to IFRS.
A list of definitions of key ratios reported in the consolidated financial
statements is provided on page 121 of BioGaia’s annual report for
2022. In this report, BioGaia reports information used by Executive
Management to assess the Group’s development. S ome of the key
ratios presented are not defined according to IFRS. The company is of
the opinion that these metrics provide valuable complementary
information to stakeholders and the company’s management since they
contribute to evaluation of relevant tren ds and the company’s
performance. Since not all companies calculate key ratios in the same
manner, these are not always comparable to metrics used by other
companies. These key ratios should therefore not be seen as a
replacement for metrics defined accord ing to IFRS. With effect from 3
July 2016, ESMA’s guidelines on alternative performance measures are
applied which means extended disclosure requirements regarding key
ratios not defined according to IFRS. A reconciliation of key ratios that
BioGaia consid ers relevant according to these guidelines is provided
below.

===== SIDA 16 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Key ratio Definition/calculation Purpose
Return on equity Profit attributable to the owners of the Parent
Company divided by average equity attributable to
the owners of the Parent Company.
Return on equity is used to measure profit generation, over time,
given the resources attributable to the owners of the Parent
Company.
Return on capital
employed
Profit before net financial items plus financial income
as a percentage of average capital employed.
Return on capital employed is used to analyse profitability,
based on the amount of capital used.
Gross margin Gross profit as a percentage of net sales. The gross margin is used to measure profitability.
Equity per share Equity attributable to the owners of the Parent
Company divided by the average number of shares.
Equity per share measures the company’s net value per share and
indicates whether a company will increase the shareholders’
wealth over time.
Average number of
shares
Time-weighted number of outstanding shares during
the year taking bonus issue elements into account.
Used to calculate equity and earnings per share.
Adjusted operating
margin
Adjusted operating margin excluding items affecting
comparability.
The adjusted measure provides enhanced understanding of the
performance of operations.
Adjusted operating
profit
Operating profit (earnings before financial items and
tax) excluding items affecting comparability.
The adjusted measure provides enhanced understanding of the
performance of operations.
Items affecting
comparability
Expenses in conjunction with restructuring, impairment,
changes in provisions for share -based long -term
incentive programmes and other items o f a nature that
affect comparability.
The separate recognition of items that affect comparability
between different periods provides enhanced understanding of
the company’s financial performance.

Earnings per share Profit for the period attributable to owners of the
Parent Company divided by the average number of
shares (definition according to IFRS).
EPS measures how much of net profit is available for payment to
the shareholders as dividends per share.
Operating margin
(EBIT margin)
Operating profit expressed as a percentage of net
sales.
The operating margin is used to measure operational
profitability.
Equity/assets ratio Shareholders’ equity at the end of the period as a
percentage of total assets.
A traditional metric to show financial risk expressed as the share
of total assets financed by the shareholders. Shows the
company’s stability and ability to withstand losses.
Capital employed Total assets less interest -free liabilities. Capital employed measures the company’s ability, in addition to
cash and liquid assets, to meet the requirements of business
operations.
Growth Sales for the period less sales for the year -earlier
period divided by sales for the year -earlier period.
Breakdown by foreign exchange, organic growth and
acquisitions.
Shows the company’s realised sales growth over time.
Profit margin Profit before tax as a percentage of net sales. This key ratio makes it possible to compare profitability
regardless of the corporate income tax .

===== SIDA 17 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Key ratio
Return on equity, SEK 000s Jan–Mar 2023 Jan–Mar 2023 Jan–Dec 2022
Profit attributable to owners of the Parent Company (A) 115,945 76,297 373,773
Equity attributable to owners of the Parent Company 2,086,866 1956 644 1,972,416
Average equity attributable to owners of the Parent Company (B) 2,029,641 1,917,005 1,924,891
Return on equity (A/B) 6% 4% 19%
Return on capital employed

Operating profit 147,998 95,295 361,459
Financial income 2,758 3,769 91,540
Profit before net financial items + financial income (A) 150,756 99,064 452,999
Total assets 2,324,003 2,230,162 2,213,966
Interest -free liabilities -224,603 -259,326 -229,187
Capital employed 2,099,400 1,970,836 1,984,779
Average capital employed (B) 2,042,090 1,931,222 1,938,193
Return on capital employed (A/B) 7% 5% 23%

Key ratio
(Amounts in SEK 000s)

31 Mar 31 Mar

31 Dec
Equity/assets ratio 2023 2022 2022
Equity (A) 2,086,868 1,956,646 1,972,227
Total assets (B) 2,324,003 2,230,162 2,213,966
Equity/assets ratio (A/B) 90% 88% 89%

Operating margin

Operating profit (A) 147,998 95,295 361,459
Net sales (B) 365,821 283,855 1,103,957
Operating margin (A/B) 40% 34% 33%

Profit margin

Profit before tax (A) 150,561 97,367 447,613
Net sales (B) 365,821 283,855 1,103,957
Profit margin (A/B) 41% 34% 41%

Equity per share

Equity attributable to owners of the Parent Company (A) 2,086,866 1,956,644 1,972,416
Average number of shares (B) 100,982 100,982 100,982
Equity per share (A/B) 20.67 19.38 19.53

Change in sales by segment (including and excluding foreign exchange effects)

Paediatrics Adult Health Other Total

(Amounts in SEK 000s) Jan–Mar 2023 Jan–Mar 2023 Jan–Mar 2023 Jan–Mar 2023

Description

A Previous year’s net sales according to the average rate 222,520 60,756 579 283,855
B Net sales for the year according to the average rate 305,957 56,613 3,251 365,821
C Recognised change (B -A) 83,437 -4,143 2,671 81,965
Percentage change (C/A) 37% -7% 461% 29%
D Net sales for the year according to the previous year’s average
rate
283,049 52,419 3,251 338,718
E Foreign exchange effects (B –D) 22,908 4,194 0 27,103
Percentage change (E/A) 10% 7% 0% 10%
F Organic change (C –E) 60,529 -8,337 2,671 54,862
Organic change, % (F/A) 27% -14% 461% 19%

===== SIDA 18 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Average key exchange rates Jan–Mar Jan–Mar Jan–Dec

2023 2022 2022
EUR 11.14 10.44 10.58
USD 10.42 9.32 10.03
JPY 0.0788 0.0804 0.0771

Closing date key exchange rates 31 Mar 31 Mar 31 Dec

2023 2022 2022
EUR 11.28 10.34 11.13
USD 10.35 9.26 10.44
JPY 0.0780 0.0763 0.0792

Pledged assets and contingent liabilities Group
(Amounts in SEK 000s) 31 Mar
2023

2022
31 Mar
2022
31 Dec
2022
2021
Floating charges 0 0 0
Contingent liabilities None None None

Adjusted operating profit Group
(Amounts in SEK 000s) Jan–Mar
2023
Jan–Mar
2023
Jan–Dec
2022
Operating profit 147,998 95,295 361,459
Adjustments 2,402 4,664 5,067
Adjusted operating profit 150,400 99,959 366,526

===== SIDA 19 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

Financial calendar

Stockholm, 5 May 2023

Isabelle Ducellier
CEO

This interim management statement has not been audited.

Annual General Meeting 2023

5 MAY
2023
8:00 a.m. CEST Interim management statement 1 January – 30
September 2023
20 OCT
2023

8:00 a.m. CEST Interim Report 1 January – 30 June
2023
21 JUL
2023

8:00 a.m. CEST Interim management statement 1 January
– 31 March 2023
5 MAY
2023

===== SIDA 20 =====

Q1 2023

BioGaia AB (publ) Interim management statement, January – March 2023

BioGaia AB

The company
BioGaia is a Swedish world-leading probiotic company that has been
at the forefront of microbiome research for more than 30 years with
a vision of becoming the world’s most trusted probiotic brand.
BioGaia develops, markets and sells probiotic products for gut, oral
and bone health with documented health effects. The products are
primarily based on different strains of the lactic acid bacterium
Limosilactobacillus reuteri (formerly Lactobacillus).
The class B shares of the Parent Company BioGaia AB are quoted on the
Mid Cap List of Nasdaq Stockholm.

Business model
BioGaia stands on two strategic legs – sales through distribution
partners and direct distribution to end consumers. The business model
is based on long-term collaboration with international networks within
research, production and distribution.
BioGaia’s revenue comes mainly from the sale to distributors of drops,
tablets and capsules for gut health, oral rehydration solution (ORS),
lozenges for oral health and capsules for bone health. Revenue is also
earned from the sale of bacterial cultures to be used in licensee
products (such as infant formula and dairy products), as well as
royalties for the use of L. reuteri in licensee products.
The products are sold in more than 100 cou ntries through distribution
partnerships with nutrition and pharmaceutical companies and through
direct distribution. BioGaia’s direct distribution extends across six
countries (Sweden, Finland, the UK, USA, Canada and Japan).
BioGaia holds patents for the use of certain strains of L. reuteri and
certain packaging solutions in all major markets. At the end of 2022,
BioGaia held more than 600 approved patents for various bacteria
strains.
The BioGaia brand
BioGaia launched its own consumer brand in 2006. Today, a number
of BioGaia’s distribution partners sell finished products under the
BioGaia brand in a number of markets. One important element of
BioGaia’s brand strategy is to increase the percentage of sales under
the BioGaia brand. Of products (drops, tablets for gut and oral
health, oral rehydration, etc.) sold in 2022, 86% (81%) were sold
under the BioGaia brand including co-branding.
Some of BioGaia’s distributors sell finished consumer products under
their own brand names. On these products, the BioGa ia brand is shown
on the consumer package since BioGaia is both the manufacturer and
licensor.
BioGaia’s licensees add L. reuteri culture to their products and sell
these under their own brand names. On these products, the BioGaia
brand is most often shown on the package as the licensor/patent
holder.
Research and clinical studies
BioGaia’s strains of L. reuteri are among the most studied in the world,
in particular studies in young children, with strong pre-clinical and
clinical evidence. As of December 2022, over 250 clinical studies with
BioGaia’s various strains of L. reuteri have been performed. These
studies involved more than 21,000 individuals of all ages in total.

During the year, BioGaia has performed studies in the following areas:
• Colic and constipation in infants
• Preventing infections in infants and adults
• Functional abdominal pain in children
• Antibiotic-associated diarrhoea (AAD)
• Acute diarrhoea
• Gingivitis (inflammation of the gums)
• Periodontal disease
• General health
• Helicobacter pylori
• Osteopenia
• Autism spectrum condition
• Depression
• Bone health
• Urinary tract infections

BioGaia AB Box 3242 SE-103 64 STOCKHOLM
Street address: Kungsbroplan 3, Stockholm
Telephone: +46 8 555 293 00, Corporate identity no. 556380-8723, www.biogaia.com