BioGaia AB (publ) (BIOG_B) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hi, this is Teresa Agnew, CEO of BioGaia, and I'm here with Alexander Koutsinas, our CFO. So we are here to report on our Q1 2025 results. For Q1, our sales were $366 million sec, which was a decrease of 1%, so relatively flat to last year. This was mainly due to lower sales in Asia Pacific and as well as Europe, Middle East, Africa. Specifically in Europe, Middle East, Africa, our sales decreased by 23%. And this was mainly in France, Central Eastern Europe, and South Africa. We did see a nice increase in certain markets, such as Italy, where we are returning to growth. In Asia Pacific, we saw a decrease of 19%, and this was mainly in China, and it was also due to some order fluctuations where we had significant orders in Q4, while the Americas increased significantly by 42%. We saw strong growth in the US that was fueled by additional marketing investments that we've been doing. We also saw strong growth in Canada, as well as in Brazil. Our EBIT was 97 million sec, which was a decline of 32%, and our EBIT margin was 37%. We did have some launches. What we always like to report is when we launch our products into new markets. So you see here a number of launches in Morocco, Nicaragua, Vietnam, China, United Kingdom, and Hungary. We do have a sub-brand called BioGaia Pharax that we are continuing to launch around the world. And China was one of our next markets this quarter. We also had some key events in January, January 16th. we announced that we were going to be taking our business direct in France. So we did terminate the agreement with our partner in France, and we will see some temporary sales fluctuations due to this, but now we are positioned in France for long-term growth, which we'll talk about as the quarters unfold this year. We also announced in March, o...