BioGaia AB - Year-end report 2014

CEO’s comments:
“A sales growth of 22% (including licence revenue from Nestlé 53 %) and an operating margin of 26%¹ for the full year 2014, can only be summed up as a successful year,” says Peter Rothschild, CEO of BioGaia AB. “The fourth quarter showed even better growth than the full year and it is once again gratifying to see that almost all of our markets are growing at a solid pace and that the BioGaia brand is becoming increasingly established, particularly among paediatricians, as the safest and most effective probiotic on the market,” adds Peter Rothschild.

Full year 2014
(Figures in brackets refer to the same period of last year) 

• Net sales amounted to SEK 481.8 million (315.9), an increase of SEK 165.9 million (53 %). Net sales include license revenue of SEK 95.4 million from Nestlé. Excluding license revenue from Nestlé, net sales totalled SEK 386.4 million, an increase of 22% (excluding foreign exchange effects, 18%).
• Net sales in the Paediatrics Business Unit reached SEK 313.7¹ million (238.6), up by SEK 75.1 million (31%).
• Net sales in the Adult Health Business Unit amounted to SEK 69.4 million (75.6), a decrease of SEK 6.2 million (-8%).
• Operating profit was SEK 196.9 million (81.7), an increase of SEK 115.2 million (141%). Excluding license revenue from Nestlé, operating profit was SEK 101.5 million, an increase of 24% (excluding foreign exchange effects and operating expenses for the subsidiary IBT, 21%).
• Profit after tax was SEK 148.0 million (64.2), up by SEK 83.8 million (130%). Excluding license revenue from Nestlé, profit after tax was SEK 73.6 million, an increase of 15%.
• Earnings per share totalled SEK 8.53 (3.57). Excluding license revenue from Nestlé, earnings per share were SEK 4.23.
• The period’s cash flow was SEK -25.0 million (-140.8). Cash and cash equivalents at 31 December 2014 amounted to SEK 210.7 million (234.3).
• The Board proposes to the upcoming AGM an ordinary dividend of SEK 3.46 per share and an extraordinary dividend of SEK 1.54 per share, for a total dividend of SEK 5.00 per share.

Fourth quarter 2014

• Net sales reached SEK 121.4 million (90.2), an increase of SEK 31.2 million (35%) (excluding foreign exchange effects, 28%).
• Net sales in the Paediatrics Business Unit totalled SEK 97.8 million (65.6), an improvement of SEK 32.2 million (49%).
• Net sales in the Adult Health Business Unit amounted to SEK 23.0 million (24.1), a decrease of SEK 1.1 million (-4%).
• Operating profit was SEK 30.6 million (23.8), an increase of SEK 6.8 million (29 %) (excluding foreign exchange effects and operating expenses for the subsidiary IBT, 23%).
• Profit after tax was SEK 19.1 million (16.3), an improvement of SEK 2.8 million (17%).
• Earnings per share totalled SEK 1.04 (0.94).

Key events in the fourth quarter of 2014

• Publication of additional study showing that infants with colic cry less with BioGaia’s drops.
• Publication of study showing that BioGaia Protectis tablets are effective in constipated adults.
• BioGaia decides to invest in MetaboGen AB.

Key events after the end of the year

• Agreement for the sale of drops in Vietnam.
• Nestlé launches new products with BioGaia´s probiotic.

1) Excluding license revenue from Nestlé. Including license revenue from Nestlé, net sales in the Paediatrics business unit amounted to SEK 409.1 million and operating margin to 41%.

Teleconference: You are welcome to take part in a teleconference on the year-end report that will be held today at 9:00 a.m. by CEO Peter Rothschild. To participate in the teleconference please see further information at: www.biogaia.com/agenda.

BioGaia has published this information in accordance with the Swedish Securities Act. The information was issued for publication on 12 February 2015, 8:00 a.m.

This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording shall prevail.

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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