BioGaia AB: Year-end report January to December 2022 (2023)

Regulatory Press Releases · February 03, 2023NO08:00 A.M


  • Net sales were SEK 274.3 million (206.2), an increase of SEK 68.1 million or 33% (excluding currency effects, 19%), of which the acquisition of Nutraceutics was an increase of SEK 29.9 million ( 15%). Organic growth was 5%.
  • Net sales in the Pediatrics segment were SEK 207.4 million (150.1), an increase of 38% (excluding currency effects, 24%).
  • Net sales in the Adult Health segment were SEK 64.7 million (55.2), an increase of 17% (excluding currency effects, 5%).
  • Operating expenses were SEK 136.9 million (105.9), an increase of SEK 30.9 million (29%), of which the acquisition of Nutraceutics represented an increase of SEK 29.4 million (28%).
  • Operating profit increased by 34% to SEK 71.1 million (53.1), which corresponds to an operating margin of 26% (26%).
  • Profit after tax was SEK 139.2 million (38.3), an increase of 264%. Earnings after tax were impacted by financial income from the impairment of an additional purchase price of Nutraceuticals of SEK 76.0 million.
  • Earnings per share were SEK 1.38 (0.38) before and after dilution[1].
  • Cash flow was SEK 89.0 million (-43.6).
  • Cash and cash equivalents at 31 December 2022 amounted to SEK 1,488.4 (1,484.7).

Key events in the fourth quarter of 2022

On October 17th, BioGaia announced that its third quarter results exceeded market expectations.


  • Net sales were SEK 1,104.0 million (785.1), an increase of SEK 318.8 million or 41% (excluding currency effects, 29%), of which the acquisition of Nutraceutics was an increase of SEK 80.1 million ( 10%). Organic growth was 19%.
  • Net sales in the Pediatrics segment were SEK 868.4 million (603.7), an increase of 44% (excluding currency effects, 32%).
  • Net sales in the Adult Health segment were SEK 230.2 million (176.9), an increase of 30% (excluding currency effects, 19%).
  • Operating costs were SEK 440.5 million (329.2), an increase of SEK 111.3 million (34%), of which the acquisition of Nutraceutics represented an increase of SEK 97.0 million (29%). .
    Operating expenses include acquisition candidate evaluation costs of SEK 1.2 million (9.3), restructuring costs (personnel related) of SEK 5.6 million (8.9) and the reversal of the depreciation of prior right-of-use assets related to a lease of premises -SEK 1.7 million (4.2). Excluding these items, operating costs amounted to SEK 435.4 million (306.9), an increase of 42%.
  • The operating result increased by 42% to SEK 361.5 million (253.7), which corresponds to an operating margin of 33% (32%).
  • Profit after tax was SEK 373.6 million (196.3), an increase of 90%. Earnings after tax were impacted by financial income from the impairment of an additional purchase price of Nutraceuticals of SEK 80.0 million.
  • Earnings per share were SEK 3.70 (1.94) before and after dilution[1]. Cash flow was SEK -12.8 million (13.1).
  • In accordance with the dividend policy, the Board proposes that the next Annual General Meeting on May 5, 2023, pay an ordinary dividend of SEK 1.45 (0.73) per share plus a special dividend of SEK 1.45 (2.26) per share share approves share. , resulting in a total dividend of SEK 2.90 (2.98) per share, equivalent to SEK 292.8 million (301.3). The Board is also proposing a SEK 4.4 million (2.9) provision for the Foundation to prevent antibiotic resistance. The dividend proposal is based on BioGaia's updated dividend policy of paying out 50% of the group's earnings. The consolidated result was adjusted for the financial income from the additional purchase price value adjustment from the Nutraceutics acquisition.

[1] Given the 5:1 split that took place in May 2022, the major historical indices based on the number of shares have been updated.


BioGaia has a turnover of SEK billion
This year was the first time in BioGaia's history that the company exceeded SEK 1 billion in sales in a full year. Revenue increased 29% excluding currency effects. Looking back over the year, we can see that our strategy resulted in four strong quarters in 2022. This was the seventh consecutive quarter of double-digit growth, including acquisitions, and we increased total net sales by 33% compared to the same quarter last year. back The pediatrics segment was up 38% and the adult health segment was up 17%. Despite significant investments in the gradual expansion of our direct sales, we are not giving up our high operating margin.

Strong market development.
Once again, we experienced consistent sales growth during the quarter, driven primarily by our pediatric product line. This success was largely driven by EMEA, led by Southern Europe (Italy, France, Spain) along with Eastern Europe (excluding Russia and Ukraine).

In the US, we had our best quarter ever at Amazon, Target and Walmart. Our Prodentis product has received positive feedback from both consumers and healthcare professionals. We believe that Prodentis can become a future growth engine in this market. In Latin America we are outperforming our strong competitors and thanks to our competent sales partners, 2022 was our best-selling year to date.

APAC continues to be impacted by the Covid restrictions to some extent, particularly in Japan and China. We achieved better results in South Korea and Vietnam, supported by digital initiatives. During the quarter, BioGaia APAC hosted its first regional sales workshop in three years. This event, held in Singapore, promotes partner best practices and promotes regional business development. Product launches in the region continued during the quarter.

A general conclusion that can be drawn from our market areas is that our sales are strong and stable despite some signs of a global economic slowdown. This confirms our suspicion that BioGaia Baby Eye Drops are very resilient in recession times.

Our four-channel strategy remains strong
Our omnichannel strategy is paying off as we reach consumers from multiple directions. Digital touchpoints are particularly successful in China and the US, including presence on marketplaces and social platforms, and in Japan through sales on BioGaia's local e-commerce platforms. Online sales in China are increasing thanks to TikTok, which acts as a social platform and marketplace. In Japan, where the dental profession is important, we intend to participate in dental conferences to activate dental practices.

Building the BioGaia brand is an ongoing process and we regularly measure consumer attitudes towards us. During the quarter, we conducted market research that confirmed that we must continue our efforts to increase our brand awareness. The results also showed that those with the most knowledge of BioGaia rate us higher or higher in terms of trust in the brand. Part of the branding effort is ongoing multi-channel campaigns, including a new marketing tool developed to support our Protectis baby drops: Make Baby Time Happy Time.

During the quarter, we conducted an extensive scientific tour of Latin America to bring our Gastrus product to market. In the US, we support our dental practices through a comprehensive initiative focused on dental hygienists and dentists. This included an initiative focused on hygiene educators and recruiting opinion leaders (KOLs) at the New York Dental Conference.

We continue to optimize the product supply chain by negotiating prices for years to come to ensure access to bacterial cultures and to minimize the risk of price increases due to inflation. We continue to test and optimize our new fermentation facility, which is expected to start small batch fermentation in early 2023.

Supported by a strong 2022
We will also face unpredictable times in 2023. Our Protectis baby sweets have shown a high level of resilience during the economic downturn as demand for them remains strong. We carefully review all costs to better respond to an uncertain world.

I am convinced that the strategic direction we took in 2019 is the right one as we start a new year. Our unique competitive advantage is based on strong branding and evidence-based research combined with a consumer omnichannel strategy. Having been implemented in the midst of the pandemic, the strategy has proven its worth and has now produced seven consecutive quarters. As such, I am confident that BioGaia will remain strong through the economic and geopolitical storms that are hitting the world around us. In parallel, we will work tirelessly to achieve our goal of becoming the world's most trusted probiotic brand.

Isabel Ducellier
President and CEO BioGaia
February 2, 2023

The full report with tables can be found in the attached PDF or in the

Investors, analysts and the media are invited to attend a conference call on management's interim statement to be held today, February 3, 2023 at 09:30 a.m. CET with CEO Isabelle Ducellier and CFO Alexander Kotsinas. More information about the conference call can be found here:

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Alexander Kotsinas, Chief Financial Officer
Phone: +46(0) 735 00 11 11

Mikaela Idermark Stern, Corporate Communications
Phone: +46 (0) 730 95 61 50

About BioGaia
BioGaia is an innovative Swedish healthcare company that develops, markets and sells probiotic products with documented health benefits. The products are sold through local distributors in more than 100 countries around the world. Parent company BioGaia AB's class B shares are listed on Nasdaq Stockholm's Mid Cap

This disclosure contains information that BioGaia is required to disclose under the EU Market Abuse Regulation (EU No. 596/2014). The information was submitted for publication via the agency of the above contact on February 3, 2023 at 08:00 CET.

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