BioGaia AB Interim management report 1 January – 30 September 2014

CEO’s comment
“The strong growth in sales during the quarter is gratifying, and the rolling 12 month performance, indicating where we are going long term, shows a 19 % increase. Our ambitions are higher than that, and considering the positive signals we are seeing in essentially all markets, we should be able to reach our historically high growth numbers within a not too distant future,” says Peter Rothschild, CEO of BioGaia AB.

Period from 1 January to 30 September 2014
(Figures in brackets refer to the same period of last year)

• Net sales amounted to SEK 360.4 million (225.7), an increase of SEK 134.7 million (60%). Net sales include license revenue of SEK 95.4 million from Nestlé. Excluding license revenue from Nestlé, net sales totalled SEK 265.0 million, an increase of 17% (excluding foreign exchange effects, 14%).
• Net sales in the Paediatrics business area reached SEK 215.9¹) million (173.0), up by SEK 42.9 million (25%).
• Net sales in the Adult Health business area amounted to SEK 46.4 million (51.5), a decrease of SEK 5.1 million (-10%).
• Operating profit was SEK 166.3 million (57.9), an increase of SEK 108.4 million (187%). Excluding license revenue from Nestlé, operating profit was SEK 70.9 million, an increase of 22% (excluding foreign exchange effects and operating expenses for the subsidiary IBT, 20%).
• Profit after tax was SEK 128.9 million (47.9), up by SEK 81.0 million (169%). Excluding license revenue from Nestlé, profit after tax was SEK 54.5 million, an increase of 14%.
• Earnings per share totalled SEK 7.50 (2.63). Excluding license revenue from Nestlé, earnings per share were SEK 3.19.
• The period’s cash flow was SEK -11.1 million (-131.7). Cash and cash equivalents at 30 September 2014 amounted to SEK 224.1 million (243.2).

Third quarter of 2014

• Net sales reached SEK 79.4 million (62.2), an increase of SEK 17.2 million (28%) (excluding foreign exchange effects, 23%).
• Net sales in the Paediatrics business area totalled SEK 67.6 million (45.2), an improvement of SEK 22.4 million (49%).
• Net sales in the Adult Health business area amounted to SEK 11.3 million (16.0), a decrease of SEK 4.7 million (-29%).
• Operating profit was SEK 17.6 million (13.8), an increase of SEK 3.8 million (28%) (excluding foreign exchange effects and operating expenses for the subsidiary IBT, 29%).
• Profit after tax was SEK 14.4 million (13.4), an improvement of SEK 1.0 million (7%).
• Earnings per share totalled SEK 0.84 (0.78).

Key events in the third quarter of 2014

• Launch of tablets in Brazil.

1) Excluding license revenue from Nestlé. Including license revenue from Nestlé, net sales in the Paediatrics business area amounted to SEK 311.3 million.

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 CEO Peter Rothschild. To participate in the teleconference please see www.biogaia.com/agenda.

BioGaia has published this information in accordance with the Swedish Securities Act. The information was issued for publication on 22 October 2014, 8.00 a.m. CET.

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