Quarterly Report • May 6, 2021
Quarterly Report
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JANUARY – MARCH 2021
Q1
2021
Net sales amounted to SEK 202.0 million (182.8), an increase of 10% (excluding foreign exchange effects, 21%). Product sales, net sales excluding royalty revenues, amounted to SEK 196.8 million (177.0), an increase of 11% (excluding foreign exchange effects, 22%).
Net sales in the Paediatrics segment reached SEK 161.6 million (142.5), an increase of 13%. Product sales within Paediatrics amounted to SEK 160.0 million (139.3), an increase of 15%.
Net sales in the Adult Health segment amounted to SEK 38.7 million (40.2), a decrease of 4%. Product sales within Adult Health amounted to SEK 36.2 million (37.5), a decrease of 4%.
Operating expenses amounted to SEK 81.0 million (77.4), an increase of 5%. Operating expenses included costs for evaluation of acquisition candidates of SEK 2.5 million and costs for restructuring of SEK 7.5 million. Excluding these costs, operating expenses amounted to SEK 71.0 million, a decrease of 9%.
Operating profit increased by 16% to SEK 64.2 million (55.6), which corresponds to an operating margin of 32% (30%).
Profit after tax was SEK 50.4 million (41.7), an increase of 21%.
Earnings per share amounted to SEK 2.50 (2.39). No dilutive effects arose.
Cash flow amounted to SEK 17.2 million (67.4) and cash and cash equivalents at 31 March 2021 amounted to SEK 1,486.8 million (284.1 at 31 March 2020).
On 27 January, BioGaia announced that the products Osfortis and Prodentis have been launched in Sweden and that BioGaia's entire Adult Health portfolio is now available in the domestic market.
On 3 February, BioGaia announced that the Board of Directors of BioGaia has chosen to revise the dividend policy so that 50% (previously 40%) of profit after tax in the Parent Company will be distributed to shareholders.
On 12 February, BioGaia announced that the subsidiary MetaboGen has received approval from the Ethics Committee to start a new clinical study to include people with prediabetes.
On 17 March, BioGaia announced that a separate entity, BioGaia Invest, has been established. The focus for BioGaia Invest will be to invest in small companies that promote BioGaia's growth. A total of SEK 150 million has been allocated to enable investments of between SEK 5 and 15 million.
On 8 April, BioGaia announced that the company has signed an agreement with Minapharm Pharmaceuticals for exclusive rights to sell BioGaia Protectis drops in Egypt.
On 13 April, BioGaia announced that a randomised, doubleblind, placebo-controlled study in children showed that a supplement of two L. reuteri strains significantly reduced fever and pain in children with upper respiratory tract infections.
| Jan-Mar 2021 | Jan-Mar 2020 | |
|---|---|---|
| Net sales, SEK 000s | 201,975 | 182,808 |
| Growth in net sales | 10% | 7% |
| Operating profit, SEK 000s | 64,245 | 55,619 |
| Operating margin | 32% | 30% |
| Profit after tax, SEK 000s | 50,443 | 41,748 |
| Number of shares, thousands | 20,196 | 17,336 |
| Earnings per share, SEK 1) 2) | 2.50 | 2.39 |
1) A bonus issue element from the 2020 new issue has been taken into account in the calculation of earnings per share before and after dilutive effects, which means that comparative figures have been recalculated. There are no other dilutive effects.
2) Key ratio defined according to IFRS.
This information is information that BioGaia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the CEO, on 6 May 2021, at 08.00 CET.
BioGaia AB (publ.) Interim Management Statement 1 January – 31 March 2021 The Board of Directors and the CEO of BioGaia AB hereby present the interim management statement for the period 1 January – 31 March 2021.
As expected, the pandemic continued to hold the world in its grip in Q1 and will probably continue to do so until a large proportion of the global population has been vaccinated. This situation continues to prevent us from working in the way we and our partners are used to. The increased focus on online sales adopted earlier has now even greater significance and benefits BioGaia, above all in the USA and China. We are therefore giving high priority to increasing our online distribution in several markets and expect that this will further strengthen our sales development even when we can return to more "normal" times.
Following the two first, very strong quarters of 2020, sales decreased in the second half of the year, particularly in some of our more mature markets. It is difficult to predict when the return to more favourable conditions can be expected and it is therefore satisfactory to be able to deliver a sales increase of 10% (an organic growth of 21%) compared to the first quarter of last year. We therefore see a good increase in sales despite the fact that we have lower sales in two large and traditionally strong markets, Finland and Italy. We remain cautious, however, in our assessment of sales growth until the global situation has normalised.
We are working hard to strengthen our marketing and omnichannel strategy through recruitment of new employees who are specialised in this field. We are also increasing the investments behind our strong brand with plans that include introducing the BioGaia brand in Finland where so far our products have been sold under our partner's brand.
We have upped the pace of our digital route to the market in terms of both digital marketing and e-commerce initiatives via marketplaces such as Amazon, local webshops and online pharmacies. The goal is to be in all the places where our consumers are. Our long-term investment in the American market combined with a focus on digital marketplaces has contributed to the USA being BioGaia's largest market today in which the majority of sales take place online.
Finally, we have been very active with launches of both new products and our existing portfolio. With the high demand for immune products as a driving force, we have developed a new BioGaia range strengthened with vitamin D called Immune Boost to meet the strong demand for this type of product. First out with the launch of these products is the USA. By taking advantage of our strong position in paediatrics, we will also launch BioGaia Prodentis Kids in the USA. And thanks to our good reputation among baby products, we are launching Protectis Mum in capsules in the USA, a vegan "free from" product with pregnant women as the target group. Protectis Mum contributes to the development of the child's digestive and immune systems at the same time as also supporting the mother's gastrointestinal and immune systems.
The American market is a perfect example of how to create brand awareness with our scientific medical marketing as a base and how this is strengthened by expertise within online retail broadening the reach among consumers. This has been possible due to a fantastic collaboration between BioGaia as brand owner and our motivated and professional local distributors.
We are accelerating the launch of Osfortis, our probiotic that reduces bone loss. Our colleagues at BioGaia Japan are preparing to launch Osfortis. More than 25% of the Japanese population is over 65 years old and approximately 40% of postmenopausal women will suffer problems due to skeletal fragility. Combined with a high level of income, this makes Japan the perfect market for success with Osfortis.
I am grateful for our distributors' efforts in conjunction with the launch of Gastrus in several markets. The first results are highly encouraging, particularly in France and Latin America, due to both medical marketing aimed at gastroenterologists and marketing in social media.
Once again, I would like to think all my BioGaia colleagues for your efforts during this difficult time and our distributors who have tried to find new ways to do business going forward.
Isabelle Ducellier President and CEO of BioGaia 6 May 2021
Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim management statement to be held today 6 May 2021 at 09:30 CET with CEO Isabelle Ducellier and CFO Alexander Kotsinas. To participate in the teleconference, please see Financialhearings.com for telephone numbers. The teleconference can also be followed here.
| Jan-Mar | Jan-Mar | Change | |
|---|---|---|---|
| 2021 | 2020 | ||
| Paediatrics | 161.6 | 142.5 | 13% |
| Adult Health | 38.7 | 40.2 | -4% |
| Other | 1.6 | 0.1 | 1101% |
| Total | 202.0 | 182.8 | 10% |
| SEKm | Jan-Mar | Jan-Mar | Change |
|---|---|---|---|
| 2021 | 2020 | ||
| EMEA | 94.2 | 118.0 | -20% |
| APAC | 42.4 | 32.5 | 30% |
| Americas | 65.4 | 32.4 | 102% |
| Total | 202.0 | 182.8 | 10% |
Figures in parentheses refer to the corresponding period last year. Consolidated net sales amounted to SEK 202.0 million (182.8) which is an increase of SEK 19.2 million (10%) (excluding foreign exchange effects, 21%) compared to the first quarter of last year. Product sales rose 11% (excluding foreign exchange effects, 22%). Sales in the quarter were affected positively by accrual of several orders. In the past 12-month period, sales decreased by 2%.
Sales in EMEA amounted to SEK 94.2 million (118.0), a decrease of 20%, mainly due to lower sales in the Adult Health segment. Sales in the EMEA decreased primarily in Italy, Spain and Belgium.
Sales in APAC amounted to SEK 42.4 million (32.5), an increase of 30%. The increase was attributable to both the Adult Health and Paediatrics segments. Sales increased primarily in Japan, Taiwan, Australia and China.
Sales in the Americas totalled SEK 65.4 million (32.4), an increase of 102%. The increase was mainly attributable to the Paediatrics segment but Adult Health also increased. Sales mainly increased in the USA, Brazil and Guatemala.
| SEKm | SEKm | Change |
|---|---|---|
| 2020 | 182.8 | |
| Foreign exchange | -19.3 | -11% |
| Organic growth | 38.5 | 21% |
| 2021 | 202.0 | 10% |
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.
SEMm
| Jan-Mar | Jan-Mar | Change | |
|---|---|---|---|
| 2021 | 2020 | ||
| Products | 160.0 | 139.3 | 15% |
| Royalties | 1.6 | 3.2 | -50% |
| Total Paediatrics | 161.6 | 142.5 | 13% |
Figures in parentheses refer to the corresponding period last year. Sales in the Paediatrics segment amounted to SEK 161.6 million (142.5) an increase of 13% (excluding foreign exchange effects, 24%). Product sales in Paediatrics amounted to SEK 160.0 million (139.3), an increase of 15%. Sales in the quarter were affected positively by accrual of several orders. For the past 12-month period, sales decreased by 1%.
Sales of BioGaia Protectis drops increased compared to the corresponding period last year. Sales increased in APAC and the Americas and decreased in EMEA. Sales in APAC increased mainly in Taiwan and Australia and in the Americas, sales increased primarily in the USA, Brazil and Guatemala. In EMEA, sales decreased primarily in Italy, Spain, Germany, Belgium and Hungary.
Sales of BioGaia Protectis tablets increased compared to the corresponding period last year. Sales increased in APAC, the Americas and EMEA. Sales in APAC increased mainly in Taiwan and South Korea and in the Americas, sales increased mainly in Brazil. In EMEA, sales increased mainly in France, South Africa, Ukraine and Slovakia.
.
The Adult Health segment accounts for approximately 20% of BioGaia's total sales. Sales mainly comprise BioGaia Protectis, BioGaia Gastrus, BioGaia Prodentis and BioGaia Osfortis as well as cultures as an ingredient in a licensee's dairy products.
| SEKm | Jan-Mar | Jan-Mar | Change |
|---|---|---|---|
| 2021 | 2020 | ||
| Products | 36.2 | 37.5 | -4% |
| Royalties | 2.6 | 2.7 | -5% |
| Total Adult Health | 38.7 | 40.2 | -4% |
Figures in parentheses refer to the corresponding period last year. Sales in the Adult Health segment amounted to SEK 38.7 million (40.2) a decrease of 4% (excluding foreign exchange effects, +6%). Product sales amounted to SEK 36.2 million (37.5), a decrease of 4%. In the past 12-month period, sales decreased by 6%.
Sales of BioGaia Protectis tablets decreased compared to the corresponding period last year. Sales decreased in EMEA, primarily in Italy, Finland and Belgium, while they increased in APAC and the Americas. In APAC, sales increased mainly in Japan, China and Australia. In the Americas, sales increased mainly in the USA.
Sales of BioGaia Gastrus increased compared to the corresponding period last year. Sales rose in EMEA, APAC and the Americas. In EMEA, sales increased mainly in France and in the Americas sales increased primarily in the USA and Mexico. In APAC, sales increased mainly in Japan and China.
Sales of BioGaia Prodentis increased compared to the corresponding period last year. Sales increased in APAC and EMEA, while they decreased in the Americas, primarily in the USA. In EMEA; sales increased primarily in France and Spain and in APAC sales mainly increased in Japan and China.
Q1
2021
Figures in parentheses refer to the corresponding period last year. The total gross margin for the quarter was 72% (73%). The gross margin for the Paediatrics segment amounted to 75% (73%). The gross margin for the Adult Health segment was negatively affected by mix effects and campaigns and amounted to 60% for the quarter (70%).
Operating expenses amounted to SEK 81.0 million (77.4), an increase of SEK 3.6 million. Excluding other operating expenses (exchange losses/gains) operating expenses increased by 8%. Operating expenses included costs for evaluation of acquisition candidates of SEK 2.5 million and costs for restructuring of SEK 7.5 million. The restructuring costs relate to impairment of right-of-use asset linked to a rental contract for premises in Lund (SEK 5.1 million) and personnel (SEK 2.4 million).
Selling expenses amounted to SEK 43.2 million (44.6), a decrease of 3%. The decrease is partly due to lower travel expenses due to Covid-19 and lower costs in Japan which were partly offset by higher personnel costs linked to restructuring (SEK 2.4 million). R&D expenses amounted to SEK 27.2 million (28.2), a decrease of 4%. R&D expenses included costs for the subsidiaries MetaboGen AB and BioGaia Pharma AB of SEK 5.9 million (5.8). The decrease in R&D expenses, excluding costs for MetaboGen AB and BioGaia Pharma AB, are mainly attributable to lower personnel and travel costs.
Administrative expenses amounted to SEK 15.7 million (7.3), an increase of 116%. The increase in administrative expenses is attributable to increased costs for evaluation of acquisition candidates (SEK 2.5 million) as well as impairment of right-of-use assets linked to a rental contract for premises in Lund (SEK 5.1 million).
Other operating expenses/operating income relates to exchange losses/gains on receivables and liabilities of an operating nature and amounted to SEK 5.2 million (2.7).
Operating profit amounted to SEK 64.2 million (55.6), an increase of 16%. The operating margin amounted to 32% (30%).
Profit after tax and earnings per share Profit after tax amounted to SEK 50.4 million (41.7) an increase of 21%. The effective tax rate was 21% (25%) Earnings per share amounted to SEK 2.50 (2.39). No dilutive effects arose.
Total assets amounted to SEK 1,946.1 million (717.4). The increase compared to the same period last year is mainly due to the new issue carried out in 2020.
Since year-end 2020, current assets increased slightly while current liabilities decreased. The termination of the rental contract in Lund affected right-of-use assets during the quarter and also affected non-current liabilities.
Cash flow amounted to SEK 17.2 million (67.4) . The lower cash flow was partly due to a negative change in working capital of SEK -15.1 million (25.6) . A lower inventory level had a positive impact while increased trade receivables and decreased trade payables made a negative contribution.
Investments in property, plant and equipment amounted to SEK 1.0 million (4.3). Depreciation and impairment amounted to SEK 10.4 million (4.7). Investments in financial assets of SEK 22.2 million relate to acquisition of shares in Boneprox and Skinome in conjunction with the establishment of BioGaia Invest.
Cash and cash equivalents at 31 March 2021 amounted to SEK 1,486.8 million (284.1 at 31 March 2020).
Q1
2021
The number of employees in the Group totalled 160 at 31 March 2021 (158 at 31 March 2020).
The company has an incentive programme for all employees based on the company's sales and profit and qualitative targets. The maximum bonus is equal to 12% of salary.
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 view of the company's strong portfolio consisting of an increased number of innovative products that are sold predominantly under the BioGaia brand to an increasing extent through online sales, successful clinical trials and an expanding 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 2020 on pages 52 and 53 and in Notes 27 and 28. No significant changes in these risks and uncertainties are assessed to have taken place at 31 March 2021 except for the impact of the Covid-19 pandemic which is set out below.
The first quarter of 2021 continued to be marked by the Covid-19 pandemic and its impact on the world at large and on BioGaia. In several of our largest markets, such as Italy and Spain, we saw reduced sales during the quarter. In these countries, as in most other countries in which BioGaia operates, medical marketing is still the main business model. Due to the Covid-19 situation, our distributors' sales forces have not been able to visit doctors and pharmacy staff, which are our key target groups for medical marketing, to the same extent as previously. Furthermore, long-term lockdowns in many countries have meant that consumers have had limited opportunities to visit the principal sales channels for our products – physical pharmacies, hospitals and, in Japan, dental surgeries.
BioGaia has adapted to the current situation and changed how the company works with marketing and sales. For example, BioGaia has not been able to take part in international fairs and symposia, since these have been cancelled, but has instead focused on supporting its partners with marketing material that can be used online. Furthermore, BioGaia's employees have not been able to visit customers face-to-face but have used telephone and video meetings. BioGaia has not carried out any staff reductions or layoffs due to the pandemic. Nor has BioGaia taken part in any support programme with the exception of a government stimulus programme in Japan.
BioGaia has a strong financial position but a prolonged pandemic can even have a negative impact on a stable company such as BioGaia. A deterioration in the financial position and ability to pay of our distribution partners can lead to longer payment times but also credit losses. Furthermore, disruptions in BioGaia's production and at external suppliers or in logistics can result in BioGaia being unable to deliver products with an ensuing loss of revenue. Depending on how drawn-out this pandemic becomes, there is a risk of continued challenges in 2021.
The Parent Company owns 100% of the shares in 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 92% of the shares in MetaboGen AB .
Annwall & Rothschild Investment AB owns 740,668 class A shares and 100,000 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 670,000 per year. During the quarter, Peter Rothschild received additional remuneration for significant working duties, in addition to his assignment on the Board, of SEK 225,000 in accordance with the decision of the Annual General Meeting and the Board of Directors.
Launches in the first quarter of 2021
| Distributor | Country | Product |
|---|---|---|
| Allergycare | Switzerland | BioGaia Osfortis |
| BioGaia Sverige |
Sweden | BioGaia Prodentis |
| Abbott | Costa Rica | BioGaia Protectis drops with vitamin D |
| Abbott | Panama | BioGaia Protectis drops with vitamin D |
| Abbott | Paraguay | BioGaia Protectis drops with vitamin D |
| PediAct | France | BioGaia Protectis capsules |
| Ewopharma | Czech Republic |
BioGaia Protectis tablets D3+ |
BioGaia launches entire Adult Health portfolio in Sweden. On 27 January, BioGaia announced that Osfortis and Prodentis have been launched in Sweden and that BioGaia's entire Adult Health portfolio is therefore available in the domestic market.
BioGaia revises dividend policy. On 3 February, BioGaia announced that the Board of Directors of BioGaia has chosen to revise the dividend policy so that 50% of profit after tax in the Parent Company will be distributed to shareholders..
MetaboGen reaches new key milestone in its development of novel probiotic products. On 12 February, BioGaia announced that MetaboGen after positive results in the initial clinical study with the strains Faecalibacterium prausnitzii (DSM 32379) and Desulfovibrio piger (DSM 32187) has now received approval from the Ethics Committee to start its next clinical study. The study will include people with prediabetes.
BioGaia Invest established. On 17 March, BioGaia announced that a separate entity, BioGaia Invest, has been established. The focus of BioGaia Invest will be to identify and invest in small companies focusing on ground-breaking technologies, services and products that will support BioGaia's growth. A total of SEK 150 million has been allocated to enable investments of between SEK 5 and 15 million.
Agreement for Egypt. On 8 April, BioGaia announced that the company has signed an agreement with Minapharm Pharmaceuticals for exclusive rights to sell BioGaia Protectis drops in Egypt.
New study for respiratory tract infections. On 13 April, BioGaia announced that a randomised, double-blind, placebo-controlled study in children showed that a supplement of the probiotic strains L. reuteri ATCC PTA 5289 and L. reuteri DSM 17938 significantly reduced fever and pain in children with upper respiratory tract infections.
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 statements and segment information are consistent with the presentation used in the interim reports presented in compliance with IAS 34, in order to achieve comparability in 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.
Management's assessment is that new and amended standards and interpretations will not have a material effect on the Group's financial statements for the period of initial application.
| (Amounts in SEK 000s) | Jan-Mar | Jan-Mar | Jan-Dec | Apr 2020 - | Apr 2019 - |
|---|---|---|---|---|---|
| 2021 | 2020 | 2020 | Mar 2021 | Mar 2020 | |
| Net sales (Note 1) | 201,975 | 182,808 | 747,077 | 766,244 | 779,898 |
| Cost of sales | -56,775 | -49,802 | -200,159 | -207,132 | -207,306 |
| Gross profit | 145,200 | 133,006 | 546,918 | 559,112 | 572,592 |
| Selling expenses | -43,248 | -44,575 | -171,634 | -170,307 | -188,223 |
| Administrative expenses | -15,695 | -7,269 | -26,128 | -34,554 | -25,238 |
| Research and development expenses | -27,179 | -28,248 | -104,663 | -103,594 | -106,388 |
| Other operating expenses/income | 5,167 | 2,705 | -16,343 | -13,881 | -1,052 |
| Operating profit | 64,245 | 55,619 | 228,150 | 236,776 | 251,691 |
| Financial income | 22 | 16 | 155 | 161 | 314 |
| Financial expenses | -219 | -202 | -722 | -739 | -627 |
| Profit before tax | 64,048 | 55,433 | 227,583 | 236,198 | 251,378 |
| Tax | -13,605 | -13,685 | -47,853 | -47,773 | -57,962 |
| Profit for the period | 50,443 | 41,748 | 179,730 | 188,425 | 193,416 |
| Items that may be subsequently reclassified to profit or loss Gains/losses arising on translation of the statements of foreign |
|||||
| operations | 952 | -2,858 | -4,059 | -249 | -2,221 |
| Comprehensive income for the period | 51,395 | 38,890 | 175,671 | 188,176 | 191,195 |
| Profit for the period attributable to: | |||||
| Owners of the Parent Company | 50,443 | 41,748 | 179,730 | 188,425 | 193,481 |
| Non-controlling interests | - | - | - | - | -65 |
| 50,443 | 41,748 | 179,730 | 188,425 | 193,416 | |
| Comprehensive income for the period attributable to: | |||||
| Owners of the Parent Company | 51,395 | 38,890 | 175,671 | 188,176 | 191,260 |
| Non-controlling interests | - | - | - | - | -65 |
| 51,395 | 38,890 | 175,671 | 188,176 | 191,195 | |
| Earnings per share | |||||
| Earnings per share (SEK) *) | 2.50 | 2.39 | 10.07 | 10.17 | 11.07 |
| Number of shares (thousands) | 20,196 | 17,336 | 20,196 | 17,336 | 17,336 |
| Average number of shares (thousands) | 20,196 | 17,474 | 17,855 | 18,535 | 17,474 |
*) A bonus issue element from the 2020 new issue has been taken into account in the calculation of earnings per share before and after dilutive effects, which means that comparative figures have been recalculated. There are no other dilutive effects.
| Summary (Amounts in SEK 000s) | 31 Mar | 31 Mar | 31 Dec |
|---|---|---|---|
| 2021 | 2020 | 2020 | |
| ASSETS | |||
| Property, plant and equipment | 131,601 | 130,769 | 133,904 |
| R&D projects in progress | 49,763 | 51,999 | 50,322 |
| Goodwill | 5,300 | 5,300 | 5,300 |
| Right-of-use assets | 19,980 | 18,515 | 28,861 |
| Financial assets | 22,229 | - | - |
| Deferred tax assets | 5,759 | 6,684 | 5,279 |
| Other non-current receivables | 42 | 48 | 39 |
| Total non-current assets | 234,674 | 213,315 | 223,705 |
| Current assets excl. cash and cash equivalents | 224,704 | 219,954 | 221,694 |
| Cash and cash equivalents | 1,486,770 | 284,135 | 1,467,883 |
| Total current assets | 1,711,474 | 504,089 | 1,689,577 |
| TOTAL ASSETS | 1,946,148 | 717,404 | 1,913,282 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to owners of the Parent Company | 1,797,638 | 546,762 | 1,746,243 |
| Non-controlling interests | 2 | 2 | 2 |
| Total equity (Note 2) | 1,797,640 | 546,764 | 1,746,245 |
| Deferred tax liability | 11,218 | 10,339 | 11,312 |
| Non-current liabilities | 16,632 | 21,347 | 20,663 |
| Current liabilities | 120,658 | 138,954 | 135,062 |
| TOTAL LIABILITIES AND EQUITY | 1,946,148 | 717,404 | 1,913,282 |
Other current liabilities include forward exchange contracts with a fair value of SEK 0.9 million on the balance sheet date (in the corresponding period in the previous year forward exchange contracts were included in current liabilities at SEK 9.7 million). All forward exchange contracts are attributable to level 2 of the fair value hierarchy. No changed assumptions with regard to measurement have taken place compared to the 2020 Annual Report. 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 maturity.
| Jan-Mar | Jan-Mar | Jan-Dec | |
|---|---|---|---|
| Summary (Amounts in SEK 000s) | 2021 | 2020 | 2020 |
| Operating activities | |||
| Operating profit | 64,245 | 55,619 | 228,150 |
| Depreciation/amortisation | 10,363 | 4,720 | 20,530 |
| Unrealised gains/losses on forward contracts | 1,532 | 7,217 | -4,876 |
| Other non-cash items | -1,721 | -2,107 | 1,167 |
| Paid tax | -17,196 | -17,406 | -72,092 |
| Interest received and paid | -196 | -186 | -646 |
| Cash flow from operating activities before changes in working capital |
57,027 | 47,857 | 172,233 |
| Changes in working capital | -15,135 | 25,601 | 49,023 |
| Cash flow from operating activities | 41,892 | 73,458 | 221,256 |
| Acquisition of property, plant and equipment | -1,040 | -4,337 | -16,075 |
| Acquisition of intangible assets | -22,229 | - | - |
| Cash flow from investing activities | -23,269 | -4,337 | -16,075 |
| Dividend | - | - | -65,012 |
| Repayment of lease liability | -1,400 | -1,747 | -7,632 |
| Provision to the Foundation to Prevent Antibiotic Resistance | - | - | -2,800 |
| New issue, net | - | - | 1,126,840 |
| Cash flow from financing activities | -1,400 | -1,747 | 1,051,396 |
| Cash flow for the period | 17,223 | 67,374 | 1,256,577 |
| Cash and cash equivalents at the beginning of the period | 1,467,883 | 213,831 | 213,831 |
| Exchange differences in cash and cash equivalents | 1,664 | 2,930 | -2,525 |
| Cash and cash equivalents at the end of the period | 1,486,770 | 284,135 | 1,467,883 |
Executive Management has analysed the Group's internal reporting system and established that the Group's operations are governed 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 as well as royalty revenues for Adult Health products).
Other segment (smaller segments such as revenue 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 against the segments' assets.
| Jan-Mar | Jan-Mar | Jan-Dec | Apr 2020 - | Apr 2019 – | |
|---|---|---|---|---|---|
| Revenue by segment | 2021 | 2020 | 2020 | Mar 2021 | Mar 2020 |
| Paediatrics | 161,609 | 142,491 | 583,111 | 602,230 | 608,969 |
| Adult Health | 38,720 | 40,181 | 161,186 | 159,726 | 169,857 |
| Other | 1,646 | 137 | 2,780 | 4,289 | 1,074 |
| Total | 201,975 | 182,808 | 747,077 | 766,245 | 779,899 |
| Gross profit by segment | |||||
| Paediatrics | 120,404 | 104,613 | 431,810 | 447,601 | 452,103 |
| Adult Health | 23,150 | 28,257 | 112,588 | 107,481 | 119,416 |
| Other | 1,646 | 137 | 2,521 | 4,029 | 1,074 |
| Total | 145,200 | 133,007 | 546,918 | 559,112 | 572,593 |
| Selling, administrative and R&D expenses | -86,122 | -80,092 | -302,425 | -308,455 | -319,849 |
| Other operating expenses | 5,167 | 2,705 | -16,343 | -13,881 | -1,052 |
| Operating profit | 64,245 | 55,619 | 228,150 | 236,776 | 251,692 |
| Net financial items | -197 | -186 | -567 | -578 | -313 |
| Profit before tax | 64,048 | 55,433 | 227,583 | 236,196 | 251,379 |
| Sales by geographical market | |||||
| APAC | |||||
| Paediatrics | 19,621 | 16,927 | 82,689 | 85,384 | 75,901 |
| Adult Health | 22,482 | 15,465 | 86,625 | 93,641 | 98,680 |
| Other | 251 | 64 | 1,432 | 1,619 | 193 |
| Total APAC | 42,354 | 32,456 | 170,746 | 180,644 | 174,774 |
| EMEA | |||||
| Paediatrics | 80,525 | 96,653 | 312,520 | 296,392 | 355,729 |
| Adult Health | 12,303 | 21,279 | 58,894 | 49,919 | 57,549 |
| Other | 1,360 | 57 | 1,169 | 2,472 | 864 |
| Total EMEA | 94,188 | 117,989 | 372,583 | 348,783 | 414,142 |
| Americas | |||||
| Paediatrics | 61,463 | 28,911 | 187,902 | 220,454 | 177,338 |
| Adult Health | 3,935 | 3,437 | 15,667 | 16,165 | 13,627 |
| Other | 35 | 16 | 179 | 199 | 16 |
| Total Americas | 65,433 | 32,364 | 203,748 | 236,818 | 190,981 |
| Total | 201,975 | 182,808 | 747,077 | 766,245 | 779,898 |
| Date of recognition Performance obligations met on specific date (Product sales) |
Jan-Mar 2021 |
Jan-Mar 2020 |
Jan-Dec 2020 |
|---|---|---|---|
| Paediatrics | 160,024 | 139,329 | 570,829 |
| Adult Health | 36,161 | 37,499 | 148,635 |
| Other | 646 | 137 | 2,027 |
| Total | 196,831 | 176,965 | 721,491 |
| Performance obligations met over time (Royalty) Paediatrics |
1,585 | 3,162 | 12,282 |
| Adult Health | 2,559 | 2,682 | 12,551 |
| Other | 1,000 | - | 753 |
| Total | 5,144 | 5,844 | 25,586 |
| Total | 201,975 | 182,808 | 747,077 |
| (Amounts in SEK 000s) | Jan-Mar 2021 |
Jan-Mar 2020 |
Jan-Dec 2020 |
|---|---|---|---|
| Opening balance | 1 746 245 | 507 874 | 507 874 |
| New issue, net | - | - | 1 130 512 |
| Dividend | - | - | -65 012 |
| Provision to the Foundation to Prevent Antibiotic Resistance | - | - | -2 800 |
| Comprehensive income for the period | 51 395 | 38 890 | 175 671 |
| Closing balance | 1 797 640 | 546 764 | 1 746 245 |
| A shares | B shares | Share capital |
No. of votes | Capital | Votes | ||
|---|---|---|---|---|---|---|---|
| 1 | Peter Rothschild & Jan Annwall | 740,668 | 100,000 | 840,668 | 7,506,680 | 4.2% | 27.9% |
| 2 | EQT | 1,625,000 | 1,625,000 | 1,625,000 | 8.0% | 6.0% | |
| 3 | Fjärde AP-Fonden | 1,521,584 | 1,521,584 | 1,521,584 | 7.5% | 5.7% | |
| 4 | Swedbank Robur Fonder | 1,029,489 | 1,029,489 | 1,029,489 | 5.1% | 3.8% | |
| 5 | Miton Asset Management | 818,990 | 818,990 | 818,990 | 4.1% | 3.0% | |
| 6 | Cargill Inc | 600,000 | 600,000 | 600,000 | 3.0% | 2.2% | |
| 7 | TIN Fonder | 531,835 | 531,835 | 531,835 | 2.6% | 2.0% | |
| 8 | Tredje AP-fonden | 373,263 | 373,263 | 373,263 | 1.8% | 1.4% | |
| 9 | Didner & Gerge Fonder | 371,038 | 371,038 | 371,038 | 1.8% | 1.4% | |
| 10 | Juno Investment Partners | 368,197 | 368,197 | 368,197 | 1.8% | 1.4% | |
| Other shareholders | 12,116,398 | 12,116,398 | 12,116 ,398 | 60.0% | 45.1% | ||
| Total | 740,668 | 19,455,794 | 20,196,462 | 26,862,474 | 100.0% | 100.0% |
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
|---|---|---|---|
| Net sales, SEK 000s | 201,975 | 182,808 | 747,077 |
| Growth of net sales | 10% | 7% | -3% |
| Operating profit, SEK 000s | 64,245 | 55,619 | 228,150 |
| Profit after tax, SEK 000s | 50,443 | 41,748 | 179,730 |
| Return on average equity | 3% | 8% | 16% |
| Return on average capital employed | 4% | 10% | 20% |
| Capital employed, SEK 000s | 1,808,858 | 557,103 | 1,757,557 |
| Number of shares (thousands) 1) | 20,196 | 17,336 | 20,196 |
| Average number of shares (thousands) | 20,196 | 17,474 | 17,855 |
| Earnings per share, SEK 1) 2) | 2.50 | 2.39 | 10.07 |
| Equity per share, SEK 1) | 89.01 | 31.29 | 97.80 |
| Equity/assets ratio | 92% | 76% | 91% |
| Operating margin | 32% | 30% | 31% |
| Profit margin | 32% | 30% | 30% |
| Average number of employees | 160 | 155 | 157 |
1) A bonus issue element from the 2020 new issue has been taken into account in the calculation of earnings per share before and after dilutive effects and equity per share, which means that comparative figures have been recalculated. There are no other dilutive effects.
2) Key ratio defined according to IFRS.
A list of definitions of key ratios reported in the consolidated financial statements is provided on page 66 of BioGaia's annual report for 2020. 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. .
| (Amounts in SEK 000s) | |||
|---|---|---|---|
| Jan-Mar | Jan-Mar | Jan-Dec | |
| Return on equity | 2021 | 2020 | 2020 |
| Profit attributable to owners of the Parent Company (A) | 50,443 | 41,748 | 179,730 |
| Equity attributable to owners of the Parent Company | 1,797,638 | 546,762 | 1,746,243 |
| Average equity attributable to owners of the Parent Company (B) | 1,771,941 | 527,317 | 1,127,058 |
| Return on equity (A/B) | 3% | 8% | 16% |
| Return on capital employed | |||
| Operating profit | 64,245 | 55,619 | 228,150 |
| Financial income | 22 | 16 | 155 |
| Profit before net financial items + financial income (A) | 64,267 | 55,635 | 228,306 |
| Total assets | 1,946,148 | 717,404 | 1,913,282 |
| Interest-free liabilities | -137,290 | -160,301 | -155,725 |
| Capital employed | 1,808,858 | 557,103 | 1,757,557 |
| Average capital employed (B) | 1,783,208 | 537,658 | 1,137,885 |
| Return on capital employed (A/B) | 4% | 10% | 20% |
| DEFINITION OF KEY RATIOS, CONTINUED | |||
| (Amounts in SEK 000s) | 31 Mar | 31 Mar | 31 Dec |
| Equity/assets ratio | 2021 | 2020 | 2020 |
| Equity (A) | 1,797,640 | ||
| 546,764 | 1,746,245 | ||
| Total assets (B) | 1,946,148 | 717,404 | 1,913,282 |
| Equity/assets ratio (A/B) | 92% | 76% | 91% |
| Operating margin | |||
| Operating profit (A) | 64,245 | 55,619 | 228,150 |
| Net sales (B) | 201,975 | 182,808 | 747,077 |
| Operating margin (A/B) | 32% | 30% | 30% |
| Profit margin | |||
| Profit before tax (A) | 64,048 | 55,433 | 227,583 |
| Net sales (B) | 201,975 | 182,808 | 747,077 |
| Equity per share | |||
|---|---|---|---|
| Equity attributable to owners of the Parent Company (A) | 1,797,638 | 546,762 | 1,746,243 |
| Average number of shares (B) | 20,196 | 17,474 | 17,855 |
| Equity per share (A/B), SEK | 89.01 | 31.29 | 97.80 |
| (Amounts in SEK 000s) | Paediatrics Jan-Mar 2021 |
Adult Health Jan-Mar 2021 |
Other Jan-Mar 2021 |
Total Jan-Mar 2021 |
|
|---|---|---|---|---|---|
| A | Description Previous year's net sales according to the average rate |
142,491 | 40,181 | 137 | 182,808 |
| B | Net sales for the year according to the average rate | 161,609 | 38,720 | 1,646 | 201,975 |
| C | Recognised change (B-A) | 19,118 | -1,461 | 1,509 | 19,167 |
| Percentage change (C/A) | 13% | -4% | 1101% | 10% | |
| D | Net sales for the year according to the previous year's average rate (D) |
177,240 | 42,428 | 1,646 | 221,313 |
| E | Foreign exchange effects (C-F) | -15,631 | -3,707 | 0 | -19,338 |
| Percentage change (E/A) | -11% | -9% | 0% | -11% | |
| F | Organic change (D-A) | 34,749 | 2,247 | 1,509 | 38,505 |
| Organic change per cent (F/A) | 24% | 6% | 1 101% | 21% |
| Average key exchange rates | Jan-Mar 2021 |
Jan-Mar 2020 |
Jan-Dec 2020 |
|---|---|---|---|
| EUR | 10.10 | 10.66 | 10.54 |
| USD | 8.32 | 9.67 | 9.27 |
| JPY | 0.0792 | 0.0888 | 0.0862 |
| Closing date key exchange rates | 31 Mar 2021 |
31 Mar 2020 |
31 Dec 2020 |
|---|---|---|---|
| EUR | 10.24 | 11.08 | 10.04 |
| USD | 8.72 | 10.08 | 8.19 |
| JPY | 0.0788 | 0.0929 | 0.0792 |
| Pledged assets and contingent liabilities (Amounts in SEK 000s) |
GROUP | ||
|---|---|---|---|
| 31 Mar 2021 |
31 Dec 2020 |
||
| Floating charges | 0 | 0 | |
| Contingent liabilities | None | None |
Q1
2021
09:30 Teleconference with CEO Isabelle Ducellier and CFO Alexander Kotsinas. To participate in the teleconference, please see Financialhearings.com for telephone numbers. The teleconference can also be followed here.
06 MAY BioGaia Annual General Meeting.
21 OCT
08:00 Interim Report 1 January – 30 June 2021. 08:00 Interim Management Statement 1 January – 30 September 2021.
Stockholm, 6 May 2021
Isabelle Ducellier CEO
This interim management statement has not been reviewed by the company's auditors.
Q1
2021
BioGaia is a world-leading, Swedish probiotics company and has been at the frontline of microbiome research for more than 30 years. BioGaia develops, markets and sells probiotic products with documented health benefits. The company operates throughout the value chain both under its own auspices and through a global network of leading, independent researchers and specialists, experts within production and local distribution partners.
BioGaia's products contain different strains of the lactic acid bacterium L. reuteri (Limosilactobacillus reuteri, previously called Lactobacillus reuteri). Results from clinical studies with BioGaia's probiotic strains have been published in more than 200 articles in scientific journals, which show that they are effective and safe for children and adults. By developing and offering clinically-proven and user-friendly probiotic products, BioGaia wants to contribute to improved global health.
BioGaia has 160 employees, of whom 131 are based in Sweden (Stockholm, Lund, Eslöv and Gothenburg), two in the USA, three in Singapore and 24 in Japan. The class B shares of the Parent Company BioGaia AB are quoted on the Mid Cap list of Nasdaq OMX Nordic Exchange 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 has patent protection for the use of specific strains of L. reuteri and certain packaging solutions in all significant 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 key part of BioGaia's strategy is to increase the share of sales consisting of BioGaiabranded products. Of products (drops, tablets for gut and oral health, oral rehydration, etc.) sold in 2020, 77% (71%) were sold under the BioGaia brand including co-branding.
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 strains of L. reuteri are some of the world's most well-researched probiotics, especially in studies involving young children.
Studies have been performed on:
• Infantile colic
.
BioGaia AB Box 3242 SE-103 64 STOCKHOLM Street address: Kungsbroplan 3, Stockholm Telephone: +46 8 555 293 00, Corporate identity number 556380-8723, www.biogaia.com
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