BioGaia AB Interim report (1 January - 30 September 2013)

President’s comments:

“As I have pointed out before, we monitor our own performance based on the rolling 12-month figures. Sales of finished consumer products grew by 12%, excluding foreign exchange effects, and component products fell by 25% (due to the Nestlé deal in 2012). But we are aiming higher. In view of the development in most of the countries where we are active and the new product launches we are planning, we have no intention of changing this ambition,” says Peter Rothschild, President of BioGaia.

Period from 1 January to 30 September 2013
(Figures in brackets refer to the same period of last year)

• Net sales reached SEK 225.7 million (216.8¹), an increase of SEK 8.9 million (4%). Excluding foreign exchange effects, net sales improved by 7%.
• Net sales of finished consumer products amounted to SEK 181.1 million (172.0), representing growth of SEK 9.1 million (5%). Excluding foreign exchange effects, net sales improved by 9%.
• Net sales of component products amounted to SEK 43.6 million (43.8¹), a decrease of SEK 0.2 million (0.5%). Excluding foreign exchange effects, net sales rose by 1%.
• Operating profit was SEK 57.9 million (58.9¹), down by SEK 1.0 million (2%). Excluding foreign exchange effects, operating profit improved by 2%.
• Profit after tax was SEK 47.9 million (51.7¹), a decrease of SEK 3.8 million (7%).
• Earnings per share totalled SEK 2.63 (2.88¹).
• The period’s total cash flow was SEK -131.7 million (233.3). Last year’s cash flow included payment of SEK 356.0 million in licence revenue from Nestlé. Cash and cash equivalents at 30 September 2013 totalled SEK 243.2 million (404.1). Cash flow since 30 September 2012 includes dividends of SEK 172.7 million, tax payments of SEK 37.7 million, equipment investments in TwoPac of SEK 13.3 million and the acquisition of shares in TwoPac of SEK 30.0 million.

Third quarter of 2013

• Net sales amounted to SEK 62.2 million (62.8), down by SEK 0.6 million (1%). There were no material foreign exchange effects on sales in the quarter.
• Net sales of finished consumer products totalled SEK 46.4 million (50.2), a decrease of SEK 3.8 million (8%).
• Net sales of component products amounted to SEK 15.7 million (12.5), an improvement of SEK 3.2 million (26%).
• Operating profit was SEK 13.8 million (13.5), an increase of SEK 0.3 million (2%). Excluding foreign exchange effects, operating profit decreased by 3%.
• Profit after tax was SEK 13.4 million (14.2), a decrease of SEK 0.8 million (6%).

Key events in the third quarter of 2013

• BioGaia acquires remaining 50% of TwoPac.
• FDA approves BioGaia’s request for orphan drug designation.
• New study shows that Lactobacillus reuteri Prodentis improves treatment of patients with periodontal disease.

Key events after the end of the third quarter

• Meta-analysis regarding Lactobacillus reuteri Protectis and colic.

1) Excluding license revenue from Nestlé. Net sales and profit for the previous year also included license revenue of SEK 356.0 million from Nestlé for a perpetual license to use Lactobacillus reuteri Protectis in infant formula during the remaining term of the patent, which is regarded as non-recurring revenue. Including license revenue from Nestlé, net sales for the period January-September 2012 amounted to SEK 572.8 million, operating profit to SEK 414.9 million, profit after tax to SEK 314.1 million and earnings per share to SEK 18.07.

Teleconference: You are welcome to take part in a teleconference on the interim report that will be held today at 9:30 a.m. by President Peter Rothschild. To participate in the conference, please see www.biogaia.com/agenda.

BioGaia has published this information in accordance with the Swedish Securities Market Act. The information was issued for publication on 23 October 2013, 8:00 a.m. CET.

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

Latest press releases from BioGaia:

• 2013-10-10 Meta-analysis: Lactobacillus reuteri Protectis only probiotic effective in treating colic
• 2013-08-22 BioGaia AB Interim report 1 January – 30 June 2013
• 2013-08-16 New study shows: Lactobacillus reuteri Prodentis improves periodontal treatment

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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