BOIRON — Interim / Quarterly Report 2019

Oct 24, 2019

ACTIVITY IN THE THIRD QUARTER OF 2019 (Unaudited data)

• DEVELOPMENT OF BUSINESS IN THE THIRD QUARTER (VARIATION AT CURRENT EXCHANGE RATES)

	st quarter 1			nd quarter 2			rd quarter 3
In thousands of euros	2018	2019	Var. 19/18	2018	2019	Var. 19/18	2018	2019	Var. 19/18
France	91,982	83,440	-9.3%	77,199	67,917	-12.0%	94,227	81,107 -13.9%
Europe (excluding France)	32,899	31,779	-3.4%	24,795	23,551	-5.0%	37,970	36,288	-4.4%
North America	29,617	23,580	-20.4%	14,958		17,081 +14.2%	18,685	20,342	+8.9%
Other countries	4,895	4,516	-7.7%	4,185		4,854 +16.0%	4,962	5,336	+7.5%
Group total	159,393	143,315	-10.1%	121,137	113,403	-6.4%		155,844 143,073	-8.2%
	st quarter 1			nd quarter 2			rd quarter 3
In thousands of euros	2018	2019	Var. 19/18	2018	2019	Var. 19/18	2018	2019	Var. 19/18
Non-proprietary Homeopathic medicines	76,575	69,067	-9.8%	69,997	64,147	-8.4%	66,493	60,972	-8.3%
OTC Specialties	82,506	73,845	-10.5%	50,791	48,871	-3.8%	89,097	81,777	-8.2%
Other	312		403 +29.2%	349		385 +10.3%	254		324 +27.6%
Group total		159,393 143,315	-10.1%	121,137	113,403	-6.4%	155,844	143,073	-8.2%

The group's third-quarter sales were down 8.2%, mainly in France where sales dropped 13.9%. The situation in Europe shows sharp contrasts, with sales increasing in Italy and decreasing in Spain. In North America, the United States posted a significant increase in sales.

• CUMULATIVE ACTIVITY AS OF THE END OF SEPTEMBER 2019

	2018	2019	Variation at	Variation at
In thousands of euros			current	constant
			exchange rates	exchange rates
France	263,408	232,464	-11.7%	-11.7%
Europe (excluding France)	95,664	91,618	-4.2%	-4.2%
North America	63,260	61,003	-3.6%	-8.9%
Other countries	14,042	14,706	+4.7%	+5.1%
Group total	436,374	399,791	-8.4%	-9.1%
	2018	2019	Variation at	Variation at
In thousands of euros			current	constant
			exchange rates	exchange rates
Non-proprietary Homeopathic medicines	213,065	194,186	-8.9%	-9.2%
OTC Specialties	222,394	204,493	-8.0%	-9.2%
Other	915	1,112	+21.5%	+21.5%
Group total	436,374	399,791	-8.4%	-9.1%

At the end September, group sales were down 8.4%, hard hit by the 11.7% drop in sales of Non-proprietary Homeopathic medicines and Specialties in France, where homeopathy is under attack.

In Europe, the decrease in sales in Spain, Belgium, and Poland was partially offset by increased sales in Italy and Bulgaria.

In North America, sales were up in the second and third quarters but cumulative turnover is still down due to the drop in first quarter sales.

2019 year-end outlook

In light of the virulent and unfounded attacks against homeopathy in France and Spain, the decrease in sales is expected to continue in the fourth quarter. 2019 operating income will therefore be significantly lower than in 2018.

News

An initial report on homeopathy, drafted in 2012 by Australia's main public research institute, the National Health and Medical Research Council, but buried until recently, established that there is "encouraging evidence for the effectiveness of homeopathy" for several pathologies: middle ear infections, upper respiratory infections in adults, and certain side-effects of cancer treatment.

This information, which was released in late August 2019, is particularly important because it was covered up in the report published in 2015. In many countries, including France during the evaluation of homeopathic medicines, this abbreviated report has been widely used to discredit homeopathy and homeopathic medicines.

Following the publication of two decrees on changes to French national insurance coverage of homeopathic medicines on August 31, please note that they will remain eligible for reimbursement until January 1, 2021. Alongside LEHNING Laboratories, we have also filed an appeal with the Council of State to have these decrees canceled.

We remain committed to obtaining recognition of homeopathy's benefits and effectiveness for patients and for public health.

Laboratoires BOIRON

Our next update:

January 23, 2020: at market close, publication of the sales revenue for the year 2019. Person responsible for financial information: Valérie Lorentz-Poinsot Contact for financial information: Fabrice Rey

Investor relations: +33 (0) 4.78.45.63.43 - e-mail : boironfinances@boiron.fr ISIN Code: FR0000061129 (BOI) - Bloomberg: BOI FP - Reuters: BOIR.PA The group's financial information and the glossary areonline at:www.boironfinance.com