BioGaia (BIOG) Q1 2026 earnings summary

Executive summary

• Net sales reached SEK 373 million, up 15% year-over-year organically (2% including currency effects), with balanced growth between partner and direct channels and strong performance in EMEA, especially France and Germany.

• EBIT margin remained steady at 27%, with operating profit rising 4% to SEK 101.2 million.

• Both pediatric (+13%) and adult (+18%) segments delivered double-digit organic growth, with pediatrics accounting for 73% of sales.

• New product launches, including Protectis Plus and Gastrus PURE ACTION, and scientific advancements such as LongevityGuard technology, contributed to growth.

• Americas and APAC regions posted solid growth, though APAC was impacted by order variability in China.

Financial highlights

• Net sales increased to SEK 373 million, with 15% organic growth offset by negative currency effects of 13%.

• EBIT rose 4% to SEK 101 million, maintaining a 27% margin; profit after tax was SEK 79 million, down 1% year-over-year.

• Gross margin declined slightly to 72% from 73% due to currency and product mix effects.

• Free cash flow improved to SEK 67 million from SEK 33 million year-over-year; cash at period end was SEK 871 million.

• Operating expenses decreased 3% year-over-year, mainly due to lower other OPEX, while sales and marketing costs rose 17%.

Outlook and guidance

• Management targets margin improvement in 2026 through cost control and increased sales, with operating costs expected to remain flat year-over-year excluding currency effects.

• Double-digit growth in EMEA is expected to be sustainable through 2027, supported by direct market expansion and new partnerships.

• Long-term target is an operating margin of at least 34%, with continued growth and increased investments.

• Dividend policy is to distribute 50% of profit after tax, with potential extra dividends if cash flows allow.

• Positive outlook based on innovative product portfolio, clinical trials, and strong distribution network.