Quarterly Report • Aug 20, 2008
Quarterly Report
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BioGaia AB Interim report 1 January – 30 June 2008
(Figures in brackets refer to the same period of the previous year)
"What we are now seeing in the form sales and earnings growth is the fruit of a long-term focus on R&D and product development, and that we have a well functioning business model. Our market is growing fast and our own brand is gaining increasingly widespread recognition. We anticipate continued strong sales development," says Managing Director Peter Rothschild.
Latest press releases from BioGaia:
For additional information contact: Peter Rothschild, Managing Director, telephone: +46 8 -555 293 00, Jan Annwall, Deputy Managing Director, telephone: +46 8 - 555 293 00 --------------------------------------------------------------------------------------------------------------------------------------
BioGaia is a biotechnology company that develops, markets and sells probiotic products with documented health benefits. The products are primarily based on the lactic acid bacterium Lactobacillus reuteri (Reuteri), which has probiotic, health-enhancing effects. The class B share of the Parent Company BioGaia AB is quoted on the Small Cap list of the OMX Nordic Exchange Stockholm. www.biogaia.com
1 January – 30 June 2008
Figures in brackets refer to the same period of last year.
The Board of Directors and the Managing Director of BioGaia AB (publ) hereby present the interim report for the period 1 January – 30 June 2008.
BioGaia is a biotechnology company that develops, markets and sells probiotic products with documented health benefits. The products are primarily based on the lactic acid bacterium Lactobacillus reuteri (Reuteri) which has health-enhancing effects. BioGaia has also developed unique delivery systems, such as probiotic-containing straws and caps, that make it possible to create probiotic products with a long shelf life.
BioGaia has 38 employees, of whom 15 are based in Stockholm, 16 in Lund, 3 in Raleigh, USA, and 4 in Hiroshima, Japan.
The class B share of the Parent Company BioGaia AB is quoted on the Small Cap list of the OMX Nordic Exchange Stockholm.
BioGaia's revenue is derived mainly from the sale of finished products, but also from license rights for the use of Reuteri cultures in customers' own products (such as baby formula and dairy products).
The finished probiotic products consist of tablets, drops and oral health products (chewing gum and lozenges), as well as probiotic-containing straws and caps. BioGaia's products are sold through nutrition, food, natural health, pharmaceutical and animal feed companies in 36 countries worldwide. In Sweden, BioGaia's products are sold under the brands Semper Magdroppar and Gum PerioBalance chewing gum in pharmacies, as well as Semper baby and infant formula with active culture and Probiomax gut health tablets in grocery stores.
BioGaia holds patents for the use of Reuteri in all major markets.
Many of BioGaia's products are sold under the customer's own brands. At the end of 2005 BioGaia launched its own brand and today has many distributors in a large number of countries that sell products partly or entirely under the BioGaia brand. Even in cases where customers use their own brands, the BioGaia
brand is featured on the package. BioGaia's strategy is to increase the share of sales consisting of BioGaia-branded products.
BioGaia's research is focused on selection of different probiotics for gut health, the immune system and oral health. Extensive clinical studies have shown that BioGaia's various probiotic products:
stimulate the human immune system,
protect against GI tract and respiratory tract infections,
alleviate the side effects of antibiotic
dental caries, - reduce the risk of infection in premature
infants.
The length of time between contract and launch varies between countries due to differing amounts of time needed for the registration process. The products are normally registered as dietary supplements and in certain cases as pharmaceuticals.
In April BioGaia signed an agreement with the Belgium pharmaceutical company NeoCare, giving NeoCare the right to sell BioGaia's Probiotic drops and tablets in Belgium and Luxembourg. The products will be sold under BioGaia's trademark.
In April BioGaia entered into a global collaborative agreement with Bericap Sarl, a subsidiary of Bericap, one of the world's largest manufacturers of plastic caps and other packaging closures.
Under the agreement, the two companies will collaborate in development, manufacturing and marketing of BioGaia's patented beverage cap, LifeTop Cap, which has been developed to protect sensitive ingredients such as probiotics from the effects of moisture, heat and light in PET bottles.
The Bericap Group will market LifeTop Cap to its customers worldwide, manufacture the plastic details and develop new varieties for
different bottle types. BioGaia will sell and market the product and, through its 50%-owned company Two Pac, handle the ingredients and manufacture the aluminium blister that protects the ingredients and is placed in the LifeTop Cap.
In June BioGaia signed an additional collaborative agreement with BioGaia's Finnish partner, Verman OY, for the Russian market. Under the agreement, Verman has been granted a non-exclusive right to distribute and sell BioGaia's Probiotic tablets and drops under Verman's own Rela brand on the Russian market. Today Rela is the top-selling probiotic brand in the Finnish pharmacy market. In autumn 2008 Verman will open its own office in Moscow from which it manage the Russian business activities.
The Annual General Meeting of BioGaia AB on 22 April 2008 resolved unanimously in favour of the following: - that no dividend will be paid to the shareholders
-election of Jörgen Thorball as a new Board member
re-election of David Dangoor as Board Chairman
principles for remuneration and other terms of employment of senior executives in accordance with the Board's proposal - principles for nominating committee in accordance with the proposal in the notice of the Annual General Meeting.
In July BioGaia extended its agreement with Ferring Pharmaceuticals to cover essentially all of Latin America. The agreement gives Ferring exclusive rights to sell BioGaia's Probiotic tablets and drops in 10 additional countries: Colombia, Costa Rica, Nicaragua, Panama, the Dominican Republic, Guatemala, Honduras, Cuba, El Salvador and Trinidad-Tobago. The products will be sold under the BioGaia brand.
In July BioGaia signed a distribution agreement with the Swiss-based pharmaceutical company AllergyCare AG. The agreement gives AllergyCare exclusive rights to sell BioGaia's Probiotic drops and tablets in Switzerland and
Liechtenstein. The products will be sold under the BioGaia brand.
Sunstar Suisse SA already had an option for a distribution agreement covering a large number of countries. At the beginning of January 2008, Sunstar exercised this option and signed an additional agreement with BioGaia that gives Sunstar exclusive rights to distribute BioGaia's probiotic oral health products in more than 100 countries.
The products will be sold under Sunstar's GUM PerioBalance brand. The agreement also includes possibilities for joint development of new oral products. The launch will be carried out within a 2-year period. One of the first launches will take place in the USA during 2008.
Sunstar already distributes BioGaia's oral health products in Germany, France, Italy, Spain, Sweden and Norway.
The sales of BioGaia's Probiotic drops and soy drinks with BioGaia's Probiotic straw that were started in 2007 are continuing in 2008. Efforts to adapt the products and marketing to the Japanese market are in progress. This venture is part of BioGaia's long-term focus on its own brand. The cost of the Japanese venture during the six-month period amounted to SEK 3.5 million (3.2), which is higher than anticipated. The net cost on a full-year basis is expected to be lower than in the prior year.
In February BioGaia signed a new agreement with Ferring Pharmaceuticals in Switzerland, giving Ferring exclusive rights to sell BioGaia's Probiotic drops in Australia, New Zealand and Israel, and BioGaia's Probiotic tablets in Brazil, Egypt, Greece, Iran, Jordan, Canada, Lebanon, Mexico, Saudi Arabia and Syria.
The partnership began in the spring of 2006 and has been so successful that Ferring decided, in connection with the extension of its earlier agreement, to begin marketing
BioGaia's Probiotic drops in new markets and to add BioGaia's Probiotic tablets to its product portfolio.
The drops have been launched in Spain, Portugal, the Czech Republic, Canada, Jordan, and Mexico. Ferring also has exclusive rights to sell BioGaia's Probiotic drops in Brazil, Egypt, Greece, Iran, Lebanon, Saudi Arabia and Syria.
The Group's net sales amounted to SEK 72.4 million (51.2), an increase of 41% compared to the same period of last year. BioGaia's Probiotic drops in Europe accounted for most of the period's sales growth.
Gross profit reached SEK 47.8 million, an improvement of SEK 13.6 million over the same period of last year.
Selling expenses rose by SEK 1.7 million compared to the same period of last year, which is mainly explained by higher personnel costs and increased costs for the registration of new products.
The period's R&D expenses amounted to SEK 10.7 million (9.0), which is equal to 18% (19%) of total operating expenses. The higher R&D expenses are due to an increased level of activity in clinical studies that began during the half-year period. The amortisation component of R&D expenses amounted to SEK 2.0 million (2.1). Investments in capitalised development expenses totalled SEK 0 million (0).
Operating profit was SEK 12.6 million (2.6), an improvement of SEK 10.0 million compared to the same period of last year.
Profit after tax was SEK 22.1 million (3.3), an increase of SEK 18.8 million compared to the same period of last year.
The Group pays no tax due to the existence of a cumulative loss carryforward. The total loss carryforward in the Group at 31 December 2007 was SEK 123.1 million, of which SEK 113.1 million was attributable to the Swedish companies.
At 30 June 2008 BioGaia recognised a deferred tax asset of SEK 17.5 million, resulting in a tax benefit of SEK 8.5 million in the income statement. In connection with future reports, the company will take a position on whether or not to recognise additional deferred tax assets.
The Group's cash and cash equivalents at 30 June 2008 totalled SEK 47.9 million (41.1). Cash flow for the period was SEK 5.0 million (1.3), an improvement of SEK 3.7 million compared to the same period of last year.
In the first half of 2008, the company paid a conditional shareholder contribution of SEK 2.0 million to the associated company TwoPac AB.
Cash flow from operating activities before change in working capital was SEK 16.2 million (6.2), an improvement of SEK 10 million compared to the same period of last year. The increase in working capital was SEK 7.6 million and is mainly attributable to inventories and accounts receivable.
Consolidated equity amounted to SEK 117.0 million (78.7). The Group's equity/assets ratio was 86% (84%).
Capital expenditure on property, plant and equipment totalled SEK 1.6 million (1.3).
The Parent Company reported net sales of SEK 72.6 million (52.0) and a profit after net financial items of SEK 14.3 million (7.5).
Second quarter sales amounted to SEK 36.4 million, up by SEK 11.7 million over the same period of last year. Compared to the first quarter, sales increased by SEK 0.3 million.
Operating profit for the second quarter was SEK 5 million, an increase of SEK 4.7 million over the same period of last year. Compared to the first quarter, operating profit fell by SEK 2.6 million due to a somewhat changed product mix during the period that resulted in lower gross margins and higher selling expenses.
Profit after tax for the second quarter was SEK 14.1 million, an improvement of SEK 13.4 million compared to the same period of last year. Profit for the period includes a tax benefit of SEK 8.5 million.
Second quarter cash flow was SEK 1.5 million. Cash flow from operating activities before change in working capital was SEK 6.8 million.
The total number of employees in the Group at 30 June 2008 was 38 (37).
No major changes in significant risks and uncertainties have taken place during the period.
The Japanese venture is associated with increased market risk. Although the market has shown a strong interest in these products, relatively large volumes are needed to achieve adequate profitability.
The shares in the associated company (TwoPac AB) and the receivable from the associated company amounted to a total of SEK 11.6 million (10.6). TwoPac AB's primary operations are development of equipment and manufacturing of BioGaia's Probiotic drops and straws and LifeTop Cap on behalf of BioGaia. BioGaia's assessment is that the cash flow from TwoPac will generate good profitability, for which reason no impairment loss was recognised on the balance sheet date. Should BioGaia's investment fail in full or in part, the Company may be forced to recognise an impairment loss on all or parts of the holding in and receivables from the associated company.
BioGaia's capitalised development expenditure amounts to SEK 6.6 million, of which SEK 2.1 million refers to the LifeTop Cap project. BioGaia has a sales agreement for LifeTop Cap and has received inquiries from a number of potential customers. BioGaia has also signed a collaborative agreement with BERICAP (see above), one of the world's largest manufacturers of plastic caps. BioGaia's assessment is that the cash flow
from LifeTop Cap will generate good profitability, for which reason no impairment loss has been recognised. Should this investment fail in full or in part, BioGaia may be forced to recognise an impairment loss on all or parts of the project cost.
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, increased sales to both existing and new customers and a controlled cost level.
In 2008 and 2009 BioGaia expects the tablets, drops and oral health products to be launched in a large number of countries.
In view of the Company's strong portfolio of innovative products partly under the company's own brand, successful clinical trials and growing distribution network covering a large share of the key markets, BioGaia's future outlook is bright.
| April | April | |||||
|---|---|---|---|---|---|---|
| (Amounts in SEK 000s) | Jan-June | Jan-June | June | June | Jan-Dec | |
| 2008 | 2007 | 2008 | 2007 | 2007 | ||
| Net sales | 72,448 | 51,163 | 36,369 | 24,726 | 106,580 | |
| Cost of goods sold | -24,663 | -16,985 | -13,006 | -8,163 | -35,122 | |
| Gross profit | 47,785 | 34,178 | 23,363 | 16,563 | 71,458 | |
| Other operating income | 238 | 437 | 74 | 411 | 1,691 | |
| Selling expenses | -19,902 | -18,192 | -10,605 | -9,646 | -37,739 | |
| Administrative expenses | -4,430 | -3,967 | -2,220 | -2,007 | -7,487 | |
| Research and development expenses | -10,707 | -9,016 | -5,428 | -4,677 | -17,938 | |
| Other operating expenses | - | - | - | 28 | - | |
| Share in profit/loss of associated company | -410 | -840 | -150 | -373 | -1 103 | |
| Operating profit | 12,574 | 2,600 | 5,034 | 299 | 8,882 | |
| Financial income and expenses | 1,055 | 686 | 581 | 363 | 1,807 | |
| Profit before tax | 13,629 | 3,286 | 5,615 | 662 | 10,689 | |
| Tax | 8,500 | - | 8,500 | - | 8,970 | |
| PROFIT FOR THE PERIOD | 22,129 | 3,286 | 14,115 | 662 | 19,659 | |
| Earnings per share | ||||||
| Basic earnings per share (average number of shares), SEK |
1.29 | 0.19 | 0.82 | 0.04 | 1.14 | |
| Diluted earnings per share, SEK | 1.29 | 0.19 | 0.82 | 0.04 | 1.14 | |
| Number of shares, thousands | 17,208 | 17,208 | 17,208 | 17,208 | 17,208 | |
| Average number of shares, thousands | 17,208 | 17,208 | 17,208 | 17,208 | 17,208 | |
| Average number of shares after dilution, | ||||||
| thousands | 17,208 | 17,208 | 17,208 | 17,208 | 17,208 | |
| CONSOLIDATED BALANCE SHEETS | 30 June | 31 Dec | 30 June | |||
| (Amounts in SEK 000s) | 2008 | 2007 | 2007 | |||
| ASSETS | ||||||
| Intangible assets | 6,631 | 8,199 | 9,685 | |||
| Tangible assets | 3,645 | 2,617 | 2,364 | |||
| Participations in associated company | 7,175 | 5,585 | 4,348 | |||
| Long-term receivables | 4,400 | 4,400 | 5,400 | |||
| Deferred tax asset | 17,500 | 9,000 | - | |||
| Other long-term receivables | 46 | 27 | 18 | |||
| Current assets excl. cash and cash | ||||||
| equivalents | 48,304 | 37,968 | 31,319 | |||
| Cash and cash equivalents | 47,924 | 42,977 | 41,087 | |||
| TOTAL ASSETS | 135,625 | 110,773 | 94,221 | |||
| EQUITY AND LIABILITIES | ||||||
| Shareholders' equity | 117,020 | 94,910 | 78,696 | |||
| Interest-free current liabilities | 18,605 | 15,863 | 15,525 | |||
| TOTAL EQUITY AND LIABILITIES | 135,625 | 110,773 | 94,221 |
| CONSOLIDATED CASH FLOW STATEMENTS |
Jan-June | Jan-June | April June |
April June |
Jan-Dec |
|---|---|---|---|---|---|
| (Amounts in SEK 000s) | 2008 | 2007 | 2008 | 2007 | 2007 |
| Operating activities | |||||
| Operating profit | 12,574 | 2,600 | 5,034 | 299 | 8,882 |
| Depreciation/amortisation | 2,079 | 2,090 | 1,059 | 1,067 | 3,979 |
| Capital gains/losses on the sale of fixed assets |
7 | - | - | - | - |
| Share in profit/loss of associated company | 410 | 840 | 150 | 373 | 1,103 |
| Other non-cash items | 30 | -33 | 2 | 2 | -12 |
| Interest received and paid | 1,055 | 686 | 581 | 363 | , 1,807 |
| Cash flow from operating activities before changes in working capital |
16,155 | 6,183 | 6,826 | 2,104 | 15,759 |
| Changes in working capital | -7,596 | -4,183 | -4,185 | -181 | , -10,671 |
| Cash flow from operating activities | 8,559 | 2,000 | 2,641 | 1,923 | 5,088 |
| Cash flow from investing activities | -3,581 | -1,340 | -1,183 | -114 | -2,516 |
| Cash flow from financing activities | - | 686 | - | 686 | , 686 |
| Cash flow for the period Cash and cash equivalents at beginning of |
4,978 | 1,346 | 1,458 | 2,495 | 3,258 |
| period Exchange differences in cash and |
42,977 | 39,719 | 46,487 | 38,626 | 39,719 |
| cash equivalents Cash and cash equivalents at end of |
-31 | 22 | -21 | -34 | - |
| period | 47,924 | 41,087 | 47,924 | 41,087 | 42,977 |
| (Amounts in SEK 000s) | Jan-June | Jan-June | Jan-Dec |
|---|---|---|---|
| 2008 | 2007 | 2007 | |
| At beginning of period | 94,910 | 74,530 | 74,530 |
| The period's translation difference | -19 | 194 | 35 |
| Warrants in BioGaia AB | - | 686 | 686 |
| Profit for the period | 22,129 | 3,286 | 19,659 |
| At end of period | 117,020 | 78,696 | 94,910 |
| (Amounts in SEK 000s) | Jan-June | Jan-June | Jan-Dec |
|---|---|---|---|
| Sales | 2008 | 2007 | 2007 |
| Europe | 48,999 | 33,231 | 62,354 |
| USA and Canada | 2,504 | 3,412 | 7,736 |
| Asia | 14,245 | 11,257 | 25,895 |
| Rest of world | 6,700 | 3,263 | 10,595 |
| 72,448 | 51,163 | 106,580 |
The Group has a 50% holding in TwoPac AB, which is reported as an associated company.
| Jan-June | Jan June |
Jan Dec |
|
|---|---|---|---|
| 2008 | 2007 | 2007 | |
| Interest income | 144 | 142 | 304 |
| Shareholder contributions paid | 2 000 | - | 500 |
| Loan converted to shareholder contribution | - | - | 1,000 |
| Purchase of goods | 3,267 | 335 | 2,259 |
| Advance payments for future deliveries | - | 600 | 600 |
| Purchase of machinery and equipment | - | 1,195 | 1,195 |
Long-term receivables from TwoPac AB
| 30 June | 30 June | 31 Dec | |
|---|---|---|---|
| 2008 | 2007 | 2007 | |
| Long-term receivables from TwoPac AB | 4,400 | 5,400 | 4,400 |
| Current transactions with related parties | |||
| Current receivables from TwoPac AB | 74 | 72 | 85 |
| Current liabilities to TwoPac AB | -1,031 | -92 | - |
| -957 | -20 | 85 |
| PARENT COMPANY INCOME STATEMENTS | Jan-June | Jan-June | Jan-Dec |
|---|---|---|---|
| 2008 | 2007 | 2007 | |
| Net sales | 72,635 | 52,044 | 107,034 |
| Cost of goods sold | -24,695 | -17,908 | -35,827 |
| Gross profit | 47,940 | 34,136 | 71,207 |
| Selling expenses | -19,852 | -14,846 | -39,565 |
| Administrative expenses | -4,429 | -3,967 | -7,488 |
| Research and development expenses | -10,961 | -8,995 | -17,784 |
| Other operating income | 238 | 437 | 1,691 |
| Operating profit | 12,936 | 6,765 | 8,061 |
| Result from participations in associated company | - | - | -1,103 |
| Net financial items | 1,314 | 770 | 2,086 |
| Profit before tax | 14,250 | 7,535 | 9,044 |
| Tax expense for the period | 8,500 | - | 9,000 |
| PROFIT FOR THE PERIOD | 22,750 | 7,535 | 18,044 |
| PARENT COMPANY BALANCE SHEETS | 30 June | 30 June | 31 Dec |
|---|---|---|---|
| 2008 | 2007 | 2007 | |
| ASSETS | |||
| Intangible assets | 6,631 | 9,685 | 8,199 |
| Tangible assets | 3,347 | 2,161 | 2,287 |
| Shares in group companies | 4,137 | 4,137 | 4,137 |
| Shares in associated company | 7,585 | 5,188 | 5,585 |
| Long-term receivables from subsidiaries | 1,801 | 4,796 | 1,325 |
| Long-term receivables from associated company | 4,400 | 5,400 | 4,400 |
| Deferred tax asset | 17,500 | - | 9,000 |
| Current assets excl. cash and cash equivalents | 46,259 | 30,918 | 36,392 |
| Cash and cash equivalents | 47,023 | 40,221 | 42,103 |
| TOTAL ASSETS | 138,683 | 102,506 | 113,428 |
| EQUITY AND LIABILITIES | |||
| Shareholders' equity | 117,658 | 84,399 | 94,908 |
| Interest-free current liabilities | 21,025 | 18,107 | 18,520 |
| TOTAL EQUITY AND LIABILITIES | 138,683 | 102,506 | 113,428 |
| Pledged assets and contingent liabilities for the Parent Company |
| Floating charges | 2,000 | 2,000 | 2,000 |
|---|---|---|---|
| Guarantees | None | None | None |
| PARENT COMPANY CASH FLOW STATEMENTS | Jan-June | Jan-June | Jan-Dec |
|---|---|---|---|
| 2008 | 2007 | 2007 | |
| Operating activities | |||
| Operating profit | 12,936 | 6,765 | 8,061 |
| Depreciation/amortisation | 2,021 | 2,056 | 3,902 |
| Capital gains/losses on the sale of fixed assets | 7 | - | - |
| Write-down of receivable from subsidiary 1) | 3,258 | - | 7,330 |
| Other non-cash items | 29 | -39 | -8 |
| Interest received and paid | 1,699 | 769 | 2,086 |
| Cash flow from operating activities before changes in working capital |
19,950 | 9,551 | 21,371 |
| Changes in working capital | -7,363 | -2,559 | -9,373 |
| Cash flow from operating activities | 12,587 | 6,992 | 11,998 |
| Cash flow from investing activities | -7,639 | -6,136 | -9,229 |
| Cash flow from financing activities | - | 686 | 686 |
| Cash flow for the period | 4,948 | 1,542 | 3,455 |
| Cash and cash equivalents at beginning of period | 42,103 | 38,640 | 38,640 |
| Exchange differences in cash and cash equivalents | -28 | 39 | 8 |
| Cash and cash equivalents at end of period | 47,023 | 40,221 | 42,103 |
1) Reported net in investing activities at 31 December 2007.
| (Amounts in SEK 000s) | Jan-June | Jan-June | Jan-Dec |
|---|---|---|---|
| 2008 | 2007 | 2007 | |
| At beginning of period | 94,908 | 76,178 | 76,178 |
| New issue of warrants | - | 686 | 686 |
| Profit for the period | 22,750 | 7,535 | 18,044 |
| At end of period | 117,658 | 84,399 | 94,908 |
| SEGMENT REPORTING – PARENT COMPANY | Jan-June | Jan-June | Jan-Dec |
|---|---|---|---|
| (Amounts in SEK 000s) | 2008 | 2007 | 2007 |
| Europe | 48,849 | 33,231 | 62,269 |
| USA and Canada | 2,504 | 3,316 | 7,544 |
| Asia | 14,582 | 12,234 | 26,626 |
| Rest of world | 6,700 | 3,263 | 10,595 |
| 72,635 | 52,044 | 107,034 |
| CONSOLIDATED KEY RATIOS 1) | Jan-June | Jan-June | Jan-Dec |
|---|---|---|---|
| 2008 | 2007 | 2007 | |
| Return on | |||
| - average shareholders' equity | 20.9% | 4.3% | 23.2% |
| - average capital employed | 12.9% | 4.3% | 12.7% |
| Capital employed, SEK 000s | 117,020 | 78,696 | 94,910 |
| Number of shares, thousands | 17,208 | 17,208 | 17,208 |
| Average number of shares, thousands | 17,208 | 17,208 | 17,208 |
| Number of outstanding warrants, thousands |
129 | 129 | 129 |
| Average number of outstanding warrants with a dilutive effect, thousands |
- | - | - |
| Average number of shares after dilution, thousands |
17,208 | 17,208 | 17,208 |
| Basic earnings per share, SEK | 1.29 | 0.19 | 1.14 |
| Diluted earnings per share, SEK | 1.29 | 0.19 | 1.14 |
| Equity per share, SEK | 6.80 | 4.57 | 5.52 |
| Equity per share after dilution, SEK | 6.80 | 4.57 | 5.52 |
| Equity/assets ratio | 86% | 84% | 86% |
| Average number of employees | 37 | 36 | 37 |
1) The definitions of key ratios correspond to those in the annual report.
The consolidated financial statements have been prepared in compliance with the International Financial Reporting Standards (IFRS) established by the International Accounting Standards Board (IASB) and the interpretations published by the International Financial Reporting Interpretations Committee (IFRIC) that have been endorsed by the European Commission for application in the EU.
This interim report has been prepared for the Group in accordance with IAS 34, Interim Financial Reporting, and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.
The Group and the Parent Company apply the same accounting and valuation principles as in the 2007 annual report.
23 October 2008 Interim report 1 January – 30 September 2008 12 February 2009 Year-end report 2008
This interim report provides a true and fair picture of the business activities, financial position and results of operations of the Parent Company and the Group, and describes the significant risks and uncertainties to which the Parent Company and the Group companies are exposed.
David Dangoor Jan Annwall Stefan Elving Board Chairman Board member Board member
Thomas Flinck Inger Holmström Jörgen Thorball Board member Board member Board member
Paula Zeilon Peter Rothschild Board member Managing Director
The information in this interim report was submitted for publication on 20 August 2008, 8:30 a.m. CET.
I have reviewed the interim report for BioGaia AB (publ), corporate identity number 556380-8723 at 30 June 2008 and for the six-month period then ended. The Board of Directors and Managing Director are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. My responsibility is to express a conclusion on this interim financial information based on my review.
I conducted my review in accordance with the Standard on Review Engagements SÖG 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by FAR. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable me to obtain a level of assurance that would make me 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 based on an audit.
Based on my review, nothing has come to my attention that causes me to believe that the accompanying interim financial information is not, in all material aspects, prepared in accordance with IAS 34 and the Swedish Annual Accounts Act and for the Parent Company in accordance with the Swedish Annual Accounts Act.
Stockholm, 20 August 2008
Lena de Rosche Authorised Public Accountant Grant Thornton Sweden AB
BioGaia AB Box 3242 SE-103 64 STOCKHOLM, Sweden Street address: Kungsbroplan 3A, Stockholm Telephone: +46 (0)8 555 293 00 www.biogaia.com Corp. identity no. 556380-8723
For additional information contact: Peter Rothschild, Managing Director, telephone: +46 (0)8 - 555 293 00, Jan Annwall, Deputy Managing Director, telephone: +46 (0)8 - 555 293 00
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