Nestle Reuteri Supply Boosts BioGaia Results

Date:18 Aug 2010

Type:Business News

Source:Nutrition Horizon

Sector:General Company & Ingredient Information

Summary:Rothschild – "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"

Aug 18 2010 --- BioGaia has reported that net sales amounted to SEK 124.4 million in H1 [$16.89m] (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%.

Net sales amounted to SEK 65.9 million (60.2) in Q2, 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%).

"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.