BioGaia (BIOG) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were SEK 366 million, down 1% year-over-year, with declines in EMEA and APAC offset by 42% growth in the Americas and direct market expansion in France.

• EBIT fell 32% to SEK 97 million, with an EBIT margin of 27% versus 39-40% last year; profit after tax declined 34% to SEK 80 million.

• Operating expenses rose 40%, mainly due to higher sales and marketing costs, startup costs in France, and increased exchange losses.

• Direct sales initiatives launched in France and the Netherlands, with new product launches in several countries.

• Anatom Holding became the new anchor shareholder in March, following a major share transaction.

Financial highlights

• Gross profit increased 1% year-over-year, with gross margin rising to 73% from 72%; Adult Health gross margin improved to 67% from 57%.

• Cash flow from operations was SEK 33–36 million; cash at period end was SEK 1.25 billion, down from SEK 1.6 billion last year.

• Earnings per share were SEK 0.79, down from SEK 1.21.

• Total assets at quarter-end were SEK 2,032.2 million, with an equity/assets ratio of 88%.

• Currency effects and exchange rate losses on receivables significantly impacted profitability.

Outlook and guidance

• Modest growth expected in Q2, with stronger growth anticipated in the second half as direct sales in France ramp up.

• Management expects a return to growth in the next quarter, with continued investment in marketing, direct distribution, and innovation.

• Long-term financial target remains an operating margin of at least 34%, with a dividend policy of 50% of profit after tax (excluding non-recurring items).

• Management views 2025 as a normal year, with order variability expected due to distributor patterns.

• Adult segment expected to continue outpacing pediatrics in growth.