The delivery delays are of course very unfortunate, but we believe that the decline in sales is temporary and that the delays will not affect our long-term expectations and sales and marketing strategies. However, we are reviewing our procurement procedures to reduce the risk of similar problems occurring again
Sales in the second quarter increased by 11% (excluding foreign exchange effects, 5%) compared to the corresponding period last year. Sales of products, net sales excluding royalty revenues, increased by 20% (excluding foreign exchange effects, 14%). Product sales within Pediatrics increased by 19% and were mainly driven by our largest product, BioGaia Protectis drops, but also by BioGaia Protectis tablets. Our Adult Health portfolio, primarily BioGaia Prodentis and BioGaia Protectis tablets, grew by 27%. The launch of BioGaia Osfortis during the quarter also contributed to this increase. The increase within Adult Health is the result of a focused investment on this target group. Operating expenses increased by 7% during the quarter which resulted in an operating profit of SEK 78.5 million, an increase of 8% compared to the second quarter of 2018 and an operating margin of 35%. We continue to launch our products in new markets at the same time as we invest in operations to continue our growth
Abbott has been our partner for many years in a number of Latin American and also some Asian countries. We see great potential in this partnership and look forward to a successful launch in Uruguay
Sales during the first quarter increased by 9% (excluding foreign exchange effects, 2%) compared to the corresponding period last year. Sales of products, excluding royalty revenues, increased by 19% (excluding foreign exchange effects, 11%). Our largest product, BioGaia Protectis baby drops, increased in all markets and our Adult Health portfolio, with above all BioGaia Protectis tablets and BioGaia Prodentis lozenges, grew by 54% which is the result of focus on this target group. Sales in the Americas decreased by 9% which is a consequence of quarterly variations. Costs increased by 28% for the core business (excluding the research-intensive subsidiaries BioGaia Pharma and MetaboGen) due to strategic investments to accelerate future growth. Including the subsidiaries, costs rose by 34%. The higher cost trend compared to the sales increase meant that operating profit decreased by 17% compared to the first quarter of 2018. Naturally, I do not see this as a lasting trend but rather a short-term effect of the change in our royalty agreement with Nestlé at the start of the year at the same time as we are making substantial investment in our operations.
Our study shows that supplementation with Lactobacillus reuteri 4659 twice a day for 10 days during the acute phase of uncomplicated diverticulitis results in reduction of both pain and inflammation, as well as shorter hospital stay. Based on these findings we suggest that patients with acute uncomplicated diverticulitis should be supplemented with this strain as a complement to standard antibiotic treatment
Osteoporosis is a common, global disease. Consequently, a way of maintaining good bone health and preventing osteoporosis constitutes an important focus area for BioGaia. I am very happy that our partner Everidis will launch BioGaia Osfortis in the USA. It is an important market with great potential for this product. Step by step more markets will launch BioGaia Osfortis.
“Free from” is a consumer driven trend and products without sugar, gluten and other additives are increasingly demanded. Within the nondairy probiotic market capsules is an important product formulation that matches the requirements. We are therefore happy to launch our first capsule product. The Finnish market is a mature probiotic market and we look forward to a successful launch. Later this year the capsules will be launched in more markets.
2018 was yet another year of strong growth for BioGaia. We achieved sales of SEK 742 million which represents growth of 16% excluding foreign exchange effects. Sales increased in all regions, EMEA, Asia Pacific and the Americas, and in both the Pediatrics and Adult Health segments. Our growth continues to outpace the market which is expected to grow by approximately 10% per year. As the new Managing Director, I am taking charge of a business with a positive trend – and with major potential.
I look forward to working in the fast-growing probiotics market, in a company with a unique combination of leading-edge research and a strong brand.
The third quarter of 2018 was yet another strong quarter with growth of 18% (10% after foreign exchange effects) compared to the corresponding period last year. The increase was driven by sales of BioGaia Protectis drops as well as by favorable growth for BioGaia Prodentis lozenges. Geographically, growth was strong across all three regions, EMEA, Asia Pacific and the Americas. It is worth noting that sales increased significantly in the USA and the rollout of BioGaia Gastrus tablets continues with good growth. Sales for the past 12-month period totaled SEK 702 million (584), an increase of 20% (19% after foreign exchange effects).
We are very satisfied to have reached such an important milestone in product development and look forward to coming studies and continued work together with BioGaia and our partners.
With an established and highly professional partner like bWellness I hope that sales of our well-documented BioGaia Protectis tablets in Australia will become a success
Our second quarter performance was very strong, with growth of 29% (26%, after foreign exchange effects) compared to the same quarter of last year. Thanks to solid growth in both the Pediatrics and Adult Health segments, we achieved sales of over SEK 200 million for the first time ever. Geographically, growth was strong across all three regions, EMEA, Asia Pacific and the Americas. At the same time, we would like to communicate that we foresee significantly lower royalty revenues from Nestlé as a consequence of the ongoing negotiations of our royalty agreement which terminates at the end of the year.
MetaboGen has quickly achieved the set milestones, which means that we will get a more extensive and even closer cooperation with the University of Gothenburg and Chalmers University of Technology within the hot microbiome area. We are looking forward to these collaborations with confidence.
Up to 50 percent of older women are affected by fractures. The fact that Lactobacillus reuteri ATCC PTA 6475 was shown to reduce bone loss in this group is therefore very promising. We hope that further studies will confirm the results, so that this new way of maintaining good bone health and thereby reducing the risk of fractures in old age can be of use both for the individual and the society.
We are very pleased that we have been able to recruit Isabelle. She has extensive knowledge and a solid international experience of leading positions in sales and consumer marketing, which has become an increasingly important component of our business development. Isabelle also has the intellectual curiosity and energy needed to be able to embark on the advanced research in our business areas including the microbiome field. Here, her experiences from the Swedish Childhood Cancer Fund are also well-suited.
I am happy that we are continuing our expansion in the Asian market by launching our products in yet another country.
Sales for the first quarter of 2018 amounted to SEK 157 million, which was an increase of 13% (excluding foreign exchange effects) compared to the corresponding period last year. Revenue for the first quarter of 2017 included compensation, from the agreement with Kabaya Ohayo in Japan, for knowhow, education and launch preparations. Adjusted for this revenue, sales rose by 18% (excluding foreign exchange effects). The growth in revenue was fueled mainly by robust development in the EMEA and Americas regions. I am also particularly pleased with the continued fine performance in Eastern Europe and Brazil as well as strong sales to the USA where our close collaboration with our partners is now yielding results.
The microbiome is a hot research area, and MetaboGen’s business is therefore perfectly in line with the development of the BioGaia Group. BioGaia’s core business, together with the subsidiary BioGaia Pharma and now also MetaboGen, provides us with a solid platform to continue to be at the leading edge of probiotic research
With a well-established and highly professional partner like Dr. Reddy’s, and considering the size of the Indian market, I hope for a good launch of our drops in India.
I am happy that Sunstar now launches our well documented oral health probiotic in several European markets. As the market for probiotics in oral health is growing we see a large potential for BioGaia Prodentis within the coming years.
I am very pleased that we are now launching new products together with Medhouse and look forward to building the BioGaia brand in our local market. Vitamin D deficiency is common here, especially during the winter, and therefore it is logical to introduce products containing a combination of L. reuteri Protectis and Vitamin D.
2017 was yet another successful year for BioGaia. With growth of 15%, we were able to boost our sales by SEK 80 million and achieve an annual turnover of SEK 615 million. We have thus continued our excellent trend of expanding our share of a market that is expected to grow by around 7% annually. Our operating profit exceeded 200 million for the first time and reached SEK 234 million, an increase of 17% that resulted in an operating margin of 38%. With the proof at hand, it is clear that we have very successfully managed to combine our development initiatives with a focus on sales.
We have a strong focus on growing our Asian business and I am very pleased that yet another of BioGaia’s products will be available in China. Based on the positive experience we already have in collaborating with Abbott in Latin America and Thailand, I look forward to a successful launch of BioGaia Protectis tabs with Abbott in China as well.
I am very pleased that we are now launching new products together with Medhouse and look forward to building the BioGaia brand also in our local market. Vitamin D deficiency is common among people living in the North, especially during the winter months. Therefore, it is logical that we now choose to introduce products containing both our patented lactic acid bacteria L. reuteri Protectis and vitamin D
These new meta-analyses once again confirm our position as the number one treatment for infants with colic. Health care professionals around the world can be totally reassured that they are suggesting an effective and safe treatment when recommending BioGaia Protectis drops to their patients.
Up to 50 percent of older women are affected by fractures. The fact that Lactobacillus reuteri ATCC PTA 6475 was shown to reduce bone loss in this group is therefore very promising. We hope that further studies will confirm the results, so that this new way of maintaining good bone health in old age can be of use.
We announced the results of this study already in October 2015 but now have the opportunity to highlight them again. The fact that L. reuteri Protectis may mitigate terrible consequences of diarrheal disease, like stunting, cognitive deficiencies and eventual adult accomplishments, and contribute to decrease in recurrent diarrhea, increased growth and improved quality of life for children in sub-Saharan countries is very encouraging.
Sales in the second quarter of 2017 reached SEK 156 million, which is an increase of 15% compared to the same period of last year. The strong second quarter, when sales to our important market Brazil gained new momentum, meant that for the first six months we achieved sales of SEK 297 million, a gross margin of 75% and an operating profit of SEK 115 million. We are on the right track and continue with the implementation of our strategic initiatives. I am also very pleased that in the quarter we established the subsidiary BioGaia Pharma AB to take advantage of the opportunities to develop drugs identified in the R&D activities conducted as part of our core business.
Sales during the first quarter of 2017 amounted to SEK 141 million, which was an increase of 5% compared to the corresponding period last year. This in combination with a strong gross margin meant that the operating profit reached SEK 56 million and increased by 9%. After the strong end of 2016, some countries had a slower sales start in 2017. Therefore, it was gratifying that we could compensate for this through revenues linked to the new agreements signed in December 2016 with Kabaya Ohayo Holding in Japan and continued growing royalty revenues by Nestlé.
We have a very strong focus on developing our oral health business and our sales of Prodentis, for which we have strong clinical evidence. I am therefore very happy that we have signed another three agreements with solid partners in both Canada and Asia.
I am very happy that we have signed this exclusive agreement which further confirms the fruitful collaboration we have with Nestlé. The Australian launch of our Protectis drops, which fits perfectly with Nestlé’s offering, is a great opportunity for us to broaden BioGaia’s reach in the Asia Pacific region.
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.
We have a strong focus on growing our Asian business and I am very pleased that BioGaia’s products will be available in another important country in the region. Based on the positive experience we already have in collaborating with Abbott in Latin America, I look forward to a successful launch of our products with Abbott in Thailand as well
“Through these two milestone agreements with Nippon Kabaya Ohayo Holdings Inc. we have secured another trusted partner in the complex Japanese market. In addition to the marketing and sales of our supplements we look forward to the creation of innovative functional foods based on our Lactobacillus reuteri strains”
Third quarter sales were driven by strong growth in Asia and Europe, where the launch of EasyDropper is continuing. Net sales for the first nine months reached SEK 395.9 million. It is highly gratifying that we have now passed the level for 2015, in spite of the major inventory build-up in Brazil last year. Promising is also the trend in Business Unit Adult Health, which has shown growth for two consecutive quarters. I would also like to mention that the clinical study on reduction of pregnancy gingivitis, which we have previously reported on, has been very well received by our partners, and it is very satisfying that we have signed a sales agreement in Western and Eastern Africa
I am very happy that we have signed an agreement that gives BioGaia access to Central and Eastern Africa, a market with large potential for our products. Phillips Pharma Group is a strong and reliable partner with local presence in several important markets and I look forward to a fruitful collaboration.
Net sales in the first half of 2016 reached SEK 269.9 million and it is very satisfying that we have reached the same level as in the same period of 2015 despite the large inventory build-up in Brazil in 2015. Second quarter earnings were driven by very strong sales in Europe where the Easy Dropper launch continues, strong sales in Asia and modest sales in the USA and Canada. With regard to the USA and Canada it is important to note that cumulative sales for January to June 2016 rose by 21% compared to the same period of last year. Furthermore, I would like to highlight the solid development in the Business Unit Adult Health which grew by 15 % compared to second quarter last year, partly driven by the continued roll-out of ProDentis and Gastrus. Finally, two new clinical studies, one on treatment of abdominal pain in children and the other on reduction of gingivitis in pregnant women (a new target group for us), have further demonstrated the strength of our products.
Our study shows that L. reuteri containing lozenges may be a valuable adjunct in the control of pregnancy gingivitis
Stomach pain is common among children and often affects the child’s daily life through for example anxiety and school absenteeism. It is therefore very gratifying that this study, which confirms earlier results with L. reuteri Protectis, shows that BioGaia ProTectis could offer these children an effective, safe and easy option.
Compared to the same period of last year, the first quarter of 2016 showed a varied palette of sales successes in Canada and the USA, modest development in Europe and declining sales in Asia and Rest of World. The highlights included the successful launch of our new Easy Dropper, which will eventually replace the glass bottles for our drops, and two meta-analyses that confirm the effectiveness of BioGaia ProTectis in colic and the effectiveness of BioGaia ProDentis in periodontitis. At the end of the period we distributed the shares in IBT to our shareholders, and since that time IBT is an independent company that is listed on Nasdaq First North.
A meta-analysis is considered the highest level of evidence of a health effect and now there are eight such meta-analyses with BioGaia ProTectis. While this clearly confirms BioGaia ProTectis as the number one treatment for infants with colic, it also reassures health care professionals around the world that they are suggesting an effective treatment when recommending BioGaia ProTectis drops to their patients.
BioGaia ProDentis as an adjunct in the management of patients with implants is a promising new indication. With BioWellTech we have a strong and experienced local partner within this area and we therefore hope for a successful launch of BioGaia ProDentis in Hong Kong.
The meta-analysis confirms BioGaia ProDentis' unique position as the only clinically proven probiotic for patients with chronic periodontitis. Today dental professionals around the world can be reassured that they are suggesting an effective treatment when recommending BioGaia ProDentis as an adjuvant to standard treatment to their patients. It is also encouraging that the authors suggest that L. reuteri may be used to reduce the use of systemic antibiotics and by that, potentially, lowering the risk for antibiotic resistance.
We cannot but feel happy and satisfied with the past year. Thanks to sales growth of 16% after exchange rate adjustments, we are now approaching sales of one half billion. According to our data, the total market for probiotic dietary supplements is expanding by around 8% annually, which means that we are winning market shares. Our operating profit reached SEK 152 million, resulting in an operating margin of over 31%. And this was achieved despite expenses of SEK 20.6 million for our subsidiary IBT. Without these expenses our operating margin would have been a full 36%.
The new meta-analysis once again confirms our position as the number one treatment for infants with colic. Today health care professionals around the world can be totally reassured that they are suggesting an effective treatment when recommending BioGaia ProTectis drops to their patients.
We are very happy to see that IBT has reached these important milestones. This confirms that IBT:s drug development to date meets the requirements of both agencies to begin clinical trials in premature infants, the most vulnerable of all humans.
We are now able to conduct clinical trials both in the US and in an EU country and we are naturally excited to move on with our drug development with the aim of satisfying the global need to find a preventive therapy for NEC.
Asia is a market with great potential and I am pleased that BioGaia’s products will be available in yet another country here. With the reputable local partner Axero we hope for a successful launch of our key products in Sri Lanka
I am pleased to say that sales and profit for the third quarter were highly satisfactory. In the past 12-month period sales were up by 41%, or 30% excluding foreign exchange effects