BioGaia : Interim Management Statement January – September 2020

Third quarter 2020

• Net sales amounted to SEK 132.0 million (167.1), a decrease of 21% (excluding foreign exchange effects, -17%).
• Product sales, net sales excluding royalty revenues, amounted to SEK 125.7 million (161.9), a decrease of 22% (excluding foreign exchange effects, -18%).
• Net sales in the Paediatrics segment reached SEK 101.9 million (128.0), a decrease of 20%.
• Net sales in the Adult Health segment amounted to SEK 29.3 million (38.8) a decrease of 24%.
• Operating expenses amounted to SEK 62.5 million (72.5), a decrease of 14%.
• Operating profit fell by 45% to SEK 27.0 million (49.5), which corresponds to an operating margin of 20% (30%).
• Profit after tax was SEK 20.5 million (38.0), a decrease of 46%.
• Earnings per share amounted to SEK 1.18 (2.19). No dilutive effects arose.
• Cash flow amounted to SEK 50.3 million (51.4).
• Cash and cash equivalents at 30 September 2020 amounted to SEK 292.4 million (213.0).

Key events in the third quarter of 2020

On 10 September 2020, in light of the continued uncertainty in connection with the global spread of Covid-19, BioGaia's Board of Directors decided not to convene an Extraordinary General Meeting to decide on the previously proposed extra dividend of SEK 4.25 per share.

On 28 September 2020, BioGaia announced in a published systematic review and meta-analysis that L. reuteri Protectis (DSM 17938) was the only probiotic showing reduced pain intensity and an increased number of pain-free days compared to placebo. in children with functional abdominal pain (FAP).

January - September 2020

• Net sales amounted to SEK 559.5 million (560.7), a change of 0% (excluding foreign exchange effects, -1%).
• Product sales, net sales excluding royalty revenues, amounted to SEK 540.8 million (544.8), a decrease of 1% (excluding foreign exchange effects, -2%).
• Net sales in the Paediatrics segment reached SEK 443.5 million (442.7), an increase of 0.2%.
• Net sales in the Adult Health segment amounted to SEK 113.9 million (117.4), a decrease of 3%.
• Operating expenses amounted to SEK 224.1 million (235.4), a decrease of 5%.
• Operating profit increased by 5% to SEK 182.9 million (174.4), which corresponds to an operating margin of 33% (31%).
• Profit after tax was SEK 141.3 million (134.7), an increase of 5%.
• Earnings per share amounted to SEK 8.15 (7.78). No dilutive effects arose.
• Cash flow amounted to SEK 79.0 million (-75.1).
• Cash and cash equivalents at 30 September 2020 amounted to SEK 292.4 million (213.0).

Key events after the end of the third quarter

On 12 October, BioGaia announced that sales and earnings will be negatively affected in both the third and fourth quarters of 2020 by the current Covid-19 pandemic.

CEO's comment

On 12 October, BioGaia announced anticipated reduced sales and lower earnings for both the third and fourth quarters. In several of our largest markets, such and 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, the long-term lockdown in many countries has meant that consumers have had limited opportunities to visit the principal sales channels for our products - physical pharmacies, hospitals and, in Japan, dental surgeries.

On the other hand, the omnichannel strategy that we initiated for example in the USA; China and Vietnam in 2018 has proved successful. In markets where a large proportion of sales take place online, we can see that our sales to partners have been affected to a lesser extent and that sales to consumers have remained favourable. In the USA, sales to consumers have even continued to increase quarter after quarter. This has strengthened our conviction that we need to work more to support our partners in order to accelerate the transition to online sales. In the spring we made two new key appointments with a focus on digital marketing to consumers and online sales, a B2C Marketing Manager and a Global Digital Business Manager.

For more information and the entire CEO comment, see attached interim management statement.

Investors, analysts and the media are invited to take part in a teleconference on the interim report
to be held today 23 October 2020 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.

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 23 October 2020, at 08.00 CET