Medtech

Companies in the Medtech business provides medical device products within the medtech market and assistive equipment within home healthcare.

As of April 1, 2021, the Biomedica companies are included as a whole in the business area Labtech. The aim is that such an allocation is more consistent with how the companies are monitored internally and will better capture the growth opportunities in the companies. All key financial indicators have been recalculated in accordance with the new breakdown. Previously, the Biomedica companies were distributed with 60 percent in Labtech and 40 percent in Medtech.

For the quarter, Medtech’s net sales increased by 159 percent to SEK 1,108m (428), including organic growth of -24 percent and acquired growth of 185 percent, while exchange rate fluctuations had a negative impact of 2 percent. Net sales related to COVID-19 accounted for SEK 140m and organic growth, excluding COVID-19 increased with 1 percent. EBITA decreased by 3 percent to SEK 57m (59) and EBITA margin amounted to 5.1 percent (13.8). Transaction costs of SEK 29m and stamp duty of SEK 24m related to the acquisitions of shares have been charged to the result. EBITA excluding acquisition-related costs amounted to SEK 110m, corresponding to an EBITA margin of 9.9 percent. 

For the interim period, Medtech’s net sales increased by 104 percent to SEK 1,620m (795), including organic growth of -16 percent and acquired growth of 123 percent, while exchange rate fluctuations had a negative impact of 3 percent. Net sales related to COVID-19 accounted for SEK 220m and organic growth, excluding COVID-19 decreased with 2 percent. EBITA rose 19 percent to SEK 107m (90) and EBITA margin amounted to 6.6 percent (11.3).

The Medtech business reported very strong sales growth, driven primarily by the acquisitions of Healthcare21 and Vision Ophthalmology Group. Reported EBITA is slightly lower than last year and includes SEK 53 million in acquisition costs.

The strong growth in Medtech is driven by the acquisitions we made in the quarter, as well as in the autumn of 2020. The pandemic has had a strong impact on the development of the companies. Sales of COVID-19 related products have continued in Central Europe, but not in the Nordics, and is on par with the corresponding quarter last year. The pandemic has generally posed challenges for our companies in terms of increased freight costs, raw material shortages resulting in higher prices and supply chain disruptions, especially from Asia.

Restrictions have gradually been lifted in several countries this quarter and hospital intensive care units have fewer and fewer critically ill COVID-19 patients. Hospitals are reallocating their resources to surgery again, but the resumption of elective surgery is relatively slow in many countries. For example, there are 860,000 people in Ireland and 2.3 million people in the UK in queue right now. The huge surgical backlog is challenging in all countries. We do not expect activities to really get started until after the summer. Consequently, sales of elective surgery products have remained at a lower level, but our companies have been able to compensate with sales of other medical devices for both critical care and general health services during the quarter.

For our home care companies, the opportunity to act in the market has increased as the spread of infection has decreased and senior housing facilities have opened up. The opportunity to carry out testing and installations has improved with every passing month. Overall, growth in the quarter has been strong compared with the corresponding quarter last year. We are seeing an increased investment willingness and more tenders have come out at the end of the quarter.