BIOGAIA AB Interim report
JANUARY - JUNE 2021
BioGaia AB (Publ) Interim Report, January - June 2021
Q2
2021
SECOND QUARTER 2021 | FIRST HALF 2021 |
Net sales amounted to SEK 203.1 million (244.7), a decrease of 17% (excluding foreign exchange effects, -8%). The change in sales was affected by higher comparative figures since the corresponding period last year was positively affected by Covid-19 related inventory build-up at many of our customers. Net sales in the Paediatrics segment reached SEK 161.1 million (199.2), a decrease of 19%.
Net sales in the Adult Health segment amounted to SEK 40.9 million (44.4), a decrease of 8%.
Operating expenses amounted to SEK 81.6 million (84.2), a decrease of 3%.
Operating profit decreased by 31% to SEK 69.2 million (100.2), which corresponds to an operating margin of 34% (41%)
Profit after tax was SEK 54.7 million (79.0), a decrease of 31%. Earnings per share amounted to SEK 2.71 (4.52) before and after dilution.
Cash flow for the period was SEK -16.2 million (-38.7).
Cash and cash equivalents at 30 June 2021 amounted to SEK 1,468.9 million (242.5).
Key events in the second quarter of 2021
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, double- blind, 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.
On 20 May, the company announced that BioGaia's products will be sold under the BioGaia brand in Finland.
Net sales amounted to SEK 405.1 million (427.5), a decrease of 5% (excluding foreign exchange effects, +5%).
Net sales in the Paediatrics segment reached SEK 322.8 million (341.6), a decrease of 6%.
Net sales in the Adult Health segment amounted to SEK 79.6 million (84.5), a decrease of 6%.
Operating expenses amounted to SEK 162.6 million (161.6), an increase of 1%. Operating expenses included costs of evaluation of acquisition candidates of SEK 2.5 million and restructuring costs of SEK 7.5 million. Excluding these costs, operating expenses amounted to SEK 152.6 million, a decrease of 6%.
Operating profit decreased by 15% to SEK 133.5 million (155.9), which corresponds to an operating margin of 33% (36%). Profit after tax was SEK 105.1 million (120.8), a decrease of 13%.
Earnings per share amounted to SEK 5.21 (6.91) before and after dilution.
Cash flow for the period was SEK 1.1 million (28.7).
Key events after the end of the second quarter
On 2 July, BioGaia announced that the company had become the owner of 100% of the shares in MetaboGen. Previously, BioGaia owned 92% of the shares. The purchase price amounted to SEK 11.4 million and is recognised in the half- year financial statements as a current liability to be settled in July.
Apr- | Operating |
Jun | margin |
2021 | 34% |
Jan- | Operating |
Jun | margin |
2021 | 33% |
Net sales, SEK 000s
Growth in net sales
Operating profit, SEK 000s
Operating margin
Profit after tax, SEK 000s
Number of shares, thousands 1)
Earnings per share, SEK 1) 2)
Sales | Operating profit | Net sales |
-17% | SEK | SEK |
69.2 | 203.1 | |
-8 % | ||
organically | million | million |
Sales | Operating profit | Net sales | ||
-5% | SEK | SEK | ||
133.5 | 405.1 | |||
+5 % | ||||
organically | million | million | ||
Apr-Jun 2021 | Apr-Jun 2020 | |||
203,131 | 244,698 | |||
10% | ||||
-17% | ||||
69,223 | 100,239 | |||
41% | ||||
34% | ||||
54,711 | 79,032 | |||
17,474 | ||||
20,196 | ||||
2.71 | 4.52 |
- A bonus issue element from the 2020 new issue has been taken into account in the calculation of earnings per share before and after dilution, which means that comparative figures have been recalculated. There are no other dilutive effects.
- Key ratio defined according to IFRS. For definitions of other key ratios, see page 14.
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 12 August 2021, at 08.00 CET.
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BioGaia AB (Publ) Interim Report, January - June 2021 | 2 |
Q2
2021
BioGaia AB (publ.) Interim Report 1 January - 30 June 2021
The Board of Directors and the CEO of BioGaia AB hereby present the interim report for the period 1 January - 30 June 2021.
CEO'S COMMENTS
Currently and for over a year now, the Covid-19 situation continues to impact our sales and earnings. During the first and especially the second quarter of last year many of our distributors built up inventories to avoid being affected by the anticipated delivery difficulties connected to the Covid-19 crisis. This has resulted in greater fluctuations than normal in our sales as well as between our regions. Furthermore, the still relatively strong Swedish krona has also affected our earnings.
In the second quarter of 2020 we therefore achieved sales of SEK 245 million, our best-ever quarter. Under previous normal conditions, we consider a quarter with sales in excess of SEK 200 million to be a good quarter. In the second quarter of this year we landed at SEK 203 million (a decrease of 17% and excluding foreign exchange effects, -8%) despite
fact that the first quarter this year was relatively strong with orders from China that were delivered in the final days of March instead of in the second quarter.
As usual and especially in view of the impact of the Covid situation on inventory and sales, the half-year figures are more relevant and here we see organic growth of 5%. We are not satisfied with this but at any rate it is heading in the right direction.
It is worth noting that our sales continued to show strong growth in the first six months of this year in all our regions except EMEA - Americas +33% of which LATAM grew by +24% and USA/Canada by +43%, APAC +11% while EMEA was -29%.
We have achieved fantastic results in the USA this year mainly due to the broadening of our distribution with online sales of our existing product portfolio on Amazon and Target as well as two new product launches: Prodentis Kids Tabs and Protectis Mum Capsules.
In Latin America, we continued to increase our market share despite a difficult Covid-19 situation in the region. For the first time, BioGaia succeeded in taking a market-leading position in Brazil and we are number two in Latin America. This was achieved through new product launches, including our Protectis vitamin D drops and Gastrus, as well as opening new markets (Uruguay, Ecuador and Argentina).
In EMEA, sales decreased in some of our mature markets such as Spain, Italy and Finland, both in the second quarter and accumulated this year. In Spain, the probiotics market fell by more than 35% while BioGaia retained its market share. Finally, in Finland as already announced we have terminated relations with our long-term
and started sales under the BioGaia brand for the first time with our own distribution. In several countries we can once more see the start of increased sales to consumers and several of our partners have among other things implemented
online launches and successful campaigns in social media. France has over delivered in the second quarter thanks to a highly successful launch of Gastrus.
APAC delivered a stable quarter and online sales in China are showing positive results.
Looking ahead, we will continue to implement our successful omnichannel strategy. In order to increase awareness of our brand and our market share we have recruited specialists and created a new division called BioGaia Digital. Combined with our Business-to-Consumer Marketing organisation, this gives us the strong foundation we need to increase our direct sales to consumers.
We will maintain a strong focus on science and marketing to the healthcare sector. After the successful establishment of the BioGaia Academy for paediatricians, we have launched BioGaia Oral Academy aimed at dentists. With our double focus on both consumers and healthcare professionals, we are strengthening BioGaia's brand globally among additional target groups.
As announced earlier, we have assumed full ownership of MetaboGen and continue to invest in development within the microbiome segment and new, promising probiotic strains, more specifically the next generation probiotics including strictly anaerobic bacterial strains which is challenge but where we consider we have made relatively good progress.
At the same time, our R&D department works with safety checks and pre-clinical testing of new strains so that we can extend our portfolio of probiotics and where we gain major benefits from our production and laboratory facilities in Eslöv, Sweden.
Overall I am optimistic about the coming quarter and I am convinced that our products will continue to be relevant for an increasingly large target group. Not least when we consider how discussions about preventive healthcare are likely to become increasingly relevant in most markets when the effects of the pandemic hopefully start to subside in the autumn.
Isabelle Ducellier
President and CEO BioGaia
12 August 2021
Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the interim management statement to be held today 12 August 2021 at 09:30 CET with CEO Isabelle Ducellier and CFO Alexander Kotsinas. To participate in the teleconference, please see Financialhearings.comfor telephone numbers. The teleconference can also be followed here.
BioGaia AB (Publ) Interim Report, January - June 2021 | 3 |
Q2
2021
Revenue
SEKm | Apr-Jun | Apr-Jun | Change |
2021 | 2020 | ||
Paediatrics | 161.1 | 199.2 | -19% |
Adult Health | 40.9 | 44.4 | -8% |
Other | 1.1 | 1.2 | -7% |
Total | 203.1 | 244.7 | -17% |
SEKm | Apr-Jun | Apr-Jun | Change |
2021 | 2020 | ||
EMEA | 69.7 | 113.4 | -39% |
APAC | 54.8 | 55.4 | -1% |
Americas | 78.6 | 75.9 | 4% |
Total | 203.1 | 244.7 | -17% |
SALES SECOND QUARTER
Figures in parentheses refer to the corresponding period last year. Consolidated net sales amounted to SEK 203.1 million (244.7) which is a decrease of SEK 41.6 million (-17%) (excluding foreign exchange effects, -8%) compared to the second quarter of last year. The change in sales was affected by higher comparative figures since the corresponding period last year was positively affected by Covid-19 related inventory build-up by customers.
Product sales decreased by 20% (excluding foreign exchange effects, -11%) while royalty revenues increased by 109%. The increase was related to BioGaia Japan which received a royalty revenue of SEK 8.4 million.
Sales in EMEA amounted to SEK 69.7 million (113.4), a decrease of 39%, due to lower sales within the Adult Health and Paediatrics segments. Sales within Adult Health mainly decreased in Finland, Italy, Spain and Germany while the decline within Paediatrics was mainly attributable to Italy, Spain and Rumania, which was partly offset by higher sales in France, Russia and Hungary.
Sales in APAC amounted to SEK 54.8 million (55.4), a decrease of 1%. The decrease was attributable to the Paediatrics segment while sales within Adult Health increased. Within the Paediatrics segment sales decreased primarily in China and the Philippines, which was partly offset by higher sales in Vietnam and Australia. Sales within Adult Health decreased mainly in Hong Kong and Indonesia.
Sales in the Americas totalled SEK 78.6 million (75.9), an increase of 4% which was due to increased sales within the Paediatrics segment. The higher sales were mainly attributable to Brazil, Chile and Canada.
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NET SALES BRIDGE SECOND QUARTER
SEKm | Change | |
2020 | 244.7 | |
Foreign exchange | -23.2 | -9% |
Organic growth | -18.4 | -8% |
2021 | 203.1 | -17% |
BioGaia AB (Publ) Interim Report, January - June 2021
Jan-Jun | Jan-Jun | Change |
2021 | 2020 | |
322.8 | 341.6 | -6% |
79.6 | 84.5 | -6% |
2.7 | 1.3 | 107% |
405.1 | 427.5 | -5% |
Jan-Jun | Jan-Jun | Change |
2021 | 2020 | |
163.9 | 231.4 | -29% |
97.2 | 87.8 | 11% |
144.1 | 108.3 | 33% |
405.1 | 427.5 | -5% |
SALES FIRST HALF
Figures in parentheses refer to the corresponding period last year. Consolidated net sales amounted to SEK 405.1 million (427.5) which is a decrease of SEK 22.4 million (-5%) (excluding foreign exchange effects, +5%) compared to the first half of last year. Products sales decreased by 7% (excluding foreign exchange effects, +3%) while royalty revenues increased by 52%. Over the past 12-month period, sales decreased by 10% (excluding foreign exchange effects, -2%).
Sales in EMEA amounted to SEK 163.9 million (231.4), a decrease of 29%, due to lower sales within the Adult Health and Paediatrics segments. The lower sales within Paediatrics were attributable mainly to Italy, Spain and Rumania which was partly offset by higher sales in France. Sales within Adult Health decreased primarily in Italy, Finland and Belgium.
Sales in APAC amounted to SEK 97.2 million (87.8), an increase of 11%. The increase was attributable to the Adult Health segment while sales within Paediatrics decreased. In the Paediatrics segment, sales decreased primarily in China and the Philippines. Sales within Adult Health increased primarily in Japan, China and Australia.
Sales in the Americas totalled SEK 144.1 million (108.3), an increase of 33% due to increased sales within the Paediatrics segment. The higher sales within Paediatrics were attributable mainly to Brazil, Chile and the USA, which was partly counteracted by lower sales in Mexico.
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NET SALES BRIDGE FIRST HALF
SEKm | Change | |
2020 | 427.5 | |
Foreign exchange | -42.5 | -10% |
Organic growth | 20.1 | 5% |
2021 | 405.1 | -5% |
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Q2
2021
Paediatrics
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.
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SEKm | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | |
2021 | 2020 | 2021 | 2020 | ||||
Products | 158.7 | 195.6 | -19% | 318.7 | 334.9 | -5% | |
Royalties | 2.4 | 3.5 | -31% | 4.0 | 6.7 | -40% | |
Total Paediatrics | 161.1 | 199.2 | -19% | 322.8 | 341.6 | -6% |
SALES SECOND QUARTER | SALES FIRST HALF |
Figures in parentheses refer to the corresponding period last year. Sales in the Paediatrics segment amounted to SEK 161.1 million (199.2), a decrease of 19% (excluding foreign exchange effects, -10%). Product sales in Paediatrics amounted to SEK 158.7 million (195.6), a decrease of 19%. The change in sales was affected by higher comparative figures since the corresponding period last year was positively affected by Covid-19 related inventory build-up by customers.
Sales of BioGaia Protectis drops decreased compared to the corresponding period last year. Sales increased in the Americas and decreased in EMEA and APAC. In the Americas sales of drops increased mainly in Brazil, Chile and Canada.
In EMEA; sales decreased mainly in Italy, Spain and Rumania. In APAC, sales decreased mainly in China and the Philippines.
Sales of BioGaia Protectis tablets within Paediatrics decreased compared to the corresponding period last year. The decrease was due to lower sales in EMEA, APAC and the Americas, primarily in Spain and Rumania.
Figures in parentheses refer to the corresponding period last year. Sales in the Paediatrics segment amounted to SEK 322.8 million (341.6), a decrease of 6% (excluding foreign exchange effects, +4%). Product sales in Paediatrics amounted to SEK 318.7 million (334.9), a decrease of 5%. For the past 12-month period, sales decreased by 10% (excluding foreign exchange effects, -2%).
Sales of BioGaia Protectis drops decreased slightly compared to the corresponding period last year. Sales decreased in EMEA and APAC and increased in the Americas. In EMEA, sales of drops decreased mainly in Italy, Spain and Rumania. In APAC, sales decreased mainly in China and the Philippines. In the Americas, sales increased primarily in Brazil, Chile and the USA which was partly counteracted by lower sales in Mexico.
Sales of BioGaia Protectis tablets within Paediatrics decreased compared to the corresponding period last year. The decrease was due to lower sales in EMEA, APAC and the Americas, primarily in Spain and Rumania.
BioGaia AB (Publ) Interim Report, January - June 2021 | 5 |
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BioGaia AB published this content on 12 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2021 06:20:04 UTC.
