Medtech

Companies in the Medtech business provides medical device products within the medtech market and assistive equipment within home healthcare.

For the quarter, Medtech’s net sales increased by 17 percent to SEK 1,296m (1,108), of which organic growth, excluding COVID-19 related sales, amounted to 5 percent and acquired growth was 22 percent. Net sales related to COVID-19 accounted for SEK 0m (135). Exchange rate fluctuations had a positive impact of 4 percent on net sales. EBITA increased by 127 percent to SEK 129m (57) and EBITA margin amounted to 10.0 percent (5.1). Development cost regarding digital solutions for self-monitoring has had a negative impact on the result of SEK 11m.

For the interim period, Medtech’s net sales increased by 60 percent to SEK 2,597m (1,620), of which organic growth, excluding COVID-19 related sales, amounted to 1 percent and acquired growth was 67 percent. Net sales related to COVID-19 accounted for SEK 0m (215). Exchange rate fluctuations had a positive impact of 6 percent on net sales. EBITA increased by 156 percent to SEK 273m (107) and EBITA margin amounted to 10.5 percent (6.6). Development cost regarding digital solutions for self-monitoring has had a negative impact on the result of SEK 14m.

The  growth in the second quarter in the Medtech business area is driven both by the acquisitions made in recent years as well as by an increase in the number of planned operations. Operations are increasing in all countries, while at the same time the shortage of healthcare workers following the pandemic has restricted capacity. The recurrent spread of new mutations has also led to operations being cancelled at the end of the quarter. In summary, this means that recovery is taking longer and healthcare queues continue to grow.

Sales have increased above all in the orthopaedics, respiratory medicine and endoscopy segments, while ophthalmology and neurology have shown slightly weaker growth. Our largest acquisition from 2021, Healthcare 21, has performed strongly in the quarter while integrating the O'Flynn acquisition in Ireland at the same time. At AddVision, sales in Poland and for self-manufactured products have performed positively, but the recovery in other markets is slower. MBA, which we acquired in the first quarter, delivered as expected.

All home care companies have experienced positive growth in the quarter. Market activity has been buoyant, with an increased number of customer visits and product trials. Interest in our digital solutions for both alarms and self-monitoring is high, and two additional installations were made in Swedish municipalities during the quarter. As planned, we continue to invest in the further development of the acquired digital platform.