BioGaia records strong sales and organic growth in Q3 despite uncertain business environment
21 Oct 2022 --- Swedish probiotics company BioGaia is unveiling its financial results for Q3 2022. Sales amounted to SEK257.2 million (US$22.7 million), an increase of 48% resulting in SEK83.9 million (US$7.4 million) and organic growth of 21%.
“Today we presented another strong quarter, which is the fifth consecutive quarter with double-digit growth. For the third quarter, we reported an increase of 50% in profit after taxes,” Alexander Kotsinas, CFO at BioGaia, tells NutritionInsight.
“Despite an uncertain business environment, we see strong demand for our probiotic products, especially the Protectis drops for infants with colic.”
Health amid economic uncertainty
According to Isabelle Ducellier, CEO at BioGaia, people will always prioritize good health in their purchasing decisions.
“The Pediatrics segment increased by 57% and the Adult Health segment by 20%. Demand will probably remain strong for our Protectis drops for infants with colic, regardless of the economic situation. At the same time, our products in the Adult Health segment for well-being may be affected by tougher economic times,” she says.
Revenue was mainly driven by the Pediatrics segment amounting to US$58 million, followed by Adult Health at US$14.6 million.“We have seen limited impacts on our Q3 results. BioGaia increased net sales by 48% compared with the year-earlier quarter, with an operating margin of 36%. The Pediatrics segment increased by 57%, and the Adult Health segment by 20% despite the uncertain business environment with high inflation and geopolitical turbulence,” adds Kotsinas.
Operating profits increased by 40%, amounting to SEK93.7 million (US$8.3 million), resulting in an increased operating margin of 36%. Profit after tax amounted to SEK79.5 million (US$7.02 million).
Year-to-date results
Sales from January through September resulted in SEK829.7 million (US$73.3 million), operating profit increased by SEK290 million (US$25.6 million) and operating margin increased by 35%.
Net sales in the Adult Health segment amounted to SEK165.5 million (US$14.6 million), an increase of 36% (excluding foreign exchange effects, 26%), notes the report.
Revenue was mainly driven by the Paediatrics segment amounting to SEK661 million (US$58 million), followed by Adult Health. Both segments saw an increase in comparison to the previous year. The former increased by 46%.
Europe, the Middle East and Africa brought in the largest revenue share of SEK383.1 million (US$33.8 million), an increase of 53% compared to last year. It was followed by a 52% increase from the Americas SEK283.6 million (US$25 million) and a 15% increase from the Asia-Pacific region, amounting to SEK163 million (US$14.4 million).
NutritionInsight reported on BioGaia’s Q1 and Q2 2022 results, where organic growth was reported at 24% in Q1, 26% in Q2 and Q3 close at 21% in Q3.
By Beatrice Wihlander
