ADMINISTRATION REPORT
January 1, 2024 - December 31, 2024
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 2024. The Corporate Governance report is part of the administration report and is presented on pages 112-124. The Company’s sustainability report is incorporated into the annual report and Consolidated Financial Statements on pages 35-94.
Operations
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 2,256 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
The activity in healthcare remained high throughout the year in the markets where AddLife's companies operate. Waiting times for medical care are still significant, and the number of planned surgeries is increasing in most countries, a trend expected to continue.
AddLife's companies performed well, driven by positive demand development and dedicated, long-term efficiency efforts.
In the Labtech business area, sales of consumables remained stable, while sales of certain instruments were slower and slightly delayed due to staff shortages and budget constraints among our customers. Sales to academic research were somewhat cautious, but this was compensated by continued strong demand in pharmaceutical development. Within the business area, efforts continued to introduce new products and expand the range in prioritized segments that are experiencing strong growth and high profitability.
The Medtech companies performed well during the year, with solid growth and significantly improved margins. The companies within Hospital gained market share thanks to market-leading customer support, reliable deliveries, and continuously updated product portfolios. Profitability improvement efforts delivered clear results during the year. The restructuring of the ophthalmic surgery business led to significant cost reductions and improved margins, with a shift in focus towards gradually increasing sales growth. In Homecare, Camanio was closed at the end of the third quarter, as planned, resulting in clear cost reductions.
The organic growth, excluding currency fluctuations, amounted to 5 percent during the year. Adjusted for revalued contingent considerations and restructuring costs, EBITA reached 14 percent, and the EBITA margin was 11.3 percent compared to 10.5 percent the previous year.
Cash flow improved in 2024 compared to the previous year, driven by efficiency measures, particularly in the larger Medtech companies. This allowed AddLife to reduce its debt by approximately half a billion during the year, in line with its ambition. At the same time, the result has improved, which overall provides the opportunity to gradually increase the pace of acquisitions again.
In early July, BonsaiLab, a Spanish company active in biotechnology, was acquired. The company provides a product portfolio of market-leading instruments and consumables within cell and molecular biology. The acquisition aligns fully with AddLife's updated strategy to acquire small and medium-sized, entrepreneur-driven companies within defined, fast-growing, and profitable segments.