1 January 2023 - 31 December 2023

The Board of Directors and CEO of AddLife AB (publ), company registration number 556995-8126, hereby submit the annual report and consolidated financial statements for the financial year 2023, which comprise pages 7-9, 32-48 and 49-129. The Corporate Governance report is part of the administration report and is presented on pages 64-76. The Company’s sustainability report is incorporated into the annual report and Consolidated Financial Statements on pages 7-9 and 32-48.

AddLife is a Swedish-listed medical technology company operating mainly in the European market and consisting of approximately 85 operating subsidiaries in the Labtech and Medtech business areas. The Group has 2,301 employees in 30 countries and offers high-quality, cost-effective solutions and products. The product portfolio consists partly of self-manufactured products and partly of products that are made by other manufacturers. The service portfolio includes advice, service and education.

Its customers are primarily active in the healthcare sector – from research to medical care. AddLife currently has a presence in 30 countries, mainly in the Nordic region, Western, Central and Eastern Europe, China and Australia. The AddLife share has been listed on Nasdaq Stockholm since March 2016.

Key events during the year
As we summarise the year, we can conclude that the strong positive impact of sales related to COVID-19 over the last three years has ended. These sales generated good margins since they could be handled by the existing organisation without increasing costs. Thanks to several major acquisitions in 2021 and 2022, we have replaced the loss of COVID-19 sales with acquired sales at more normal margins.

In 2023, AddLife adeptly steered through a landscape shaped by the aftermath of the pandemic. The year kicked off with a robust first quarter, marked by noticeable signs of recovery in healthcare activity across all markets and a rise in elective surgeries. Throughout the year, AddLife has continuously responded to the increased demand in elective surgery, spurred by the substantial healthcare queues that have arisen in Europe. The sales performance across all business segments has been favourable, with solid market positions in expanding niches mirrored in the Group's organic growth of 10 percent.

Improving profitability and cash flow have been primary objectives for the year, with a dedicated effort to streamline inventory management, reduce tied-up capital, and strengthen margins.

The companies within AddLife performed well in 2023 and profitability improved. This trend applies to both large and small companies, including those that have been part of AddLife for a long time and those that have joined the AddLife family more recently. However, AddVision and Homecare have faced challenges and following careful analysis, strong measures were implemented.

We restructured AddVision, closed its main office and simplified the organisation, which has resulted in more efficient and decentralised decision-making. The restructuring, completed in the second half of 2023, is expected to lead to a more targeted sales approach and faster adaptations to local market conditions.

Homecare's digital development projects also underwent a thorough review during the year. Development projects include solutions for self-monitoring (Camanio Health) and care alarms (Camanio Care). This has resulted in the closure of both Camanio Health and Camanio Care. The Homecare companies will continue to offer a portfolio of digital products and services, but they will no longer be proprietary.

As AddLife continues to expand and improve its business, the company is well positioned for the future. The stable positive market trend and the robust cash flow during the year align with our ambition to reduce net debt through internally generated cash flow and, over time, increase the pace of acquisitions.


Latest updated: 4/5/2024 3:13:22 PM by Alexander Paziraei