BioGaia publ : Telephone conference Q2 2020

13 August, 2020 09:30

Telephone Conference - Interim Management Statement Q2 2020

Isabelle Ducellier, CEO

Alexander Kotsinas, CFO

Quarter 2 2020 - Executive Summary

• Total sales +10% (8% excluding currency) mostly due to increased sales in Pediatrics. Product sales increased by 9%
• Good sales growth for BioGaia Protectis drops, BioGaia Prodentis and BioGaia Gastrus tablets
• Sales growth in all regions: EMEA (+1%), APAC (+23%) and Americas (+17%)

2

Quarter 2 2020 - Key Events

• Regarding COVID-19 BioGaia has continued to take a number of precautions to protect its employees and business. To date, impact on operations has been limited
• BioGaia launched Protectis Capsules in the Swedish market

3

Quarter 2 2020 Launches

Distributor Country Product

Phillips Pharmaceuticals

bWellness

Dr Reddy´s

Abbott

Abbott

Grisi

Agefinsa

Pemix

Pemix

Kenya

Australia

India

Colombia

Colombia

Mexico

Guatemala

Malta

Malta

BioGaia Protectis drops with vitamin D
BioGaia Gastrus
BioGaia Protectis tablets with new flavour
(lemon)
BioGaia Protectis drops with vitamin D
BioGaia Gastrus
BioGaia Prodentis
BioGaia Gastrus
BioGaia Protectis drops
BioGaia Protectis tablets with new flavour
(strawberry)	4

Sales per Segment (MSEK)

• Pediatrics sales +10% mostly due to increased sales of Protectis drops
• Adult sales +8% mostly due to increased sales of BioGaia Prodentis and BioGaia Gastrus tablets

		Q2	Q2	Change	YTD	YTD	Change
		2020	2019		2020	2019
Total Pediatrics	199	181	10%	342	315	9%
Total Adult health	44	41	8%	85	79	8%
Other		1	0	325%	1	0	374%
Total	245	222	10%	428	394	9%

Proportion

Sales by segment

Q2 2020

18%

81%

YTD

0%

20%

80%

Pediatrics

Adult

Other

5

Gross Margin per Segment

• Pediatrics: strong gross margin in the quarter
• Adults: lower margin due to increased transportation costs due to COVID-19

		Q2	Q2	YTD	YTD
		2020	2019	2020	2019
Pediatrics products	77%	74%	75%	74%
Adult health products		68%	72%	69%	71%
Total	75%	74%	74%	73%

6

Sales per Geographical Market (MSEK)

• Strong growth in APAC and Americas mainly due to increased sales in China and the US (increase partly due to periodization of orders in the US)
• Limited growth in EMEA due to weak performance in some countries including Italy and Finland

		Q2	Q2	Change	YTD	YTD	Change
		2020	2019	%	2020	2019	%
EMEA	113	112	1%	231	216	7%
APAC	55	45	23%	88	80	10%
Americas		76	65	17%	108	98	11%
Total	245	222	10%	428	394	9%

Q2 2020	YTD
31%	25%	EMEA
	46%	54%

23%	21%	APAC
	Americas

7

Financials

Alexander Kotsinas, CFO

OPEX (MSEK)

• OPEX -1%
• OPEX Core -4%
• OPEX Non-core +61%

		Q2	Q2	Change	YTD	YTD	Change
		2020	2019	%	2020	2019	%
OPEX	-84	-85	-1%	-162	-163	-1%
OPEX Core	77,2	80,6	-4%	148,8	153,8	-3%
Sales	44,5	48,8	-9%	89,1	89,5	-0,5%
Admin	6,2	5,0	23%	13,5	11,7	15%
FOU	20,0	23,8	-16%	42,5	45,9	-7%
Other	6,5	3,0	117%	3,8	6,8	-43%
OPEX Non-Core	7,0	4,3	61%	12,8	9,1	40%

9

P&L (MSEK)

• Sales +10% and Gross Profit +13%
• OPEX -1%
• EBIT growth +28% - EBIT Margin 41%

		Q2	Q2	Change	YTD	YTD	Change
		2020	2019	%	2020	2019	%
Sales		245	222	10%	428	394	9%
Gross Profit	184	163	13%	317	288	10%
OPEX	-84	-85	-1%	-162	-163	-1%
EBIT	100	79	28%	156	125	25%
EBIT Margin	41%	35%		36%	32%
Profit after Tax	79	61	29%	121	97	25%
EPS	4.56	3.52	29%	6.97	5.58	25%

EBIT Bridge

+21,7

Q2	Gross	OPEX	Q2
2019	profit	2020

10

Cash Flow (MSEK)

• Cash Flow from operating activities 37.8 (34.2) MSEK
• Cash Flow for the period at -38.7(-155.7) MSEK
• Cash flow from financing activities increased due to no extra dividend payed (2019 extra dividend 103 MSEK)

Q2 Q2

2020 2019

Cash flow Bridge

Cash flow from operating activities					+117
80.2	67.4
before changes in net working capital
Changes in working capital	-42.4	-33.3
Cash flow from operating activities	37.8	34.2
Cash flow from investing activities	-6.8	-11.7
Cash flow from financing activities	-69.7	-178.2
Cash flow for the period	-38.7	-155.7	Q2 2019	Cash flow	Investing	Financing	Q2 2020
				fromOperating	activities	activities
				activities
Cash at end of period	242.5	160.1

11

Concluding Remarks

Isabelle Ducellier, CEO

Conclusion

• Healthy sales growth of 10% with especially USA and China fueling our growth
• Strong EBIT growth of 28% due to the combination of healthy sales and covid-19 related savings of OPEX
• So far, we have seen limited impact of COVID-19 however difficult to predict future effects. With a strong financial situation we are well equipped to address uncertainties

13

Q&A

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