Increased product sales resulted in a good start of the year
Net sales amounted to SEK 182.8 million (171.3), an increase of 7% (excluding foreign exchange effects, 4%). Product sales, net sales excluding royalty revenues, amounted to SEK 177.0 million (164.5), an increase of 8% (excluding foreign exchange effects, 5%).
Net sales in the Paediatrics segment reached SEK 142.5 million (133.6), an increase of 7%. Product sales within Paediatrics amounted to SEK 139.3 million (128.1), an increase of 9%.
Net sales in the Adult Health segment amounted to SEK 40.2 million (37.6), an increase of 7%.
Operating expenses amounted to SEK 77.4 million (78.0), a decrease of 1%.
Operating profit rose 20% to SEK 55.6 million (46.4), which corresponds to an operating margin of 30% (27%).
Profit after tax was SEK 41.7 million (35.6), an increase of 17%.
Earnings per share amounted to SEK 2.41 (2.06). No dilutive effects arose.
Cash flow amounted to SEK 67.4 million (29.3).
Key events in the first quarter of 2020
On 11 February 2020, BioGaia announced that a randomised, double-blind, placebo-controlled trial showed that supplementation of L. reuteri Prodentis significantly reduced bleeding of the gums compared to placebo.
On 16 March 2020, BioGaia announced that BioGaia has signed an agreement with ETHICAL NUTRITION for the exclusive rights to sell BioGaia Protectis drops and BioGaia Protectis tablets in Argentina.
On 30 March, BioGaia announced that BioGaia has taken a number of precautions due to the Covid-19 pandemic and that to date the impact on operations has been limited.
Key events after the end of the first quarter
On 3 April, BioGaia announced that BioGaia's Board of Directors has decided to revise the dividend proposal ahead of the Annual General Meeting on 7 May 2020 as a consequence of the increased uncertainty related to the global spread of the coronavirus. The revised proposal implies that the ordinary dividend of SEK 3.75 per share remains in place while the previously proposed extra dividend of SEK 4.25 per share is withdrawn. The Board intends to revisit the matter of a possible extra dividend and in such case hold an extraordinary general meeting later in the year once a better overview has been obtained regarding the effects of the Covid-19 pandemic.On 7 April, BioGaia announced that the Annual General Meeting will be held on Thursday, 7 May 2020 at 16.00 CET in the Swedish Society of Medicine's premises. Against the background of the coronavirus, BioGaia does not want shareholders to physically attend this year's AGM. BioGaia therefore urges all shareholders to carefully consider using the opportunity to be represented by proxy or to vote in advance.
CEO's comment
"The first quarter of 2020 has been marked by the Covid-19 pandemic and its impact on the world at large as well as on us at BioGaia. Our main aim has been to protect our employees and our business from possible negative consequences. At the beginning of March, we introduced a ban on international flights and attendance at large gatherings for all employees, as well as a strict quarantine policy. Just a few days later, we closed all our offices and all employees who were able to work from home could do so. At BioGaia Production, our own production facility in Eslöv, Sweden, manufacturing has so far taken place without disruption. So far, BioGaia's external suppliers have not experienced any major disruptions since they are all manufacturers of pharmaceuticals and are therefore exempt from any closure requirements.
Regardless of how the Covid-19 pandemic develops, the situation will require that we continue to adapt during the year in order to meet the challenges it brings. We are convinced that our products play a key role in these times as well and we will do everything in our power to make them available globally and to minimise the possible adverse effects of the pandemic on our business", says Isabelle Ducellier, President and CEO of BioGaia.
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 management statement to be held today 7 May 2020 at 09:30 CET with CEO Isabelle Ducellier and CFO Alexander Kotsinas. To participate in the teleconference, please see financialhearings.com (https://financialhearings.com/event/12407) for telephone numbers. The teleconference can also be followed via this link (https://tv.streamfabriken.com/biogaia-q1-2020).
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, 7 May 2020 at 08:00 CET.