BioGaia AB – Interim management statement 1 January – 30 September 2018

Comments from the Managing Director: 
“The third quarter of 2018 was yet another strong quarter with growth of 18% (10% after foreign exchange effects) compared to the corresponding period last year. The increase was driven by sales of BioGaia Protectis drops as well as by favorable growth for BioGaia Prodentis lozenges. Geographically, growth was strong across all three regions, EMEA, Asia Pacific and the Americas. It is worth noting that sales increased significantly in the USA and the rollout of BioGaia Gastrus tablets continues with good growth. Sales for the past 12-month period totaled SEK 702 million (584), an increase of 20% (19% after foreign exchange effects)” says Sebastian Schröder, Acting Managing Director of BioGaia.

Third quarter 2018
(Figures in parentheses and comparative figures in the text refer to the corresponding period of last year. The comparative figures in the balance sheet refer to 31 December 2017).

• Net sales amounted to SEK 174.7 million (147.7), an increase of 18% (excluding foreign exchange effects, 10%).
• Net sales in the Pediatrics segment reached SEK 138.3 million (111.1), an increase of 24%.
• Net sales in the Adult Health segment amounted to SEK 36.0 million (35.7), an increase of 1%.
• Operating profit amounted to SEK 66.2 million (53.8), an increase of 23%. The company has changed an accounting standard as of 1 January 2018, which means that foreign exchange gains/losses attributable to forward contracts are recognized in operating profit or loss (previously among financial items). These amounted to SEK 5.0 million (0.2). With an unchanged standard, operating profit would have increased by 14%.
• Profit after tax was SEK 51.4 million (42.1), an increase of 22%.
• Earnings per share totaled SEK 2.97 (2.43). No dilutive effects arose.
• Cash flow amounted to SEK 44.3 million (37.9).  

Key events in the third quarter 2018

• At the beginning of July, BioGaia acquired an additional 30% in MetaboGen for SEK 27.8 million. The shareholding in MetaboGen thereby amounts to 92%.

Key events after the end of the third quarter

• BioGaia’s subsidiary MetaboGen’s first microorganisms are ready to be used in a safety study.

1 January – 30 September 2018 

• Net sales amounted to SEK 532.2 million (444.9), an increase of 20% (excluding foreign exchange effects, 16%).
• Net sales in the Pediatrics segment reached SEK 438.5 million (354.0), an increase of 24%.
• Net sales in the Adult Health segment amounted to SEK 92.6 million (85.2), an increase of 9%.
• Operating profit amounted to SEK 202.3 million (171.1). Operating profit, excluding revaluation of the former associate shareholding in MetaboGen, amounted to SEK 195.3 million (171.1), an increase of 14%. The company has changed an accounting standard as of 1 January 2018, which means that foreign exchange gains/losses attributable to forward contracts are recognized in operating profit or loss (previously in financial items). These amounted to SEK -8.7 million (+2.0). With an unchanged standard, operating profit would have increased by 21%.
• Profit after tax was SEK 157.3 million (132.2), an increase of 19%. Excluding revaluation of the former associate shareholding in MetaboGen, profit after tax rose 14%.
• Earnings per share totaled SEK 9.10 (7.63). No dilutive effects arose.
• Cash flow for the period was SEK -49.8 million (-2.0). Cash and cash equivalents at 30 September 2018 amounted to SEK 257.5 million (305.9).

Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim report to be held today, 24 October 2018 at 09:30 CET with Acting Managing Director Sebastian Schröder.

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-q3-2018.

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 agency of the acting Managing Director, on 24 October 2018 at 08:00 CET.

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