Strong earnings development in our subsidiaries

Strong improvement in earnings

During the year, our companies delivered clear improvements in earnings. AddLife’s profit more than doubled compared with the previous year, clearly demonstrating the determination within the organisation, the combined effect of improvements in many areas, and the strength of our decentralised business model.

We have combined a consistent focus on profitable growth with discipline in cost control, pricing, and product portfolio development toward more advanced and more profitable products. Our companies have strong local service organisations that create close customer relationships and the trust and knowledge needed to provide advanced products.
The development of the product portfolio has also meant that we have phased out certain less profitable product groups, which has contributed to improved margins.

Continued improvement in cash flow

During the year, our companies have demonstrated their ability not only to grow profitably but also to generate improved cash flow. Through structured initiatives in inventory optimisation, more efficient purchasing and improved payment terms, we have released working capital and further strengthened the balance sheet.

Cash flow is one of the cornerstones of AddLife’s value creation; it gives us the flexibility to both invest in existing operations and pursue acquisitions, while we have also continued to reduce the leverage ratio.

Strong balance sheet

The strong cash flow has largely been used to reduce debt level. This has been an explicit priority for several years and has delivered clear results. During 2025, our net debt decreased by approximately SEK 1 billion, and the leverage ratio (net debt/EBITDA) was reduced from 3.2 to 2.2. The ambition to reduce the leverage ratio below 3.0 has thus been achieved and exceeded.

A stronger balance sheet reduces our financial risk and increases our resilience to macroeconomic fluctuations, while also creating room for future investments and acquisitions. We now have a solid financial position, with a level of indebtedness in line with our long term targets and are ready for increased acquisition activity.

Development in line with our priorities

Our vision is to improve people’s lives by being a leading value-creating partner within Life Science. Our strategy is based on achieving sustainable and profitable growth built on market-leading positions, operational agility and value-creating acquisitions. All of this is firmly rooted in our established business model, culture and values.

In recent years, we have had clear and consistent priorities: earnings improvements, organic growth, improved cash flow and acquisitions. During the year, we have seen a clear and positive development in line with these priorities.
Our companies have continued to focus on profitable customer and product segments, to develop offerings that enhance quality and efficiency in healthcare and diagnostics, and to leverage our decentralised model with local responsibility, efficiency and short decision-making paths. The continuous improvement work we are driving is now clearly reflected in both the income statement and the balance sheet. This work continues, with the ambition to continually improve.  

Ready for more value-creating acquisitions

While we have placed great emphasis on internal improvements during the year, we have also continued to build our capacity for future growth through acquisitions. We have a unique European presence, deep market and product knowledge, and an organisation with significant operational experience and a clear allocation of responsibilities.

With a strengthened balance sheet, a clear strategy and established processes, we are well-positioned to once again increase the pace of acquisitions. Our focus remains unchanged: profitable quality companies in the attractive Medtech and Labtech niches we have defined.
We see a strong supply of interesting acquisition candidates and maintain a long-term pipeline of potential acquisitions aligned with our strategy and meeting our criteria.

During 2025, we continued to see geopolitical uncertainty and disruptions in international supply chains. Despite this, our business has shown great stability. The demand for healthcare is continuously increasing, driven by demographics and societal development, and is largely independent of the economic cycle.

More than 90 percent of our sales and over 80 percent of our suppliers are in Europe, which means that we are relatively unaffected by geopolitical uncertainty and trade barriers. One consequence of the geopolitical situation is an increased need for strengthened societal preparedness and resilience, something we, as a broad supplier to healthcare in many European countries, are firmly committed to supporting.
We are working on a number of initiatives to strengthen societal preparedness and resilience, and are also drawing lessons from our support efforts in Ukraine.

Favourable outlook

Looking ahead, we have a significantly stronger starting position than we did a year ago. The earnings level is higher, cash flow is strong, debt level is lower, and the organisation is better equipped.

The structural drivers for our market – an ageing population, increasing healthcare needs, demands for efficiency improvements and technological development – remain intact and create good conditions for continued long term profitable growth. With a clear strategy, a proven and scalable business model and committed teams in our companies, we look to the future with confidence and enthusiasm.

Sustainability is also integral to our development. Through solutions that contribute to more efficient care, better patient outcomes and increased resource efficiency, we combine long-term value creation with responsibility for patients, employees, society and the environment.

In conclusion, I would like to extend my sincere thanks to all our companies and employees. Your professional and dedicated work, close to our customers, patients and partners, creates deep and long-term relationships and lays the foundation for future development. I would also like to thank our customers, suppliers and owners for their trust and cooperation.

Together we stand strong, well-positioned to now take the next step in AddLife’s development and once again fully develop our proven business model to its full potential.

Stockholm, 1 April 2026

Fredrik Dalborg
President and CEO