BioGaia AB – Year-end report 2018
Comments from the Managing Director:
“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,” says Isabelle Ducellier, Managing Director BioGaia.
Fourth quarter 2018
(Figures in parentheses and comparative figures in the text refer to the corresponding period of last year. The comparative figures in the balance sheet refer to 31 December 2017).
- Net sales amounted to SEK 209.7 million (170.1), an increase of 23% (excluding foreign exchange effects, 16%).
- Net sales in the Pediatrics segment reached SEK 158.0 million (138.6), an increase of 14%.
- Net sales in the Adult Health segment amounted to SEK 49.1 million (31.0), an increase of 58%.
- Operating profit amounted to SEK 75.1 million (61.9), an increase of 21%.The company has a changed accounting standard as of 1 January 2018, which means that foreign exchange gains/losses attributable to forward contracts are recognized in operating profit (previously in financial items). These amounted to SEK 2.6 million (-2.8). With an unchanged standard, operating profit would have amounted to SEK 72.5 million (64.7), an increase of 12%.
- Profit after tax was SEK 57.0 million (48.4), an increase of 18%.
- Earnings per share totaled SEK 3.29 (2.79). No dilutive effects arose.
- Cash flow amounted to SEK 26.9 million (65.5). The difference is due to increased working capital.
Key events in the fourth quarter of 2018
- Isabelle Ducellier took over as the new Managing Director in November.
- MetaboGen’s first product became ready for safety study.
Key events after year-end 2018
- No key events occurred after the end of the period.
Full year 2018
- Net sales amounted to SEK 741.9 million (615.0), an increase of 21% (excluding foreign exchange effects, 16%).
- Net sales in the Pediatrics segment reached SEK 596.5 million (492.6), an increase of 21%.
- Net sales in the Adult Health segment amounted to SEK 141.7 million (116.2), an increase of 22%.
- Operating profit amounted to SEK 277.4 million (233.0). Operating profit excluding revaluation of the former associate shareholding in MetaboGen, amounted to SEK 270.4 million (233.0), an increase of 16%. With an unchanged accounting standard (see comments on operating profit for the fourth quarter), operating profit, excluding the revaluation of MetaboGen, would have amounted to SEK 276.5 million (233.8), an increase of 18%.
- Profit after tax was SEK 214.2 million (180.6), an increase of 19%. Excluding revaluation of the former associate shareholding in MetaboGen, profit after tax rose 15%.
- Earnings per share totaled SEK 12.40 (10.42). No dilutive effects arose.
- Cash flow amounted to SEK -22.9 million (63.5). The negative cash flow is due to the acquisition of MetaboGen, dividends and an increase in working capital. Cash and cash equivalents at 31 December 2018 amounted to SEK 285.0 million (305.9).
- The Board proposes that the upcoming Annual General Meeting on 8 May 2019 approves an ordinary dividend according to the policy of SEK 4.05 (4.31) per share and an extraordinary dividend of SEK 5.95 (4.69) per share, amounting to a total dividend of SEK 10.00 (9.00) per share.
- The Board further proposes that the upcoming Annual General Meeting approves a provision of SEK 3.2 million (2.7) to the “Foundation to prevent antibiotic resistance”.
Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the year-end report to be held today 7 February 2019 at 09:30 CET with Managing Director Isabelle Ducellier. To participate in the teleconference, please see https://www.biogaia.com/investors/financial-calendar for telephone numbers. The teleconference can also be followed at https://tv.streamfabriken.com/biogaia-q4-2018.
This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording shall prevail.
For additional information contact:
Isabelle Ducellier, Managing Director, BioGaia AB, tel +46 8 555 293 00/+46 70-994 58 74
or Margareta Hagman, Executive Vice President, BioGaia AB, telephone 46 8-555 293 00/+46 708-72 82 33
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
BioGaia is an innovative Swedish healthcare company that develops, markets and sells probiotic products with documented health benefits. The products are sold through local distribution partners in around 100 countries worldwide. The class B share of the Parent Company BioGaia AB is quoted on the Mid Cap segment of Nasdaq Stockholm. www.biogaia.com