BioGaia AB Year-end report 2012

(Figures in brackets refer to the same period of last year)

2012

• Net sales reached SEK 645.2 (315.0). This figure includes licence revenue of SEK 356.0 million from Nestlé that is regarded as non- recurring revenue but is to a certain extent attributable to sales in 2012 (according to the company ́s own calculations, approximately SEK 40 million). Excluding license revenue from Nestlé, net sales amounted to 289.2 million (315.0), a decrease of SEK 25.8 million (-8%). Excluding foreign exchange effects, the decrease was -6%.
   
• Net sales of finished consumer products amounted to SEK 237.6 million (215.4), an increase of SEK 22.2 million (10%). Excluding foreign exchange effects, net sales rose by 12%.
   
• Net sales of component products totalled SEK 406.6 million (97.7). Excluding license revenue from Nestlé, net sales of component products reached SEK 50.6 million (97.7), down by SEK 47.1 million (-48%), which mainly is a result of the license agreement with Nestlé. According to the company ́s own calculations, approximately SEK 40 million of the licence revenue is attributable to 2012.
   
• Operating profit was SEK 428.1 million (103.2), an improvement of SEK 324.9 million. Excluding license revenue from Nestlé, operating profit was SEK 72.1 million (103.2), a decrease of SEK 31.1 million (-30%). Excluding foreign exchange effects, the decrease was -26%.
   
• Profit after tax was SEK 329.9 million (79.5), an increase of SEK 250.4 million. Excluding license revenue, profit after tax was SEK 63.7 million (79.5), a decrease of SEK 15.8 million (-20%).
   
• Earnings per share totalled SEK 18.93 (4.42). Excluding license revenue, earnings per share amounted to SEK 3.52.
   
• The period’s total cash flow was SEK 203.8 million (24.7). Cash flow includes a payment from Nestlé amounting to SEK 356.0 million, investments in TwoPac of SEK 27.5 million (15.8), tax payments of SEK 105.7 million (35.8) and dividends of SEK 103.6 million (34.5). Cash and cash equivalents at 31 December 2012 totalled SEK 375.0 million (171.5).
   
• The Board proposes to the upcoming AGM an ordinary dividend of SEK 4.15 and an extraordinary dividend of SEK 5.85, for a total dividend of SEK 10.00 per share.
   
• The Board has decided to change the dividend policy for the coming years from 30% to 40% of profit after tax.

Fourth quarter 2012

• Net sales reached SEK 72.4 million (82.4), a decrease of SEK 10.0 million (-12%) resulting from the license agreement med Nestlé (see above). Excluding foreign exchange effects, net sales fell by -8%.
   
• Net sales of finished consumer products amounted to SEK 65.6 million (57.5), an increase of SEK 8.1 million (14%). Excluding foreign exchange effects, net sales rose by 19%.
   
• Net sales of component products totalled SEK 6.8 million (24.5), a decrease of SEK 17.7 million (-72%) mainly resulting from the license agreement with Nestlé. Excluding foreign exchange effects, net sales fell by -71%.
   
• Operating profit was SEK 13.1 million (23.8), a decrease of SEK 10.7 million (-45%). Excluding foreign exchange effects, operating profit declined by -37%.
   
• Profit after tax was SEK 15.8 million (21.8), a decrease of SEK 6.0 million (-28%).

Key events in the fourth quarter of 2012

• Agreement for the sale of tablets and drops in Pakistan.
   
• Publication of study showing that Lactobacillus reuteri Protectis helps premature infants.
   
• Agreement for the sale of drops in Mexico.
   
• Progress in the oral health area (one new study and two new agreements)

“2012 was an exceptional year that created a strong platform for future development and gave us very strong earnings. We signed several major agreements with our customer Nestlé that both gave us substantial license revenue and opened opportunities to extend our collaboration with Nestlé in several areas. It also gives us financial freedom to pursue additional projects. All in all, I would say that 2012 was a fantastic year,” says Peter Rothschild, President of BioGaia AB.

You are welcome to take part in a teleconference on the interim report that will be held today at 10:00 a.m. by President Peter Rothschild. To participate in the conference, please see telephone numbers on www.biogaia.com/agenda.

BioGaia has published this information in accordance with the Swedish Securities Market Act. The information was issued for publication on 8 February 2013, 8:00 a.m. CET.

Latest press releases from BioGaia:
2012-12-17 BioGaia signs two new distribution agreements and yet another study on periodontitis shows positive results
2012-11-22 BioGaia has entered into an exclusive agreement for its probiotic drops with Nestlé in Mexico
2012-10-23 BioGaia AB Interim report 1 January - 30 September 2012

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

For additional information contact: 
Peter Rothschild, President, 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

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