Q3 2024 Biogaia AB Earnings Call Transcript
Key Points
- BioGaia AB (BGLAF) experienced a 24% sales increase in the Asia Pacific region, driven by strong performance in China, Indonesia, and Australia.
- The Americas saw a 5% sales growth, with significant contributions from the US, Canada, and Guatemala.
- The company's adult sales portfolio increased by 29%, primarily due to the success of Prodentis and Protectis tablets.
- BioGaia AB (BGLAF) has a strong cash flow of SEK 111 million, an improvement from SEK 88 million the previous year.
- The company has a promising start in Australia and New Zealand, with plans to expand its product portfolio in these markets.
- Overall sales declined by 4% in Q3, with a significant 27% decrease in the EMEA region, particularly in Turkey, Spain, and Poland.
- The EBIT declined by 65% due to an impairment loss related to the Metabogen acquisition, impacting the EBIT margin.
- Pediatric sales decreased by 12%, mainly due to lower sales of Protectis drops in EMEA and the Americas.
- Operating expenses increased by 56%, largely due to the impairment loss, with an adjusted increase of 11%.
- The clinical study for a potential product targeting metabolic syndrome did not meet its primary endpoint, leading to an impairment loss of SEK 51.2 million.
This is Theresa Agnew, CEO of BioGaia. I want to do an overview of our results for Q3. First off, our sales were SEK 304 million which was a decline of 4% mainly due to weaker sales in EMEA as well as some order variability. Where we had higher orders in Q2 in certain markets, sales in Europe, Middle East Africa decreased by 27%. And in Asia Pacific sales increased by 24%. And in the Americas, we had an increase of 5%. So good growth in Asia Pacific and also solid growth in the Americas. Our EBIT was SEK 41 million which was a decline of 65%. This was primarily due to an impairment loss that we had, which I will talk about our EBIT margin because of that was 14% without the impairment loss. If you look at the adjusted EBIT margin, it was 31% and the adjusted EBIT was SEK 93 million or a decline of 22%. So there were items that affected the comparability in the quarter. It was primarily an impairment loss attributed to our metabogen acquisition. And that impairment loss was SEK 51.2 million. And I will talk a little bit about the clinical
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