BioGaia AB (publ)

Welcome to BioGAIA Q1 Report for 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO Teresa Agnew and CFO Alexander Katsinas. Please go ahead.

Hi, this is Teresa Agnew, CEO of BioGAIA. And we are here to present our Q1 2026 results. So in terms of the highlights, we have growth excluding currency effects of 15%. Our EBIT margin for the quarter is 27%. And overall, our free cash flow is 67 million SEC. Our net sales reached 373 million SEC, and as I said, organic growth of 15%, 2% growth when you include currency effects. By region, our Asia-Pacific region increased by 6%, excluding currency effects. In the Americas, we increased by 12%, excluding currency effects. And for Europe, Middle East, Africa... we increased by 24%, excluding currency effects. Our operating profit for the quarter was around 101 million SEC, which is 4% growth, and our EBIT margin, as I said, was 27%, comparing to 27% same quarter last year. To remind you of our company's strategy, we have three strategic pillars – Grow the core, where we focus on growing our core health areas, gut health, of which colic is a part, oral health, and immune health. Our second strategic pillar is what we call expansion through direct markets. So focusing on growing our current 12 direct markets and focusing our marketing and selling and investment activities in those markets to drive growth ahead of market growth. And our third strategic pillar is what we call breakthrough innovation, where we work on new products that are in new areas, new market creation opportunities for probiotics. And our foundations are, of course, our people and our culture, investing for profitable growth, using digital as an enabler of the business, both in how we go to market in our omnichannel approach, as well as how we digitize internally to make us more productive and efficient, driven by science, which has been a foundation for us for over 35 years, and sustainable solutions. So, how are we delivering on our strategy? In terms of Grow the Core, for the quarter, we are driving growth in both the pediatric and adult segments. We are investing, as I said, in marketing and selling activities to drive strong double-digit growth in direct markets. We're continuing the rollout of new products. We launched a new product, Gastros Pure Action, in Finland originally in October 2024. And now we have rolled it out to approximately 12 markets. And it is now the third highest growth contributor to our overall business in terms of million sec for a second quarter in a row. It was our third largest growth contributor in Q4 and again now in Q1 2026. And we are also rolling out a new product, Preventus Fresh Breast, which launched last year in Q3, and we continue to roll that out into more markets. In terms of expansion through direct markets, we launched Germany in Austria earlier in Q1, and that is doing really well with strong growth ahead of our plan. France and Canada actually had record sales in Q1, so both of those direct markets doing very strongly. And then U.S. continues in Q1 with its strong double-digit growth trend. So direct markets performing extremely well. In the breakthrough innovation area, we have our BioGuy and New Sciences focus, which is on skin health, and we continue to roll out our probiotic ointment to more and more countries around the world. And we have some exciting news to announce a new product launch in our pediatrics area, This is called BioGaia Protectus Plus. This is our next-generation patented probiotic baby drops, which I think, as you know, this is a dual-strain product. So this contains our original protectus strain, which is BSM-17938, and a new patented strain, which we call BGR-46. Our current protective drops will remain available in the market. So this will be an additional product launch, which will round out our premium portfolio in terms of baby drops. We just completed a clinical study where we achieved positive results both in efficacy and safety. So we will be writing a manuscript and submitting this for publication for the clinical study. So with this product, we get the benefit of additive probiotic effects. So it's supported by numerous preclinical studies that have been published, such as things about the survival and the activity in a bio-rich environment, which is very important for bacteria to survive. The BGR46 also increases melatonin induction in the intestinal cells. So this is a really positive differentiator in this strain. This new strain also has higher production levels of anti-inflammatory compounds, such as adenosine. And this new strain is even better adapted to the infant gut in a milk-rich environment. So there are a number of things that we've studied preclinically about this new strain, BGR46, which provide additive probiotic effects. But as I said, this is a new product that will be available in addition to our original BioGaia protective straw. Our first launch is actually this week in the UK, and then we will follow with additional rollouts by market over this year and into next year. So, very exciting news for us in terms of a new product launch, our next generation probiotic drops. In addition, with other launches in the quarter, as always, our existing product portfolio, we talk about other launches as we expand into new countries. So just a couple of the examples. In Sweden, we launched our Prudentis Fresh Breck lozenges. In Germany, of course, we launched some new products in the quarter as we started our direct market presence in the quarter. Also, Prudentis Fresh Breck lozenges launched in the U.K. and Finland in this quarter. Malaysia launched our BioGaia skincare probiotic ointment. So a number of other launches of products within the quarter. And some of the other key events, we had quite a bit of news in the quarter. February 3rd, we announced that our fourth quarter would exceed market expectations. In February, we signed a renewed distribution agreement with a longstanding partner, Evo Pharma, and they cover Central Eastern Europe as well as Switzerland for us. On March 17th, we also announced exercising the option to acquire the remaining 20% of the shares in NutraSuitics, which is our company in the United States. On March 20th, we announced also an exciting clinical study publication. It's a 10-year follow-up study from when infants were given our protective drops, and we saw that there was a markedly lower prevalence of functional abdominal pain in these children after they had received our drops in the first three months of life. And then finally, at the end of April, we also published new scientific findings around our patented longevity guard technology, which is our desiccant strip that goes into our drops products as well as our probiotic ointment to improve the stability and shelf life of our probiotics so that they last through the life of the product, the 24-month shelf life. So a lot of interesting, exciting news that we had during the quarter. In terms of growth, as we look at it across our segments, you can see the past growth by quarter. So in pediatrics for Q1, we grew by 13%, excluding currency effects. And in the adult segment, we grew by 18%, excluding currency effects. In pediatrics, we saw very high sales in the U.S. and also France in the quarter. And in adults, we saw very high sales in EMEA, Asia Pacific, and we saw a strong growth in South Africa as well as Japan. In addition, as you look at our segments of pediatrics and adult health, for the quarter in pediatrics, we grew 13%, excluding currency effects. Adult health, we grew 18%, excluding currency effects. So, strong growth for both segments. And currently, for the quarter, 73% of our sales is in the pediatric segment. In terms of our regional sales, I highlighted this in the beginning. EMEA grew 24%, excluding currency effects. Asia Pacific grew 6%. and America's grew 12%. With EMEA, we saw strong growth in both the pediatrics and adult segments. In Asia Pacific, we saw strong growth in Japan and Australia, our direct markets in Asia Pacific. Also, sales for the quarter were negatively impacted by some quarterly variations that we saw for China between Q4 and Q1. And in the Americas, as I said, we saw 12% growth, excluding currency effects, with strong growth in the U.S. and Canada, and growth in the quarter also strong for both the pediatrics and the adult health segment. So now I will turn it over to Alex to go through the financials in some more detail.

Thank you, Teresa. So to summarize, we had a sales increase in millions of SEC of 2%, from 373% to 1%. from 366 to 373 million SEK. We had a gross profit decrease of 1%, with a margin from 73% to 72%. We had an EBIT increase of 4%, and a margin of 27%. If we look at the sales, as we heard, we had an increase organically of 15%. However, we had very strong negative currency effects of 13%, and the net increase then was 2%. The gross margin for the quarter was 72% versus 73 in the same quarter last year. We had a slightly lower margin for both pediatrics and adult. And the main reason for the lower margin is the strengthening, Swedish crown versus mainly the dollar that is affecting the gross margin here. In terms of our operating expenses, the operating expenses were 166 million versus 171 in the same quarter last year. which is 3% lower compared to last year. This is mainly due to the other OPEX line where we have a negative cost of 6 million versus a cost of 24 million in the same quarter last year. If you exclude that effect, we have an increased sales and marketing cost of 17%. The main reason for the increased sales and marketing cost is that we are have this increase in sales in different markets, and therefore we have higher costs. We're basically investing in our growth here. In terms of R&D, we also have a slight increase of 13%, and admin is also an increase of 24%. It's partly due to some periodization of some costs. If we look at then our P&L, like we heard, we had sales of 375. So 373 million, OPEX 166, and thereby an EBIT of 101 million versus 97 million in the same quarter last year, an increase of 4%. And a profit after tax of 79 million versus 80, which is a slight decrease of 1%, and earnings per share of 0.78, which is a slight decrease of 1%. If we go over to the cash flow, We have a cash flow from operating activities before changes in working capital of 66 million, and we have a positive change in working capital of 5 million, leading to a cash flow from operating activities of 70 million versus 36 million in the same quarter last year. We have a very low cash flow from investing activities of only 1 million. It was also low in the same quarter last year. and the cash flow for financing of minus of 2 million SEC, leading to cash flow for the period of 67 million versus 33 million in the same quarter last year, and cash at the end of the period of 871 million versus 1.25 billion SEC last year. So with that, I hand over to Lisa.