Interim period, 1 January - 30 June 2010
Net sales amounted to SEK 124.4 million (112.4), an increase of SEK 12.0 million
(11%). Excluding foreign exchange effects and early deliveries in the previous
year, the increase in net sales was 27%*.
Operating profit was SEK 31.5 million (29.9), an improvement of SEK 1.6 million
(5 %). Excluding foreign exchange effects and early deliveries in the previous
year, operating profit rose by 49%*.
Profit before tax was SEK 38.1 million (31.3), an increase of SEK 6.8 million
(22%).
Profit after tax was SEK 26.3 million (21.6), an improvement of SEK 4.7 million
(22%).
Earnings per share amounted to SEK 1.53 (1.26).
The period's cash flow from operating activities before changes in working
capital was SEK 32.5 million (32.1). Total cash flow for the period was SEK 9.2
million (10.9). Dividends of SEK 25.8 million (6.9) were paid during the period.
Cash and cash equivalents at 30 June 2010 amounted to SEK 109.4 million (69.0).
The Board has decided to change the financial target to an operating margin of
30% from the previous net margin of 25%.
Second quarter, 1 April - 30 June 2010
Net sales amounted to SEK 65.9 million (60.2), an increase of SEK 5.7 million
(9%). Excluding foreign exchange effects and early deliveries in the previous
year, the increase in net sales was 30%*.
Operating profit was SEK 17.4 (16.6) million, an improvement of SEK 0.8 million
(5%). Excluding foreign exchange effects and early deliveries in the previous
year, operating profit rose by 61%*.
Profit before tax was SEK 20.0 million (16.2), an increase of SEK 3.8 million
(23%).
Profit after tax was SEK 14.1 (11.2), an improvement of SEK 2.9 million (26%).
Key events in the second quarter of 2010
A study showing that Reuteri reduced gastrointestinal symptoms and hospital stay
in premature newborns was published in Journal of Perintology.
Agreement with Asia United Medical in China for the sale of BioGaia Probiotic
drops in China.
A study showing that Lactobacillus reuteri Protectis reduced crying time in
infants with colic was presented at ESPGHAN in Istanbul.
Key events after the end of the second quarter
A study showing that Lactobacillus reuteri Protectis was effective in infants
with chronic constipation was published in Journal of Pediatrics.
"Despite negative currency exchange effects, we continue to generate a very
strong result and cash flow, and the underlying trend continues to be very
positive.
We are pleased to note that Nestlé has now started the launch of infant formula
with Reuteri in a number of countries. We have delivered significant volumes of
Reuteri cultures to Nestlé in the first six months of 2010 and count on that
this will continue throughout the rest of the year" says Peter Rothschild,
President of BioGaia.
* Most of the company's sales are denominated in EUR. With unchanged exchange
rates, net sales would have been SEK 11.2 million higher and operating profit
would have been SEK 7.8 million higher. In June 2009, deliveries worth SEK 5.4
million were moved forward, which meant that net sales and profit for the second
quarter of last year were higher than normal.
[HUG#1438298]
