• Net sales totalled SEK 187.6 million (207.6), a decrease of 10% (excluding foreign exchange effects, -4%).
• Product sales, net sales excluding royalty revenues, amounted to SEK 180.7 million (198.3), a decrease of 9% (excluding foreign exchange effects, -3%).
• Net sales in the Paediatrics segment reached SEK 139.6 million (157.4), a decrease of 11%. 
• Net sales in the Adult Health segment amounted to SEK 47.3 million (49.9), a decrease of 5%. 
• Operating expenses amounted to SEK 94.7 million (86.1), an increase of 10%.
• Operating profit decreased by 34% to SEK 45.3 million (68.1), which corresponds to an operating margin of 24% (33%).
• Profit after tax was SEK 38.5 million (50.9), a decrease of 24%. 
• Earnings per share amounted to SEK 2.02 (2.91). No dilutive effects arose.
• Cash flow amounted to SEK 1,177.6 million (2.8).
• Cash and cash equivalents at 31 December 2020 amounted to SEK 1,467.9 million (213.8).

Key events in the fourth quarter of 2020

On 12 October 2020, BioGaia announced that sales and earnings will be negatively affected in both the third and fourth quarters of 2020 by the current Covid-19 pandemic. 

On 30 October 2020, BioGaia announced that the company has carried out a directed new issue of 2.86 million class B shares at a subscription price of SEK 400 per share, whereby the company acquired proceeds of approximately SEK 1.1 billion. 

On 25 November 2020, BioGaia announced that an Extraordinary General Meeting of the company held on 25 November 2020 resolved that the number of Board members shall be eight without deputies, to elect Niklas Ringby as a new Board member, that no remuneration shall be paid to Niklas Ringby, to approve the Board's decision from 30 October 2020 to issue a maximum of 1,126,354 new class B shares, thereby increasing the company's share capital by a maximum of SEK 1,126,354.

• Net sales totalled SEK 747.1 million (768.3), a decrease of 3% (excluding foreign exchange effects, -2%). 
• Product sales, net sales excluding royalty revenues, amounted to SEK 721.5 million (743.0), a decrease of 3% (excluding foreign exchange effects, -2%).
• Net sales in the Paediatrics segment reached SEK 583.1 million (600.1), a decrease of 3%. 
• Net sales in the Adult Health segment amounted to SEK 161.2 million(167.3), a decrease of 4%. 
• Operating expenses amounted to SEK 318.8 million (321.5), a decrease of 1%.
• Operating profit decreased by 6% to SEK 228.2 million (242.5), which corresponds to an operating margin of 31% (32%).
• Profit after tax was SEK 179.7 million (187.3), a decrease of 4%. 
• Earnings per share amounted to SEK 10.07 (10.72). No dilutive effects arose.
• Cash flow amounted to SEK 1,256.6 million (-72.3).
• Cash and cash equivalents at 31 December 2020 amounted to SEK 1,467.9 million (213.8).

In accordance with the dividend policy, the Board proposes that the upcoming Annual General Meeting on 6 May 2021 approves an ordinary dividend of SEK 3.41 (3.75) per share corresponding to SEK 68.8 million (65.0). The Board further proposes a provision to the Foundation to Prevent Antibiotic Resistance of SEK 2.8 million (2.8).   

Key events after the end of the fourth quarter

On 3 February 2021 the Board of BioGaia announced that the company has decided to revise the dividend policy to pay a shareholder dividend equal to 50% of profit after tax in the parent company compared to a previous 40 %. 

CEO's comment

As you know, 2020 was a very challenging year around the world. BioGaia's sales started strongly, however, with growth in line with expectations. Although the Covid-19 crisis started seriously in March, BioGaia posted a sales increase of 7% in the first quarter followed by growth of 10% in the second quarter. But in the third quarter we could see that the pandemic would have a negative impact on sales. On 12 October, we announced that we expected reduced sales and lower earnings for both the third and fourth quarters. The fact that our sales go mainly to our partners and distributors explains the slightly delayed effect on sales.

After a decrease in sales of 21% (excluding foreign exchange effects, -17%) for the third quarter, sales fell by 10% (excluding foreign exchange effects, -4%) in the fourth quarter compared to the same period last year with continued weak sales due to Covid-19 in some of our largest and oldest markets, such as Italy and Spain. Here lengthy lockdowns have affected BioGaia's sales since consumers have been unable to visit doctors and physical pharmacies, where the bulk of sales in these countries take place. On the other hand, we have seen good sales in countries where we have implemented an omnichannel strategy, such as the USA and China, something that strengthened our conviction that we need to invest further in direct consumer marketing in many of our markets.

For more information and the entire CEO comment, see attached interim management statement.

Teleconference: Investors, analysts and the media are invited to take part in a teleconference on the year-end report
to be held today 4 February 2021 at 09:30 CET with CEO Isabelle Ducellier and CFO Alexander Kotsinas. To participate in the
teleconference, please see Financialhearings.com (https://financialhearings.com/event/13235) for telephone numbers. The teleconference can also be followed here (https://tv.streamfabriken.com/biogaia-q4-2020).

This information is information that BioGaia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the CEO, on 4 February 2021, at 08.00 CET.