BioGaia AB Interim report 1 January – 30 June 2012
1 January – 30 June 2012
(Figures in brackets refer to the same period of last year)
- Net sales reached SEK 510.0 million (159.5). 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. Excluding license revenue from Nestlé, net sales amounted to SEK 154.0 million (159.5), a decrease of SEK 5.5 million (3%).
- Net sales of finished consumer products amounted to SEK 121.8 million (111.5), an increase of SEK 10.3 million (9%). Net sales of component products totalled SEK 387.3 million (47.3). Excluding license revenue from Nestlé, net sales of component products fell by 34%.
- Operating profit was SEK 401.5 million (57.3), an improvement of SEK 344.2 million. Excluding license revenue from Nestlé, operating profit was SEK 45.5 million (57.3), a decrease of SEK 11.8 million (21%).
- Profit after tax was SEK 299.9 million (42.2). Excluding license revenue, profit after tax was SEK 37.5 (42.2) million, a decrease of SEK 4.7 million (11%).
- Earnings per share totalled SEK 17.27 (SEK 2.38). Excluding license revenue, earnings per share amounted to SEK 2.08.
- The period’s total cash flow was SEK 243.1 million (-20.2). Cash flow includes payments from Nestlé amounting to SEK 356.0 million, investments in TwoPac of SEK 16.8 million (6.4), tax payments of SEK 41.3 million (24.5) and dividends of SEK 103.6 million (34.5). Cash and cash equivalents at 30 June 2012 totalled SEK 414.5 million (126.6).
Second quarter 2012
- Net sales reached SEK 75.7 million (89.6), a decrease of SEK 13.9 million (16%).
- Net sales of finished consumer products amounted to SEK 67.1 million (57.9), an improvement of SEK 9.2 million (16%). Net sales of component products totalled SEK 8.3 million (31.4), a decrease of SEK 23.1 million (74%).
- Operating profit was SEK 19.4 million (33.9), a decrease of SEK 14.5 million (43%).
- Profit after tax was SEK 16.7 million (23.7), a decrease of SEK 7.0 million (30%).
Key events in the second quarter of 2012
- Agreement for the sale of drops and tablets in Taiwan.
- BioGaia initiates investigative study in type 2 diabetics.
- Agreement for oral health products in the Czech Republic, the Benelux and South Africa.
- Agreement with Nestlé’s Gerber division for the sale of drops in the USA.
President´s comments
“Earlier this year, as previously mentioned, we signed several agreements with Nestlé through which they have among other things obtained exclusive rights to use Lactobacillus reuteri in infant formula throughout the term of patent in order to guarantee their access to our component product in this area. One effect of this is that our reported sales of component products have decreased, although this has been offset by license revenue from Nestlé. Within the framework of these agreements, we have also initiated a distribution collaboration with Nestlé for some of our existing finished consumer products and a close partnership in development of new products related to Nestlé’s business.
The extended partnership with Nestle is of major strategic importance for BioGaia and will also create additional resources for development of our own consumer products under the BioGaia brand. This has resulted in the already announced launch of our drops in the fourth quarter through Gerber (100% owned by Nestlé), which is one of the absolutely strongest players in the infant nutrition area in the USA. The product will be sold with prominent exposure of BioGaia’s brand. In view of Gerber’s position in the US market and the size of its investment, we anticipate substantial growth in our US sales next year and a significant increase in awareness of the BioGaia brand.
Our finished product sales have been affected by our termination of certain existing distribution agreements and the change to new distributors. In spite of this, sales of BioGaia’s finished consumer products rose by 9% in the first half of the year and 16% in the second quarter compared to the corresponding periods of 2011”, says Peter Rothschild president, BioGaia.
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 and CFO Margareta Hagman. To participate in the conference, please see http://www.biogaia.com/investor-relations for telephone numbers.
Latest press releases from BioGaia:
2012-06-13 BioGaia signs exclusive agreement for its probiotic drops and oral rehydration solution with Nestlé’s Gerber division in the United States
2012-05-15 BioGaia signs exclusive distribution agreements for its oral health products in the Czech Republic, the Benelux countries and South Africa
2012-05-14 BioGaia initiates investigative study in type 2 diabetics
BioGaia has published this information in accordance with the Swedish Securities Market Act. The information was issued for publication on 21 August 2012, 8:00 a.m. CET.
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
Tags: