AI Terminal
BioGaia
Quarterly Report • Oct 21, 2022
3013_10-q_2022-10-21_67fe2287-dd70-4c5e-a0c4-83cd657ca686.pdf
Quarterly Report
Open in ViewerOpens in native device viewer
Interim Management Statement
JANUARY – SEPTEMBER 2022
THIRD QUARTER 2022
Net sales amounted to SEK 257.7 million (173.8), an increase of SEK 83.9 million, or 48% (excluding foreign exchange effects, 33%) of which the acquisition of Nutraceutics accounted for an increase of SEK 20.8 million (12%). Organic growth was 21%.
Net sales in the Paediatrics segment amounted to SEK 205.7 million (130.8), an increase of 57% (excluding foreign exchange effects, 41%).
Net sales in the Adult Health segment amounted to SEK 50.5 million (42.1), an increase of 20% (excluding foreign exchange effects, 7%).
Operating expenses amounted to SEK 92.0 million (60.7), an increase of SEK 31.4 million, (52%), of which the acquisition of Nutraceutics accounted for an increase of SEK 24.2 million (40%). Operating expenses included costs for evaluating acquisition candidates of SEK 0.0 million (0.1).
Operating profit increased by 40% to SEK 93.7 million (67.2), which corresponds to an operating margin of 36% (39%).
Profit after tax amounted to SEK 79.5 million (52.8), an increase of 50%.
Earnings per share amounted to SEK 0.79 (0.52) before and after dilution.2)
Cash flow amounted to SEK 37.3 million (55.6).
Cash and cash equivalents at 30 September 2022 amounted to SEK 1,402.4 million (1,529.7).
Key events in the third quarter of 2022
On 14 July, BioGaia announced that results for the second quarter exceeded market expectations.
On 29 August, BioGaia announced that it has built a pilot plant in Eslöv, Sweden, together with the subsidiary MetaboGen. The facility handles manufacturing of bacteria with different requirements during fermentation, both traditional lactobacilli as well as new, extremely oxygen-sensitive strains
On 22 September, BioGaia announced that BioGaia and Skinome have collaborated on the research and development of a product with live bacteria that can improve skin health in a natural way by supporting the skin microbiome.
JANUARY – SEPTEMBER 2022
Net sales amounted to SEK 829.7 million (578.9), an increase of SEK 250.7 million, or 43% (excluding foreign exchange effects, 32%) of which the acquisition of Nutraceutics accounted for an increase of SEK 50.2 million (9%). Organic growth was 24%.
Net sales in the Paediatrics segment amounted to SEK 661.0 million (453.6), an increase of 46% (excluding foreign exchange effects, 34%).
Net sales in the Adult Health segment amounted to SEK 165.5 million (121.7), an increase of 36% (excluding foreign exchange effects, 26%).
Operating expenses amounted to SEK 303.6 million (223.2), an increase of SEK 80.3 million (36%), of which the acquisition of Nutraceutics accounted for an increase of SEK 67.6 million (30%).
Operating expenses included costs of evaluation of acquisition candidates of SEK 1.1 million (2.6), restructuring costs (relating to personnel) of SEK 3.9 million (2.4) and the reversal of previous impairment of right-of-use assets linked to a rental contract for premises of SEK -1.7 million (5.1). Excluding these items, operating expenses amounted to SEK 300.3 million (213.2), an increase of 41%.
Operating profit increased by 45% to SEK 290.3 million (200.6), which corresponds to an operating margin of 35% (35%).
Profit after tax amounted to SEK 234.3 million (158.0), an increase of 48%.
Earnings per share amounted to SEK 2.32 (1.56) before and after dilution.2)
Cash flow amounted to SEK -101.8 million (56.7).
Key events after the end of the third quarter
On 17 October, BioGaia announced that profit for the third quarter exceeded market expectations.
1) Key ratio defined according to IFRS. For definitions of other key ratios, see page 15.
2) In view of the 5:1 share split, which took place in May 2022, historical key ratios based on the number of shares have been restated.
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 CEO, at 08:00 a.m. CEST on 21 October 2022.
BioGaia AB (publ.) Interim management statement 1 January – 30 September 2022
The Board of Directors and the CEO of BioGaia AB hereby present the interim management statement for the period 1 January – 30 September 2022.
CEO'S COMMENTS
It is very gratifying to present another strong quarter, which is the fifth consecutive quarter with double-digit growth. BioGaia increased net sales by 48% compared with the year-earlier quarter with an operating margin of 36%. The Paediatrics segment increased 57% and the Adult Health segment by 20%. This was despite an uncertain business environment, driven by high inflation and geopolitical concerns. Demand will probably remain strong for our Protectis drops for infants with colic regardless of the economic situation, while our products in the Adult Health segment for well-being may be affected by tougher economic times.
In our Americas market area, we can see that inflation is beginning to impact purchasing power in the USA. This mainly concerns sales of our products in retail, while e-commerce sales, primarily through Amazon, but also through Target and Walmart, are rising. After the summer break, when children and adults returned to their daily routines, we noted rising demand for our products for a better immune system and oral health. Extensive work is underway in Canada, where we will soon launch under own management, to ensure that we can take full advantage of valuable synergies with our USA operations. In Latin America, we saw excellent growth thanks to Brazil, Peru, Chile and Costa Rica, which all reported triple-digit sales growth. This is where we launched Gastrus, our product for more severe stomach problems, which was well received by gastroenterologists.
In EMEA, France, Italy and Spain are performing beyond expectations. To increase awareness of BioGaia in the UK, which is an important and relatively new market for us, we have an ongoing digital marketing campaign with the country's largest website for parents, Mumsnet. In parallel, we are continuing to invest in medical marketing, which includes participation in the PPPP Congress (Probiotics, Prebiotics, Postbiotics in Pediatrics), with the aim of continuing to build important relationships in the health profession. In Sweden, we are launching, in time for the common cold season, Pharax, which strengthens the immune system and supports children's upper respiratory health. In Finland, we are growing our presence in pharmacy chains and we have also secured a hospital tender for our Protectis drops.
APAC reported double-digit sales growth in China despite the ongoing Covid-restrictions. High infection rates in Japan are preventing visits to dentists, which normally represent a strong sales channel for us. Instead, we can see in both countries rising sales via ecommerce as a result of successful digital marketing on social platforms. In South Korea and Vietnam, we also noted triple-digit growth because of our digital presence.
As part of our strategy to control our entire value chain, we started a pilot fermentation plant where we will test the manufacturing of bacteria strains that are extremely oxygen-sensitive.
As we look back on another strong quarter, we feel well prepared to get through the very uncertain times ahead. We are continuing our prioritised strategy to selectively increase our marketing to consumers.
People will always prioritise good health and we remain optimistic about the future. Together, we are creating an innovative workplace where employees are enthusiastic and strive towards the same vision: to become the world's most trusted probiotic brand.
Isabelle Ducellier CEO BioGaia 21 October 2022
Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim management statement to be held today, 21 October 2022, at 9:30 a.m. CEST with CEO Isabelle Ducellier and CFO Alexander Kotsinas. More information about the teleconference is available here: https://financialhearings.com/event/43470
Revenue
Q3
2022
| Jul–Sep 2022 |
Jul–Sep 2021 |
Change | Jan–Sep 2022 |
Jan–Sep 2021 |
Change | |
|---|---|---|---|---|---|---|
| Paediatrics | 205.7 | 130.8 | 57% | 661.0 | 453.6 | 46% |
| Adult Health | 50.5 | 42.1 | 20% | 165.5 | 121.7 | 36% |
| Other | 1.5 | 0.9 | 63% | 3.3 | 3.7 | -11% |
| Total | 257.7 | 173.8 | 48% | 829.7 | 578.9 | 43% |
| Jul–Sep | Jul–Sep | Change | Jan–Sep | Jan–Sep | Change | |
| 2022 | 2021 | 2022 | 2021 | |||
| EMEA | 103.1 | 87.0 | 19% | 383.1 | 250.8 | 53% |
| APAC | 52.8 | 44.0 | 20% | 163.0 | 141.2 | 15% |
| AMERICAS | 101.8 | 42.9 | 137% | 283.6 | 187.0 | 52% |
| Total | 257.7 | 173.8 | 48% | 829.7 | 578.9 | 43% |
SALES THIRD QUARTER
Figures in parentheses refer to the corresponding period last year. Consolidated net sales amounted to SEK 257.7 million (173.8), an increase of SEK 83.9 million, or 48% (excluding foreign exchange effects, 33%) of which the acquisition of Nutraceutics accounted for an increase of SEK 20.8 million (12%).
Sales in EMEA totalled SEK 103.1 million (87.0), up 19% due to increased sales in both the Paediatrics and Adult Health segments. Sales in EMEA increased mainly in France and Eastern Europe.
Sales in APAC amounted to SEK 52.8 million (44.0), an increase of 20%. The increase was attributable to the Paediatrics segment while sales within Adult Health decreased. Sales increased primarily in China, Taiwan and South Korea.
Sales in Americas totalled SEK 101.8 million (42.9), up 137% due to increased sales in both the Paediatrics and Adult Health segments. Sales growth was strongest in the USA and Brazil. Sales in Nutraceutics rose by 8% in local currency.
| 2021 | 2022 | 2021 | 2022 | |||
|---|---|---|---|---|---|---|
| 46% | 453.6 | 661.0 | 57% | 130.8 | 205.7 | |
| 36% | 121.7 | 165.5 | 20% | 42.1 | 50.5 | |
| -11% | 3.7 | 3.3 | 63% | 0.9 | 1.5 | |
| 43% | 578.9 | 829.7 | 48% | 173.8 | 257.7 | |
| Change | Jan–Sep | Jan–Sep | Change | Jul–Sep | Jul–Sep | |
| 2021 | 2022 | 2021 | 2022 | |||
| 53% | 250.8 | 383.1 | 19% | 87.0 | 103.1 | |
| 15% | 141.2 | 163.0 | 20% | 44.0 | 52.8 | |
| 52% | 187.0 | 283.6 | 137% | 42.9 | 101.8 | |
| 43% | 578.9 | 829.7 | 48% | 173.8 | 257.7 | |
SALES JANUARY–SEPTEMBER
Figures in parentheses refer to the corresponding period last year. Consolidated net sales amounted to SEK 829.7 million (578.9), an increase of SEK 250.7 million, or 43% (excluding foreign exchange effects, 32%) of which the acquisition of Nutraceutics accounted for an increase of SEK 50.2 million (9%). Over the past 12-month period, sales rose 35%.
Sales in EMEA totalled SEK 383.1 million (250.8), up 53% due to increased sales in both the Paediatrics and Adult Health segments. Sales in EMEA increased mainly in Italy and France.
Sales in APAC totalled SEK 163.0 million (141.2), up 15% due to increased sales in the Paediatrics segment while the Adult Health segment decreased slightly. Sales increased mainly in South Korea and China, which was partly offset by lower sales in Japan.
Sales in Americas totalled SEK 283.6 million (187.0), up 52% due to increased sales in both the Paediatrics and Adult Health segments. Sales growth was strongest in the USA and Chile. Sales in Nutraceutics rose by 3% in local currency.
NET SALES BRIDGE THIRD QUARTER
| SEKm | Change | |
|---|---|---|
| 2021 | 173.8 | |
| Foreign exchange | 26.9 | 15% |
| Acquisitions | 20.8 | 12% |
| Organic growth | 36.2 | 21% |
| 2022 | 257.7 | 48% |
NET SALES BRIDGE JANUARY–SEPTEMBER
| SEKm | Change | |
|---|---|---|
| 2021 | 578.9 | |
| Foreign exchange | 63.8 | 11% |
| Acquisitions | 50.2 | 9% |
| Organic growth | 136.8 | 24% |
| 2022 | 829.7 | 43% |
Paediatrics
The Paediatrics segment accounts for approximately 80% of BioGaia's total sales. BioGaia Protectis drops remain the largest product with sales in some 90 countries. Other key products within Paediatrics include BioGaia Protectis drops with vitamin D, oral rehydration solution and tablets as well as cultures to be used as ingredients in licensee products (such as infant formula) and royalty revenues for paediatric products.
| SEKm | Jul–Sep 2022 |
Jul–Sep 2021 |
Change | Jan–Sep 2022 |
Jan–Sep 2021 |
Change |
|---|---|---|---|---|---|---|
| Total Paediatrics | 205.7 | 130.8 | 57% | 661.0 | 453.6 | 46% |
SALES THIRD QUARTER
Figures in parentheses refer to the corresponding period last year. Sales in the Paediatrics segment amounted to SEK 205.7 million (130.8),
an increase of 57% (excluding foreign exchange effects, 41%).
Sales increased in all regions. In Americas, sales increased mainly in Brazil and the USA, in EMEA mainly in France and Eastern Europe and in Asia mainly in China and South Korea.
Sales of BioGaia Protectis tablets within Paediatrics increased compared to the corresponding period last year. Sales increased in all regions, mainly in Spain.
SALES JANUARY–SEPTEMBER
Figures in parentheses refer to the corresponding period last year. Sales in the Paediatrics segment amounted to SEK 661.0 million (453.6),
an increase of 46% (excluding foreign exchange effects, 34%). Over the past 12-month period, sales rose 37%.
Sales of BioGaia Protectis drops increased compared to the corresponding period last year. Sales increased in EMEA mainly in Italy and France but also in Americas in USA.
Sales of BioGaia Protectis tablets within Paediatrics increased compared to the corresponding period last year. Sales increased in all regions, mainly in the USA.
Adult Health
The Adult Health segment accounts for approximately 20% of BioGaia's total sales. Sales mainly comprise BioGaia Protectis, BioGaia Gastrus, BioGaia Prodentis, BioGaia Osfortis, as well as cultures as an ingredient in a licensee's dairy products and Nutraceutics' own products.
| SEKm | Jul–Sep 2022 |
Jul–Sep 2021 |
Change | Jan–Sep 2022 |
Jan–Sep 2021 |
Change |
|---|---|---|---|---|---|---|
| Total Adult Health | 50.5 | 42.1 | 20% | 165.5 | 121.7 | 36% |
SALES THIRD QUARTER
Figures in parentheses refer to the corresponding period last year. Sales in the Adult Health segment amounted to SEK 50.5 million (42.1), an increase of 20% (excluding foreign exchange effects, 7%).
Sales of BioGaia Protectis tablets decreased compared to the corresponding period last year. Sales increased in EMEA primarily in Italy, but decreased in APAC and the Americas, mainly in Hong Kong and the USA.
Sales of BioGaia Gastrus increased compared to the corresponding period last year. Sales increased in APAC and the Americas, but decreased in EMEA. Sales increased mainly in the USA and Hong Kong.
Sales of BioGaia Prodentis increased compared to the corresponding period last year. Sales of BioGaia Prodentis increased in EMEA and the Americas but declined in APAC compared to the corresponding period last year, mainly due to reduced sales in Japan and China. Sales increased mainly in the USA and Germany.
SALES JANUARY–SEPTEMBER
Figures in parentheses refer to the corresponding period last year. Sales in the Adult Health segment amounted to SEK 165.5 million (121.7), an increase of 36% (excluding foreign exchange effects, 26%). Over the past 12-month period, sales rose 31%.
Sales of BioGaia Protectis tablets increased compared to the corresponding period last year. Sales increased primarily in Italy and Hong Kong, but decreased in the Americas, mainly in the USA.
Sales of BioGaia Gastrus increased compared to the corresponding period last year. Sales increased in all regions, mainly in the USA.
Sales of BioGaia Prodentis increased compared to the corresponding period last year. Sales of BioGaia Prodentis increased in the Americas and APAC but declined in EMEA compared to the corresponding period last year. Sales increased mainly in the USA and South Korea, which was partly offset by lower sales in Japan.
Earnings
THIRD QUARTER
Gross margin
Figures in parentheses refer to the corresponding period last year. The total gross margin for the quarter amounted to 72% (74%). The gross margin was negatively impacted by rising purchase prices. BioGaia has already initiated price increases to offset the higher purchase prices.
The gross margin for the Paediatrics segment amounted to 74% (75%) and for the Adult Health segment to 64% (67%).
Operating expenses and operating profit
Operating expenses amounted to SEK 92.0 million (60.7), an increase of SEK 31.4 million, (52%), of which the acquisition of Nutraceutics accounted for an increase of SEK 24.2 million (40%). Excluding other operating expenses (exchange losses/gains) operating expenses increased by 64%. Operating expenses included costs for evaluating acquisition candidates of SEK 0.0 million (0.1).
Excluding Nutraceutics (now BioGaia USA), operating expenses increased SEK 7.2 million (12%).
Selling expenses amounted to SEK 77.0 million (38.6), an increase of 100%, mainly due to the acquisition of Nutraceutics and increased costs for sales and marketing activities.
R&D expenses amounted to SEK 22.6 million (19.7), an increase of 14%.
R&D expenses include costs for the subsidiaries MetaboGen AB and BioGaia Pharma AB of SEK 3.6 million (4.3). The increase in R&D expenses excluding costs for MetaboGen AB and BioGaia Pharma AB are mainly attributable to higher study expenses during the period. Administrative expenses amounted to SEK 7.6 million (7.0), an increase of 8%. Administrative expenses included costs for evaluating acquisition candidates of SEK 0.0 million (0.1). Other operating expenses refers to exchange losses/gains on receivables and liabilities of an operating nature and amounted to SEK -15.1 million (-4.6).
Operating profit amounted to SEK 93.7 million (67.2), an increase of 40%. The operating margin was 36% (39%).
Profit after tax and earnings per share
Profit after tax amounted to SEK 79.5 million (52.8), an increase of 50%. The effective tax rate was 20% (21%).
Earnings per share amounted to SEK 0.79 (0.52). There are no dilutive effects.
JANUARY–SEPTEMBER
Gross margin
Figures in parentheses refer to the corresponding period last year. The total gross margin amounted to 72% (73%). The gross margin for the Paediatrics segment amounted to 73% (75%) and for the Adult Health segment to 64% (66%).
Operating expenses and operating profit
Operating expenses amounted to SEK 303.6 million (223.3), an increase of SEK 80.3 million, (36%), of which the acquisition of Nutraceutics accounted for an increase of SEK 67.6 million (30%). Excluding other operating expenses (exchange losses/gains) operating expenses increased by 44%. Operating expenses included costs of evaluation of acquisition candidates of SEK 1.1 million (2.6), restructuring costs (relating to personnel) of SEK 3.9 million (2.4) and the reversal of previous impairment of right-of-use assets linked to a rental contract for premises in Lund of SEK -1.7 million (5.1). Excluding costs for the evaluation of acquisition candidates and restructuring as well as the reversal of previous impairment of rightof-use assets linked to a rental contract for premises in Lund, operating expenses totalled SEK 300.3 million (213.2), an increase of SEK 87.1 million (41%). Excluding Nutraceutics, operating expenses increased SEK 12.8 million (6%).
Selling expenses amounted to SEK 232.3 million (125.8), an increase of 85%, mainly due to the acquisition of Nutraceutics and increased costs for sales and marketing activities. Personnel costs linked to restructuring amounted to SEK 1.9 million (2.4).
R&D expenses amounted to SEK 75.4 million (75.0), an increase of 1%. Personnel costs linked to restructuring amounted to SEK 1.9 million (0.0).
R&D expenses include costs for the subsidiaries MetaboGen AB and BioGaia Pharma AB of SEK 13.0 million (17.0).
Administrative expenses amounted to SEK 26.4 million (30.4), a decrease of 13%. The reduction in administrative expenses is attributable to decreased costs for evaluation of acquisition candidates of SEK 1.1 million (2.5) and the reversal of previous impairment of right-of-use assets linked to a rental contract for premises in Lund of SEK -1.7 million (5.1). Other operating expenses refers to exchange losses/gains on receivables and liabilities of an operating nature and amounted to SEK -30.4 million (-7.9).
Operating profit amounted to SEK 290.3 million (200.6), an increase of 45%. The operating margin was 35% (35%).
Operating profit excluding costs for the evaluation of acquisition candidates, restructuring costs and the reversal of previous impairment of right-of-use assets linked to a rental contract totalled SEK 293.6 million (210.7), an increase of SEK 82.9 million (39%). The operating margin excluding costs for the evaluation of acquisition candidates, restructuring costs and the reversal of previous impairment of right-of-use assets linked to a rental contract totalled 35% (36%).
Profit after tax and earnings per share
Profit after tax amounted to SEK 234.3 million (158.0), an increase of 48%. The effective tax rate was 21% (21%).
Earnings per share amounted to SEK 2.32 (1.56). There are no dilutive effects.
Balance sheet and cash flow
BALANCE SHEET 30 SEPTEMBER 2022
Total assets amounted to SEK 2,161.4 million (1,967.7). The increase is mainly explained by the acquisition of Nutraceutics carried out in the fourth quarter of 2021.
Goodwill from the acquisition of Nutraceutics was adjusted for currency translation, and amortisation of other surplus values identified in the acquisition. The financial liability for the additional purchase price was value adjusted. For more information, see Note 4. Since year-end, inventories have increased while trade payables have decreased.
CASH FLOW THIRD QUARTER
Cash flow amounted to SEK 37.3 million (55.6).
Cash flow from operating activities amounted to SEK 47.3 million (68.0). The decrease in cash flow in operations compared with the year-earlier period is due to a negative change in working capital which is mainly related to increased trade receivables as a result of increased sales and lower trade payables compared with the preceding period.
Cash and cash equivalents at 30 September 2022 amounted to SEK 1,402.4 million (1,529.7).
CASH FLOW JANUARY–SEPTEMBER
Cash flow amounted to SEK -101.8 million (56.7). Cash flow includes dividends of SEK 301.3 million (68.9).
Cash flow from operating activities amounted to SEK 227.6 million (165.6). The increase in cash flow in operations compared with the year-earlier period is due to higher operating profit that was offset by a slightly negative change in working capital.
Investments in property, plant and equipment amounted to SEK 18.4 million (3.2). Investments in financial assets of SEK 0.0 million (22.2) relate to acquisitions in the preceding period of shares in Boneprox AB and Skinome AB in conjunction with the establishment of BioGaia Invest AB.
Other disclosures
EMPLOYEES
The number of employees in the Group at 30 September 2022 totalled 195 (159).
The company has an incentive programme for all employees based partly on the company's sales and profit and partly on qualitative targets. The maximum bonus is equal to 12% of annual salary. In addition to this programme BioGaia has also implemented a subscription warrants programme as resolved by the 2021 Annual General Meeting.
FUTURE OUTLOOK
BioGaia's goal is to create strong value growth and a good return for the shareholders. This will be achieved through a greater emphasis on the BioGaia brand, online sales, increased sales to both existing and new customers and a controlled cost level.
The long-term financial target is an operating margin (operating profit in relation to sales) of at least 34% with continued strong growth and increased investments in research, product development, brand building and the sales organisation. BioGaia's dividend policy is to pay a shareholder dividend equal to 50% of profit after tax in the Parent Company.
In view of the company's strong portfolio consisting of an increased number of innovative products that are sold predominantly under the BioGaia brand, successful clinical trials and a strong distribution network that covers a large share of the key markets, BioGaia's future outlook remains bright.
SIGNIFICANT RISKS AND UNCERTAINTIES GROUP AND PARENT COMPANY
Significant risks and uncertainties are described in the administration report of the annual report for 2021 on pages 47 and 48 and in Notes 27 and 28. No significant changes in these risks and uncertainties are assessed to have taken place at 30 September 2022 except for the impact of Russia's invasion of Ukraine and the general macroeconomic situation as set out below.
There is uncertainty about how and the extent to which BioGaia's operations will be affected by the current conflict in Ukraine. BioGaia has no operations in Ukraine or Russia and no suppliers in these countries. In addition, there is uncertainty over the general macroeconomic situation with higher interest rates, inflation and cost increases, and it cannot be ruled out that BioGaia's revenues and costs could be affected by this.
RELATED PARTY TRANSACTIONS
The Parent Company owns 100% of the shares in BioGaia Probiotics Canada Inc, BioGaia UK Ltd, BioGaia Finland Oy, BioGaia Invest AB, MetaboGen AB, BioGaia Biologics Inc. USA, BioGaia Japan Inc, BioGaia Production AB, CapAble AB and Tripac AB. The Parent Company also owns 96% of the shares in BioGaia Pharma AB and 80% of the shares in Nutraceutics Inc.
Annwall & Rothschild Investment AB owns 3,703,340 class A shares and 500,000 class B shares, corresponding to 4.2% of the share capital and 27.9% of the voting rights in BioGaia AB. Annwall & Rothschild Investment AB is owned by Peter Rothschild and Jan Annwall. Peter Rothschild is Chairman of the Board of BioGaia AB and receives a director's fee of SEK 705,000 per year. During the quarter, Peter Rothschild received additional remuneration for significant working duties, in addition to his assignment on the Board, of SEK 150,000 in accordance with the decision of the Annual General Meeting and the Board of Directors.
KEY EVENTS IN THE THIRD QUARTER OF 2022
Launches in the third quarter of 2022
| Distributor | Country | Product |
|---|---|---|
| BioGaia | Sweden | BioGaia Pharax drops |
| Abbott | Costa Rica | BioGaia Gastrus tablets |
| Abbott | Panama | BioGaia Gastrus tablets |
| Phillips Therapeutics |
Nigeria | BioGaia Protectis drops |
| Phillips Therapeutics |
Nigeria | BioGaia Protectis tablets |
| BG Distribution | Hungary | BioGaia Pharax drops with vitamin D |
| Jaba Recordati | Portugal | BioGaia Protectis Easydroppar |
| Casen Recordati | Spain | BioGaia Protectis tablets with new flavour (strawberry) |
| Interbat | Indonesia | BioGaia Prodentis Kids lozenges |
| Nestlé | Brazil | B.Lactis drops with vitamin D |
BioGaia's result for second quarter exceeds market expectations. On 14 July, BioGaia announced that results for the second quarter exceeded market expectations.
MetaboGen and BioGaia start pilot plant for new bacteria strains. On 29 August, BioGaia announced that it has built a pilot plant in Eslöv together with the subsidiary MetaboGen. The facility handles manufacturing of bacteria with different requirements during fermentation, both traditional lactobacilli as well as new, extremely oxygen-sensitive strains
Skinome launches pioneering skincare probiotic following collaboration with BioGaia. On 22 September, BioGaia announced that BioGaia and Skinome have collaborated on the research and development of a product with live bacteria that can improve skin health in a natural way by supporting the skin microbiome. The first product, Skinome Probiotic Concentrate, will be available to consumers in Sweden from September 2022.
KEY EVENTS AFTER THE END OF THE THIRD QUARTER OF 2022
BioGaia's profit for third quarter exceeds market expectations. On 17 October, BioGaia announced that profit for the third quarter exceeded market expectations.
Accounting policies
In all material respects, this interim management statement has been prepared in accordance with Nasdaq OMX Stockholm's Guidelines for preparing interim management statements Disclosures according to IAS 34 Interim Financial Reporting are provided both in notes and elsewhere in the interim management statement. The accounting policies applied in the consolidated statements of comprehensive income and financial position are consistent with the accounting policies applied in preparation of the most recent annual report.
The financial accounts and segment information correspond to the statements used in interim financial reporting prepared in accordance with IAS 34 to provide comparability in the presentation between quarters. The interim management statement contains, among other things, comments from the CEO, although this is not required according to Nasdaq OMX Stockholm's Guidelines for preparing interim management statements This information is nonetheless considered important in meeting the users' needs
NEW ACCOUNTING STANDARDS
Management's assessment is that new and amended standards and interpretations that came into force in 2022 have not had a material effect on the Group's financial statements. Management's assessment is that new and amended standards and interpretations that have not yet come into effect will not have a material effect on the Group's financial statements for the period of initial application.
SUMMARY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| (Amounts in SEK 000s) | Jul–Sep | Jul–Sep | Jan–Sep | Jan–Sep | Jan–Dec | Oct 2021– | Oct 2020– |
|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | Sep 2022 | Sep 2021 | |
| Net sales (Note 1) | 257,733 | 173,841 | 829,674 | 578,947 | 785,110 | 1,035,837 | 766,557 |
| Cost of sales | -71,952 | -45,975 | -235,737 | -155,032 | -202,161 | -282,866 | -202,678 |
| Gross profit | 185,781 | 127,866 | 593,937 | 423,915 | 582,949 | 752,971 | 563,879 |
| Selling expenses | -77,003 | -38,556 | -232,260 | -125,831 | -192,437 | -298,865 | -175,504 |
| Administrative expenses | -7,575 | -7,011 | -26,395 | -30,389 | -42,546 | -38,552 | -37,616 |
| Research and development expenses | -22,557 | -19,718 | -75,374 | -74,988 | -105,467 | -105,853 | -104,622 |
| Other operating expenses/operating income | 15,089 | 4,598 | 30,425 | 7,940 | 11,238 | 33,723 | -240 |
| Operating profit | 93,735 | 67,179 | 290,333 | 200,647 | 253,737 | 343,424 | 245,897 |
| Financial income | 5,266 | 1 | 10,112 | 64 | 107 | 10,155 | 110 |
| Financial expenses | -200 | -239 | -5,281 | -633 | -1,132 | -5,780 | -793 |
| Profit before tax | 98,801 | 66,941 | 295,164 | 200,078 | 252,712 | 347,799 | 245,214 |
| Tax | -19,298 | -14,097 | -60,819 | -42,080 | -56,439 | -75,178 | -48,749 |
| Profit for the period | 79,503 | 52,844 | 234,345 | 157,998 | 196,273 | 272,621 | 196,465 |
| Items that may be subsequently reclassified to profit or loss Gains/losses arising on translation of the statements of foreign |
|||||||
| operations | 22,709 | 965 | 41,568 | 1,250 | 1,994 | 42,312 | 958 |
| Comprehensive income for the period | 102,212 | 53,809 | 275,913 | 159,248 | 198,267 | 314,933 | 197,423 |
| Profit for the period attributable to: Owners of the Parent Company |
79,503 | 52,844 | 234,345 | 157,998 | 196,273 | 272,621 | 196,465 |
| Non-controlling interests | – | – | – | – | – | – | – |
| 79,503 | 52,844 | 234,345 | 157,998 | 196,273 | 272,621 | 196,465 | |
| Comprehensive income for the period attributable to: | |||||||
| Owners of the Parent Company | 102,212 | 53,809 | 275,913 | 159,248 | 198,267 | 314,933 | 197,423 |
| Non-controlling interests | – | – | – | – | – | – | – |
| 102,212 | 53,809 | 275,913 | 159,248 | 198,267 | 314,933 | 197,423 | |
| Earnings per share | |||||||
| Earnings per share before dilution, (SEK) *) | 0.79 | 0.52 | 2.32 | 1.56 | 1.94 | 2.70 | 1.97 |
| Earnings per share after dilution, (SEK) *) | 0.79 | 0.52 | 2.32 | 1.56 | 1.94 | 2.70 | 1.97 |
| Number of shares (thousands) | 100,982 | 100,982 | 100,982 | 100,982 | 100,982 | 100,982 | 100,982 |
| Average number of shares before dilution, (thousands) *) | 100,982 | 100,982 | 100,982 | 100,982 | 100,982 | 100,982 | 99,483 |
| Average number of shares after dilution, (thousands) *) | 100,982 | 100,982 | 100,982 | 100,982 | 100,982 | 100,982 | 99,483 |
*) A bonus issue element from the 2020 new issue has been taken into account in the calculation of earnings per share before and after dilution, which means that comparative figures have been recalculated. There are no other dilutive effects. In view of the 5:1 share split, which took place in May 2022, historical key ratios based on the number of shares have been restated.
CONSOLIDATED BALANCE SHEETS
| Summary (amounts in SEK 000s) | 30 Sep 2022 |
30 Sep 2021 |
31 Dec 2021 |
|---|---|---|---|
| ASSETS | |||
| Property, plant and equipment | 149,147 | 127,121 | 138,555 |
| R&D projects in progress | 46,409 | 48,645 | 48,086 |
| Goodwill | 182,343 | 5,300 | 149,227 |
| Right-of-use assets | 14,174 | 16,599 | 15,080 |
| Financial assets | 25,793 | 22,229 | 22,229 |
| Deferred tax assets | 15,154 | 4,944 | 2,757 |
| Other non-current receivables | 52 | 42 | 43 |
| Total non-current assets | 433,072 | 224,880 | 375,977 |
| Current assets excl. cash and cash equivalents | 325,890 | 213,072 | 267,397 |
| Cash and cash equivalents | 1,402,409 | 1,529,736 | 1,484,680 |
| Total current assets | 1,728,299 | 1,742,808 | 1,752,077 |
| TOTAL ASSETS | 2,161,371 | 1,967,688 | 2,128,054 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to owners of the Parent Company | 1,848,841 | 1,838,810 | 1,877,365 |
| Non-controlling interests | 2 | 2 | 2 |
| Total equity (Note 2) | 1,848,843 | 1,838,812 | 1,877,367 |
| Deferred tax liability | 14,166 | 11,218 | 14,240 |
| Non-current liabilities | 124,995 | 13,601 | 109,493 |
| Current liabilities | 173,367 | 104,057 | 126,954 |
| TOTAL LIABILITIES AND EQUITY | 2,161,371 | 1,967,688 | 2,128,054 |
CONSOLIDATED CASH FLOW STATEMENTS
| Summary (amounts in SEK 000s) | Jul–Sep 2022 |
Jul–Sep 2021 |
Jan–Sep 2022 |
Jan–Sep 2021 |
Jan–Dec 2021 |
|---|---|---|---|---|---|
| Operating activities | |||||
| Operating profit | 93,735 | 67,179 | 290,333 | 200,647 | 253,737 |
| Depreciation/amortisation | 5,119 | 6,251 | 17,250 | 22,106 | 27,241 |
| Unrealised gains/losses on forward contracts | – | 296 | – | 2,403 | 2,403 |
| Other non-cash items | 582 | -4,496 | -12,048 | -5,189 | -2,356 |
| Paid tax | -20,727 | -16,851 | -56,670 | -52,731 | -55,934 |
| Interest received and paid | 2,179 | -238 | -2,889 | -569 | -1,068 |
| Cash flow from operating activities before changes in working capital |
80,888 | 52,141 | 235,976 | 166,667 | 224,023 |
| Changes in working capital | -33,619 | 15,814 | -8,352 | -1,057 | -2,148 |
| Cash flow from operating activities | 47,269 | 67,955 | 227,624 | 165,610 | 221,875 |
| Purchase of property, plant and equipment | -4,537 | -1,383 | -18,433 | -3,195 | -6,379 |
| Purchase of intangible assets | – | – | – | – | – |
| Purchase of financial assets | – | – | – | -22,229 | -22,229 |
| Acquisitions of subsidiaries | – | -11,441 | – | -11,441 | -98,359 |
| Cash flow from investing activities | -4,537 | -12,824 | -18,433 | -36,865 | -126,967 |
| Dividend | – | – | -301,331 | -68,870 | -68,870 |
| Repayment of loans from subsidiaries | – | – | – | – | -7,174 |
| Repayment of lease liability | -2,536 | -2,370 | -6,540 | -5,389 | -7,527 |
| Provision to Foundation to Prevent Antibiotic Resistance | -2,900 | – | -2,900 | -2,800 | -2,800 |
| New issue of warrants | – | 2,851 | – | 4,989 | 4,989 |
| Repurchase of warrants | – | – | -206 | – | -464 |
| Cash flow from financing activities | -5,436 | 481 | -310,977 | -72,070 | -81,846 |
| Cash flow for the period | 37,296 | 55,612 | -101,786 | 56,675 | 13,062 |
| Cash and cash equivalents at the beginning of the period | 1,356,344 | 1,468,935 | 1,484,680 | 1,467,883 | 1,467,883 |
| Exchange difference in cash and cash equivalents | 8,769 | 5,189 | 19,515 | 5,178 | 3,735 |
| Cash and cash equivalents at the end of the period | 1,402,409 | 1,529,736 | 1,402,409 | 1,529,736 | 1,484,680 |
NOTE 1 REPORTING BY SEGMENT – GROUP
Executive Management has analysed the Group's internal reporting and determined that the Group's operations are monitored and evaluated based on the following segments:
– Paediatrics segment (drops, gut health tablets, oral rehydration solution (ORS) and cultures to be used as ingredients in licensee products (such as infant formula) as well as royalty revenues for paediatric products.
– Adult Health segment (gut health tablets, oral health lozenges and cultures as an ingredient in a licensee's dairy products, Nutraceutics' own products as well as royalty revenues for Adult Health products).
– Other segment (smaller segments such as royalty from packaging solutions).
For the above segments BioGaia reports revenue and gross profit, which are monitored regularly by the CEO (who is regarded as the chief operating decision maker) together with the Executive Management. There is no monitoring of the company's total assets and liabilities against the segments' assets.
| Revenue by segment 2022 2021 2022 2021 2021 Sep 2022 Sep 2021 205,730 130,830 660,965 453,581 603,689 811,073 593,195 Paediatrics 42,089 50,502 165,456 121,694 176,855 220,616 169,003 Adult Health 1,501 922 3,253 3,672 4,566 4,148 4,359 Other Total 257,733 173,841 829,674 578,947 785,110 1,035,836 766,557 Gross profit by segment 98,556 152,207 484,549 340,280 458,480 602,747 446,725 Paediatrics 32,183 28,389 106,385 79,963 119,958 146,380 112,866 Adult Health 921 Other 1,391 3,003 3,672 4,511 3,843 4,288 127,866 Total 185,781 593,937 423,915 582,949 752,970 563,879 -65,285 Selling, administrative, R&D expenses -107,135 -334,029 -231,208 -340,450 -443,270 -317,742 4,598 33,723 Other operating expenses/income 15,089 30,425 7,940 11,238 -240 67,179 Operating profit 93,734 290,333 200,647 253,737 343,424 245,897 -238 4,375 Net financial items 5,066 4,831 -569 -1,025 -683 66,941 347,799 Profit before tax 98,800 295,164 200,078 252,712 245,214 Sales by geographical market APAC 34,890 21,719 90,675 68,686 101,469 123,458 91,681 Paediatrics 21,620 Adult Health 16,806 69,742 70,926 110,892 109,708 101,689 659 1,118 2,572 1,541 2,092 3,123 1,991 Other 43,998 52,813 162,989 141,153 214,453 236,288 195,361 Total APAC EMEA 73,325 87,533 337,197 214,294 288,383 411,286 285,044 Paediatrics 15,314 13,385 45,346 34,486 45,103 55,963 47,003 Adult Health 240 Other 301 517 2,049 2,318 786 2,270 86,950 Total EMEA 103,149 383,060 250,829 335,804 468,035 334,317 Americas 83,307 35,787 233,092 170,601 213,837 276,328 216,470 Paediatrics 7,084 18,382 50,368 16,283 20,860 54,945 20,312 Adult Health Other 82 22 165 81 156 239 97 42,893 101,771 283,625 186,965 234,853 331,513 236,879 Total Americas 173,841 |
Oct | |||||||
|---|---|---|---|---|---|---|---|---|
| (Amounts in SEK 000s) | Jul–Sep | Jul–Sep | Jan–Sep | Jan–Sep | Jan–Dec | 2021– | Oct 2020– | |
| Total | 257,733 | 829,674 | 578,947 | 785,110 | 1,035,836 | 766,557 |
| Jul–Sep | Jul–Sep | Jan–Sep | Jan–Sep | Jan–Dec | |
|---|---|---|---|---|---|
| Date of recognition Performance obligations met on specific date | |||||
| (Product sales) | 2022 | 2021 | 2022 | 2021 | 2021 |
| Paediatrics | 205,731 | 128,927 | 660,113 | 447,646 | 595,361 |
| Adult Health | 48,658 | 39,220 | 150,908 | 105,483 | 155,355 |
| Other | 1,247 | 713 | 2,858 | 2,057 | 2,748 |
| Total | 255,636 | 168,860 | 813,879 | 555,186 | 753,464 |
| Performance obligations met over time (Royalty) | |||||
| Paediatrics | 0 | 1,903 | 852 | 5,935 | 8,329 |
| Adult Health | 1,844 | 2,869 | 14,548 | 16,211 | 21,500 |
| Other | 253 | 209 | 395 | 1,615 | 1,817 |
| Total | 2,097 | 4,981 | 15,795 | 23,761 | 31,646 |
| Total | 257,733 | 173,841 | 829,674 | 578,947 | 785,110 |
NOTE 2 SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| (Amounts in SEK 000s) | Jan–Sep 2022 |
Jan–Sep 2021 |
Jan–Dec 2021 |
|---|---|---|---|
| Opening balance | 1,877,367 | 1,746,245 | 1,746,245 |
| New issue and repurchase of warrants | -206 | 4,989 | 4,525 |
| Dividend | -301,331 | -68,870 | -68,870 |
| Provision to Foundation to Prevent Antibiotic Resistance | -2,900 | -2,800 | -2,800 |
| Comprehensive income for the period | 275,913 | 159,248 | 198,267 |
| Closing balance | 1,848,843 | 1,838,812 | 1,877,367 |
NOTE 3 LARGEST SHAREHOLDERS AT 30 SEPTEMBER 2022 (SOURCE: MONITOR)
| A shares | B shares | Share capital |
No. of votes |
Capital | Votes | ||
|---|---|---|---|---|---|---|---|
| 1 | Annwall & Rothschild Investments AB | 3,703,340 | 500,000 | 840,668 | 37,533,400 | 4.2% | 27.9% |
| 2 | EQT | 11,164,630 | 2,232,926 | 11,164,630 | 11.1% | 8.3% | |
| 3 | Fjärde AP-fonden | 8,070,000 | 1,614,000 | 8,070,000 | 8.0% | 6.0% | |
| 4 | Premier Miton Investors | 6,215,183 | 1,243,037 | 6,215,183 | 6.2% | 4.6% | |
| 5 | TIN Fonder | 3,144,175 | 628,835 | 3,144,175 | 3.1% | 2.3% | |
| 6 | Cargill Inc | 3,000,000 | 600,000 | 3,000,000 | 3.0% | 2.2% | |
| 7 | Handelsbanken Fonder | 2,672,087 | 534,417 | 2,672,087 | 2.6% | 2.0% | |
| 8 | Tredje AP-fonden | 2,519,716 | 503,943 | 2,519,716 | 2.5% | 1.9% | |
| 9 | AMF Pension & Fonder | 2,275,985 | 455,197 | 2,275,985 | 2.3% | 1.7% | |
| 10 | Juno Investment Partners | 1,977,135 | 395,427 | 1,977,135 | 2.0% | 1.5% | |
| Other shareholders | 55,740,059 | 11,148,012 | 55,740,059 | 55.2% | 41.5% | ||
| Total | 3,703,340 | 97,278,970 | 20,196,462 | 134,312,370 | 100% | 100% |
NOT 4 FAIR VALUE
Financial liabilities
BioGaia has a financial liability relating to the additional purchase price in business acquisitions that is measured at fair value through profit or loss. The additional purchase price is due to the acquisition of Nutraceutics and is based on sales in Nutraceutics in 2026 or 2027. The amount, which will be settled in April 2027 or 2028, may also be adjusted if the agreed budget for marketing costs is exceeded.
BioGaia's best assessment of fair value at 30 September 2022 amounted to SEK 119.3 million. Estimates of fair value are based on Level 3 of the hierarchy for fair value, which means fair value is determined using valuation models where significant inputs are based on unobservable data. The measurement was based on anticipated future cash flows discounted with a market-based interest rate. The value adjustment compared with previous periods is attributable to a changed WACC due to an adjustment in the risk-free interest rate and also the time value. The value adjustment is recognised as financial income of SEK 4.0 million.
| Jan–Sep | Jan–Dec | |
|---|---|---|
| (Amounts in SEK 000s) | 2022 | 2021 |
| Opening balance | 100,591 | – |
| Value adjustment | -3,995 | – |
| Exchange differences | 22,662 | – |
| Closing balance | 119,258 | 100,591 |
Financial assets
BioGaia owns shares in the companies Boneprox AB and Skinome AB through BioGaia Invest at a cost of SEK 22.2 million. These financial assets are measured at fair value through profit or loss. Estimates of fair value are based on Level 3 of the hierarchy for fair value, which means fair value is determined using valuation models where significant inputs are based on unobservable data.
During the second quarter of 2022, Skinome AB completed a new issue and shares were revalued in an amount of SEK 3.6 million based on the subscription price. The revaluation was recognised as financial income of SEK 3.6 million in the second quarter. During the period, no additional transactions occurred in Boneprox AB or Skinome AB to indicate a change in value. Fair value of these financial assets therefore corresponds to cost for Boneprox AB and value adjustment value for Skinome AB.
The fair values of other receivables, cash and cash equivalents, trade payables and other liabilities are estimated to be equal to their carrying amounts (amortised cost) due to the short maturities.
Consolidated key ratios
| Jan–Sep 2022 | Jan–Sep 2021 | Jan–Dec 2021 | |
|---|---|---|---|
| Net sales, SEK 000s | 829,674 | 578,947 | 785,110 |
| Growth of net sales | 43% | 3% | 5% |
| Operating profit, SEK 000s | 290,333 | 200,647 | 253,737 |
| Profit after tax, SEK 000s | 234,345 | 157,998 | 196,274 |
| Return on equity | 13% | 9% | 11% |
| Return on capital employed | 16% | 11% | 14% |
| Capital employed, SEK 000s | 1,863,009 | 1,850,030 | 1,891,607 |
| Number of shares, thousands | 100,982 | 100,982 | 100,982 |
| Average number of shares before dilution, thousands 1) | 100,982 | 100,982 | 100,982 |
| Average number of shares after dilution, thousands 1) | 100,982 | 100,982 | 100,982 |
| Earnings per share before dilution, SEK 1) | 2.32 | 1.56 | 1.94 |
| Earnings per share after dilution, SEK 1) | 2.32 | 1.56 | 1.94 |
| Equity per share, SEK 1) | 18.31 | 18.21 | 18.59 |
| Equity/assets ratio | 86% | 93% | 88% |
| Operating margin | 35% | 35% | 32% |
| Profit margin | 36% | 35% | 32% |
| Average number of employees | 193 | 158 | 161 |
1) Key ratio defined according to IFRS.
A list of definitions of key ratios reported in the consolidated financial statements is provided on page 60 of BioGaia's annual report for 2021. In this report, BioGaia reports information used by Executive Management to assess the Group's development. Some of the key ratios presented are not defined according to IFRS. The company is of the opinion that these metrics provide valuable complementary information to stakeholders and the company's management since they contribute to evaluation of relevant trends and the company's performance. Since not all companies calculate key ratios in the same manner, these are not always comparable to metrics used by other companies. These key ratios should therefore not be seen as a replacement for metrics defined according to IFRS. With effect from 3 July 2016, ESMA's guidelines on alternative performance measures are applied which means extended disclosure requirements regarding key ratios not defined according to IFRS. A reconciliation of key ratios that BioGaia considers relevant according to these guidelines is provided below.
DEFINITIONS OF KEY RATIOS
| Key ratio | Definition/calculation | Purpose |
|---|---|---|
| Return on equity | Profit attributable to the owners of the Parent Company divided by average equity attributable to the owners of the Parent Company. |
Return on equity is used to measure profit generation, over time, given the resources attributable to the owners of the Parent Company. |
| Return on capital employed |
Profit before net financial items plus financial income as a percentage of average capital employed. |
Return on capital employed is used to analyse profitability, based on the amount of capital used. |
| Gross margin | Gross profit as a percentage of net sales. | The gross margin is used to measure profitability. |
| Equity per share | Equity attributable to the owners of the Parent Company divided by the average number of shares. |
Equity per share measures the company's net value per share and indicates whether a company will increase the shareholders' wealth over time. |
| Average number of shares |
Time-weighted number of outstanding shares during the year taking bonus issue elements into account. |
Used to calculate equity and earnings per share. |
| Earnings per share |
Profit for the period attributable to owners of the Parent Company divided by the average number of shares (definition according to IFRS). |
EPS measures how much of net profit is available for payment to the shareholders as dividends per share. |
| Operating margin (EBIT margin) |
Operating profit expressed as a percentage of net sales. |
The operating profit margin is used to measure operational profitability. |
| Equity/assets ratio | Shareholders' equity at the end of the period as a percentage of total assets. |
A traditional metric to show financial risk expressed as the share of total assets financed by the shareholders. Shows the company's stability and ability to withstand losses. |
| Capital employed | Total assets less interest-free liabilities. | Capital employed measures the company's ability, in addition to cash and liquid assets, to meet the requirements of business operations. |
| Growth | Sales for the period less sales for the year-earlier period divided by sales for the year-earlier period. Breakdown by foreign exchange, organic growth and acquisitions. |
Shows the company's realised sales growth over time. |
| Profit margin | Profit before tax as a percentage of net sales. | This key ratio makes it possible to compare profitability regardless of the corporate income tax. |
KEY RATIO
| (Amounts in SEK 000s) | |||
|---|---|---|---|
| Return on equity | Jan–Sep 2022 | Jan–Sep 2021 | Jan–Dec 2021 |
| Profit attributable to owners of the Parent Company (A) | 234,345 | 157,998 | 196,273 |
| Equity attributable to owners of the Parent Company | 1,848,841 | 1,838,810 | 1,877,365 |
| Average equity attributable to owners of the Parent Company (B) | 1,863,103 | 1,792,527 | 1,811,804 |
| Return on equity (A/B) | 13% | 9% | 11% |
| Return on capital employed | |||
| Operating profit | 290,333 | 200,647 | 253,737 |
| Financial income | 10,112 | 64 | 107 |
| Profit before net financial items + financial income (A) | 300,445 | 200,711 | 253,844 |
| Total assets | 2,161,371 | 1,967,688 | 2,128,054 |
| Interest-free liabilities | -298,362 | -117,658 | -236,447 |
| Capital employed | 1,863,009 | 1,850,030 | 1,891,607 |
| Average capital employed (B) | 1,877,308 | 1,803,794 | 1,824,582 |
| Return on capital employed (A/B) | 16% | 11% | 14% |
KEY RATIO
| (Amounts in SEK 000s) | 30 Sep | 30 Sep | 31 Dec |
|---|---|---|---|
| Equity/assets ratio | 2022 | 2021 | 2021 |
| Equity (A) | 1,848,843 | 1,838,812 | 1,877,367 |
| Total assets (B) | 2,161,371 | 1,967,688 | 2,128,054 |
| Equity/assets ratio (A/B) | 86% | 93% | 88% |
| Operating margin | |||
| Operating profit (A) | 290,333 | 200,647 | 253,737 |
| Net sales (B) | 829,674 | 578,947 | 785,110 |
| Operating margin (A/B) | 35% | 35% | 32% |
| Profit margin | |||
| Profit before tax (A) | 295,164 | 200,078 | 252,712 |
| Net sales (B) | 829,674 | 578,947 | 785,110 |
| Profit margin (A/B) | 36% | 35% | 32% |
| Equity per share | |||
| Equity attributable to owners of the Parent Company (A) | 1,848,841 | 1,838,810 | 1,877,365 |
| Average number of shares (B) | 100,982 | 20,196 | 100,982 |
| Equity per share (A/B) | 18.31 | 91.05 | 18.59 |
CHANGE IN SALES BY SEGMENT (INCLUDING AND EXCLUDING FOREIGN EXCHANGE EFFECTS)
| Paediatrics | Adult Health | Other | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|
| (Amounts in SEK 000s) | Jul–Sep 2022 |
Jan–Sep 2022 |
Jul–Sep 2022 |
Jan–Sep 2022 |
Jul–Sep 2022 |
Jan–Sep 2022 |
Jul–Sep 2022 |
Jan–Sep 2022 |
|
| A | Description Previous year's net sales according to the average rate |
130,830 | 453,581 | 42,089 | 121,694 | 922 | 3,672 | 173,841 | 578,947 |
| B | Net sales for the year according to the average rate |
205,730 | 660,964 | 50,502 | 165,456 | 1,501 | 3,254 | 257,733 | 829,674 |
| C | Recognised change (B-A) | 74,899 | 207,383 | 8,413 | 43,762 | 579 | -418 | 83,892 | 250,727 |
| Percentage change (C/A) | 57% | 46% | 20% | 36% | 63% | -11% | 48% | 43% | |
| D | Net sales for the year according to the previous year's average rate |
184,075 | 609,848 | 45,225 | 152,788 | 1,501 | 3,254 | 230,801 | 765,890 |
| E | Foreign exchange effects (B–D) | 21,655 | 51,116 | 5,277 | 12,668 | 0 | 0 | 26,932 | 63,784 |
| Percentage change (E/A) | 17% | 11% | 13% | 10% | 0% | 0% | 15% | 11% | |
| G | Change acquisitions (excl. foreign exchange effects) |
13,919 | 27,576 | 6,851 | 22,595 | 0 | 0 | 20,770 | 50,171 |
| Percentage change (G/A) | 11% | 6% | 16% | 19% | 0% | 0% | 12% | 9% | |
| F | Organic change (C–E–G) | 39,325 | 128,691 | -3,715 | 8,499 | 579 | -418 | 36,190 | 136,772 |
| Organic change, % (F/A) | 30% | 28% | -9% | 7% | 63% | -11% | 21% | 24% |
| Average key exchange rates | Jul–Sep 2022 |
Jul–Sep 2021 |
Jan–Sep 2022 |
Jan–Sep 2021 |
Jan–Dec 2021 |
|---|---|---|---|---|---|
| EUR | 10.58 | 10.16 | 10.46 | 10.14 | 10.13 |
| USD | 10.43 | 8.56 | 9.82 | 8.41 | 8.49 |
| JPY | 0.0758 | 0.0788 | 0.0775 | 0.0782 | 0.0781 |
| Closing date key exchange rates | 30 Sep 2022 |
30 Sep 2021 |
31 Dec 2021 |
|---|---|---|---|
| EUR | 10.92 | 10.20 | 10.23 |
| USD | 11.12 | 8.79 | 9.04 |
| JPY | 0.0771 | 0.0786 | 0.0785 |
| Pledged assets and contingent liabilities | GROUP | |||
|---|---|---|---|---|
| (Amounts in SEK 000s) | 30 Sep 2022 |
30 Sep 2021 |
31 Dec 2021 |
|
| Floating charges | 0 | 0 | 0 | |
| Contingent liabilities | None | None | None |
Financial calendar
2023
8:00 a.m. CET Interim management statement 1 January–31 March 2023 5 MAY
8:00 a.m. CET Interim Report 1 January–30 June
8:00 a.m. CEST Interim management statement 1 January – 30 September 2023 20 OCT
Stockholm, 21 October 2022
Isabelle Ducellier CEO
This interim management statement has not been audited.
BioGaia AB
THE COMPANY
BioGaia is an innovative Swedish healthcare company and has been a world-leader in food supplements with probiotics for more than 30 years. BioGaia develops, markets and sells probiotic products with documented health benefits. The products are primarily based on different strains of the lactic acid bacterium Limosilactobacillus* reuteri.
The class B shares of the Parent Company BioGaia AB are quoted on the Mid Cap List of Nasdaq Stockholm.
BUSINESS MODEL
BioGaia's business model is based on long-term collaboration with international networks within research, production and distribution.
BioGaia's revenue comes mainly from the sale to distributors of drops, tablets and capsules for gut health, oral rehydration solution (ORS), lozenges for oral health and capsules for bone health. Revenue is also earned from the sale of bacterial cultures to be used in licensee products (such as infant formula and dairy products), as well as royalties for the use of L. reuteri in licensee products.
The products are sold through pharmaceutical and nutrition companies in over 100 countries.
BioGaia holds patents for the use of certain strains of L. reuteri and certain packaging solutions in all major markets.
THE BIOGAIA BRAND
BioGaia launched its own consumer brand at the beginning of 2006. Today a number of distribution partners sell finished products under the BioGaia brand in a large number of markets. One central part of BioGaia's strategy is to increase the proportion of sales consisting of BioGaia-branded products. Of products (drops, tablets for gut and oral health, oral rehydration, etc.) sold in 2021, 81% (77%) were sold under the BioGaia brand including cobranding.
Some of BioGaia's distributors sell finished consumer products under their own brand names. On these products, the BioGaia brand is shown on the consumer package since BioGaia is both the manufacturer and licensor.
BioGaia's licensees add L. reuteri culture to their products and sell these under their own brand names. On these products, the BioGaia brand is most often shown on the package as the licensor/patent holder.
RESEARCH AND CLINICAL STUDIES
BioGaia's L. reuteri strains are among the most studied probiotics in the world, especially in young children. To date, over 230 clinical studies with BioGaia's L. reuteri strains have been performed on more than 18,000 individuals of all ages.
Studies have been performed on:
- Infantile colic
- Antibiotic-associated diarrhoea (AAD)
- Acute diarrhoea
- Gingivitis (inflammation of the gums)
- Periodontal disease
- Helicobacter pylori (the gastric ulcer bacterium)
- Low bone density
- Diverticulitis
* Previously Lactobacillus.