Reduced sales due to delivery delays
(Figures in brackets refer to the corresponding period last year)
BioGaia has suffered from delivery delays from one of its external suppliers. The supplier, which is based in Belgium, packs BioGaia Protectis tablets, BioGaia Prodentis tablets and BioGaia Gastrus tablets in aluminum packaging. The delays are caused by the supplier’s implementation of a new IT system in its production.
BioGaia estimates that the delays will affect sales to distribution partners and earnings in both Q3 and Q4, 2019. For the third quarter, sales are expected to amount to approximately SEK 167 (175) million, of which product sales will be SEK 162 (157) million. Operating profit for the third quarter is expected to amount to approximately SEK 49 (66) million. The profit/loss effect of the delivery delays for quarter 4 is too early to comment on, but we assess product sales on an annual basis to be satisfactory.
“The delivery delays are of course very unfortunate, but we believe that the decline in sales is temporary and that the delays will not affect our long-term expectations and sales and marketing strategies. However, we are reviewing our procurement procedures to reduce the risk of similar problems occurring again,” says Isabelle Ducellier, CEO, BioGaia AB.
BioGaia publishes its Interim report for quarter 3 on Wednesday, 23 October 2019 at 8:00 am with the subsequent conference call at 9:30 am.
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 10 October 2019 at 08:45pm CET.
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For additional information please contact
Isabelle Ducellier, Chief Operating Director, telephone: +46 8 555 293 00, +46 70 191 73 62
Margareta Hagman, Executive Vice President Accounting & Finance & Investor Relations: +46 70 872 82 33
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