FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2024
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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 .
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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