===== SIDA 1 ===== Q3 2024 1 BioGaia AB (publ.) Interim management statement , January – September 2024 Interim Management Statement January – September 2024 ===== SIDA 2 ===== Q3 2024 2 BioGaia AB (publ.) Interim management statement , January – September 2024 Jul – Sep 2024 Jan – Sep 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 3 04.0 million ( 317.7), a decrease of SEK 13.7 million, or 4% (excluding foreign exchange effects a decrease of 2%). Net sales in the Pediatrics segment amounted to SEK 225.8 million (255.8), a decrease of 12% (excluding foreign exchange effects a decrease of 9%). Net sales in the Adult Health segment amounted to SEK 76.6 million (59.2), an increase of 29% (excluding foreign exchange effects an increase of 33%). Operating expenses amounted to SEK 1 80.9 million (1 16.3), an increase of SEK 64.6 million ( 56%). Operating expenses, excluding items affecting comparability, increased by 11% to SEK 1 28.9 million (116.3). Operating profit decreased by 65% to SEK 41.4 million ( 119.5), which corresponds to an operating margin of 14% (38%). Adjusted operating profit decreased by 22% to SEK 93.4 million (119.5), which corresponds to an adjusted operating margin of 3 1% (38%). Items affecting comparability in the quarter primarily include an impairment loss attributed to the Metabo Gen acquisition of SEK 51.2 million . The net income impact after tax is SEK -41.7 million . Of the total impairment losses SEK 5.3 million impacts goodwill and SEK 45.9 million impacts R&D projects in progress , both reported on the line- item research and development expenses. The impairment loss was caused by a clinical study that did not meet its primary endpoints. Profit after tax amounted to SEK 36.6 million ( 101.5), a decrease of 64%. Earnings per share amounted to SEK 0.36 (1.01) before and after dilution. 1 Cash flow amounted to SEK 111.4 million ( 88.4). Cash and cash equivalents at 30 September 2024 amounted to SEK 1,114.6 million (1,544.2). Key events in the third quarter of 202 4 On 19 July, BioGaia announced that it has entered into an exclusive distribution agreement with Recordati in Italy for BioGaia’s probiotic products. Figures in parentheses refer to the corresponding period last year, unless otherwise specified. Net sales amounted to SEK 1,057.9 million ( 998.7), an increase of SEK 59.2 million, or 6% (excluding foreign exchange effects an increase of 7%). Net sales in the Pediatrics segment amounted to SEK 822.9 million (793.5), an increase of 4% (excluding foreign exchange effects an increase of 5%). Net sales in the Adult Health segment amounted to SEK 229.6 million (198,8), an increase of 16% (excluding foreign exchange effects an increase of 1 7%). Operating expenses amounted to SEK 452.2 million ( 362.6), an increase of SEK 90.0 million ( 25%). Operating expenses, excluding items affecting comparability, increased by 1 0% to SEK 398.0 million (361,1). Operating profit decreased by 12% to SEK 320.0 million ( 362.6), which corresponds to an operating margin of 3 0% (36%). Adjusted operating profit increased by 3% to SEK 374.2 million (363.7), which corresponds to an adjusted operating margin of 3 5% (36%). Items affecting comparability primarily include an impairment loss attributed to the Metabo Gen acquisition of SEK 51.2 million. The net income impact after tax is SEK -41.7 million. Of the total impairment losses SEK 5.3 million impacts goodwill and SEK 45.9 million impacts R&D projects in progress both reported on the line - item research and development expenses. The impairment loss was caused by a clinical study that did not meet its primary endpoints. Furthermore, items affecting comparability also includes litigation fees in connection with the termination of the distribution agreement in Italy of SEK 2.1 million . Profit after tax amounted to SEK 269.5 million ( 298.0), a decrease of 10%. Earnings per share amounted to SEK 2.67 (2.95) before and after dilution. 1 Cash flow amounted to SEK -429.9 million ( -33.6). Cash flow includes dividends of SEK 696.8 million ( 292.8). Key events after the end of the third quarter of 2024 On October 17, BioGaia announced that BioGaia’s results for the third quarter would be lower than market expectations. THIRD QUARTER 2024 JANUARY - SEPTEMBER 2024 Jul – Sep 2024 Jul – Sep 2023 Net sales, SEK 000s 303,971 317,694 Growth in net sales -4% 23% Operating profit, SEK 000s 41,422 119,538 Operating margin 14% 38% Profit after tax, SEK 000s 36,602 101,501 Number of shares, thousands 101,162 100,982 Earnings per share, before and after dilution, SEK 1) 0.36 1.01 1) Key ratio defined according to IFRS. For definitions of other key ratios, see page 17. This information is information that BioGaia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The inf ormation was submitted for publication, through the agency of the CEO, at 08.00 a.m. CET on 22 October 2024. Operating margin 14% Change in sales -4% -2% excl. FX Net sales 304 SEK million Operating margin 30% Change in sales 6% 7% excl . FX Operating profit 320 SEK million Net sales 1,058 SEK million Operating profit 41 SEK million ===== SIDA 3 ===== Q3 2024 3 BioGaia AB (publ.) Interim management statement , January – September 2024 Metabo Gen clinical study results The impairment loss is mainly related to the results of a recent clinical study, led by our colleagues at the Gothenburg laboratory (previously known as MetaboGen AB). The study aimed to prove the efficacy of a next -generation probiotic product for individuals with metabolic syndrome. It is a randomized, double -blind, placebo - controlled study that assessed the clinical efficacy of F. prausnitzii DSM 32379 and D. piger DSM 32187 in 108 prediabetic subjects. The primary endpoint, change in blood glucose over 12 weeks, unfortunately showed no significant difference between the probiotic and placebo groups. Additionally, no changes were observed in liver function or other prediabetes -related physiological parameters. However, a significant improvement in the Triglycerides/Glucose ( TyG) ratio was noted in the probiotic group. Microbiome analysis is ongoing, with a clinical study report and manuscript in preparation. Since the primary endpoint in the clinical study was not achieved, we record ed a non-cash impairment loss of SEK 51.2 million relating to this. With this said, we will continue to pursue other opportunities in the field of next -generation probiotics. While we are disappointed in the outcome of the clinical study, we expect no material change to our growth plan and strategy based on this outcome. Flying start in our new direct markets: Australia and New Zealand The launch activation for BioGaia in Australia and New Zealand is well underway. Our pharmacy sales team is securing premium shelf placements for our products, providing pharmacy staff training, and enhancing merchandising efforts. BioGaia´s Chief Scientif ic Officer, Gianfranco Grompone, recently visited Sydney, Melbourne, and Brisbane to support the local team in their Healthcare Professional educational program. Training was provided to Gen eral Practitioners and Pharmacists, including at Chemist Warehouse, Australia’s largest pharmacy chain. The sessions attracted high attendance and strong interest in BioGaia. Australia’s and New Zealand’s BioGaia brand campaigns have been active since September. We participated in our first Parenting & Baby Expos, engaging thousands of parents. BioGaia was also featured on Australia’s "Today Show" by Mumfluencer and Olympic swimmer Emily Seebohm, who mentioned our brand while discussing newborn crying solutions. In October, she will also share BioGaia content with her Instagram followers. A solid foundation for managing an evolving landscape Our focus remains on building our BioGaia brand, driving our direct businesses, and partnering with our distributors to drive future growth. We continue to invest in brand awareness and digital transformation, and to collect consumer insights and behavior changes to ensure we remain competitive in an evolving landscape. We will continue to make targeted investments in marketing and sales in our key direct businesses with the intention of driving future growth in our pediatric and adult products. We are opti mizing operations and investing in new product development that will drive long-term growth and profitability, ensuring we continue delivering value to our shareholders and customers. We are committed to enhanc ing the long -term competitiveness of BioGaia and driv ing growth beyond industry averages over the coming years. We remain committed to achieving our long -term operating margin target of at least 34%. 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 – 30 September 2024. CEO’s comment Theresa Agnew President and CEO, BioGaia 22 October 2024 Mixed results in our third quarter The third quarter shows an overall sales decline of 4% (2% excluding foreign exchange effects ) and an adjusted operating margin of 31% (38%), excluding the non -cash impairment loss attributed to the MetaboGen acquisition. Over the quarter, we have experienced a mix of results. While certain areas have performed below our expectations, we are pleased with key successes in establishing direct presence in Australia, scaling up our business in Canada, record -breaking sales in the online sales channel in USA, strong growth in China and strong performance of our adult portfolio. Despite these short -term fluctuations in the quarter, we remain confident in our long -term strategy and the solid fou ndation we are building for sustainab le growth. Quarterly performance across segments and regions The Pediatric segment declined driven by weak sales in EMEA which we are taking actions to improve . We are pleased with the performance of our Adult business with strong growth in Prodentis, Protectis tablets , and Gastrus tablets in the third quarter . The Asia Pacific and Americas regions continue to show growth with Asia Pacific developing particularly strongly, driven primarily by our digital marketing efforts in e -Commerce and consumer channels. Performance declined in EMEA and LATAM due to country -specific challenges. Sales declined in EMEA in the quarter due to poor performance in certain markets, such as Turkey, South Africa, and Spain. Turkey's high inflation has resulting in reduced consumer spending and has placed pressure on both consumer demand and our partner’s business operations in Turkey. Looking at the development year -to-date in Italy, we are facing increased competitive pressures alongside a delay in the market uptake of our products, attributed to the transition to our local distributor partner, Recordati. Our direct market, the United Kingdom, continues to perform well. BioGaia Protectis drops achieved an expansion in distribution in Boots pharmacy chain after a successful launch in January and since August our drops are now in 1,200 stores. Looking at the Americas, the USA and Canada continue to grow ahead of the market. The USA continues to show robust performance, particularly on online platforms such as Amazon. At the same time, we continue to be negatively affected by Nestle´s decision to stop selling their co -branded Gerber/BioGaia products. In Canada, we have enhanced our sales by cultivating strong relationships with healthcare professionals, such as pediatricians and dental hygienists, through congresses, educational sessions, and other engagements. Simultaneously, we are boosting our brand awareness by actively participating in various events and social media platforms to connect with consumers directly. We have also heightened our focus on our oral health product, Prodentis, which we re-launched in Canada at the beginning of the year. Sales in Latin America decreased slightly over the course of the quarter, mostly due to some order variability in Brazil. Mexico is developing well for the quarter, and we had strong growth in government tenders in Guatemala. APAC is progressing steadily. Indonesia continued to show a positive in -market sales trend due to consistent marketing activities conducted by our partners. They have also participated in roadshows across major cities, focusing on the colic indication, alongside sales campaigns implemented in local retail pharmacy chains. In China, our partner participated in multiple national medical congresses promoting BioGaia’s portfolio. To further increase the accessibility of BioGaia’s products in the country, we opened a brand store for cross -border trade at Jing dong, one of the leading marketplaces in China. Teleconference: Investors, analysts, and the media are invited to take part in a teleconference on the interim management statement to be held today, 22 October 2024, at 09:30 a.m. CEST with CEO Theresa Agnew and CFO Alexander Kotsinas. More information about the teleconference is available here https://financialhearings.com/event/49311 . ===== SIDA 4 ===== Q3 2024 4 BioGaia AB (publ.) Interim management statement , January – September 2024 Consolidated net sales amounted to SEK 304.0 million ( 317.7), which is a decrease of SEK 13.7 million, or 4% (excluding foreign exchange effects a decrease of 2%). Sales in EMEA amounted to SEK 94.1 million (12 8.9), a decrease of 27%, which was due to lower sales in the Pediatric s segment. Sales decreased mainly in Turkey , Spain and Poland . Sales in APAC amounted to SEK 76.8 million (6 1.7), an increase of 24%, which was due to higher sales in both the Pediatrics and Adult Health segment s. Sales increased mainly in Indonesia, China and Australia . Sales in Americas totaled SEK 133.1 million ( 127.1), an increase of 5% due to increased sales in Adult Health segment. Sales mainly increased in USA, Guatemala and Canada . Consolidated net sales amounted to SEK 1,057.9 million ( 998.7), which is an increase of SEK 59.2 million, or 6% (excluding foreign exchange effects, an increase of 7%). Sales in EMEA amounted to SEK 393.0 million ( 400.1), a decrease of 2%, which was due to lower sales in the Pediatrics segment . Sales in EMEA decreased mainly in Turkey , Italy and Belgium . Sales in APAC totaled SEK 260.0 million ( 207.9), an increase of 25% due to increased sales in the Pediatrics segment. Sales increased primarily in China, Indonesia and South Korea. Sales in Americas totaled SEK 404.9 million ( 390.7), an increase of 4% due to increased sales in the Adult Health segment. Sales mainly increased in USA , Guatemala and Chile. SALES THIRD QUARTER SALES JANUARY TO SEPTEMBER Revenue SEKm Jul – Sep Jul – Sep Change Jan – Sep Jan – Sep Change 2024 2023 2024 2023 Pediatrics 225.8 255.8 -12% 822.9 793.5 4% Adult Health 76.6 59.2 29% 229.6 198.8 16% Other 1.5 2.7 -43% 5.3 6.5 -18% Total 304.0 317.7 -4% 1,057.9 998.7 6% SEKm Jul – Sep Jul – Sep Change Jan – Sep Jan – Sep Change 2024 2023 2024 2023 EMEA 94.1 128.9 -27% 393.0 400.1 -2% APAC 76.8 61.7 24% 260.0 207.9 25% Americas 133.1 127.1 5% 404.9 390.7 4% Total 304.0 317.7 -4% 1,057.9 998.7 6% Net sales bridge third quarter SEKm Change 2023 317.7 Foreign exchange -8.9 -2.8% Organic growth -4.8 -1.5% 2024 304.0 -4.3% Net sales bridge January -September SEKm Change 2023 998.7 Foreign exchange -8,5 -0.8% Organic growth 67.6 6.8% 2024 1,057.9 5.9% ===== SIDA 5 ===== Q3 2024 5 BioGaia AB (publ.) Interim management statement , January – September 2024 Sales in the Pediatrics segment amounted to SEK 225.8 million (255.8), a decrease of 12% (excluding foreign exchange effects a decrease of 9%). Sales of BioGaia Protectis drops decreased compared to corresponding period last year mainly in EMEA and Americas. Sales decreased in Turkey, Spain and Brazil . Sales of BioGaia Protectis tablets within Pediatrics increased slightly in all regions compared to the corresponding period last year. Sales increased mainly in USA, Philippines and Guatemala . Sales in the Pediatrics segment amounted to SEK 822.9 million (793.5), an increase of 4% (excluding foreign exchange effects an increase of 5%). Sales of BioGaia Protectis drops increased compared to the corresponding period last year mainly in APAC. Sales increased in China , South Korea and Indonesia . Sales of BioGaia Protectis tablets within the Pediatrics segment increased in all regions compared to the corresponding period last year. Sales increased mainly in the Philippines , Guatemala and USA . SALES THIRD QUARTER SALES JANUARY -SEPTEMBER SEKm Jul – Sep 2024 Jul – Sep 2023 Change Pediatrics 225.8 255.8 -12% Jan – Sep 2024 Jan – Sep 2023 Change 822.9 793.5 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 100 countries. Other key products within the Pediatrics segment include Protectis tablets, oral rehydration solution as well as cultures to be used as ingredients in licensee products. Pediatrics ===== SIDA 6 ===== Q3 2024 6 BioGaia AB (publ.) Interim management statement , January – September 2024 Sales in the Adult Health segment amounted to SEK 7 6.6 million (59.2), an increase of 29% (excluding foreign exchange effects an increase of 33%). Sales of BioGaia Protectis tablets increased compared to the corresponding period last year. Sales increased in APAC, mainly in Indonesia and Hongkong . Sales of BioGaia Gastrus increased compared to the corresponding period last year , mainly in China. Sales of BioGaia Prodentis increased compared to the corresponding period last year. Sales increased in Americas and APAC, mainly in USA and South Korea . Sales in the Adult Health segment amounted to SEK 229.6 million (198.8), an increase of 16% (excluding foreign exchange effects an increase of 17%). Sales of BioGaia Protectis tablets increased compared to the corresponding period last year. Sales increased in Americas mainly in Chile. Sales of BioGaia Gastrus increased compared to the corresponding period last year. Sales increased in all regions, mainly in USA. Sales of BioGaia Prodentis increased compared to the corresponding period last year. Sales increased in Americas, mainly in USA . SALES THIRD QUARTER SALES JANUARY -SEPTEMBER SEKm Jul – Sep 2024 Jul – Sep 2023 Change Adult Health 76.6 59.2 29% Jan – Sep 2024 Jan – Sep 2023 Change 229.6 198.8 16% 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. Adult Health ===== SIDA 7 ===== Q3 2024 7 BioGaia AB (publ.) Interim management statement , January – September 2024 Gross margin The total gross margin amounted to 7 3% (74%). The gross margin for the Pediatrics segment amounted to 7 5% (75%) and for the Adult Health segment to 6 6% (68%). The main reason for the lower gross margin in the Adult Health segment is mix effects. Operating expenses and operating profit Operating expenses amounted to SEK 1 80.9 million (1 16.3), an increase of SEK 64.6 million ( 55%). Operating expenses, excluding items affecting comparability, increased by 11% to SEK 1 28.9 million (116.3). Items affecting comparability in the quarter primarily include an impairment loss attributed to the Metabo Gen acquisition of SEK 51.2 million. The net income impact after tax is SEK -41.7 million. Of the total impairment losses SEK 5.3 million impacts goodwill and SEK 45.9 million impacts R&D projects in progress both reported on the line-item research and development expenses. The impairment loss was caused by a clinical study that did not meet its primary endpoints . Furthermore, items affecting comparability also include restructuring costs for personnel that amounted to SEK 0.8 million . Selling expenses amounted to SEK 95.6 million (8 8.1), an increase of 9%, due to a larger pr oportion of direct sales through subsidiaries . R&D expenses amounted to SEK 71.4 million ( 20.6), an increase of 246% mainly due to the impairment loss. Administrative expenses amounted to SEK 9.2 million ( 7.9), an increase of 16%. Other operating expenses refers to exchange losses/gains on receivables and liabilities of an operating nature and amounted to SEK 4.8 million ( -0.3). Operating profit amounted to SEK 41.4 million ( 119.5), a decrease of 65%. The operating margin was 14% (38%). Adjusted operating profit amounted to SEK 93.4 million ( 119.5), a decrease of 22%. The adjusted operating margin was 31% (38%). Items affecting comparability in the quarter primarily include the impair ment loss related to Metabo Gen. Net financial items amounted to SEK 5.6 million ( 8.5). Net financial items were impacted by the adjustment of the value of the earn -out in relation to Nutraceutics in the amount of SEK -1.9 (-0.2) million. Profit after tax and earnings per share Profit after tax amounted to SEK 36.6 million ( 101.5), a decrease of 64%. The effective tax rate was 22% (21%). Earnings per share amounted to SEK 0.36 (1.01). There are no significant dilutive effects. Gross margin The total gross margin amounted to 73% (7 3%). The gross margin for the Pediatrics segment amounted to 7 6% (74%) and for the Adult Health segment to 61% (66%). The main reason for the lower gross margin in the Adult Health segment is mix effects. Operating expenses and operating profit Operating expenses amounted to SEK 452.2 million ( 362.2), an increase of SEK 90.0 million ( 25%). Operating expenses, excluding items affecting comparability, increased by 10% to SEK 398.0 million (361.1). Items affecting comparability primarily include an impairment loss attributed to the Metabo Gen acquisition of SEK 51.2 million. The net income impact after tax is SEK -41.7 million. Of the total impairment losses SEK 5.3 million impacts goodwill and SEK 45.9 million impacts R&D projects in progress both reported on the line-item research and development expenses. The impairment loss was caused by a clinical study that did not meet its primary endpoints. Furthermore, items affecting comparability also includes litigation fees in connection with the termination of the distribution agreement in Italy that amounted to SEK 2.1 million and restructuring costs for personnel that amounted to SEK 0.8 million. Selling expenses amounted to SEK 301.8 million ( 265.9), an increase of 14%, due to a larger proportion of direct sales through subsidiaries . R&D expenses amounted to SEK 123.3 million ( 78.1), an increase of 58% mainly due to the impairment loss . Administrative expenses amounted to SEK 28.9 million ( 29.1), a decrease of 1%. Other operating expenses refers to exchange losses/gains on receivables and liabilities of an operating nature and amounted to SEK -1.8 million ( -10.8). Operating profit amounted to SEK 320.0 million ( 362.6), a decrease of 12%. The operating margin was 3 0% (36%). Adjusted operating profit amounted to SEK 374.2 million ( 363.7), an increase of 3%. The adjusted operating margin was 3 5% (36%). Items affecting comparability primarily include the impairment loss related to Metabo Gen and litigation fees in connection with the termination of the distribution agreement in Italy. Net financial items amounted to SEK 23.4 million ( 18.1). Net financial items were impacted by the adjustment of the value of the earn -out in relation to Nutraceutics in the amount of SEK –4.1 (-2.2) million. Profit after tax and earnings per share Profit after tax amounted to SEK 269.5 million ( 298.0), a decrease of 10%. The effective tax rate was 2 2% (22%). Earnings per share amounted to SEK 2.67 (2.95). There are no significant dilutive effects. THIRD QUARTER JANUARY -SEPTEMBER Earnings ===== SIDA 8 ===== Q3 2024 8 BioGaia AB (publ.) Interim management statement , January – September 2024 Balance sheet 3 0 September 2024 Total assets amounted to SEK 1,904.9 million (2, 304.3). Goodwill from the acquisition of Nutraceutics was adjusted for currency translation. Of the total impairment losses SEK -5.3 million impacts goodwill and SEK -45.9 million impacts R&D projects in progress . The financial liability for the additional purchase price was value adjusted. For more information, see Note 3. Compared with the preceding year, receivables increased whereas inventory decreased. Cash and cash equivalents at 3 0 September 2024 amounted to SEK 1,114 .6 million (1,544.2 ). Cash flow third quarter Cash flow amounted to SEK 111.4 million ( 88.4). Cash flow from operating activities amounted to SEK 100.0 million (99.0). The increase in cash flow in operations compared with the year-earlier period was mainly due to a decrease in accounts receivables in the quarter. Investments , main ly in BioGaia Production, amounted to SEK 2.8 million ( 8.9). Cash flow January -September Cash flow amounted to SEK -429.9 million ( -33.6). The cash flow includes a dividend payment of SEK 696.8 million ( 292.8). Cash flow from operating activities amounted to SEK 271.1 million (304.2). The decrease in cash flow in operations compared with the year-earlier period was mainly due to a negative change in working capital. Investments amounted to SEK 13.8 million ( 37.0). Employees The number of employees in the Group at 3 0 September 2024 totaled 222 (213 at 30 September 2023). The company has an incentive program for all employees based partly on the company’s sales and profit and partly on qualitative targets. The maximum bonus is equal to 12% of annual salary. In addition to this program, BioGaia has also implemented a subscri ption warrants program as resolved by the 2021 Annual General Meeting . The number of shares and votes in BioGaia increased during the quarter due to the exercise of some warrants issued under this program for subscription of shares. Through this subscription, the number of Class B shares and votes in BioGaia increased by 180,000 and the share capital increased by SEK 36,000. Furthermore, the 2024 Annual General Meeting resolved on a new employee stock option program that is currently being implemented. 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. In addition to the current dividend policy, for the coming years BioGaia intends to pay extra dividends of 50 to 100% of profit after tax in the Group and after adjustment of non -recuring 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 202 3 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 30 September 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 910,000 per year. Peter Rothschild is also a member of the renumeration committee and receives a n additional fee of SEK 2 5,000 per year . During the quarter, Peter Rothschild received additional remuneration for significant working duties, in addition to his assignment on the Board, of SEK 120,000 in accordance with the decision of the Annual General Meeting and the Board of Directors . Balance sheet and cash flow Other disclosures ===== SIDA 9 ===== Q3 2024 9 BioGaia AB (publ.) Interim management statement , January – September 2024 BioGaia signs distribution agreement with Recordati in Italy . On July 19, BioGaia announced that it has entered into an exclusive distribution agreement with Recordati in Italy for BioGaia’s probiotic products . Key events after the end of the third quarter of 202 4 BioGaia announced third quarter results. On October 17, BioGaia announced that the results for the third quarter were lower than market expectations. 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 a pplied 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 f inancial 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 inf ormation 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. Key events in the third quarter of 202 4 Launches in the third quarter of 202 4. Distributor Country Product AllergyCare Switzerland Pharax drops with vitamin D Nestlé Brazil Nescare B. Lactis Abbott Mexico BioGaia Protectis drops with vitamin D Agefinsa Guatemala BioGaia Prodentis lozenges Agefinsa El Salvador BioGaia Prodentis lozenges Agefinsa Honduras BioGaia Prodentis lozenges Abbott Peru BioGaia Protectis tablets with vitamin D ===== SIDA 10 ===== Q3 2024 10 BioGaia AB (publ.) Interim management statement , January – September 2024 (Amounts in SEK 000s) Jul – Sep Jul – Sep Jan – Sep Jan – Sep Jan – Dec Oct 2023– Oct 2022– 2024 2023 2024 2023 2023 Sep 2024 Sep 2023 Net sales (Note 1) 303,971 317,694 1,057,889 998,732 1,296,506 1,355,663 1,273,015 Cost of sales -81,636 -81,847 -285,684 -273,935 -346,316 -358,065 -340,226 Gross profit 222,335 235,847 772,205 724,797 950,190 997,598 932,789 Selling expenses -95,581 -88,068 -301,839 -265,859 -363,256 -399,236 -354,397 Administrative expenses -9,188 -7,934 -28,870 -29,075 -39,249 -39,044 -42,498 Research and development expenses -71,390 -20,630 -123,330 -78,130 -106,776 -151,976 -109,561 Other operating income / expense -4,754 323 1,816 10,840 2,194 -6,830 7,366 Operating profit 41,422 119,538 319,982 362,573 443,103 400,512 433,699 Financial income 7,849 10,733 28,666 20,664 41,532 49,534 102,092 Financial expenses -2,290 -2,249 -5,316 -2,594 -15,801 -18,523 -2,699 Profit before tax 46,981 128,022 343,332 380,643 468,834 431,523 533,092 Tax -10,379 -26,521 -73,873 -82,650 -103,482 -94,705 -95,671 Profit for the period 36,602 101,501 269,459 297,993 365,352 336,818 437,421 Gains/losses arising on translation of the statements of foreign operations -12,922 -35 365 12,526 -9,762 -21,923 -3,320 Comprehensive income for the period 23,680 101,466 269,824 310,519 355,590 314,895 434,101 Profit for the period attributable to: Owners of the Parent Company 36,602 101,501 269,459 297,993 365,352 336,818 437,421 Non-controlling interests – – – – - - - 36,602 101,501 269,459 297,993 365,352 336,818 437,421 Comprehensive income for the period attributable to: Owners of the Parent Company 23,680 101,466 269,824 310,519 355,590 314,895 434,101 Non-controlling interests – – – – - – - 23,680 101,466 269,824 310,519 355,590 314,895 434,101 Earnings per share Earnings per share before dilution, (SEK) 0.36 1.01 2.67 2.95 3.62 3.33 4.33 Earnings per share after dilution, (SEK) 0.36 1.01 2.67 2.95 3.62 3.33 4.33 Number of shares (thousands) 101,162 100,982 101,162 100,982 100,982 101,162 100,982 Average number of shares before dilution, (thousands) 101,072 100,982 101,072 100,982 100,982 101,072 100,982 Average number of shares after dilution, (thousands) 101,082 100,982 101,081 100,982 100,982 101,073 100,982 Summary of consolidated statements of comprehensive income ===== SIDA 11 ===== Q3 2024 11 BioGaia AB (publ.) Interim management statement , January – September 2024 (Amounts in SEK 000s) 30 Sep 30 Sep 31 Dec 2024 2023 2023 Assets R&D projects in progress 390 46,172 46,230 Goodwill 160,690 177,906 165,174 Right -of-use assets 30,953 40,479 36,156 Property, plant, and equipment 178,941 168,297 177,172 Financial assets 28,013 28,013 28,013 Deferred tax assets 9,385 8,804 5,964 Deposits 48 52 48 Total non -current assets 408,420 469,723 458,757 Current assets excl. cash and cash equivalents 381,896 382,002 330,240 Cash and cash equivalents 1,114,605 1,452,528 1,544,192 Total current assets 1,496,501 1,834,530 1,874,432 Total assets 1,904,921 2,304,253 2,333,189 Equity and liabilities Equity attributable to owners of the Parent Company 1,619,802 1,985,271 2,030,342 Non-controlling interests 2 2 2 Total equity 1,619,804 1,985,273 2,030,344 Deferred tax liability 5,699 13,274 15,179 Non-current liabilities 87,056 88,218 91,932 Current liabilities 192,362 217,488 195,734 Total liabilities and equity 1,904,921 2,304,253 2,333,189 Consolidated balance sheets ===== SIDA 12 ===== Q3 2024 12 BioGaia AB (publ.) Interim management statement , January – September 2024 (Amounts in SEK 000s) Jul – Sep Jul – Sep Jan – Sep Jan – Sep Jan – Dec 2024 2023 2024 2023 2023 Operating activities Operating profit 41,422 119,538 319,982 362,573 443,103 Depreciation/amortization /impairment losses 57,549 5,250 69,439 18,218 25,281 Other non -cash items 2,818 3,568 -318 -1,551 -1,478 Taxes -5,595 -17,200 -66,590 -72,729 -80,294 Interest received and paid 7,372 10,653 27,398 20,238 40,461 Cash flow from operating activities before changes in working capital 103,566 121,809 349,911 326,749 427,073 Changes in working capital -3,537 -22,831 -78,830 -22,565 -1,108 Cash flow from operating activities 100,029 98,978 271,081 304,184 425,965 Investing activities Purchase of property, plant, and equipment -2,804 -8,899 -13,810 -34,706 -48,568 Purchase of intangible assets -2 -18 -11 -97 -146 Purchase of financial assets - - - -2,221 -2,221 Cash flow from investing activities -2,806 -8,917 -13,821 -37,024 -50,935 Financing activities Dividend - - -696,77 8 -292,849 -292,849 Repayment of lease liability -2,189 -1,695 -6,816 -7,529 -10,755 Provision to Foundation to Prevent Antibiotic Resistance -4,400 - -4,400 - -4,400 New share issue 20,815 - 20,815 - - Repurchase of warrants - - - -417 -417 Cash flow from financing activities 14,226 -1,695 -687,179 -300,795 -308,421 Cash flow for the period 111,449 88,366 -429,919 -33,635 66,609 Cash and cash equivalents at the beginning of the period 1,007,742 1,369,566 1,544,19 2 1,488,366 1,488,366 Exchange difference in cash and cash equivalents -4,586 -5,404 332 -2,203 -10,783 Cash and cash equivalents at the end of the period 1,114,605 1,452,528 1,114,605 1,452,528 1,544,192 Summary c onsolidated statement of changes in equity (Amounts in SEK 000s) Jan – Sep Jan – Sep Jan – Dec 2024 2023 2023 Opening balance 2,030,344 1,972,418 1,972,418 New share issue 20 815 - - Repurchase of warrants - -417 -417 Dividend -696,778 -292,849 -292,849 Provision to Foundation to Prevent Antibiotic Resistance -4,400 –4,400 -4,400 Comprehensive income for the period 269,824 310,519 355,590 Closing balance 1,619,804 1,985,273 2,030,344 Consolidated cash flow statements ===== SIDA 13 ===== Q3 2024 13 BioGaia AB (publ.) Interim management statement , January – September 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) Jul – Sep Jul – Sep Jan – Sep Jan – Sep Jan – Dec Oct 2023 – Oct 2022 – 2024 2023 2024 2023 2023 Sep 2024 Sep 2023 Revenue by segment Pediatrics 225,84 1 255,805 822,929 793,486 1,013,522 1,042,967 1,000,876 Adult Health 76,611 59,216 229,631 198,782 275,230 306,079 263,530 Other 1,519 2,672 5,330 6,465 7,753 6,618 8,609 Total 303,971 317,694 1,057,8 89 998,732 1,296,506 1,355,664 1,273,016 Gross profit by segment Pediatrics 170,291 193,116 625,670 588,328 760,128 797,470 747,387 Adult Health 50,525 40,059 141,206 130,832 183,136 193,509 177,745 Other 1,519 2,672 5,330 5,637 6,925 6,618 7,659 Total 222,335 235,847 772,205 724,797 950,189 997,597 932,789 Selling, administrative, R&D expenses -176,159 -116,632 -454,039 -373,064 -509,281 -590,256 -506,456 Other operating expenses/income -4,754 323 1,816 10,840 2,194 -6,830 7,366 Operating profit 41,422 119,538 319,982 362,573 443,103 400,512 433,700 Net financial items 5,559 8,484 23,350 18,070 25,731 31,011 99,393 Profit before tax 46,981 128,022 343,332 380,643 468,834 431,523 533,093 Sales by geographical market APAC Pediatrics 43,246 37,559 172,78 0 117,681 176,797 231,897 145,689 Adult Health 32,389 21,773 82,748 85,853 121,999 118,895 116,336 Other 1,132 2,356 4,492 4,412 5,289 5,369 5,914 Total APAC 76,767 61,688 260,02 0 207,946 304,085 356,160 267,940 EMEA Pediatrics 80,242 113,495 330,807 351,190 424,930 404,547 464,153 Adult Health 13,482 15,105 61,370 47,702 65,275 78,943 62,546 Other 379 311 820 1,191 1,575 1,205 1,799 Total EMEA 94,103 128,910 392,997 400,083 491,781 484,695 528,498 Americas Pediatrics 102,353 104,752 319,342 324,614 411,795 406,523 391,035 Adult Health 30,741 22,338 85,513 65,227 87,955 108,241 84,648 Other 7 6 18 862 889 45 896 Total Americas 133,101 127,096 404,872 390,703 500,640 514,809 476,578 Total 303,97 1 317,694 1,057,8 89 998,732 1,296,506 1,355,664 1,273,016 ===== SIDA 14 ===== Q3 2024 14 BioGaia AB (publ.) Interim management statement , January – September 2024 Note 2. Largest shareholders at 3 0 September 2024 (source: Vantage by Euroclear) Date of recognition (Amounts in SEK 000s) Jul – Sep Jul – Sep Jan – Sep Jan – Sep Jan – Dec Performance obligations met on specific date (Product sales) 2024 2023 2024 2023 2023 Pediatrics 225,841 255,805 822,929 793,486 1,013,522 Adult Health 74,642 56,462 222,322 191,731 266,030 Other 1,306 2,377 4,938 5,437 6,392 Total 301,789 314,645 1,050,189 990,653 1,285,944 Performance obligations met over time (Royalty) Pediatrics - - - - - Adult Health 1,969 2,754 7,309 7,051 9,201 Other 213 295 392 1,028 1,361 Total 2,182 3,049 7,701 8,079 10,561 Total 303,971 317,694 1,057,889 998,732 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% 27.91% 2 Fjärde AP-fonden 8,200,182 1,640,036 8,200,182 8.11% 6.10% 3 EQT 4,979,813 995,963 4,979,813 4.92% 3.70% 4 Premier Miton Investors 3,843,040 768,608 3,843,040 3.80% 2.86% 5 Cargill Inc 3,000,000 600,000 3,000,000 2.97% 2.23% 6 TIN Ny Teknik 2,670,000 534,000 2,670,000 2.64% 1.99% 7 Allianz Global Investors 2,635,771 527,154 2,635,771 2.61% 1.96% 8 Handelsbanken Fonder AB 2,345,871 469,174 2,345,871 2.32% 1.74% 9 Montanaro Asset Management 2,035,359 407,072 2,035,359 2.01% 1.51% 10 Tredje AP-fonden 1,770,000 354,000 1,770,000 1.75% 1.32% Other shareholders 65,478,934 13,095,787 65,478,934 64.73% 48.69% Total 3,703,340 97,458,970 20,232,462 134,492,370 100% 100% ===== SIDA 15 ===== Q3 2024 15 BioGaia AB (publ.) Interim management statement , January – September 2024 Note 3. Fair value (Amounts in SEK 000s) Jan – Sep Jan – Sep Jan – Dec 2024 2023 2023 Opening balance 46,529 33,627 33,627 Value adjustment 4,104 2,167 14,992 Exchange difference 183 1,344 -2,090 Closing balance 50,816 37,138 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 third quarter of 202 4 and BioGaia’s best assessment of fair value of the financial liability related to the additional purchase price at 3 0 September 2024 was therefore adjusted to SEK 50.8 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 di scounted with a market -based interest rate. The value adjustment is recognized as a financial expense of SEK 4.1 million ( 2.2) during the nine-month period. The weighted average cost of capital (WACC) amounted to 10. 04% (11. 65% at 30 September 2023). The main impact for the value adjustment was a change in WACC and the time value . 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. (Amounts in SEK 000s) Jan – Sep Jan – Sep Jan – Dec 2024 2023 2023 Opening balance 28,013 25,793 25,793 Value adjustment - - - Acquisitions - 2,220 2,220 Closing balance 28,013 28,013 28,013 ===== SIDA 16 ===== Q3 2024 16 BioGaia AB (publ.) Interim management statement , January – September 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 requirem ents regarding key ratios not defined 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 – Sep Jan – Sep Jan – Dec 2024 2023 2023 Net sales 1,057,889 998,732 1,296,506 Growth of net sales 6% 20% 17% Operating profit, SEK 000s 319,982 362,573 443,103 Adjusted operating profit, SEK 000s 374,233 363,717 444,247 Profit after tax, SEK 000s 269,459 297,993 365,352 Return on equity 15% 15% 18% Return on capital employed 19% 19% 24% Capital employed, SEK 000s 1,625,503 1,998,547 2,045,523 Number of shares, thousands 101,162 100,982 100,982 Average number of shares before dilution, thousands 1) 101,072 100,982 100,982 Average number of shares after dilution, thousands 1) 101,081 100,982 100,982 Earnings per share before dilution, SEK 1) 2.67 2.95 3.62 Earnings per share after dilution, SEK 1) 2.67 2.95 3.62 Equity per share, SEK 16.03 19.66 20.11 Equity/assets ratio 85% 86% 87% Operating margin 30% 36% 34% Adjusted operating margin 30% 36% 34% Profit before tax margin 32% 38% 36% Average number of employees 215 214 213 1) Key ratio defined according to IFRS. ===== SIDA 17 ===== Q3 2024 17 BioGaia AB (publ.) Interim management statement , January – September 2024 Key ratio Definition/calculation Purpose 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. 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. 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. 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. 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. 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. Gross margin Gross profit as a percentage of net sales. The gross margin is used to measure profitability. 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. 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. Operating margin (EBIT margin) Operating profit expressed as a percentage of net sales. The operating margin is used to measure operational profitability. 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. 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. 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. ===== SIDA 18 ===== Q3 2024 18 BioGaia AB (publ.) Interim management statement , January – September 2024 Key ratio (Amounts in SEK 000s) Jan – Sep Jan – Sep Jan – Dec 2024 2023 2023 Return on equity Profit attributable to owners of the Parent Company (A) 269,459 297,993 365,352 Equity attributable to owners of the Parent Company 1,619,802 1,985,271 2,030,342 Average equity attributable to owners of the Parent Company (B) 1,825,072 1,978,844 2,001,379 Return on equity (A/B) 15% 15% 18% Return on capital employed Operating profit 319,982 362,573 443,103 Financial income 28,666 20,664 41,532 Profit before net financial items + financial income (A) 348,648 383,237 484,635 Total assets 1,904,921 2,304,253 2,333,190 Interest -free liabilities -279,418 -305,706 -287,666 Capital employed 1,625,503 1,998,547 2,045,523 Average capital employed (B) 1,835,514 1,991,663 2,015,151 Return on capital employed (A/B) 19% 19% 24% (Amounts in SEK 000s) 30 Sep 30 Sep 31 Dec 2024 2023 2023 Equity/assets ratio Equity (A) 1,619,804 1,985,273 2,030,344 Total assets (B) 1,904,921 2,304,253 2,333,189 Equity/assets ratio (A/B) 85% 86% 87% Operating margin Operating profit (A) 319,982 362,573 443,103 Net sales (B) 1,057,889 998,732 1,296,506 Operating margin (A/B) 30% 36% 34% Profit before tax margin Profit before tax (A) 343,332 380,643 468,834 Net sales (B) 1,057,889 998,732 1,296,506 Profit before tax margin (A/B) 32% 38% 36% Equity per share Equity attributable to owners of the Parent Company (A) 1,619,802 1,985,271 2,030,342 Average number of shares (B) 101,072 100,982 100,982 Equity per share (A/B) 16.03 19.66 20.11 Key ratio ===== SIDA 19 ===== Q3 2024 19 BioGaia AB (publ.) Interim management statement , January – September 2024 Change in sales by segment ( including and excluding foreign exchange effects) Pediatrics Adult Health Other Total (Amounts in SEK 000s) Jul – Sep Jan – Sep Jul – Sep Jan – Sep Jul – Sep Jan – Sep Jul – Sep Jan – Sep 2024 2024 2024 2024 2024 2024 2024 2024 Description A Previous year’s net sales according to the average rate 255,805 793,486 59,216 198,782 2,672 6,465 317,694 998,732 B Net sales for the year according to the average rate 225,841 822,929 76,611 229,631 1,519 5,330 303,971 1,057 ,889 C Recognized change (B -A) -29,964 29,443 17,395 30,849 -1,153 -1,135 -13,722 59,157 Percentage change (C/A) -12% 4% 29% 16% -43% -18% -4% 6% D Net sales for the year according to the previous year’s average rate 232,520 829,259 78,862 231,786 1,519 5,332 312,901 1,066 ,377 E Foreign exchange effects (B –D) -6,679 -6,330 -2,251 -2,155 0 -1 -8,930 -8,489 Percentage change (E/A) -3% -1% -4% -1% 0% 0% -3% -1% F Organic change (C –E) -23,285 35,773 19,646 33,004 -1,153 -1,133 -4,792 67,645 Organic change, % (F/A) -9% 5% 33% 17% -43% -18% -2% 7% Average key exchange rates Jul – Sep Jul – Sep Jan – Sep Jan – Sep Jan – Dec 2024 2023 2024 2023 2023 EUR 11.44 11.77 11.39 11.42 11.48 USD 10.45 10.76 10.48 10.54 10.61 JPY 0.0701 0.0747 0.0694 0.0767 0.0760 Closing date key exchange rates 30 Sep 30 Sep 31 Dec 2024 2023 2023 EUR 11.30 11.49 11.10 USD 10.09 10.84 10.04 JPY 0.0707 0.0729 0.0710 Pledged assets and contingent liabilities – Group 30 Sep 30 Sep 31 Dec (Amounts in SEK 000s) 2024 2023 2023 Pledged assets None None None Contingent liabilities None None None Adjusted operating profit – Group Jul – Sep Jul – Sep Jan – Sep Jan – Sep Jan – Dec (Amounts in SEK 000s) 2024 2023 2024 2023 2023 Operating profit 41,422 119,538 319,982 362,573 443,103 Items affecting comparability 51,992 - 54,251 1,144 1,144 Adjusted operating profit 93,414 119,538 374,233 363,717 444,247 ===== SIDA 20 ===== Q3 2024 20 BioGaia AB (publ.) Interim management statement , January – September 2024 Stockholm, 22 October 202 4 This interim management statement has not been audited. Financial calendar 12 FEB 2025 Peter Rothschild Board Chairman David Dangoor Board Vice Chairman Outi Armstrong Member of the Board Bénédicte Flambard Member of the Board Barbro Fridén Member of the Board Anthon Jahreskog Member of the Board Vesa Koskinen Member of the Board Vanessa Rothschild Member of the Board Theresa Agnew CEO 8:00 a.m. CET year-end report 1 January – 30 December 2024 8:00 a.m. CET interim management statement 1 January – 30 September 2025 7 MAY 2025 Annual General Meeting 2024 8:00 a.m. CET interim report 1 January – 30 June 2025 MAR 2025 18 JUL 2025 22 OCT 2025 Annual report 2024 8:00 a.m. CET Interim management statement 1 January – 31 March 2025 7 MAY 2025 ===== SIDA 21 ===== Q3 2024 21 BioGaia AB (publ.) Interim management statement , January – September 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 eight countries (Sweden, Finland, the UK, USA, Canada, Australia, New Zealand 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 sa les under the BioGaia brand. Of products (drops, tablets for gut and 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 ha ve 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 group .com