BioGaia AB – Year-end report 2016

Comments from the Managing Director:
“Looking back at 2016, we can only feel satisfied. With sales growth of 9% excluding foreign exchange effects, we were able to pass the half billion mark and achieve annual sales of SEK 534.7 million. This enabled us to increase our market shares despite the fact that the sales to Brazil, one of our most important markets, were low as a result of the inventory build-up during 2015. The operating profit, excluding the distributed former subsidiary IBT, reached SEK 199.4 million, an increase of 14% excluding foreign exchange effects, which leads to an operating margin of 37%. Our strong financial development, while we were building a platform for future growth and signing new distribution agreements in Japan and Thailand, demonstrates the strength of our business model, our employees and our products, and gives us reason to look to the future with continued confidence,” says Axel Sjöblad, Managing Director of BioGaia AB.

Full year 2016
(The figures in brackets and comparative figures in the text refer to the same period of last year.)

  • Net sales amounted to SEK 534.7 (483.2) million, an increase of SEK 51.5 million (11%) (excluding foreign exchange effects, 9%).
  • Net sales in Business Unit Paediatrics reached SEK 433.0 million (389.6), an increase of SEK 43.4 million (11%).
  • Net sales in Business Unit Adult Health amounted to SEK 85.3 million (74.7), an increase of SEK 10.6 million (14%).
  • Operating profit excluding the distributed former subsidiary IBT was SEK 199.4 million (172.8), an increase of SEK 26.6 million (15%). (Excluding foreign exchange effects, 14%). Including IBT, operating profit was SEK 194.3 million (152.2).
  • Profit after tax excluding IBT was SEK 159.3 million (137.4), an increase of SEK 21.9 million (16%). Profit includes deferred tax revenue of SEK 10.4 million.
  • Earnings per share from continuing operations totalled SEK 9.19 (7.94). Earnings per share including discontinued operations totalled SEK 13.13 (7.01).
  • The period’s cash flow was SEK 14.0 million (15.1). Cash and cash equivalents at 31 December amounted to SEK 243.1 million (226.9). Excluding IBT, cash flow was SEK 58.4 (56.1) million.
  • The Board proposes that the upcoming AGM on 3 May 2017 approves a dividend according to policy of SEK 3.16 (3.03) per share and an extraordinary dividend of SEK 4.34 (1.97) per share, amounting to a total dividend of SEK 7.50 (5.00) per share.
  • The long-term financial target is increased to an operating margin of at least 34% (previously 30%).  

Fourth quarter 2016

  • Net sales amounted to SEK 138.8 million (104.4), an increase of SEK 34.4 million (33%) (excluding foreign exchange effects 27%).
  • Net sales in Business Unit Paediatrics reached SEK 119.2 million (76.6), an increase of SEK 42.6 million (56%).
  • Net sales in Business Unit Adult Health amounted to SEK 15,9 million (20.0), a decrease of SEK 4.1 million (21%).
  • Operating profit excluding IBT was SEK 46.4 million (32.0), an increase of SEK 14.4 million (45%) (excluding foreign exchange effects, 41%). Including IBT, operating profit was SEK 46.4 million (27.5) .
  • Profit after tax excluding IBT was SEK 47.0 million (25.2), an increase of SEK 21.8 million (87%). Profit includes deferred tax revenue of SEK 10.4 million.
  • Earnings per share excluding IBT totalled SEK 2.71 (1.46). Earnings per share including IBT totalled SEK 2.71 (1.26).
  • The period’s cash flow was SEK 41.6 million (7.1).

Key events in the fourth quarter of 2016

  • Major agreements signed for the sale of BioGaia’s probiotic products in Japan.
  • BioGaia makes further investment in MetaboGen.

Key events after the end of 2016

  • Agreement for the sale of BioGaia’s products in Thailand.

Teleconference: You are welcome to take part in a teleconference on the year-end report that will be held today, 10 February 2017, at 9:30 a.m. CET by Managing Director Axel Sjöblad. To participate in the teleconference, please see www.biogaia.com/agenda . The teleconference can also be followed at https://wonderland.videosync.fi/biogaia-q4-report-2016

This information is information that BioGaia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the Managing Director, at 10 February 2017, 8:00 a.m. CET.

For additional information contact: 
Axel Sjöblad, Managing Director, BioGaia AB, telephone 46 8-555 293 00
or Margareta Hagman, Executive Vice President, BioGaia AB, telephone 46 8-555 293 00

BioGaia is a healthcare company that develops, markets and sells probiotic products with documented health benefits. The products are primarily based on the lactic acid bacterium Lactobacillus reuteri which has probiotic, health- enhancing effects. The class B share of the Parent Company BioGaia AB is quoted on the Mid Cap list of the Nasdaq OMX Nordic Exchange Stockholm. www.biogaia.com .

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

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BioGaia is a healthcare company that develops, markets and sells probiotic products with documented health benefits. The products are primarily based on the lactic acid bacterium Lactobacillus reuteri, which has probiotic, health-enhancing effects. The class B share of the Parent Company BioGaia AB is quoted on the Mid Cap list of the NASDAQ OMX Nordic Exchange Stockholm. www.biogaia.com If you need more information about BioGaia and our products please visit our website or download our press kit from: http://www.biogaia.com/press-material

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Quotes

Looking back at 2016, we can only feel satisfied. With sales growth of 9% excluding foreign exchange effects, we were able to pass the half billion mark and achieve annual sales of SEK 534.7 million. This enabled us to increase our market shares despite the fact that the sales to Brazil, one of our most important markets, were low as a result of the inventory build-up during 2015. The operating profit, excluding the distributed former subsidiary IBT, reached SEK 199.4 million, an increase of 14% excluding foreign exchange effects, which leads to an operating margin of 37%. Our strong financial development, while we were building a platform for future growth and signing new distribution agreements in Japan and Thailand, demonstrates the strength of our business model, our employees and our products, and gives us reason to look to the future with continued confidence.
Axel Sjöblad, Managing Director of BioGaia AB