BioGaia (BIOG) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached SEK 405 million, up 5% year-over-year, with 13.2% organic growth excluding currency effects, driven by strong demand in the Americas and APAC.

• EBIT declined 20% to SEK 108 million, with an EBIT margin of 27%, reflecting increased marketing and direct sales investments.

• Direct business now accounts for 36% of sales, with new direct sales launched in the Netherlands and positive results in France.

• New subsidiary, BioGaia New Sciences AB, established to focus on skin microbiome and skin care products.

• Recognized by TIME Magazine for sustainable growth leadership.

Financial highlights

• Gross profit was SEK 294 million, up 3% year-over-year, with a gross margin of 73% (down from 74% last year).

• Operating expenses rose 25% to SEK 186 million, mainly due to increased marketing and new subsidiaries.

• Profit after tax was SEK 88 million, down 21% year-over-year; EPS was SEK 0.87, down from 1.10.

• Cash at period end was SEK 622 million, down from SEK 1 billion a year ago.

• Cash flow from operating activities was SEK 77 million in Q2, down 35% year-over-year.

Outlook and guidance

• Continued investment in marketing and direct market expansion is planned, with a long-term EBIT margin target of at least 34%.

• Dividend policy targets 50% of profit after tax, with potential extra dividends if cash flows allow.

• Positive outlook based on innovative product portfolio, clinical trial success, and strong distribution network.