FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2024
===== SIDA 1 =====
Q1 2024
1 BioGaia AB (publ.) Interim management statement, January – March 2024
Interim Management Statement
January – March 2024
===== SIDA 2 =====
Q1 2024
2 BioGaia AB (publ.) Interim management statement, January – March 2024
Jan – Mar
2024
For balance sheet items, figures in parentheses refer to year -end 2023
figures. For income statement and cash flow items, they refer to the
same period last year.
Net sales amounted to SEK 369.8 million ( 365.8), an increase of SEK
4.0 million, or 1% (excluding foreign exchange effects, 2%).
Net sales in the Pediatrics segment amounted to SEK 292.3 million
(306.0), a decrease of 4% (excluding foreign exchange effects a
decrease of 4%).
Net sales in the Adult Health segment amounted to SEK 74.8 million
(56.6), an increase of 32% (excluding foreign exchange effects an
increase of 33%).
Operating expenses amounted to SEK 122.6 million ( 114.5), an
increase of SEK 8.1 million (7%) . Operating expenses, excluding items
affecting comparability, increased by 5% to SEK 117.6 million ( 112.1).
Operating profit decreased by 3% to SEK 143.2 million ( 148.0), which
corresponds to an operating margin of 39% (40%).
Adjusted operating profit decreased by 1% to SEK 148.2 million
(150.4), which corresponds to an adjusted operating margin of 40%
(41%).
Profit after tax amounted to SEK 121.8 million ( 115.9), an increase of
5%.
Earnings per share amounted to SEK 1. 21 (1.15) before dilution and
SEK 1.21 (1.15) after dilution .1)
Cash flow amounted to SEK 40.9 million ( 93.7).
Cash and cash equivalents amounted to SEK 1,5 91.4 million (1,5 44.2).
Key events after the end of the first quarter
No key events that are not mentioned in this interim management
statement took place after the end of the first quarter.
FIRST QUARTER 2024
Jan – Mar 2024 Jan – Mar 2023
Net sales, SEK 000s 369,796 365,821
Growth in net sales 1% 29%
Operating profit, SEK 000s 143,183 147,998
Operating margin 39% 40%
Profit after tax, SEK 000s 121,847 115,945
Number of shares, thousands , before dilution 100,982 100,982
Number of shares, thousands , after dilution 100,992 100,982
Earnings per share, before dilution, SEK 1) 1.21 1.15
Earnings per share, after dilution, SEK 1) 1.21 1.15
1) Key ratio defined according to IFRS. For definitions of other key ratios, see page 17.
Operating
margin
39 %
Change in
sales
1 %
2 % excl.
FX
Net sales
370
SEK million
Operating
profit
143
SEK million
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 agency of the CEO, at 08.00 a.m. CET on 7 May 2024.
===== SIDA 3 =====
Q1 2024
3 BioGaia AB (publ.) Interim management statement, January – March 2024
Embarking on a dynamic year ahead
After a strong record year for 2023, the first quarter shows overall
good results with a strong Operating Margin of 39% and Net Sales of
SEK 369.8 (365.8) a Sales Growth of 1% (2% excluding foreign
exchange effects) impacted by some one -time events related to the 4 th
quarter last year including prelaunch inventory build -up in Brazil and
impact of Nestle’s Gerber stopping the sales of their Gerber/BioGaia
co-branded product.
Our region Asia Pacific continued its positive performance and sales
increased in EMEA by 13%. Sales declined in Latin America and
declined slightly in North America for reasons mentioned above.
The Pediatric segment decreased by 4% compared to the previous
year. The Adult segment is growing by 32% compared to the previous
year, and our products Gastrus, Prodentis, and Protectis tablets stand
out with strong performances.
Thriving activity in our market areas
EMEA increased sales by 13% driven by the UK, France, Spain, and
Eastern Europe. In the UK, we launched BioGaia Protectis Baby Drops
5ml into the UK’s biggest Pharmacy chain, Boots both in -store and
online. In addition, we are now in over 1,000 independent pharmacies
in the UK. We have launched a successful Continuous Professional
Development learning module for healthcare professionals which has
led to an increased motivation to recommend our product by 38%
among midwives, pharmacists, and general practit ioners within the UK.
Sales in t he APAC region, driven by China, Indonesia, and Japan , grew
by 6% during the quarter. In China, our digital marketing efforts
continue to be successful, particularly sales through live streams on
diverse marketplaces and social platforms such as JD, Tmall, and
TikTok. Meanwhile, in Japan, our primary focus lies within the dental
consumer market, where we see that our omnichannel strategy is
developing successfully.
In the Americas, we had several product launches during the quarter.
In the USA, we launched a new product, Nurture & Grow, which is a
triple -benefit, once -daily probiotic, that eases digestive discomfort,
provides immune support, and promotes healthy gums & teeth. In
2023, we did a pilot launch in the USA of our first probiotic skin health
product, Aldermis which is a skin ointment for infants and children to
treat dry and sensitive skin. Due to successful results in the USA, we
decided to launch Aldermis in Canada this quarter. In Canada, our
most recent direct market, sales are accelerating rapidly. With the
launch of Aldermis, Canada broadened its product assortment towards
consumers. In addition, Canada relaunched Prodentis with mint flavor
for adults a nd introduced Prodentis apple flavor for kids. So far, these
products are available on two e -commerce channels, Amazon and
Well.ca. To support the launches of Prodentis, Canada partnered with
multiple dental associations and key opinion leaders, developed an
accredited educational program, and launched a series of virtual clinic
learning sessions. In the USA, we had a slight decrease in sales in the
quarter as mentioned mainly due to Gerber’s decision to discontinue
the sale of their co -branded Gerber/BioGa ia products in the 4 th
quarter last year to concentrate solely on their own products.
Meanwhile, we have continued strong growth (38%) on Amazon in the
USA.
In Latin America, we had a decline in sales in Brazil as mentioned due
to prelaunch stocking in t he 4th quarter. At the same time, Chile,
where we have Abbott as our partner, stands out with good results. We
were delighted to convene with our Latin America partners during a
regionally organized workshop in the quarter. Additionally, we
conducted a speaker t raining session with healthcare professionals,
focusing particularly on new evidence of additional product benefits
for Gastrus.
A solidified strategic framework
Going into 2024, we have further solidified our strategic framework
and focus on the three strategic pillars for the company: Grow the
core, Expansion through direct markets, and Breakthrough innovation.
The first strategic pillar: Grow the core means focusing on our existing
strong product portfolio within gut health, immune health, and oral
health with further strengthened marketing and commercial
excellence, launching new products and line extensions, a nd through
our omnichannel approach. Our second strategic pillar: Expansion
through direct markets, means that we want to continue to grow our
existing direct business model that we have successfully introduced in
the USA, Canada, UK, Finland, and Japan, a nd continue to expand our
direct distribution model to consumers. This strategy has been very
successful to date and gives us more flexibility when it comes to
product launches, marketing our products, and collecting and
analyzing insights and consumer beh aviors. Our third strategic pillar:
Breakthrough innovation, is critical for our future long -term growth
and creation of new market opportunities. As a probiotics company at
the forefront of microbiome research, it is essential that we keep
innovating and launching new products, for additional indications and
health areas beyond our core.
I am confident that this solidified strategic framework will continue to
guide us to take actions and decisions to create value, allocate
resources toward achieving our goals, and sustain long -term success
in a competitive landscape.
As we navigate the ever -evolving landscape of health and wellness, I
remain confident in our collective ability to drive meaningful impact
and sustained growth. We will continue to make evidence -based
targeted investments in marketing, sales, and innovatio n with the
intention of continuing the growth of our pediatric and adult products.
BioGaia AB (publ.) Interim management statement 2024
The Board of Directors and the CEO of BioGaia AB hereby present the interim management statement for the period 1 January – 31 March 2024.
CEO’s comment
Theresa Agnew
President and CEO, BioGaia
7 May 2024
Teleconference: Investors, analysts, and the media are invited to take part in a teleconference on the interim management
statement to be held today, 7 May 2024, at 09:30 a.m. CEST with CEO Theresa Agnew and CFO Alexander Kotsinas. More
information about t he teleconference is available here https://financialhearings.com/event/49309 .
===== SIDA 4 =====
Q1 2024
4 BioGaia AB (publ.) Interim management statement, January – March 2024
Consolidated net sales amounted to SEK 369.8 million ( 365.8), which
is an increase of SEK 4.0 million, or 1% (excluding foreign exchange
effects, 2%). Over the past 12 -month period, sales rose 10%.
Sales in EMEA amounted to SEK 161.5 million ( 143.3), an increase of
13%, which was due to higher sales mainly in the Adult health
segment. Sales increased mainly in Spain , South Africa and the
United Arab Emirates .
Sales in APAC amounted to SEK 85.8 (80.8), an increase of 6%, which
was due to higher sales in the Pediatrics segment. Sales increased
mainly in Indonesia, Japan, and Thailand .
Sales in Americas totaled SEK 122.5 million ( 141.7), down 14% due
to decreased sales in the Pediatrics segment. Sales mainly
decreased in Brazil , Mexico and USA. In USA sales were negatively
affected by the discontinuation of the Gerber products . In Brazil
sales were negatively impacted by the inventory build -up in the
fourth quarter of 2023 due to the launch of Easy Dropper in Brazil.
SALES FIRST QUARTER
Revenue
SEKm Jan – Mar Jan – Mar Change
2024 2023
Pediatrics 292.3 306.0 -4%
Adult Health 74.8 56.6 32%
Other 2.7 3.3 -17%
Total 369.8 365.8 1%
SEKm Jan – Mar Jan – Mar Change
2024 2023
EMEA 161.5 143.3 13%
APAC 85.8 80.8 6%
Americas 122.5 141.7 -14%
Total 369.8 365.8 1%
Net sales bridge f irst quarter
SEKm Change
2023 365.8
Foreign exchange -3.6 -1.0%
Organic growth 7.6 2.1%
2024 369.8 1.1%
===== SIDA 5 =====
Q1 2024
5 BioGaia AB (publ.) Interim management statement, January – March 2024
Sales in the Pediatrics segment amounted to SEK 292.3 million
(306.0), a decrease of 4% (excluding foreign exchange effects a
decrease of 4%). Over the past 12 -month period, sales rose 5%.
Sales of BioGaia Protectis drops decreased compared to the
corresponding period last year. Sales decreased in Americas (mainly
in Brazil and USA) while sales increased in APAC and EMEA.
Sales of BioGaia Protectis tablets within Pediatrics decreased
compared to the corresponding period last year. Sales decrease d in
Americas and APAC, mainly in Brazil and South Korea.
SALES FIRST QUARTER
SEKm Jan – Mar 2024 Jan – Mar 2023 Change
Pediatrics 292.3 306.0 -4%
The Pediatrics segment accounts for approximately 80% of BioGaia’s total sales. BioGaia Protectis drops remain the most sold product and are
sold in more than 1 00 countries. Other key products within the Pediatrics segment include Protectis tablets , Pharax , oral rehydration solution as
well as cultures to be used as ingredients in licensee products.
Pediatrics
===== SIDA 6 =====
Q1 2024
6 BioGaia AB (publ.) Interim management statement, January – March 2024
Sales in the Adult Health segment amounted to SEK 74.8 million
(56.6), an increase of 32% (excluding foreign exchange effects , 33%).
Over the past 12 -month period, sales rose 30%.
Sales of BioGaia Protectis tablets increased compared to the
corresponding period last year. Sales increased in EMEA and
Americas , mainly in South Africa and Peru.
Sales of BioGaia Gastrus increased compared to the corresponding
period last year. Sales increased in all regions , mainly in USA and
Spain.
Sales of BioGaia Prodentis increased compared to the
corresponding period last year. Sales increased in Americas and
EMEA, mainly in USA and Germany .
SALES FIRST QUARTER
SEKm Jan – Mar 2024 Jan – Mar 2023 Change
Adult Health 74.8 56.6 32%
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 Nutrace utics’ own products.
Adult Health
===== SIDA 7 =====
Q1 2024
7 BioGaia AB (publ.) Interim management statement, January – March 2024
Gross margin
The total gross margin amounted to 72% (72%).
The gross margin for the Pediatrics segment amounted to 7 5% (73%)
and for the Adult Health segment to 57% (63%).
Operating expenses and operating profit
Operating expenses amounted to SEK 122.6 million (1 14.5), an
increase of SEK 8. 1 million ( 7%). Operating expenses, excluding
items affecting comparability, increased by 5% to SEK 117.6 million
(112.1). Items affecting comparability in the quarter primarily include
litigation fees in connection with the termination of the distribution
agreement in Italy .
Selling expenses amounted to SEK 9 6.0 million (88. 1), an increase of
9%, mainly due to higher costs for sales and marketing activities.
R&D expenses amounted to SEK 2 5.1 million ( 18.7), an increase of
34%.
Administrative expenses amounted to SEK 13.9 million ( 9.8), an
increase of 42%. The increase in administrative expenses was
primarily due to litigation fees in connection with the termin ation of
the distribution agreement in Italy .
Other operating income refers to exchange gains on receivables and
liabilities of an operating nature and amounted to SEK 12.5 million
(2.1).
Operating profit amounted to SEK 143.2 million ( 148.0), a decrease
of 3%. The operating margin was 39% (40%).
Adjusted operating profit amounted to SEK 148.2 million ( 150.4), a
decrease of 1%. The adjusted operating margin was 40% (41%).
Net financial items amounted to SEK 10.4 million ( 2.6). Net financial
items were impacted by the adjustment of the value of the earn -out
in relation to Nutraceutics in the amount of SEK -1.2 million (-1.5).
Profit after tax and earnings per share
Profit after tax amounted to SEK 121.8 million (1 15.9), an increase of
5%. The effective tax rate was 2 1% (23%). Profit after tax is impacted
by a non -taxable financial expense or income from the adjustment of
the value of the additional purchase price. The effective tax rate in
the same quarter last year was higher due to impact on profit before
tax from subsidiaries in tax jurisdictions with higher tax rates .
Earnings per share amounted to SEK 1.21 (1.15) before dilution and
SEK 1.21 (1.15) after dilution .
FIRST QUARTER
Earnings
===== SIDA 8 =====
Q1 2024
8 BioGaia AB (publ.) Interim management statement, January – March 2024
Key events in the first quarter of 202 4
Launches in the first quarter of 202 4
Distributor Country Product
Pediact France BioGaia Prodentis
Eczacibasi Turkey BioGaia Protectis tablets
BioGaia
Canada Canada BioGaia Aldermis
BioGaia USA USA BioGaia Nurture & Grow
MTC Pharma Vietnam BioGaia Pro dentis tablets with
new flavor ( apple)
Balance sheet 31 March 2024
Total assets amounted to SEK 2, 480.0 million (2, 333.2).
Goodwill from the acquisition of Nutraceutics was adjusted for
currency translation. The financial liability for the additional
purchase price was value adjusted. For more information, see Note
3.
Compared with 31 December 2023 , receivables and payables
increased whereas inventory is at approximately the same level.
Cash and cash equivalents amounted to SEK 1,5 91.4 million
(1,544.2).
Cash flow first quarter
Cash flow amounted to SEK 40.9 million ( 93.7).
Cash flow from operating activities amounted to SEK 51.9 million
(98.4). The decrease in cash flow from operat ing activities was
mainly due to lower operating profit and increase d receivables .
Investments amounted to SEK 8.8 million ( 1.3). The increase was
primarily attributable to investments in BioGaia Production.
Other disclosures
Employees
The number of employees in the Group at 31 March 2024 totaled
211 (211 at 31 March 2023).
The company has an incentive program for all employees based
partly on the company’s sales and profit and partly on individual
targets. The maximum bonus is equal to 12% of annual salary. In
addition to this program, BioGaia has also implemented a
subscription warrants program as resolved by the 2021 Annual
General Meeting. The program involves the issue of a maximum of
365,000 warrants where each warrant shall entitle the holder during
the period from 6 July 2024 through 6 November 2024 to subscribe
for fi ve (previously one before the 2022 share split) new Class B
share in BioGaia for a subscription price per share that amounts to
SEK 115.6 (previously SEK 578.2 before the 2022 share split). A total
of 89,730 warrants were subscribed for in the program and on 31
March 2024 following repurchases only 71 850 remains.
Future outlook
BioGaia’s goal is to create strong value growth and a good return for
its 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 organization. BioGaia’s
dividend policy is to pay a shareholder dividend equal to 50% of
profit after tax in the Group excluding non -recurring items. For the
coming years BioGaia intends to give extra dividends of 50 % to
100% of profit after tax in the Group excluding non-recurring items,
provided that the future cash flows are in line with BioGaia’s
projections.
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 fo r 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 2023 on pages 109
and 110 and in Notes 2 6 and 27. No significant changes in these
risks and uncertainties are assessed to have taken place at 31 March
2024.
Related party transactions
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 730,000 per year. During the
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.
Balance sheet and cash flow
===== SIDA 9 =====
Q1 2024
9 BioGaia AB (publ.) Interim management statement, January – March 2024
Key events after the end of the first quarter of 202 4
No key events that are not mentioned in this interim management
statement took place after the end of the first quarter.
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 and
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 accounts
and segment information correspond to the statements used in
interim financial reporting prepared in accordance with IAS 34 to
provide comparability in the presen tation 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 came into force in 202 4 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 financial statements for th e period of initial application.
===== SIDA 10 =====
Q1 2024
10 BioGaia AB (publ.) Interim management statement, January – March 2024
(Amounts in SEK 000s) Jan – Mar Jan – Mar Jan – Dec Apr 2023 – Apr 2022-
2024 2023 2023 Mar 2024 Mar 2023
Net sales (Note 1) 369,796 365,821 1,296,506 1,300 ,481 1,185,923
Cost of sales -103,967 -103,309 -346,316 -346,974 -323,690
Gross profit 265,829 262,512 950,190 953,507 862,233
Selling expenses -95,982 -88,114 -363,256 -371,124 -336,877
Administrative expenses -13,926 -9,773 -39,249 -43,402 -38,528
Research and development expenses -25,114 -18,684 -106,776 -113,206 -100,585
Other operating incom e 12,511 2,057 2,194 12,648 27,919
Other operating expenses -135 - - -135 -
Operating profit 143,18 3 147,998 443,103 438,28 8 414,162
Financial income 11,961 2,758 41,532 50,735 90,529
Financial expenses -1,545 -195 -15,801 -17,151 -3,884
Profit before tax 153,599 150,561 468,834 471,872 500,807
Tax -31,752 -34,616 -103,482 -100,618 -87,386
Profit for the period 121,84 7 115,945 365,352 371,254 413,421
Gains/losses arising on translation of the statements of
foreign operations
15,868 -1,079 -9,762 7,185 21,455
Comprehensive income for the period 137,715 114,866 355,590 378,439 434,876
Profit for the period attributable to: Owners of the
Parent Company
121,84 7 115,945 365,352 371,254 413,421
Non-controlling interests – – – –
121,84 7 115,945 365,352 371,254 413,421
Comprehensive income for the period attributable to:
Owners of the Parent Company
137,715 114,866 355,590 378,439 434,876
Non-controlling interests – – – –
137,715 114,866 355,590 378,439 434,876
Earnings per share
Earnings per share before dilution, (SEK) *) 1.21 1.15 3.62 3.68 4.09
Earnings per share after dilution, (SEK) *) 1.21 1.15 3.62 3.68 4.09
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) *) 100,992 100,982 100,982 100,985 100,982
*) In view of the 5:1 share split, which took place in May 2022, historical key ratios based on the number of shares have been restated.
Summary of consolidated statements of comprehensive income
===== SIDA 11 =====
Q1 2024
11 BioGaia AB (publ.) Interim management statement, January – March 2024
(Amounts in SEK 000s) 31 Mar 31 Mar 31 Dec
2024 2023 2023
Assets
R&D projects in progress 46,231 46,128 46,230
Goodwill 175,026 170,084 165,174
Right -of-use assets 33,412 10,614 36,156
Property, plant, and equipment 183,191 141,679 177,172
Financial assets 28,013 25,793 28,013
Deferred tax assets 9,983 7,170 5,964
Deposits 51 49 48
Total non -current assets 475,907 401,517 458,757
Current assets excl. cash and cash equivalents 412,684 341,664 330,240
Cash and cash equivalents 1,591,393 1,580,822 1,544,192
Total current assets 2,004, 077 1,922,486 1,874,432
Total assets 2,479,984 2,324,003 2,333,189
Equity and liabilities
Equity attributable to owners of the Parent Company 2,168,058 2,086,866 2,030,342
Non-controlling interests 2 2 2
Total equity 2,168,060 2,086,868 2,030,344
Deferred tax liability 15,248 12,532 15,179
Non-current liabilities 92,821 38,328 91,932
Current liabilities 203,855 186,275 195,734
Total liabilities and equity 2,479,984 2,324,003 2,333,189
Consolidated balance sheets
===== SIDA 12 =====
Q1 2024
12 BioGaia AB (publ.) Interim management statement, January – March 2024
(Amounts in SEK 000s) Jan – Mar Jan – Mar Jan – Dec
2024 2023 2023
Operating activities
Operating profit 143,183 147,998 443,103
Depreciation/amortization 5,742 6,519 25,281
Other non -cash items -1,479 -44 -1,478
Taxes -36,439 -34,995 -80,294
Interest received and paid 11,662 2,562 40,461
Cash flow from operating activities before changes in working
capital
122,669 122,040 427,073
Changes in working capital -70,742 -23,606 -1,108
Cash flow from operating activities 51,927 98,434 425,965
Investing activities
Purchase of property, plant, and equipment -8,773 -1,279 -48,568
Purchase of intangible assets -1 -53 -146
Purchase of financial assets - - -2,221
Cash flow from investing activities -8,774 -1,332 -50,935
Financing activities
Dividend - - -292,849
Repayment of lease liability -2,282 -2,943 -10,755
Provision to Foundation to Prevent Antibiotic Resistance - - -4,400
Repurchase of warrants – -417 -417
Cash flow from financing activities -2,282 -3,360 -308,421
Cash flow for the period 40,871 93,742 66,609
Cash and cash equivalents at the beginning of the period 1,544,192 1,488,366 1,488,366
Exchange difference in cash and cash equivalents 6,330 -1,286 -10,783
Cash and cash equivalents at the end of the period 1,591,393 1,580,822 1,544,192
Summary consolidated statement of changes in equity
(Amounts in SEK 000s) Jan – Mar Jan – Mar Jan – Dec
2024 2023 2023
Opening balance 2,030,344 1,972,418 1,972,418
New issue and repurchase of warrants , -417 -417
Dividend - - -292,849
Provision to Foundation to Prevent Antibiotic Resistance - - -4,400
Comprehensive income for the period 137,715 114,866 355,590
Closing balance 2,168,060 2,086,868 2,030,344
Consolidated cash flow statements
===== SIDA 13 =====
Q1 2024
13 BioGaia AB (publ.) Interim management statement, January – March 2024
Executive Management has analyzed the Group’s internal reporting
and determined that the Group’s operations are monitored and
evaluated based on the following segments:
– Pediatrics segment (drops, gut health tablets, oral rehydration
solution (ORS) and cultures to be used as ingredients in licensee
products (such as infant formula).
– Adult Health segment (gut health tablets, oral health lozenges
and cultures as an ingredient in a licensee’s dairy products,
Nutraceutics own products as well 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 and liabilities.
Note 1. Reporting by segment – Group
(Amounts in SEK 000s) Jan – Mar Jan – Mar Jan – Dec Apr 2023 - Apr 2022 -
2024 2023 2023 Mar 2024 Mar 2023
Revenue by segment
Pediatrics 292,278 305,957 1,013,522 999,844 951,792
Adult Health 74,819 56,613 275,230 293,436 226,062
Other 2,700 3,251 7,753 7,202 8,069
Total 369,797
365,821 1,296,506 1,300,482
1,185,923
Gross profit by segment
Pediatrics 220,371 224,403 760,128 756,098 706,172
Adult Health 42,758 35,535 183,136 190,358 149,040
Other 2,700 2,574 6,925 7,050 7,020
Total 265,829 262,512 950,189 953,507 862,232
Selling, administrative, R&D expenses -135,022 -116,571 -509,281 -527,732 -475,990
Other operating expenses/income 12,376
2,057 2,194 12,513 27,919
Operating profit 143,183 147,998 443,103 438,287 414,162
Net financial items 10,416 2,563 25,731 33,584 86,645
Profit before tax 153,599 150,561 468,834 471,871 500,807
Sales by geographical market
APAC
Pediatrics 57,695 51,132 176,797 183,360 152,473
Adult Health 25,521 27,338 121,999 120,183 98,550
Other 2,542 2,299 5,289 5,532 5,865
Total APAC 85,759 80,769 304,085 309,075 256,888
EMEA
Pediatrics 137,763 132,752 424,930 429,941 447,521
Adult Health 23,616 10,143 65,275 78,748 55,357
Other 158 434 1,575 1,299 1,525
Total EMEA 161,536 143,329 491,781 509,988 504,403
Americas
Pediatrics 96,821 122,072 411,795 386,543 351,798
Adult Health 25,681 19,133 87,955 94,505 72,154
Other 0 518 889 371 680
Total Americas 122,502 141,723 500,640 481,419 424,632
Total 369,797 365,821 1,296,506 1,300,482 1,185,923
===== SIDA 14 =====
Q1 2024
14 BioGaia AB (publ.) Interim management statement, January – March 2024
Note 2. Largest shareholders at 31 March 2024 (source: Vantage by Euroclear)
Date of recognition (Amounts in SEK 000s) Jan – Mar Jan – Mar Jan – Dec
Performance obligations met on specific date (Product sales) 2024 2023 2023
Pediatrics 292,278 305,957 1,013,522
Adult Health 72,516 54,762 266,030
Other 2,761 2,887 6,392
Total 367,556 363,606 1,285,944
Performance obligations met over time (Royalty)
Pediatrics - - -
Adult Health 2,303 1,851 9,201
Other -62 364 1,361
Total 2,241 2,215 10,561
Total 369,797 365,821 1,296,506
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 4.16% 27.94%
2 EQT 11,164,630 2,232,926 11,164,630 11.06% 8.31%
3 Fjärde AP -fonden 7,750,182 1,550,036 7,750,182 7.67% 5.77%
4 Premier Miton Investors 4,050,295 810,059 4,050,295 4.01% 3.02%
5 Cargill Inc 3,000,000 600,000 3,000,000 2.97% 2.23%
6 TIN Fonder 3,000,000 600,000 3,000,000 2.97% 2.23%
7 Juno Selection Fund 2,187,295 437,459 2,187,295 2.17% 1.63%
8 Tredje AP -fonden 2,180,915 436,183 2,180,915 2.16% 1.62%
9 Handelsbanken Fonder AB 1,946,674 389,335 1,946,674 1.93% 1.45%
10 Allianz Global Investors 1,830,953 366,191 1,830,953 1.81% 1.36%
Other shareholders 59,668,026 11,933,605 59,668,026 59.09% 44.42%
Total 3,703,340 97,278,970 20,196,462 134,312,370 100% 100%
===== SIDA 15 =====
Q1 2024
15 BioGaia AB (publ.) Interim management statement, January – March 2024
Note 3. Fair value
(Amounts in SEK 000s) Jan – Mar Jan – Dec
2024 2023
Opening balance 46,529 33,627
Value adjustment 1,245 14,992
Exchange difference 2,899 -2,090
Closing balance 50,673 46,529
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 Nut raceutics 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 202 4 and BioGaia’s
best assessment of fair value of the financial liability related to the
additional purchase price at 31 March 2024 was therefore adjusted
to SEK 50.7 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 di scounted
with a market -based interest rate. The value adjustment is
recognized as a financial expense of SEK 1. 2 million ( 1.5) during the
three-month period. The weighted average cost of capital (WACC)
amounted to 10. 39% (10.84% at 31 March 2023).
Financial assets
BioGaia owns shares in the companies Boneprox AB and Skinome
AB through BioGaia Invest. These financial assets are measured at
fair value through profit or loss. 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 fair values of other receivables, cash and cash equivalents, trade
payables and other liabilities are estimated to be equal to their
carrying amounts (amortized cost) due to the short maturities.
(Amounts in SEK 000s) Jan – Mar Jan – Dec
2024 2023
Opening balance 28,013 25,793
Value adjustment - -
Acquisitions - 2,220
Closing balance 28,013 28,013
===== SIDA 16 =====
Q1 2024
16 BioGaia AB (publ.) Interim management statement, January – March 2024
A list of definitions of key ratios reported in the consolidated
financial statements is provided on page 138 of BioGaia’s annual
report for 202 3. In this report, BioGaia reports information used by
Executive Management to assess the Group’s development. Some of
the key ratios presented are not defined according to IFRS. The
company is of the opinion that these metrics provide valuable
complementar y 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 according to IFRS.
ESMA’s guidelines on alternative performance measures are
applied, which means extended disclosure requirements regarding
key ratios not define d according to IFRS. A reconciliation of key
ratios that BioGaia considers relevant according to these guidelines
is provided below.
Consolidated key ratios
(Amounts in SEK 000s) Jan – Mar Jan – Mar Jan – Dec
2024 2023 2023
Net sales 369,796 365,821 1,296,506
Growth of net sales 1% 29% 17%
Operating profit, SEK 000s 143,18 3 147,998 443,103
Adjusted operating profit, SEK 000s 148,18 3 150,400 444,247
Profit after tax, SEK 000s 121,847 115,945 365,352
Return on equity 6% 6% 18%
Return on capital employed 7% 7% 24%
Capital employed, SEK 000s 2,183,308 2,099,400 2,045,523
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) 100,992 100,982 100,982
Earnings per share before dilution, SEK 1) 1.21 1.15 3.62
Earnings per share after dilution, SEK 1) 1.21 1.15 3.62
Equity per share , SEK 21.47 20.67 20.11
Equity per share after dilution , SEK 21.47 20.67 20.11
Equity/assets ratio 87% 90% 87%
Operating margin 39% 40% 34%
Adjusted operating margin 40% 41% 34%
Profit before tax margin 42% 41% 36%
Average number of employees 208 215 213
1) Key ratio defined according to IFRS.
===== SIDA 17 =====
Q1 2024
17 BioGaia AB (publ.) Interim management statement, January – March 2024
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 analyze 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 programs and other
items of 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 realized sales growth over time.
Profit before tax
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 18 =====
Q1 2024
18 BioGaia AB (publ.) Interim management statement, January – March 2024
Key ratio
(Amounts in SEK 000s) Jan – Mar Jan – Mar Jan – Dec
2024 2023 2023
Return on equity
Profit attributable to owners of the Parent Company (A) 121,847 115,945 365,352
Equity attributable to owners of the Parent Company 2,168,058 2,086,866 2,030,342
Average equity attributable to owners of the Parent Company (B) 2,099,200 2,029,641 2,001,379
Return on equity (A/B) 6% 6% 18%
Return on capital employed
Operating profit 143,183 147,998 443,103
Financial income 11,961 2,758 41,532
Profit before net financial items + financial income (A) 155,144 150,756 484,635
Total assets 2,479,984 2,324,003 2,333,190
Interest -free liabilities -296,676 -224,603 -287,666
Capital employed 2,183,308 2,099,400 2,045,523
Average capital employed (B) 2,114,416
2,042,090 2,015,151
Return on capital employed (A/B) 7% 7% 24%
(Amounts in SEK 000s) 31 Mar 31 Mar 31 Dec
2024 2023 2023
Equity/assets ratio
Equity (A) 2,168,060 2,086,868 2,030,344
Total assets (B) 2,479,984 2,324,003 2,333,189
Equity/assets ratio (A/B) 87% 90% 87%
Operating margin
Operating profit (A) 143,183 147,998 443,103
Net sales (B) 369,796 365,821 1,296,506
Operating margin (A/B) 39% 40% 34%
Profit before tax margin
Profit before tax (A) 153,599 150,561 468,834
Net sales (B) 369,796 365,821 1,296,506
Profit before tax margin (A/B) 42% 41% 36%
Equity per share
Equity attributable to owners of the Parent Company (A) 2,168,058 2,086,866 2,030,342
Average number of shares (B) 100,98 2 100,982 100,982
Equity per share (A/B) 21,47 20.67 20.11
Key ratio
===== SIDA 19 =====
Q1 2024
19 BioGaia AB (publ.) Interim management statement, January – March 2024
Change in sales by segment ( including and excluding foreign exchange effects)
Pediatrics Adult Health Other Total
(Amounts in SEK 000s) Jan – Mar Jan – Mar Jan – Mar Jan – Mar
2024 2024 2024 2024
Description
A Previous year’s net sales according to the average rate 305,957 56,613 3,251 365,821
B Net sales for the year according to the average rate 292,278 74,819 2,700 369,797
C Recognized change (B -A) -13,679 18,206 -551 3,976
Percentage change (C/A) -4% 32% -17% 1%
D Net sales for the year according to the previous year’s
average rate 295,160 75,550 2,700 373,410
E Foreign exchange effects (B –D) -2,882 -731 0 -3,613
Percentage change (E/A) -1% -1% 0% -1%
F Organic change (C –E) -10,797 18,937 -551 7,589
Organic change, % (F/A) -4% 33% -17% 2%
Closing date key exchange rates 31 Mar 31 Mar 31 Dec
2024 2023 2023
EUR 11.53 11.28 11.10
USD 10.66 10.35 10.04
JPY 0.0705 0.0780 0.0710
Pledged assets and contingent liabilities – Group 31 Mar 31 Mar 31 Dec
(Amounts in SEK 000s) 2024 2023 2023
Floating charges 0 0 0
Contingent liabilities None None None
Adjusted operating profit – Group Jan – Mar Jan – Mar Jan – Dec
(Amounts in SEK 000s) 2024 2023 2023
Operating profit 143,183 147,998 443,103
Adjustments 5,000 2,402 1,144
Adjusted operating profit 148,183 150,400 444,247
Average key exchange rates Jan – Mar Jan – Mar Jan – Dec
2024 2023 2023
EUR 11.18 11.14 11.48
USD 10.29 10.42 10.61
JPY 0.0698 0.0788 0.0760
===== SIDA 20 =====
Q1 2024
20 BioGaia AB (publ.) Interim management statement, January – March 2024
Stockholm, 7 May 2024
Theresa Agnew
CEO
This interim management statement has not been audited.
Financial calendar
12 FEB
2025
8:00 a.m. CET Year-end report
1 January – 31 December 2024
23 JUL
2024
8:00 a.m. CET Interim report
1 January – 30 June 2024
22 OCT
2024
8:00 a.m. CET Interim management statement
1 January – 30 September 2024
===== SIDA 21 =====
Q1 2024
21 BioGaia AB (publ.) Interim management statement, January – March 2024
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 to be the most trusted probiotic brand in the world. We
develop, manufacture, market , and sell probiotic products for gut ,
oral, and immune health . The products are primarily based on
different strains of the lactic acid bacterium Limosilactobacillus
reuteri , L. 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 has two types of distribution – sales through distribution
partners and direct sales (subsidiaries). Most of BioGaia’s revenue
comes from the sale of gut health products, such as colic drops,
immune - and oral health products. Revenues also include 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. BioGaia’s products are available in
more than 100 countries throu gh partnerships with nutrition and
pharmaceutical companies, as well as through our own subsidiaries.
BioGaia’s direct distribution , through subsidiaries, 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 2023,
BioGaia held more than 600 approved patents for various bacteria
strains and territories.
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 an d oral
health, oral rehydration, etc.) sold in 2023, 90% (86%) 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 BioGaia 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 2023, over 250 clinical
studies with BioGaia’s various strains of L. reuteri have been
performed. These studies involved more than 22,000 individuals of
all ages.
Over the years, BioGaia has performed studies in the following
areas:
• Colic and constipation in infants
• Immune modulation and infection prevention
• Acute diarrhea
• Antibiotic -associated side effects, such as diarrhea
• Treatment of H. pylori infections
• Irritable bowel syndrome (IBS)
• Oral health, such as gingivitis (inflammation of the gums) and
periodontitis (loosening of the teeth)
• Osteopenia
• Autism spectrum condition
• Urinary tract infections
BioGaia AB
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