BUSINESS MODEL
Long-term profitable growth
AddLife develops and acquires profitable, market-leading companies in selected niches within Life Science.
AddLife's proven and decentralised business model focuses on long-term profitable growth and sustainable development. While the company continued to successfully execute the growth plan for 2023, actions were taken to support continued positive profitability growth and improved cash flow.
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. The subsidiaries are responsible for their own business operations within the context of the clear targets set by the Group for profit growth, profitability and sustainable development. The decentralised company structure fosters networking and knowledge sharing, while at the same time mitigating the risk of the Group relying on individual customers or suppliers.
AddLife combines the resources, networks and expertise of a large company and complements them with the flexibility, personality and efficiency of an entrepreneur.
Market leader in selected niches
The European Life Science market is large, relatively fragmented and steadily growing, regardless of economic fluctuations. AddLife leads the market in selected niches across various geographical markets where the subsidiaries, within their respective product segments, aim to deliver added value and provide customers with differentiated products and services. To ensure long-term growth and demand for the Group's products and services, AddLife focuses on four customer categories: Biomedical and Research, Diagnostics, Hospital and Homecare.
ADDLIFE´S PRODUCT SEGMENTS
Customer contact through the subsidiaries
Proximity to customers is a key competitive advantage. AddLife’s subsidiaries are present in numerous European countries and maintain a robust commercial organisation comprising sales representatives, product specialists, marketing resources, and customer support, as well as technical service and customer training personnel..
All customer contacts and business relationships are managed through the subsidiaries, which maintain close collaboration with customers and suppliers through well-established local sales and service organisations. Customers can be found in both the private and public sectors, primarily in hospitals, home care, laboratories within the healthcare system, research, colleges, universities and the food and pharmaceutical industries. The majority of AddLife’s customers are in the public sector, with sales usually managed through public procurement.
Subsidiaries handle supplier relationships
Close customer relationships combined with a strong, locally rooted service offering foster a unique understanding of current and future customer needs, as well as the ability to help customers implement new technologies. The subsidiaries offer highly competitive product portfolios that are constantly being updated and improved. The subsidiaries manage what are often long-term relationships with suppliers; in some cases, the subsidiaries may co-operate to provide suppliers with access to more geographical markets.
Following several years of strong acquisition and COVID-19-related growth, 2023 was dominated by organic growth. Top priority has been given to defending and improving profitability, followed by organic growth, cash flow and acquisitions. In addition to the normal profitability-enhancing processes , several significant actions were implemented to improve profitability in 2024. Following a detailed review of the eye surgery company AddVision and within Homecare, substantial measures have been implemented to improve profitability.
In 2023, healthcare saw a gradual rise in elective surgeries, something that had been down-prioritized during the pandemic which resulted in lengthy waiting lists for surgeries, including in orthopaedics, oncology, cardiovascular diseases, and ophthalmology. Organic growth benefitted from this increased activity in 2023 and the positive trend is expected to continue in 2024.
Improved cash flow has been a priority throughout the year to reduce debt, and the company has strengthened its standard processes in this area with targeted measures that have delivered results in the second half of the year.
Over the course of the year, the company has identified prioritised growth segments and geographical regions, along with criteria for future acquisitions. The focus for future acquisitions is on entrepreneur-driven, profitable small and medium-sized companies within the Life Science sector. AddLife is actively engaged in maintaining and expanding its list of potential acquisition targets. Given the emphasis on improving profitability and reducing debt in 2023, few acquisitions were made during the year. A gradual increase in the pace of acquisitions is expected in 2024 and 2025.