FIRST QUARTER 2025
Net sales amounted to SEK 366.3 million (369.8), a decrease of SEK 3.5 million, or a decrease of 1% (excluding foreign exchange effects a decrease of 3.6%).
Net sales in the Pediatrics segment amounted to SEK 269.9 million (292.3), a decrease of 8% (excluding foreign exchange effects a decrease of 10%).
Net sales in the Adult Health segment amounted to SEK 94.6 million (74.8), an increase of 26% (excluding foreign exchange effects an increase of 23%).
Operating expenses amounted to SEK 171.2 million (122.6), an increase of SEK 48.6 million (40%). Operating expenses, excluding items affecting comparability, increased by 46% to SEK 171.2 million (117.6).
Operating profit decreased by 32% to SEK 97.1 million (143.2), which corresponds to an operating margin of 27% (39%).
Adjusted operating profit decreased by 34% to SEK 97.1 million (148.2), which corresponds to an adjusted operating margin of 27% (40%).
Profit after tax amounted to SEK 80.2 million (121.8), a decrease of 34%.
Earnings per share amounted to SEK 0.79 (1.21) before and after dilution.
Cash flow amounted to SEK 33.2 million (40.9). Cash and cash equivalents amounted to SEK 1,249.3 million (1,591.4).
Key events in the first quarter of 2025
On January 16 BioGaia announced that in line with its long-term successful strategy to market and sell its products through own subsidiaries in certain prioritized markets, BioGaia terminated the contract with its current partner in France.
On March 20 BioGaia announced that Annwall & Rothschild Investments AB (owned by Jan Annwall and BioGaia's Chairman Peter Rothschild), another member of the Rothschild family and David Dangoor (BioGaia's Vice Chairman), entered into an agreement whereby Annwall & Rothschild Investments AB will sell all of its BioGaia shares, and David Dangoor and the other Rothschild family member will sell half of their shares in BioGaia, to existing BioGaia shareholders Anatom Holding AG and other separate entities, all owned by different members of the Kahane family.
Key events after the end of the first quarter
No key events that are not mentioned in this interim management statement took place after the end of the first quarter.
CEO'S COMMENTS
Q1 2025
Following a year of strong growth and continued global expansion, BioGaia enters 2025 with sales relatively flat versus last year, however we anticipate getting back to growth next quarter. Americas is performing well with strong double-digit growth seen in the quarter. France has been added as a new direct market, and our percentage of direct distribution sales will continue to grow. We recently announced a shift in ownership that will represent the next chapter in our company's story while maintaining our successful long-term strategy.
Sales for the first quarter were in line with the same period last year. Our net sales reached SEK 366 million, representing a decline of 1% compared to Q1 2024 (a decline of 4% adjusted for currency effects). This has mainly to do with order variability for Asia Pacific and EMEA. In the quarter we have successfully increased our marketing and distribution investments. The operating margin was 27% compared to 39% in the same quarter last year.
This quarter, the pediatric segment experienced a decline of 8%, while our adult segment continues to demonstrate impressive growth, increasing by 26% compared to the same period last year. In particular, our gut health and oral health range, led by BioGaia Gastrus and BioGaia Prodentis, continue to perform strongly across a growing number of markets.
Mixed results in our market areas
In EMEA, sales decreased by 23% during the quarter, with a decline in sales in France mainly due to our decision to terminate the distribution agreement with our local partner. We also experienced a dip in sales in Romania, Poland, and South Africa, while Italy, Finland, and Belgium have delivered strong results.
Asia Pacific decreased in sales by 19%, due to weaker sales to our key markets, China and Japan, and this is mainly due to order variability. It is also worth noting that the same quarter last year was an exceptionally strong quarter, making the comparison more challenging. In Australia, Hong Kong, and Indonesia, we had significantly strong results.
In the Americas, we achieved excellent results in the quarter with a growth of 42%, thanks to increased marketing activities and broader distribution channels in the USA, along with continued strong development on Amazon. Both BioGaia USA and BioGaia Canada demonstrated robust growth in sales of our adult products: BioGaia Prodentis and BioGaia Gastrus. In Latin America, we had a double-digit increase with especially positive developments in Brazil, Chile, Guatemala, and Colombia, supported by regional training and marketing initiatives.
Direct market expansion in France
In line with our long-term strategy to establish direct presence in key markets, we made the strategic decision to terminate our distribution agreement in France. This move allows us to take the business direct through our newly formed subsidiary, enabling closer customer relationships, greater agility, and stronger brand presence.
France is one of Europe's largest probiotic markets, with nearly half the population having used probiotics within the past two years. With growing consumer awareness around the benefits of scientifically backed probiotics, we see significant potential to expand BioGaia's footprint and product offering in this important market. While this transition may result in temporary sales fluctuations, it positions us for long-term growth and brand building in a high-opportunity market.
Change in ownership - a new chapter for BioGaia
This quarter also marked a historic milestone for BioGaia. In March, a shareholder transition was announced in which Anatom Holding AG, a Switzerland-based, long-term investment firm with deep experience in the health and ingredients markets, will become BioGaia's new anchor shareholder. The transaction reflects a shared long-term belief in BioGaia's future potential and continued growth.
After more than three decades of dedicated ownership and a long-term successful strategy, BioGaia's founders Peter Rothschild and Jan Annwall, who have been with the company since its founding in 1990, have chosen to pass the torch to a new generation of long-term investors. Our current Chairman of the Board, Peter Rothschild, will step down in August of this year. On behalf of the entire team at BioGaia, I want to thank Peter and Jan for their vision and unwavering commitment in building BioGaia from the ground up into the global brand it is today. We are pleased that Peter will remain engaged as an advisor during the transition.
We look forward to working with Anatom as we continue our mission to bring scientifically proven, probiotic-based health solutions to people around the world.
Looking ahead to 2025
We remain confident in our long-term focus: leveraging science-backed innovation, investing in key markets, and strengthening our brand visibility and engagement among consumers and healthcare professionals globally. 2025 is shaping up to be an exciting year, fueled by ambitious plans and a growing team of dedicated and experienced colleagues.
Theresa Agnew
President and CEO, BioGaia
May 7, 2025
You find the complete report with tables in the attached PDF or on https://www.biogaiagroup.com/investors/reports-and-presentations/financial-reports.
Teleconference:
Investors, analysts, and the media are invited to take part in a teleconference on the interim management statement to be held today, 7 May 2025, at 09:30 a.m. CEST with CEO Theresa Agnew and CFO Alexander Kotsinas. More information about the teleconference is available here: https://financialhearings.com/event/51892.
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Contacts:
Alexander Kotsinas, CFO
Email: alexander.kotsinas@biogaia.com
Phone: +46 735 00 11 11
Mikaela Idermark Stern, Corporate Communications
Email: mikaela.idermark.stern@biogaia.com
Phone: +46 730 95 61 50
About BioGaia
BioGaia is a Swedish world-leading probiotic company that has been at the forefront of microbiome research for over 35 years. BioGaia develops, markets, and sells probiotic products with documented health benefits. The products are sold through distribution partners or through its own subsidiaries in more than 100 markets. The parent company, BioGaia AB, is listed on Nasdaq Stockholm, in the Mid Cap segment. biogaiagroup.com
This disclosure contains information that BioGaia is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CEST on May 7, 2025.
