BioGaia Reports 9% Sales Growth in 2016
14 Feb 2017 --- Swedish probiotics manufacturer, BioGaia, has announced an annual sales growth of 9% in 2016 - a growth that the company is in part attributing to its continued success in the Asian market.
The company’s net sales amounted to SEK 534.7 million ($60 million) in 2016.
“Looking back at 2016, we can only feel satisfied,” says Axel Sjöblad, Managing Director of BioGaia AB.
“With sales growth of 9% excluding foreign exchange effects, we were able to pass the half billion mark and achieve annual sales of SEK 534.7 million ($60 million).”
“This enabled us to increase our market shares despite the fact that the sales to Brazil, one of our most important markets, were low as a result of the inventory build-up during 2015.”
“The operating profit, excluding the distributed former subsidiary IBT, reached SEK 199.4 million ($22.4 million), an increase of 14% excluding foreign exchange effects, which leads to an operating margin of 37%.”
“Our strong financial development, while we were building a platform for future growth and signing new distribution agreements in Japan and Thailand, demonstrates the strength of our business model, our employees and our products, and gives us reason to look to the future with continued confidence.”
Towards the end of Q4, BioGaia signed major agreements for the sale of BioGaia’s probiotic products in Japan, and the company also made a further investment in MetaboGen, a company researching the microbiome to understand health and disease, and creating opportunities to develop novel therapeutics and next generation probiotics.
And it looks like the year ahead is set to follow in 2016’s footsteps. So far in 2017, an agreement has been made for the sale of BioGaia’s products in Thailand, with the products being co-branded under BioGaia and Abbott brand.
“We have a strong focus on growing our Asian business and I am very pleased that BioGaia’s products will be available in another important country in the region,” says Axel Sjöblad.
“Based on the positive experience we already have in collaborating with Abbott in Latin America, I look forward to a successful launch of our products with Abbott in Thailand as well.”
