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 2024, 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 by 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 customer focus and fast decision-making processes as well as 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 general economic fluctuations. AddLife leads the market in selected niches across various geographical markets where the subsidiaries aim to deliver added value and provide customers with differentiated products and services within their respective product segments. 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. These customer categories also form AddLife's business units, within which our companies are organised.
ADDLIFE´S CUSTOMER CATEGORIES AND 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.
TRIOLAB - STRONG SUPPLIER RELATIONSHIPS AND CUSTOMER FOCUSStrong supplier relationships and commitment drive Triolab AB's success. Since 1986, Triolab has been delivering value to patients and customers through a robust service offering combined with leading products. The company has experienced significant growth over the years, with a turnover of approximately SEK 500m and over 60 employees today.
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 often long-term relationships with suppliers are managed by the subsidiaries, and in some cases, collaboration between subsidiaries in different countries occurs, which can provide suppliers with access to additional geographical markets.
During 2024, the companies within AddLife continued to focus on the priorities established in 2023: profitability improvements, organic growth, cash flow, and acquisitions. This prioritization reflects the need to manage the relatively large number of acquisitions made in recent years and to ensure that all parts of the expanded AddLife perform in line with expectations and the company's established long-term business model. Throughout the year, AddLife has also been reorganised to support its subsidiaries better in these efforts.
A key aspect of AddLife’s business model is ensuring that each company has a clear understanding of which products and business areas generate strong margins - nurturing and expanding these while continuously improving or phasing out weaker-performing segments. In 2024, all subsidiaries engaged in improvement initiatives aligned with this model, with more decisive actions taken in certain cases, including the closure of Camanio and the restructuring of AddVision. The positive effects of these efforts became particularly evident in the latter part of the year.
Achieving organic growth that exceeds market growth is a strong indicator of a company’s health. It demonstrates well-chosen market niches, strong customer relationships, and a continuously updated portfolio of products and services. AddLife’s subsidiaries reported solid organic growth throughout 2024.
Optimising capital efficiency and maintaining strong cash flow remain central to AddLife's operations. Efficient management in this area is critical for growth through self-generated cash flow and, in the current situation, for reducing debt. A structured and long-term approach to cash flow management has yielded tangible results, improving cash flow and reducing leverage over the year.
With stronger cash flow and reduced debt, AddLife is now better positioned to resume acquisitions. A refined acquisition process, along with defined and communicated priorities regarding market segments and acquisition criteria, has set the stage for a gradual increase in acquisition activity. This increased activity was initiated in the third quarter of 2024 with the acquisition of BonsaiLab.