Interim / Quarterly Report • Jul 22, 2022
Interim / Quarterly Report
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JANUARY – JUNE 2022
Net sales amounted to SEK 288.1 million (203.1), an increase of SEK 85.0 million, or 42% (excluding foreign exchange effects, 33%) of which the acquisition of Nutraceutics accounted for an increase of SEK 13.6 million (7%). Organic growth was 26%.
Net sales in the Paediatrics segment amounted to SEK 232.7 million (161.1), an increase of 44% (excluding foreign exchange effects, 34%).
Net sales in the Adult Health segment amounted to SEK 54.2 million (40.9), an increase of 33% (excluding foreign exchange effects, 24%).
Operating expenses amounted to SEK 104.6 million (81.6), an increase of SEK 23.0 million, (28%), of which the acquisition of Nutraceutics accounted for an increase of SEK 22.3 million (27%). Operating expenses included costs for evaluating acquisition candidates of SEK 0.3 million (0.0) and the reversal of previous impairment of right-of-use assets linked to a rental contract for premises of SEK -1.7 million (0.0). Excluding these items, operating expenses amounted to SEK 106.0 million (81.6), an increase of 30%.
Operating profit increased by 46% to SEK 101.3 million (69.2), which corresponds to an operating margin of 35% (34%).
Profit after tax amounted to SEK 78.5 million (54.7), an increase of 44%.
Earnings per share amounted to SEK 0.78 (0.54) before and after dilution.2)
Cash flow amounted to SEK -224.9 million (-16.2). Cash flow includes dividends of SEK 301.3 million (68.9).
Cash and cash equivalents at 30 June 2022 amounted to SEK 1,356.3 million (1,468.9).
On 25 April, BioGaia announced that the company's result for the first quarter exceeded market expectations. On 6 May, BioGaia's Annual General Meeting resolved on a split of the company's shares whereupon each share, regardless of series, will be divided in to five new shares.
On 17 May, BioGaia announced that it will begin selling its products under its own management in Canada starting in 2023. On 31 May, BioGaia announced that the number of shares and votes in BioGaia had increased during May due to the share split resolved by BioGaia's Annual General Meeting on 6 May 2022. On 8 June, BioGaia announced that it had extended its collaboration with Grace International, giving the company exclusive rights to market and sell its probiotic drops for infants
Net sales amounted to SEK 571.9 million (405.1), an increase of SEK 166.8 million, or 41% (excluding foreign exchange effects, 32%) of which the acquisition of Nutraceutics accounted for an increase of SEK 29.4 million (7%). Organic growth was 25%.
Net sales in the Paediatrics segment amounted to SEK 455.2 million (322.8), an increase of 41% (excluding foreign exchange effects, 32%).
Net sales in the Adult Health segment amounted to SEK 115.0 million (79.6), an increase of 44% (excluding foreign exchange effects, 35%).
Operating expenses amounted to SEK 211.6 million (162.6), an increase of SEK 49.0 million (30%), of which the acquisition of Nutraceutics accounted for an increase of SEK 43.3 million (27%).
Operating expenses included costs of evaluation of acquisition candidates of SEK 1.1 million (2.5), 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 208.3 million (152.6), an increase of 37%.
Operating profit increased by 47% to SEK 196.6 million (133.5), which corresponds to an operating margin of 34% (33%).
Profit after tax amounted to SEK 154.8 million (105.1), an increase of 47%.
Earnings per share amounted to SEK 1.53 (1.04) before and after dilution.2)
Cash flow amounted to SEK -139.1 million (1.1). Cash flow includes dividends of SEK 301.3 million (68.9).
On 1 July, BioGaia announced that the company had launched BioGaia Pharax in the USA. BioGaia Pharax aims to strengthen the immune system and support children's upper respiratory health.
On 14 July, BioGaia announced that results for the second quarter will exceed 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 22 July 2022.
BioGaia AB (publ.) Interim Report 1 January – 30 June 2022
The Board of Directors and the CEO of BioGaia AB hereby present the interim report for the period 1 January – 30 June 2022.
Following a very strong first quarter, I am pleased to present yet another very strong quarter with sales up +42% and an operating margin of 35% due to good cost control.
This successful quarter is a reflection of the recovery in Europe, EMEA grew +86%, where BioGaia has historically had its strongest base. In markets such as Italy or Spain, where our marketing is mainly to doctors and pharmacies, we have triple-digit sales growth. As travel increases and there is a return to a more normal life, the risk of disease is also increasing as is the need for probiotics together with antibiotics, which is driving consumers back to doctors and pharmacies. Our omnichannel strategy is yielding results both through our own e-commerce solutions such as in the UK and Sweden, where the proportion of subscribers is higher than expected, and through our pragmatic approach to market places. By complementing our listing on Amazon Sweden and UK, we are now listed on Amazon Germany together with our partner Infectopharm. This commercial hybrid solution offers the best of both worlds: leveraging our distributor expertise in medical marketing and our consumer expertise in digital sales.
In the Americas, which grew +21%, BioGaia USA has continued to impress with its expertise in medical and consumer marketing, which explains the success of the latest launch of Prodentis Kids that is recommended by paediatricians and dentists and is widely available with good reviews on market places. BioGaia USA's sales fell slightly during the quarter, mainly due to strong comparative figures. During the second quarter of 2021, Nutraceutics' (now BioGaia USA) sales were positively affected by campaigns. Together with BioGaia USA, we are organising the opening of BioGaia Canada in January 2023 to supplement coverage in North America. The rate of growth in Latin America remains in double digits driven by excellent work targetting HCP in Colombia, Peru and Chile, and that our launch in Argentina was more successful than expected.
Last, but by no means least, APAC, which reported growth of 16%, is meeting our expectations where almost all of our markets are performing well, particularly our omnichannel masters in region: South Korea and Indonesia. We can even see some signs of recovery in China with logistics that are working better and cities that are reopening after strict Covid-restrictions. Japan is still struggling with its dental clinics that were negatively affected by Covid-19 but is offsetting sales lost from dental clinics through e-commerce solutions and direct sales.
The macroeconomic situation (inflation, disruption in the logistics chain, pandemic and war) is forcing us to remain cautious as the impact on disposable income should not be ignored. However, we are convinced that consumers will continue to focus on their health and the probiotic category will demonstrate its resilience.
I am also pleased to receive continuing confirmation of the strong commitment to our revised strategy, internally and in our distribution channels, that combines science and brand marketing. We are striving hard to achieve our goal to become the best probiotic brand in the world.
Isabelle Ducellier President and CEO BioGaia 22 July 2022
Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim report to be held today, 22 July 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/43469
Q2
2022
| Apr–Jun 2022 |
Apr–Jun 2021 |
Change | Jan–Jun 2022 |
Jan–Jun 2021 |
Change | |
|---|---|---|---|---|---|---|
| Paediatrics | 232.7 | 161.1 | 44% | 455.2 | 322.8 | 41% |
| Adult Health | 54.2 | 40.9 | 33% | 115.0 | 79.6 | 44% |
| Other | 1.2 | 1.1 | 6% | 1.8 | 2.7 | -36% |
| Total | 288.1 | 203.1 | 42% | 571.9 | 405.1 | 41% |
| Apr–Jun | Apr–Jun | Change | Jan–Jun | Jan–Jun | Change | |
| 2022 | 2021 | 2022 | 2021 | |||
| EMEA | 129.5 | 69.7 | 86% | 279.9 | 163.9 | 71% |
| APAC | 63.3 | 54.8 | 16% | 110.2 | 97.2 | 13% |
| AMERICAS | 95.3 | 78.6 | 21% | 181.9 | 144.1 | 26% |
| Total | 288.1 | 203.1 | 42% | 571.9 | 405.1 | 41% |
Figures in parentheses refer to the corresponding period last year. Consolidated net sales amounted to SEK 288.1 million (203.1), an increase of SEK 85.0 million, or 42% (excluding foreign exchange effects, 33%) of which the acquisition of Nutraceutics accounted for an increase of SEK 13.6 million (7%).
Sales in EMEA totalled SEK 129.5 million (69.7), up 86% due to increased sales in both the Paediatrics and Adult Health segments. Sales in EMEA increased mainly in Italy and France.
Sales in APAC amounted to SEK 63.3 million (54.8), an increase of 16%. The increase was attributable to the Paediatrics segment while sales within Adult Health decreased. Sales increased primarily in China and South Korea.
Sales in the Americas amounted to SEK 95.3 million (78.6), an increase of 21%. The increase was mainly attributable to the Adult Health segment, though sales within Paediatrics also increased. Sales increased mainly in the USA and Canada, which was partly offset by lower sales in Brazil. The decrease in Brazil was due to accruals related to individual orders. Sales in Nutraceutics fell by 6% in local currency.
| 2022 2021 2022 2021 232.7 161.1 44% 455.2 322.8 54.2 40.9 33% 115.0 79.6 1.2 1.1 6% 1.8 2.7 288.1 203.1 42% 571.9 405.1 Apr–Jun Change Jan–Jun Jan–Jun 2022 2021 2022 2021 129.5 69.7 86% 279.9 163.9 63.3 54.8 16% 110.2 97.2 95.3 78.6 21% 181.9 144.1 288.1 203.1 42% 571.9 405.1 |
||||
|---|---|---|---|---|
| Apr–Jun | ||||
Figures in parentheses refer to the corresponding period last year. Consolidated net sales amounted to SEK 571.9 million (405.1), an increase of SEK 166.8 million, or 41% (excluding foreign exchange effects, 32%) of which the acquisition of Nutraceutics accounted for an increase of SEK 29.4 million (7%). Over the past 12-month period, sales rose 31%.
Sales in EMEA totalled SEK 279.9 million (163.9), up 71% 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 110.2 million (97.2), up 13% due to increased sales in both the Paediatrics and Adult Health segments. Sales increased mainly in South Korea and Hong Kong, which was partly offset by lower sales in Japan.
Sales in Americas totalled SEK 181.9 million (144.1), up 26% due to increased sales in both the Paediatrics and Adult Health segments. Sales increased mainly in the USA and Chile, which was partly offset by lower sales in Brazil. The decrease in Brazil was due to accruals related to individual orders. Sales in Nutraceutics rose by 1% in local currency.
| SEKm | Change | |
|---|---|---|
| 2021 | 203.1 | |
| Foreign exchange | 19.2 | 9% |
| Acquisitions | 13.6 | 7% |
| Organic growth | 52.1 | 26% |
| 2022 | 288.1 | 42% |
| SEKm | Change | |
|---|---|---|
| 2021 | 405.1 | |
| Foreign exchange | 36.9 | 9% |
| Acquisitions | 29.4 | 7% |
| Organic growth | 100.6 | 25% |
| 2022 | 571.9 | 41% |
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 | Apr–Jun | Apr–Jun | Change | Jan–Jun | Jan–Jun | Change |
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Total Paediatrics | 232.7 | 161.1 | 44% | 455.2 | 322.8 | 41% |
Figures in parentheses refer to the corresponding period last year. Sales in the Paediatrics segment amounted to SEK 232.7 million (161.1),
an increase of 44% (excluding foreign exchange effects, 34%).
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 China and the USA.
Sales of BioGaia Protectis tablets increased within Paediatrics compared to the corresponding period last year. Sales increased in all regions, mainly in the USA.
Figures in parentheses refer to the corresponding period last year. Sales in the Paediatrics segment amounted to SEK 455.2 million (322.8),
an increase of 41% (excluding foreign exchange effects, 32%). Over the past 12-month period, sales rose 30%.
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 decreased in Brazil, due to accruals related to individual orders.
Sales of BioGaia Protectis tablets increased within Paediatrics compared to the corresponding period last year. Sales increased in all regions, mainly in the USA.
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 | Apr–Jun 2022 |
Apr–Jun 2021 |
Change | Jan–Jun 2022 |
Jan–Jun 2021 |
Change |
|---|---|---|---|---|---|---|
| Total Adult Health | 54.2 | 40.9 | 33% | 115.0 | 79.6 | 44% |
Figures in parentheses refer to the corresponding period last year. Sales in the Adult Health segment amounted to SEK 54.2 million (40.9), an increase of 33% (excluding foreign exchange effects, 24%).
Sales of BioGaia Protectis tablets increased 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 EMEA and the Americas, primarily in Spain and the USA, but decreased in APAC, mainly in Thailand.
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. Sales increased mainly in the USA and Eastern Europe.
Figures in parentheses refer to the corresponding period last year. Sales in the Adult Health segment amounted to SEK 115.0 million (79.6), an increase of 44% (excluding foreign exchange effects, 35%). Over the past 12-month period, sales rose 36%.
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 EMEA and the Americas, primarily in the USA and Spain, but decreased in APAC, mainly in Thailand.
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.
Figures in parentheses refer to the corresponding period last year. The total gross margin for the quarter amounted to 71% (74%). The gross margin for the Paediatrics segment amounted to 73% (75%). The gross margin for the Adult Health segment was negatively impacted by product mix effects and campaigns and amounted to 63% (70%).
Operating expenses amounted to SEK 104.6 million (81.6), an increase of SEK 23.0 million, (28%), of which the acquisition of Nutraceutics accounted for an increase of SEK 22.3 million (27%). Excluding other operating expenses (exchange losses/gains) operating expenses increased by 49%. Operating expenses included costs for evaluating acquisition candidates of SEK 0.3 million (0.0) and revenue from the reversal of previous impairment of right-of-use assets linked to a rental contract for premises in Lund of SEK -1.7 million (0.0).
Excluding costs for the evaluation of acquisition candidates and the reversal of previous impairment of right-of-use assets linked to a rental contract for premises in Lund, operating expenses totalled SEK 106.0 million (81.6), an increase of SEK 24.4 million (30%). Excluding Nutraceutics (now BioGaia USA), operating expenses increased SEK 0.7 million (1%).
Selling expenses amounted to SEK 83.2 million (44.0), an increase of 89%, mainly due to the acquisition of Nutraceutics and increased costs for sales and marketing activities.
R&D expenses amounted to SEK 27.9 million (28.1), a decrease of 1%.
R&D expenses include costs for the subsidiaries MetaboGen AB and BioGaia Pharma AB of SEK 4.6 million (6.8).
Administrative expenses amounted to SEK 7.8 million (7.7), an increase of 1%. Administrative expenses included costs for evaluating acquisition candidates of SEK 0.3 million (0.0) 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 (0.0). Other operating expenses refers to exchange losses/gains on receivables and liabilities of an operating nature and amounted to SEK -14.2 million (1.8).
Operating profit amounted to SEK 101.3 million (69.2), an increase of 46%. The operating margin was 35% (34%).
Operating profit excluding costs for the evaluation of acquisition candidates, restructuring costs and the revaluation of right-of-use assets linked to a rental contract totalled SEK 99.9 million (69.2), an increase of SEK 30.7 million (44%). 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% (34%).
Profit after tax amounted to SEK 78.5 million (54.7), an increase of 44%. The effective tax rate was 21% (21%).
Earnings per share amounted to SEK 0.78 (0.54). There are no dilutive effects.
Figures in parentheses refer to the corresponding period last year. The total gross margin amounted to 71% (73%). The gross margin for the Paediatrics segment amounted to 73% (75%). The gross margin for the Adult Health segment amounted to 65% (65%).
Operating expenses amounted to SEK 211.6 million (162.6), an increase of SEK 49.0 million, (30%), of which the acquisition of Nutraceutics accounted for an increase of SEK 43.3 million (27%). Excluding other operating expenses (exchange losses/gains), operating expenses increased by 37%. Operating expenses included costs of evaluation of acquisition candidates of SEK 1.1 million (2.5), 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 208.3 million (152.6), an increase of SEK 55.7 million (37%). Excluding Nutraceutics, operating expenses increased SEK 5.7 million (4%).
Selling expenses amounted to SEK 155.3 million (87.3), an increase of 78%, 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 52.8 million (55.3), a decrease of 4%. 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 9.4 million (12.7). The decrease in R&D expenses excluding costs for MetaboGen AB and BioGaia Pharma AB are mainly attributable to lower study expenses during the period. Administrative expenses amounted to SEK 18.8 million (23.4), a decrease of 19%. 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 -15.3 million (-3.3).
Operating profit amounted to SEK 196.6 million (133.5), an increase of 47%. The operating margin was 34% (33%).
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 199.9 million (143.5), an increase of SEK 56.4 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% (35%).
Profit after tax amounted to SEK 154.8 million (105.2), an increase of 47%. The effective tax rate was 21% (21%).
Earnings per share amounted to SEK 1.53 (1.04). There are no dilutive effects.
The Parent Company's net sales amounted to SEK 501.4 million (378.4) and profit before tax was SEK 188.9 million (109.0). The financial performance of the Parent Company is in all material respects in line with that of the Group.
Total assets amounted to SEK 2,082.7 million (1,935.8). 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 foreign exchange, and amortisation has begun for 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, trade receivables and inventories have increased while trade payables have decreased.
Cash flow amounted to SEK -224.9 million (-16.2). Cash flow includes dividends of SEK 301.3 million (68.9).
Cash flow from operating activities amounted to SEK 87.3 million (55.8). The increase in cash flow in operations compared with the year-earlier period is due to higher operating profit and a positive change in working capital.
Cash and cash equivalents at 30 June 2022 amounted to SEK 1,356.3 million (1,468.9).
Cash flow amounted to SEK -139.1 million (1.1).
Cash flow from operating activities amounted to SEK 180.3 million (97.7). The increase in cash flow in operations compared with the year-earlier period is due to higher operating profit and a positive change in working capital.
Investments in property, plant and equipment amounted to SEK 13.9 million (1.8). Investments in financial assets of SEK 0.0 million (22.2) relate to acquisition in the preceding period of shares in Boneprox AB and Skinome AB in conjunction with the establishment of BioGaia Invest AB.
The number of employees in the Group at 30 June 2022 totalled 195 (157).
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.
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 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 June 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.
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.
Q2
2022
| Distributor | Country | Product |
|---|---|---|
| Abbott | Ecuador | BioGaia Protectis drops with vitamin D |
| Abbott | Ecuador | BioGaia Protectis tablets with vitamin D |
| Ethical Nutrition | Argentina | BioGaia Protectis drops |
| Ethical Nutrition | Argentina | BioGaia Protectis tablets |
| Interbat | Indonesia | BioGaia Protectis tablets with vitamin D |
| Denomics | South Korea | BioGaia Prodentis Kids |
| Unilab | Philippines | BioGaia Minipack |
| Dr Mums | China | BioGaia Pharax |
| BG Distribution | Hungary | BioGaia Prodentis tablets |
BioGaia's result for first quarter exceeds market expectations. On 25 April, BioGaia announced that the company's result for the first quarter exceeded market expectations.
Record date for share split set to 19 May 2022. On 6 May, BioGaia's Annual General Meeting resolved on a split of the company's shares whereupon each share, regardless of series, will be divided in to five new shares. The record date for split will be 19 May 2022.
BioGaia starts its own distribution Canada. On 17 May, BioGaia announced that it will begin selling probiotics under its own management in Canada starting in 2023.
Change to number of shares and votes. On 31 May, BioGaia announced that the number of shares and votes in BioGaia had increased during May due to the share split resolved by BioGaia's Annual General Meeting on 6 May 2022. As of 31 May 2022, the total number of shares in BioGaia amounts to 100,982,310 (previously 20,196,462 shares), whereof 3,703,340 A shares, with ten votes each, and 97,278,970 B shares, with one vote each, corresponding to in total 134,312,370 votes. The share capital is unchanged and amounts to SEK 20,196,462.
BioGaia signs exclusive agreement in South Korea for the baby gut health range. On 8 June, BioGaia announced that it had extended its collaboration with Grace International, giving the company exclusive rights to market and sell its probiotic drops for infants in South Korea.
BioGaia launches probiotic product to support children's respiratory health. On 1 July, BioGaia announced that the company had launched BioGaia Pharax in the USA. BioGaia Pharax aims to strengthen the immune system and support children's upper respiratory health.
BioGaia's result exceeds market expectations. On 14 July, BioGaia announced that results for the second quarter will exceed market expectations.
This interim report has been prepared for the Group in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act, and for the Parent Company in accordance with the Swedish Annual Accounts Act. Disclosures according to IAS 34 Interim Financial Reporting are provided both in notes and elsewhere in the interim report. The consolidated financial statements have been prepared in compliance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and interpretations from the International Financial Reporting Interpretations Committee (IFRIC) that have been approved by the European Commission for application in the EU. The accounting policies applied by the Group and the Parent Company are consistent with the accounting policies applied in preparation of the most recent annual report. The Parent Company prepares its financial statements in accordance with RFR 2 Accounting for Legal Entities, and the Swedish Annual Accounts Act, and applies the same accounting policies and valuation methods as in the most recent annual report.
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.
| (Amounts in SEK 000s) | Apr–Jun | Apr–Jun | Jan–Jun | Jan–Jun | Jan–Dec | Jul 2021– | Jul 2020– |
|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | Jun 2022 | Jun 2021 | |
| Net sales (Note 1) | 288,086 | 203,131 | 571,941 | 405,106 | 785,110 | 951,945 | 724,677 |
| Cost of sales | -82,138 | -52,282 | -163,785 | -109,057 | -202,161 | -256,889 | -199,161 |
| Gross profit | 205,948 | 150,849 | 408,156 | 296,049 | 582,949 | 695,056 | 525,516 |
| Selling expenses | -83,222 | -44,027 | -155,257 | -87,275 | -192,437 | -260,418 | -169,859 |
| Administrative expenses | -7,757 | -7,683 | -18,820 | -23,378 | -42,546 | -37,988 | -36,040 |
| Research and development expenses | -27,913 | -28,091 | -52,817 | -55,270 | -105,467 | -103,014 | -104,680 |
| Other operating expenses/operating income | 14,247 | -1,825 | 15,336 | 3,342 | 11,238 | 23,232 | -9,177 |
| Operating profit | 101,303 | 69,223 | 196,598 | 133,468 | 253,737 | 316,868 | 205,760 |
| Financial income | 1,077 | 41 | 4,846 | 63 | 107 | 4,890 | 146 |
| Financial expenses | -3,384 | -175 | - 5,081 | -394 | -1,132 | -5,819 | -735 |
| 69,089 | 133,137 | 205,171 | |||||
| Profit before tax | 98,996 | 196,363 | 252,712 | 315,939 | |||
| Tax | -20,451 | -14,378 | -41,521 | -27,983 | -56,439 | -69,977 | -41,067 |
| Profit for the period | 78,545 | 54,711 | 154,842 | 105,154 | 196,273 | 245,962 | 164,104 |
| Items that may be subsequently reclassified to profit or loss Gains/losses arising on translation of the statements of foreign operations |
15,671 | -667 | 18,859 | 285 | 1,994 | 20,568 | -318 |
| Comprehensive income for the period | 94,216 | 54,044 | 173,701 | 105,439 | 198,267 | 266,530 | 163,786 |
| Profit for the period attributable to: | |||||||
| Owners of the Parent Company | 78,545 | 54,711 | 154,842 | 105,154 | 196,273 | 245,962 | 164,104 |
| Non-controlling interests | – | – | – | – | – | – | – |
| 78,545 | 54,711 | 154,842 | 105,154 | 196,273 | 245,962 | 164,104 | |
| Comprehensive income for the period attributable to: Owners of the Parent Company |
94,216 | 54,044 | 173,701 | 105,439 | 198,267 | 266,530 | 163,786 |
| Non-controlling interests | – | – | – | – | – | – | – |
| 94,216 | 54,044 | 173,701 | 105,439 | 198,267 | 266,530 | 163,786 | |
| Earnings per share | |||||||
| Earnings per share before dilution, (SEK) *) | 0.78 | 0.54 | 1.53 | 1.04 | 1.94 | 2.44 | 1.71 |
| Earnings per share after dilution, (SEK) *) | 0.78 | 0.54 | 1.53 | 1.04 | 1.94 | 2.44 | 1.71 |
| 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 | 96,080 |
| Average number of shares after dilution, (thousands) *) | 100,982 | 100,982 | 100,982 | 100,982 | 100,982 | 100,982 | 96,080 |
*) 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.
| Summary (amounts in SEK 000s) | 30 Jun | 30 Jun | 31 Dec |
|---|---|---|---|
| 2022 | 2021 | 2021 | |
| ASSETS | |||
| Property, plant and equipment | 147,111 | 129,022 | 138,555 |
| R&D projects in progress | 46,968 | 49,204 | 48,086 |
| Goodwill | 168,014 | 5,300 | 149,227 |
| Right-of-use assets | 17,126 | 19,054 | 15,080 |
| Financial assets | 25,793 | 22,229 | 22,229 |
| Deferred tax assets | 16,031 | 5,309 | 2,757 |
| Other non-current receivables | 49 | 41 | 43 |
| Total non-current assets | 421,092 | 230,159 | 375,977 |
| Current assets excl. cash and cash equivalents | 305,261 | 236,753 | 267,397 |
| Cash and cash equivalents | 1,356,344 | 1,468,935 | 1,484,680 |
| Total current assets | 1,661,605 | 1,705,688 | 1,752,077 |
| TOTAL ASSETS | 2,082,697 | 1,935,847 | 2,128,054 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to owners of the Parent Company | 1,746,629 | 1,785,001 | 1,877,365 |
| Non-controlling interests | 2 | 2 | 2 |
| Total equity (Note 2) | 1,746,631 | 1,785,003 | 1,877,367 |
| Deferred tax liability | 13,344 | 11,218 | 14,240 |
| Non-current liabilities | 119,507 | 16,032 | 109,493 |
| Current liabilities | 203,215 | 123,594 | 126,954 |
| TOTAL LIABILITIES AND EQUITY | 2,082,697 | 1,935,847 | 2,128,054 |
| Apr–Jun | Apr–Jun | Jan–Jun | Jan–Jun | Jan–Dec | |
|---|---|---|---|---|---|
| Summary (amounts in SEK 000s) | 2022 | 2021 | 2022 | 2021 | 2021 |
| Operating activities | |||||
| Operating profit | 101,303 | 69,223 | 196,598 | 133,468 | 253,737 |
| Depreciation/amortisation | 6,082 | 5,492 | 12,131 | 15,855 | 27,241 |
| Unrealised gains/losses on forward contracts | – | 575 | – | 2,107 | 2,403 |
| Other non-cash items | -11,494 | 1,028 | -12,630 | -693 | -2,356 |
| Paid tax | -18,431 | -18,684 | -35,943 | -35,880 | -55,934 |
| Interest received and paid | -3,370 | -135 | -5,068 | -331 | -1,068 |
| Cash flow from operating activities before changes in working capital |
74,090 | 57,499 | 155,088 | 114,526 | 224,023 |
| Changes in working capital | 13,200 | -1,736 | 25,267 | -16,871 | -2,148 |
| Cash flow from operating activities | 87,290 | 55,763 | 180,355 | 97,655 | 221,875 |
| Purchase of property, plant and equipment | -8,815 | -772 | -13,896 | -1,812 | -6,379 |
| Purchase of intangible assets | – | – | – | – | – |
| Purchase of financial assets | – | – | – | -22,229 | -22,229 |
| Acquisitions of subsidiaries | – | – | – | – | -98,359 |
| Cash flow from investing activities | -8,815 | -772 | -13,896 | -24,041 | -126,967 |
| Dividend | -301,331 | -68,870 | -301,331 | -68,870 | -68,870 |
| Repayment of loans from subsidiaries | – | – | – | – | -7,174 |
| Repayment of lease liability | -1,999 | -1,619 | -4,004 | -3,019 | -7,527 |
| Provision to Foundation to Prevent Antibiotic Resistance | – | -2,800 | – | -2,800 | -2,800 |
| New issue of warrants | – | – | -206 | – | 4,525 |
| Ongoing issue of warrants | – | 2,138 | – | 2,138 | – |
| Cash flow from financing activities | -303,330 | -71,151 | -305,541 | -72,551 | -81,846 |
| Cash flow for the period | -224,855 | -16,160 | -139,082 | 1,063 | 13,062 |
| Cash and cash equivalents at the beginning of the period | 1,571,693 | 1,486,770 | 1,484,680 | 1,467,883 | 1,467,883 |
| Exchange difference in cash and cash equivalents | 9,506 | -1,675 | 10,746 | -11 | 3,735 |
| Cash and cash equivalents at the end of the period | 1,356,344 | 1,468,935 | 1,356,344 | 1,468,935 | 1,484,680 |
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.
| (Amounts in SEK 000s) | Apr–Jun | Apr–Jun | Jan–Jun | Jan–Jun | Jan–Dec | Jul 2021– | Jul 2020– |
|---|---|---|---|---|---|---|---|
| Revenue by segment | 2022 | 2021 | 2022 | 2021 | 2021 | Jun 2022 | Jun 2021 |
| Paediatrics | 232,715 | 161,142 | 455,235 | 322,750 | 603,689 | 736,174 | 564,218 |
| Adult Health | 54,198 | 40,885 | 114,954 | 79,606 | 176,855 | 212,203 | 156,256 |
| Other | 1,173 | 1,104 | 1,752 | 2,750 | 4,566 | 3,568 | 4,203 |
| Total | 288,086 | 203,131 | 571,941 | 405,106 | 785,110 | 951,945 | 724,677 |
| Gross profit by segment | |||||||
| Paediatrics | 170,505 | 121,321 | 332,341 | 241,726 | 458,480 | 549,096 | 415,780 |
| Adult Health | 34,411 | 28,423 | 74,203 | 51,573 | 119,958 | 142,587 | 105,604 |
| Other | 1,033 | 1,104 | 1,612 | 2,750 | 4,511 | 3,374 | 4,133 |
| Total | 205,948 | 150,848 | 408,156 | 296,048 | 582,949 | 695,056 | 525,516 |
| Selling, administrative, R&D expenses | -118,892 | -79,801 | -226,894 | -165,923 | -340,450 | -401,420 | -310,579 |
| Other operating expenses/income | 14,247 | -1,825 | 15,336 | 3,342 | 11,238 | 23,232 | -9,177 |
| Operating profit | 101,303 | 69,223 | 196,598 | 133,468 | 253,737 | 316,868 | 205,760 |
| Net financial items | -2,307 | -134 | -235 | -331 | -1,025 | -929 | -589 |
| Profit before tax | 98,996 | 69,089 | 196,363 | 133,137 | 252,712 | 315,939 | 205,171 |
| Sales by geographical market | |||||||
| APAC | |||||||
| Paediatrics | 38,442 | 27,346 | 55,785 | 46,967 | 101,469 | 110,287 | 79,447 |
| Adult Health | 23,923 | 26,824 | 52,937 | 49,306 | 110,892 | 114,523 | 98,873 |
| Other | 947 | 631 | 1,454 | 882 | 2,092 | 2,664 | 1,761 |
| Total APAC | 63,312 | 54,801 | 110,176 | 97,155 | 214,453 | 227,474 | 180,081 |
| EMEA | |||||||
| Paediatrics | 114,274 | 60,444 | 249,664 | 140,969 | 288,383 | 397,078 | 260,612 |
| Adult Health | 15,055 | 8,798 | 30,031 | 21,101 | 45,103 | 54,033 | 42,137 |
| Other | 181 | 449 | 216 | 1,809 | 2,318 | 725 | 2,340 |
| Total EMEA | 129,510 | 69,691 | 279,911 | 163,879 | 335,804 | 451,836 | 305,090 |
| Americas | |||||||
| Paediatrics | 79,998 | 73,351 | 149,785 | 134,814 | 213,837 | 228,808 | 224,161 |
| Adult Health | 15,220 | 5,264 | 31,986 | 9,199 | 20,860 | 43,647 | 15,245 |
| Other | 46 | 24 | 83 | 59 | 156 | 180 | 100 |
| Total Americas | 95,264 | 78,639 | 181,854 | 144,072 | 234,853 | 272,635 | 239,506 |
| Total | 288,086 | 203,131 | 571,941 | 405,106 | 785,110 | 951,945 | 724,677 |
| la u ไคิ |
|---|
| Probiotics grounded in evolution |
| Driven by science |
| Apr–Jun | Apr–Jun | Jan–Jun | Jan–Jun | Jan–Dec | |
|---|---|---|---|---|---|
| Date of recognition Performance obligations met on specific date (Product | |||||
| sales) | 2022 | 2021 | 2022 | 2021 | 2021 |
| Paediatrics | 232,714 | 158,694 | 454,382 | 318,718 | 595,361 |
| Adult Health | 44,350 | 30,103 | 102,250 | 66,264 | 155,355 |
| Other | 1,024 | 698 | 1,611 | 1,344 | 2,748 |
| Total | 278,088 | 189,495 | 558,243 | 386,326 | 753,464 |
| Performance obligations met over time (Royalty) | |||||
| Paediatrics | 0 | 2,447 | 852 | 4,032 | 8,329 |
| Adult Health | 9,848 | 10,783 | 12,704 | 13,342 | 21,500 |
| Other | 150 | 406 | 142 | 1,406 | 1,817 |
| Total | 9,998 | 13,636 | 13,698 | 18,780 | 31,646 |
| Total | 288,086 | 203,131 | 571,941 | 405,106 | 785,110 |
| (Amounts in SEK 000s) | Jan–Jun 2022 |
Jan–Jun 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 | 173,701 | 105,439 | 198,267 |
| Closing balance | 1,746,631 | 1,785,003 | 1,877,367 |
| 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 | 6,675,220 | 1,335,044 | 6,675,220 | 6.6% | 5.0% | |
| 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 | 2,810,287 | 562,057 | 2,810,287 | 2.8% | 2.1% | |
| 8 | Tredje AP-fonden | 2,309,545 | 461,909 | 2,309,545 | 2.3% | 1.7% | |
| 9 | AMF Pension & Fonder | 2,275,985 | 455,197 | 2,275,985 | 2.3% | 1.7% | |
| 10 | Nordea Fonder | 2,267,275 | 453,455 | 2,267,275 | 2.2% | 1.7% | |
| Other shareholders | 55,061,853 | 11,012,371 | 55,061,853 | 54.5% | 41.0% | ||
| Total | 3,703,340 | 97,278,970 | 20,196,462 | 134,312,370 | 100% | 100% |
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 June 2022 amounted to SEK 112.4 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 1.3 million.
| (Amounts in SEK 000s) | Jan–Jun 2022 |
Jan–Dec 2021 |
|---|---|---|
| Opening balance | 100,591 | – |
| Value adjustment | -1,260 | – |
| Exchange differences | 13,057 | – |
| Closing balance | 112,368 | 100,591 |
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 period, 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 is recognised as financial income of SEK 3.6 million. During the period, no additional transactions occurred in Boneprox AB to indicate a change in value. The fair value of this financial asset therefore corresponds to cost.
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.
| Jan–Jun 2022 | Jan–Jun 2021 | Jan–Dec 2021 | |
|---|---|---|---|
| Net sales, SEK 000s | 571,941 | 405,106 | 785,110 |
| Growth of net sales | 41% | -5% | 5% |
| Operating profit, SEK 000s | 196,598 | 133,468 | 253,737 |
| Profit after tax, SEK 000s | 154,842 | 105,154 | 196,274 |
| Return on equity | 9% | 6% | 11% |
| Return on capital employed | 11% | 8% | 14% |
| Capital employed, SEK 000s | 1,759,975 | 1,796,221 | 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) | 1.53 | 1.04 | 1.94 |
| Earnings per share after dilution, SEK 1) | 1.53 | 1.04 | 1.94 |
| Equity per share, SEK 1) | 17.30 | 17.68 | 18.59 |
| Equity/assets ratio | 84% | 92% | 88% |
| Operating margin | 34% | 33% | 32% |
| Profit margin | 34% | 33% | 32% |
| Average number of employees | 184 | 158 | 161 |
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.
| 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. |
| (Amounts in SEK 000s) | |||
|---|---|---|---|
| Return on equity | Jan–Jun 2022 | Jan–Jun 2021 | Jan–Dec 2021 |
| Profit attributable to owners of the Parent Company (A) | 154,842 | 105,154 | 196,273 |
| Equity attributable to owners of the Parent Company | 1,746,629 | 1,785,001 | 1,877,365 |
| Average equity attributable to owners of the Parent Company (B) | 1,811,997 | 1,765,622 | 1,811,804 |
| Return on equity (A/B) | 9% | 6% | 11% |
| Return on capital employed | |||
| Operating profit | 196,598 | 133,468 | 253,737 |
| Financial income | 4,846 | 63 | 107 |
| Profit before net financial items + financial income (A) | 201,444 | 133,531 | 253,844 |
| Total assets | 2,082,697 | 1,935,847 | 2,128,054 |
| Interest-free liabilities | -322,722 | -139,626 | -236,447 |
| Capital employed | 1,759,975 | 1,796,221 | 1,891,607 |
| Average capital employed (B) | 1,825,791 | 1,776,889 | 1,824,582 |
| Return on capital employed (A/B) | 11% | 8% | 14% |
| (Amounts in SEK 000s) | 30 Jun | 30 Jun | 31 Dec |
|---|---|---|---|
| Equity/assets ratio | 2022 | 2021 | 2021 |
| Equity (A) | 1,746,631 | 1,785,003 | 1,877,367 |
| Total assets (B) | 2,082,697 | 1,935,847 | 2,128,054 |
| Equity/assets ratio (A/B) | 84% | 92% | 88% |
| Operating margin | |||
| Operating profit (A) | 196,598 | 133,468 | 253,737 |
| Net sales (B) | 571,941 | 405,106 | 785,110 |
| Operating margin (A/B) | 34% | 33% | 32% |
| Profit margin | |||
| Profit before tax (A) | 196,363 | 133,137 | 252,712 |
| Net sales (B) | 571,941 | 405,106 | 785,110 |
| Profit margin (A/B) | 34% | 33% | 32% |
| Equity per share | |||
| Equity attributable to owners of the Parent Company (A) | 1,746,629 | 1,785,001 | 1,877,365 |
| Average number of shares (B) | 100,982 | 100,982 | 100,982 |
| Equity per share (A/B) | 17.30 | 17.68 | 18.59 |
| Paediatrics | Adult Health | Other | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|
| (Amounts in SEK 000s) | Apr–Jun 2022 |
Jan–Jun 2022 |
Apr–Jun 2022 |
Jan–Jun 2022 |
Apr–Jun 2022 |
Jan–Jun 2022 |
Apr–Jun 2022 |
Jan–Jun 2022 |
|
| Description | |||||||||
| A | Previous year's net sales according to the average rate |
161,142 | 322,751 | 40,885 | 79,605 | 1,104 | 2,750 | 203,131 | 405,106 |
| B | Net sales for the year according to the average rate |
232,714 | 455,234 | 54,198 | 114,954 | 1,173 | 1,753 | 288,085 | 571,941 |
| C | Recognised change (B-A) | 71,572 | 132,484 | 13,313 | 35,349 | 69 | -997 | 84,954 | 166,835 |
| Percentage change (C/A) | 44% | 41% | 33% | 44% | 6% | -36% | 42% | 41% | |
| D | Net sales for the year according to the previous year's average rate |
217,134 | 425,773 | 50,588 | 107,563 | 1,173 | 1,753 | 268,894 | 535,089 |
| E | Foreign exchange effects (B–D) | 15,580 | 29,462 | 3,610 | 7,391 | 0 | 0 | 19,191 | 36,852 |
| Percentage change (E/A) | 10% | 9% | 9% | 9% | 0% | 0% | 9% | 9% | |
| G | Change acquisitions (excl. foreign exchange effects) |
6,946 | 13,657 | 6,684 | 15,745 | 0 | 0 | 13,630 | 29,401 |
| Percentage change (G/A) | 4% | 4% | 16% | 20% | 0% | 0% | 7% | 7% | |
| F | Organic change (C–E–G) | 49,046 | 89,366 | 3,019 | 12,213 | 69 | -997 | 52,133 | 100,582 |
| Organic change, % (F/A) | 30% | 28% | 7% | 15% | 6% | -36% | 26% | 25% |
| Average key exchange rates | Apr–Jun 2022 |
Apr–Jun 2021 |
Jan–Jun 2022 |
Jan–Jun 2021 |
Jan–Dec 2021 |
|---|---|---|---|---|---|
| EUR | 10.41 | 10.16 | 10.43 | 10.12 | 10.13 |
| USD | 9.69 | 8.40 | 9.51 | 8.36 | 8.49 |
| JPY | 0.0769 | 0.0770 | 0.0782 | 0.0780 | 0.0781 |
| Closing date key exchange rates | 30 Jun 2022 |
30 Jun 2021 |
31 Dec 2021 |
|---|---|---|---|
| EUR | 10.68 | 10.12 | 10.23 |
| USD | 10.22 | 8.51 | 9.04 |
| JPY | 0.0751 | 0.0770 | 0.0785 |
| Pledged assets and contingent liabilities | GROUP | |||
|---|---|---|---|---|
| (Amounts in SEK 000s) | 30 Jun 2022 |
30 Jun 2021 |
31 Dec 2021 |
|
| Floating charges | 0 | 0 | 0 | |
| Contingent liabilities | None | None | None |
| (Amounts in SEK 000s) | Jan–Jun | Jan–Jun | Jan–Dec |
|---|---|---|---|
| 2022 | 2021 | 2021 | |
| Net sales | 501,422 | 378,391 | 732,009 |
| Cost of sales | -172,520 | -134,768 | -256,210 |
| Gross profit | 328,902 | 243,623 | 475,799 |
| Selling expenses | -88,107 | -69,958 | -163,189 |
| Administrative expenses | -17,757 | -22,524 | -34,630 |
| Research and development expenses | -45,382 | -45,809 | -85,563 |
| Other operating expenses/operating income | 15,841 | 3,580 | 11,506 |
| Operating profit | 193,497 | 108,912 | 203,923 |
| Impairment loss on shares in subsidiaries | – | – | -18,708 |
| Net financial items | -4,646 | 75 | 688 |
| Profit before tax | 188,851 | 108,987 | 185,903 |
| Tax | -38,155 | -20,700 | -39,344 |
| Profit for the period | 150,696 | 88,287 | 146,559 |
| Summary (amounts in SEK 000s) | 30 Jun | 30 Jun | 31 Dec |
|---|---|---|---|
| 2022 | 2021 | 2021 | |
| ASSETS | |||
| Property, plant and equipment | 6,452 | 5,488 | 4,747 |
| Intangible assets | 1,118 | 3,354 | 2,236 |
| Participations in group companies | 334,951 | 179,724 | 331,809 |
| Non-current receivables from subsidiaries | 10,835 | 10,835 | 10,835 |
| Total non-current assets | 353,356 | 199,401 | 349,627 |
| Current assets excl. cash and cash equivalents | 238,843 | 234,358 | 197,525 |
| Cash and cash equivalents | 1,141,072 | 1,371,234 | 1,333,570 |
| Total current assets | 1,379,915 | 1,605,592 | 1,531,095 |
| TOTAL ASSETS | 1,733,271 | 1,804,993 | 1,880,722 |
| EQUITY AND LIABILITIES | |||
| Equity | 1,562,260 | 1,658,192 | 1,716,000 |
| Non-current liabilities | 2,535 | 4,225 | 3,380 |
| Interest-free current liabilities | 168,476 | 142,576 | 161,342 |
| TOTAL LIABILITIES AND EQUITY | 1,733,271 | 1,804,993 | 1,880,722 |
| Summary (amounts in SEK 000s) | Jan–Jun 2022 |
Jan–Jun 2021 |
Jan–Dec 2021 |
|---|---|---|---|
| Operating activities | |||
| Operating profit | 193,497 | 108,912 | 203,923 |
| Depreciation/amortisation | 1,836 | 1,876 | 3,736 |
| Other non-cash items | -7,962 | -675 | 1,693 |
| Forward exchange contracts | – | 2,107 | 2,403 |
| Paid tax | -29,991 | -29,991 | -46,786 |
| Interest received and paid | -4,646 | 75 | 688 |
| Cash flow from operating activities before changes in working capital |
152,734 | 82,304 | 165,657 |
| Changes in working capital | -44,402 | -34,382 | -5,872 |
| Cash flow from operating activities | 108,332 | 47,922 | 159,784 |
| Purchase of intangible assets | – | – | – |
| Purchase of property, plant and equipment | -2,424 | – | – |
| Sale of property, plant and equipment | – | – | – |
| Purchase of financial assets | -3,142 | -22,229 | -167,920 |
| Sale of financial assets | – | 22,229 | 22,229 |
| Repayment of loans from subsidiaries | – | – | – |
| Cash flow from investing activities | -5,566 | 0 | -145,691 |
| Dividend | -301,331 | -68,870 | -68,870 |
| Provision to Foundation to Prevent Antibiotic Resistance | – | -2,800 | -2,800 |
| Shareholder contribution provided | – | -25,052 | -31,444 |
| New issue, net | – | – | – |
| Repurchase of warrants | -206 | – | -464 |
| Cash flow from financing activities | -301,537 | -96,722 | -103,578 |
| Cash flow for the period | -198,771 | -48,800 | -89,484 |
| Cash and cash equivalents at the beginning of the period |
1,333,570 | 1,419,361 | 1,419,361 |
| Exchange difference in cash and cash equivalents | 6,273 | 673 | 3,693 |
| Cash and cash equivalents at the end of the period | 1,141,072 | 1,371,234 | 1,333,570 |
| (Amounts in SEK 000s) | Jan–Jun 2022 |
Jan–Jun 2021 |
Jan–Dec 2021 |
|---|---|---|---|
| Opening balance | 1,716,000 | 1,636,587 | 1,636,587 |
| Dividend | -301,331 | -68,870 | -68,870 |
| Provision to Foundation to Prevent Antibiotic Resistance | -2,900 | -2,800 | -2,800 |
| New issue, net | – | – | – |
| New issue warrants | -206 | 4,989 | 4,525 |
| Comprehensive income for the period | 150,696 | 88,287 | 146,559 |
| Closing balance | 1,562,260 | 1,658,192 | 1,716,000 |
2022
8:00 a.m. CEST Interim management statement 1 January – 30 September 2022 21 OCT
Stockholm, 22 July 2022
Peter Rothschild David Dangoor Ewa Björling Board Chairman Vice Chairman Member of the Board
Christian Bubenheim Peter Elving Bénédicte Flambard
Member of the Board Member of the Board Member of the Board
Anthon Jahreskog Niklas Ringby Vanessa Rothschild
Member of the Board Member of the Board Member of the Board
Isabelle Ducellier CEO
We have reviewed the interim report of BioGaia AB (publ), for the period 1 January – 30 June 2022. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.
Stockholm, 22 July 2022
Deloitte AB
Jenny Holmgren Authorised Public Accountant
Q2
2022
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.
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.
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.
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:
* Previously Lactobacillus.
BioGaia AB Box 3242 SE-103 64 STOCKHOLM Street address: Kungsbroplan 3, Stockholm Telephone: +46 8 555 293 00, Corporate identity no. 556380-8723, www.biogaia.com
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