The record-breaking organic growth in 2023 validates the successful long-term positioning of AddLife for post-pandemic market conditions. It also shows the health and successful development of companies within the AddLife family, including both long-standing members and recent additions.
We improve
people’s lives
ANNUAL REPORT 2023
9685
NET SALES, SEKm
1135
EBITA, SEKm
11.7
%
EBITA MARGIN
50
%
P/WC
The year in brief
In 2023, AddLife steadily adapted to support healthcare systems in the return to a normalised situation after COVID-19, while also helping to manage the healthcare queues that grew significantly during the pandemic.
Sales in all business areas have made good progress and we saw strong organic growth in both business areas.
Improving profitability and cash flow was a top priority during the year. The positive market trend and robust cash flow in the latter part of the year align with our aim to reduce net debt through internally generated cash flow and, over time, increase the pace of acquisitions.
Target fulfilment 2023
EARNINGS GROWTH
PROFITABILITY
DIVIDEND
A leading partner in Life Science
AddLife is a leading independent European partner with a diversified portfolio in Life Science. AddLife owns, develops and acquires market-leading companies in specific segments with offerings aimed primarily at the healthcare sector – from research to medical care. The Group has a rooted, entrepreneur-driven culture with strong values, where sustainability is integrated into the business.
30
COUNTRIES
2300
EMPLOYEES
54000
CUSTOMERS
3500
SUPPLIERS
Decentralised business model
AddLife develops and acquires profitable, market-leading companies in selected niches within Life Science. At AddLife, the combined resources, networks and expertise of a large company are complemented with the flexibility, personality and efficiency of an entrepreneur. AddLife acts as a long-term and active owner, with a focus on business development and improved profitability.
High activity in the European Life Science market
AddLife is a leading partner in Life Science with a strong presence across Europe and is strategically positioned to thrive in post-pandemic market. Through a decentralised business model targeting specific segments and a strong commitment to customer proximity and value-creating offerings, AddLife's companies can adjust to and benefit from the prevailing structural forces and market trends.
Sustainable growth
AddLife’s vision is to improve people's lives by being a leading, value-adding partner in Life Science. Our strategy relies on achieving market leadership, operational agility and acquisitions, all rooted in the Group's business model, culture and values. In 2023, AddLife introduced six strategic initiatives based on the Group's competitive advantages, expanded scale and strengthened geographic position, while aligning with current market trends.
Core values and culture
Our committed employees are the key to our success. We aim for an inclusive environment for our talented and dedicated people. We place significant emphasis on working with our core values and corporate culture as well as supporting our employees' development through our business school, AddLife Academy.
Business areas
Labtech
The Labtech business area provides products, solutions and services in fields such as diagnostics, biomedical research and laboratory analysis. The business area consists of two business units: Biomedical and Research and Diagnostics. The most important customer groups are hospital laboratories, academic research and pharmaceutical companies in Europe.
Medtech
In the Medtech business area, the subsidiaries offer products and services in the field of medical technology, as well as assistive equipment and digital solutions for home care. Medtech has two business units, Hospital and Homecare. The Medtech offering mainly focuses on publicly funded healthcare, home care and social care in Europe.
Acquisitions
Acquisitions are a key aspect of AddLife's growth strategy and we have a well-established and structured process for identifying, acquiring, integrating and developing companies.
During the year, AddLife made a minor acquisition of a company that supplies surgical instruments to healthcare professionals across the UK, which is expected to contribute total annual sales of approximately SEK 28 million.
AddLife and sustainability
AddLife's
sustainability
strategy
sustainability
strategy
Sustainable solutions
for health
for health
Sustainable culture
Sustainable supply chain
AddLife's sustainability strategy
During the year, AddLife updated its sustainability strategy based on stakeholder dialogues and an updated materiality analysis. The sustainability strategy mirrors our key sustainability issues: our positive contribution to the Life Science sector, the well-being and development of our employees, and our work with supply chain management. We recognise business opportunities in working with sustainability and believe that our sustainability efforts can provide added value for our customers. The 2023 sustainability report prepares us for the new legal requirements in the Corporate Sustainability Reporting Directive (CSRD).
Sustainable solutions for health
AddLife creates competitive advantages by offering high-quality products and value-creating services, coupled with sustainable solutions. Our position in the value chain, primarily as a distributor, entails close dialogue with local customers and collaboration with major global suppliers. This offers a unique opportunity to facilitate a sustainable transition alongside our partners and develop solutions that could positively impact our business operations.
Sustainable culture
The dedication of our employees is the key to our success. We aim for an inclusive environment for our talented and dedicated people, characterised by diversity. To accomplish this, we focus on aspects related to employee well-being, diversity, and inclusion. We want to support the professional development of our employees through training, knowledge sharing and growth opportunities. We are proud of our corporate culture and we take responsibility for how we do business.
Sustainable supply chain
Our position in the value chain offers the opportunity to collaborate with our partners in developing solutions to responsibly address our shared impact. Tasks involve evaluating, engaging with, and exerting influence on our suppliers, while also identifying new market-leading alternatives. Each subsidiary is responsible for selecting and evaluating suppliers. In this ongoing process, one key selection criterion is the suppliers' adherence to the UN Global Compact principles.
AddLife creates value
AddLife aims to create good earnings and a strong shareholder value through independent subsidiaries, active ownership and acquisitions. AddLife's financial targets contribute to a robust cash flow that facilitates self-financed, long-term and profitable growth.
Four reasons to own shares in AddLife
Attractive growth market
Cash flow finances growth
Clear strategy
Market position
Attractive non-cyclical growth market
The market, in which AddLife operates, is relatively insensitive to cyclical fluctuations and is driven by demographic factors, an ageing population and the increasing prevalence of chronic diseases. On average, the medtech market is expected to achieve an annual growth rate of 5 percent and the diagnostics market 2-3 percent.
Cash flow finances growth
AddLife strives for profitable organic growth and has a high proportion of recurring sales and long-term contracts that generate stable cash flows. The company bases its acquisition agenda on financing acquisitions through its own cash flow.
Clear strategy to create additional growth
A key element of AddLife's growth strategy is acquisitions, with a focus on small and mid-sized bolt-on acquisitions or standalone acquisitions with attractive margins. The goal is for the acquired subsidiaries to continue to develop based on their strengths, based in a decentralised business model.
Strong market position in Europe
AddLife’s more than 85 subsidiaries create value and build leading positions in selected niches in Europe. The company has a wide geographic spread, operating in 30 countries with 2,300 employees.
