BioGaia AB Interim report 1 January – 30 June 2019

Comments from the CEO:
“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,” says Isabelle Ducellier, President and CEO of BioGaia.

Second quarter 2019

• Net sales amounted to SEK 222.3 million (200.9), an increase of 11% (excluding foreign exchange effects, 5%). Product sales, net sales excluding royalty revenues, increased by 20% (excluding foreign exchange effects, 14%).
• Net sales in the Pediatrics segment reached SEK 181.1 million (168.5), an increase of 8%. Product sales within Pediatrics amounted to SEK 178.6 million (150.7), an increase of 19%.
• Net sales in the Adult Health segment amounted to SEK 40.9 million (32.1), an increase of 27%.
• Operating profit amounted to SEK 78.5 million (79.9). Operating profit excluding revaluation of former associate shareholding amounted to SEK 78.5 million (72.9)1), an increase of 8%. 
• Profit after tax was SEK 61.1 million (55.7)1), an increase of 10%.
• Earnings per share totaled SEK 3.52 (3.22)1). No dilutive effects arose. 
• Cash flow amounted to SEK -155.7 million (-133.9). Cash flow included a dividend of SEK 173.4 million (156.0).

Key events in the second quarter of 2019

• BioGaia launches BioGaia Osfortis – a new product for prevention of osteoporosis.
• Study published showing that BioGaia’s probiotic reduces pain in patients with diverticulitis.

1 January – 30 June 2019

• Net sales amounted to SEK 393.6 million (357.5), an increase of 10% (excluding foreign exchange effects, 4%). Product sales, net sales excluding royalty revenues, increased by 20% (excluding foreign exchange effects, 13%).
• Net sales in the Pediatrics segment reached SEK 314.7 million (300.2), an increase of 5%. Product sales, excluding royalty revenues, within Pediatrics amounted to SEK 306.7 million (265.2), an increase of 16%.
• Net sales in the Adult Health segment amounted to SEK 78.6 million (56.5), an increase of 39%. 
• Operating profit amounted to SEK 125.0 million (136.1). Operating profit excluding revaluation of the former associate shareholding amounted to SEK 125.0 million (129.1)1), a decrease of 3%.
• Profit after tax was SEK 96.7 million (98.9)1), a decrease of 2%.
• Earnings per share totaled SEK 5.58 (5.73)1). No dilutive effects arose.
• Cash flow amounted to SEK -126.5 million (-94.1). Cash and cash equivalents at 30 June 2019 amounted to SEK 160.1 million (285.0).

Key events after the end of the second quarter

• New agreement with Abbott LatAm for the exclusive rights to sell BioGaia’s products in Uruguay.

1) Excluding revaluation of former associate shareholding in MetaboGen of SEK 7.0 million.

Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim report to be held today 8 August 2019 at 09:30 CET with CEO 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-q2-2019 .

This information is information that BioGaia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the CEO, on 8 August 2019 at 08:00 CET.

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

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