BioGaia (BIOG) investor relations material

Executive summary

• Q3 net sales reached SEK 400.4m, up 23% both including and excluding currency effects; operating profit rose 54% to SEK 132.6m and margin reached 33%.

• Jan–Sep net sales were SEK 1,213.8m, up 16% excluding currency effects; adjusted operating margin was 31%.

• Strategy focuses on growing core categories, expanding direct markets, science-based innovation, brand visibility and digital enablement.

Financial highlights

• Q3 gross profit rose 20% to SEK 292m; gross margin was 73% versus 74%.

• Q3 profit after tax increased 67% to SEK 110.2m; EPS rose to SEK 1.09 from SEK 0.65.

• Jan–Sep operating profit rose 26% to SEK 365.9m; adjusted operating profit increased 29% to SEK 377.2m.

• Jan–Sep profit after tax grew 25% to SEK 292.8m; EPS was SEK 2.89 versus SEK 2.31.

• Jan–Sep operating expenses were SEK 513.8m; excluding SEK 11.3m in one-time selling expenses, adjusted expenses were SEK 502.5m, down 2%.

Outlook and guidance

• Long-term operating margin target remains at least 34%; investment continues in research, product development, brand building and sales.

• Strong Q4 Asia Pacific growth is expected as orders pick up, despite a strong prior-year comparison.

• Marketing and selling costs will be reviewed while growth investment continues; management sees scope to sustain growth with lower sales and marketing spend.

• Dividend policy targets 50% of profit after tax excluding non-recurring items; additional dividends of 50%–100% may be paid, subject to projected cash flows.