AddLife AB

Latest Results (23.05.2024):

Positive Profitability Trend

In the first quarter of 2024, AddLife AB reported a positive profitability trend, particularly driven by its Medtech segment. Despite a temporary weaker performance in Labtech, the company managed to maintain its margins. Medtech, on the other hand, showed strong growth and an improvement in profitability, attributed to strategic improvement actions. Overall, AddLife AB's organic sales grew by 4% during this period.

Financial Performance

For the quarter ending March 31, 2024, AddLife AB's net sales increased by 5% to SEK 2,570 million, up from SEK 2,457 million in the same period the previous year. The EBITA, however, decreased by 20% to SEK 291 million, down from SEK 366 million, with an EBITA margin of 11.3%, compared to 14.9% in the previous year. This decrease in EBITA includes the impact of reversed contingent considerations from the previous year.

Earnings and Cash Flow

AddLife AB's profit for the first quarter of 2024 amounted to SEK 63 million, a significant decrease from SEK 174 million in the corresponding quarter of the previous year. Earnings per share also fell to SEK 0.52 from SEK 1.43. Despite these decreases, the company maintained a stable cash flow from operating activities at SEK 97 million, slightly down from SEK 105 million in the first quarter of the previous year.

Market and CEO Commentary

According to Fredrik Dalborg, President and CEO of AddLife AB, the healthcare market activity in Europe remains high, with increasing elective surgery procedures and significant healthcare waiting times. These conditions are creating opportunities for AddLife AB to expand its product offerings and market share. The CEO emphasized the company's focus on continued profitability improvements and efficiency in operations.

Outlook and Strategic Focus

Looking forward, AddLife AB is focused on leveraging long-term positive market trends, such as the need to manage growing healthcare demands and reduce waiting lists. The company is committed to improving its margin and profitability through strategic initiatives, including cost management and operational efficiencies. AddLife AB's leadership remains optimistic about capturing growth opportunities in both existing and new markets.