SECOND QUARTER 2025

Net sales amounted to SEK 404.7 million (384.1), an increase of SEK 20.6 million, or an increase of 5% (excluding foreign exchange effects an increase of 13.2%).

Net sales in the Pediatrics segment amounted to SEK 310.1 million (304.8), an increase of 2% (excluding foreign exchange effects an increase of 9%).

Net sales in the Adult Health segment amounted to SEK 89.8 million (78.2), an increase of 15% (excluding foreign exchange effects an increase of 23%).

Operating expenses amounted to SEK 185.5 million (148.7), an increase of SEK 36.9 million (25%). Operating expenses, excluding items affecting comparability, increased by 23% to SEK 185.5 million (151.4).

Operating profit decreased by 20% to SEK 108.3 million (135.4), which corresponds to an operating margin of 27% (35%).

Adjusted operating profit decreased by 18% to SEK 108.3 million (132.6), which corresponds to an adjusted operating margin of 27% (35%).

Profit after tax amounted to SEK 87.9 million (111.0), a decrease of 21%.

Earnings per share amounted to SEK 0.87 (1.10) before and after dilution.

Cash flow amounted to SEK -623.8 million (-582.2).

Cash and cash equivalents amounted to SEK 622.3 million (1,007.7).

Key events in the second quarter of 2025

On May 7 BioGaia announced that it is expanding its global footprint by establishing direct sales in the Netherlands initially through an online approach.

On May 30 BioGaia announced that the number of votes in BioGaia decreased as a result of the conversion of a total of 1,038,202 Class A shares into 1,038,202 Class B shares.
 

FIRST HALF 2025

Net sales amounted to SEK 771.0 million (753.9), an increase of SEK 17.0 million, or an increase of 2% (excluding foreign exchange effects an increase of 5.0%).

Net sales in the Pediatrics segment amounted to SEK 580.0 million (597.1), a decrease of 3% (excluding foreign exchange effects a decrease of 0%).

Net sales in the Adult Health segment amounted to SEK 184.4 million (153.0), an increase of 20% (excluding foreign exchange effects an increase of 23%).

Operating expenses amounted to SEK 356.8 million (271.3), an increase of SEK 85.5 million (31%). Operating expenses, excluding items affecting comparability, increased by 33% to SEK 356.8 million (269.1).

Operating profit decreased by 26% to SEK 205.5 million (278.6), which corresponds to an operating margin of 27% (37%).

Adjusted operating profit decreased by 27% to SEK 205,5 million (280.8), which corresponds to an adjusted operating margin of 27% (37%).

Profit after tax amounted to SEK 168.1 million (232.9), a decrease of 28%.

Earnings per share amounted to SEK 1.66 (2.31) before and after dilution.

Cash flow amounted to SEK -590.5 million (-541.4).

Key events after the end of the second quarter 2025

On July 16 BioGaia announced that it launches a subsidiary company - BioGaia New Sciences AB - dedicated to advancing microbiome research and innovation beyond its core business.
 

CEO'S COMMENTS


Continued solid growth
Strong sales momentum returned in the second quarter, supported by high demand in key markets, especially in the APAC region and North America. Sales for the quarter were up 5%, but when factoring in the strengthening SEK, sales were up 13,2% for the quarter and 5% year to date.

Particularly noteworthy in the quarter was the strong sales in the Adult Health segment that net of currency effects was up 23% and the Pediatric segment grew 9%.

Year to Date net of currency effects the Adult Health segment was up 23% and the Pediatric segment was flat.

It is noteworthy how well our increased focus on Adult Health is paying off with strong growth for our BioGaia Gastrus and BioGaia Protectis tablets. It should also be mentioned that BioGaia Prodentis and Prodentis Kids is growing rapidly.

Year to Date the Americas region continues its strong growth at 21%, with the US market continuing to lead the way. Noteworthy is strong sales in Chile and Guatemala.

Year to Date sales for the APAC region was -1% but sales for the Second Quarter was strong at 15% driven by online sales and both medical and consumer marketing activities. The Indonesian market is performing well.

EMEA sales year to date declined 13%. This is partially due the termination of our local partner agreement in France and the start-up of our direct distribution through our own subsidiary - a successful strategy we are now continuing in France.

In the Second quarter we opened the Netherlands market using a digital-first strategy, a slightly different approach from our strategy mentioned above. This allows us to test this new market potential before establishing a subsidiary. Early results have been encouraging and outperforming our initial expectations.

Operating profit decline reflects increased marketing investments
Year to date adjusted operating profit decreased by 27% and corresponds to an adjusted operating margin of 27%. This is a result of our current increased marketing investments and opening of new direct businesses.

New evidence highlights BioGaia Protectis' impact on children's gut health
New clinical evidence highlights the effectiveness of BioGaia Protectis in preventing antibiotic-associated diarrhea in children. A recently published large-scale, randomized, placebo-controlled clinical trial further strengthens the evidence for BioGaia Protectis (L. reuteri DSM 17938) in supporting gut health in children.

The study showed a significant reduction in antibiotic-associated diarrhea by 54% among children taking our probiotic vs placebo, particularly in younger age groups and those treated for ear infections. Results like these not only validate the efficacy of our products but also reinforce BioGaia's position as a trusted leader in pediatric probiotics.

Successful participation in key medical congresses
In the quarter, we participated in two important medical congresses. At the International Association for Dental, Oral, and Craniofacial Research (IADR) in Barcelona, we showcased BioGaia oral health probiotic products and hosted a symposium on the oral microbiome's role in oral health. At the European Society for Pediatric Gastroenterology, Hepatology and Nutrition (ESPGHAN) Congress in Helsinki, our symposium highlighted advances in pediatric gut health, featuring leading experts and presenting promising pre-clinical data on our next-generation probiotic strain BG-R46®.

Proud to be recognized by TIME for Sustainable Growth Leadership
BioGaia has been recognized by TIME Magazine and Statista as one of the World's Top 500 Companies pairing strong growth with environmental stewardship. This honor underscores our commitment to sustainable business practices, balancing robust financial performance with responsible environmental management. From innovative packaging solutions to rigorous ESG standards and transparent reporting, we continue to integrate sustainability into every aspect of our operations.

Executing on our strategic investments to strengthen our brand and direct sales
Passing the mid-point of 2025 we are pleased with the results of our strategic investments to strengthen the BioGaia brand and expand our direct business. This past quarter, we advanced targeted consumer marketing initiatives to boost awareness and engagement in key direct markets.

As mentioned and in line with our strategic direction, our direct business presence continues to grow with newer direct markets such as France and the Netherlands, and our established direct markets like the USA, Canada, Australia, Finland and the UK continue to show excellent sales growth. Our direct businesses now represent 36% of our sales.

I am confident that our ongoing investments in the BioGaia brand, direct markets, and R&D will unlock long-term value and strengthen our leadership in probiotics.

Theresa Agnew
President and CEO, BioGaia
July 18, 2025

You find the complete report with tables in the attached PDF or on https://www.biogaiagroup.com/investors/reports-and-presentations/financial-reports.

Teleconference:
Investors, analysts, and the media are invited to take part in a teleconference on the interim management statement to be held today, July 18, 2025, at 09:30 a.m. CEST with CEO Theresa Agnew and CFO Alexander Kotsinas. More information about the teleconference is available here: https://financialhearings.com/event/51893

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Contacts:
Alexander Kotsinas, CFO
Email: alexander.kotsinas@biogaia.com
Phone: +46 735 00 11 11

Mikaela Idermark Stern, Corporate Communications
Email: mikaela.idermark.stern@biogaia.com
Phone: +46 730 95 61 50

About BioGaia
BioGaia is a Swedish world-leading probiotic company that has been at the forefront of microbiome research for over 35 years. BioGaia develops, markets, and sells probiotic products with documented health benefits. The products are sold through distribution partners or through its own subsidiaries in more than 100 markets. The parent company, BioGaia AB, is listed on Nasdaq Stockholm, in the Mid Cap segment. biogaiagroup.com

This disclosure contains information that BioGaia is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CEST on July 18, 2025.