Swedish probiotics firm saw sales in its probiotic products rocket in the first half of the year, following a series of new distribution deals.
The group's net sales reached SEK 24.3 million (€2.7m), a decrease of SEK 6.9 million compared with the previous year due to the sale of BioGaia Fermentation in July 2002. Excluding the sold operations in Fermentation, net sales were up 155 per cent over the same period of last year thanks to sales of tablets to Erina in Japan.
The higher gross profit led to an improved operating result of SEK -11.0 million, up by SEK 11.3 million over the preceding year, or SEK 7.5 million excluding the Fermentation unit.
BioGaia has managed to reduce losses by SEK 18.3 million from the corresponding period of last year to SEK -3.6 million. It should expect this pattern to continue with new licensing agreements for its LifeTop Straw in China, and Reuteri tablets with Blackmores in Australia and New Zealand and Italian company Nóos, all during the second quarter. It has also reduced research and development expenditure as per the recent strategy to focus on human health products.
Second quarter sales are also up considerably to SEK 13.1 million, an improvement of SEK 7.7 million compared with the same period of last year excluding the sold operations in Fermentation.