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.
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For the quarter, Medtech’s net sales increased by 131 percent to SEK 962m (415), of which organic sales decreased by 28 percent and acquired growth was 159 percent. Exchange rate fluctuations had no impact on net sales in the quarter. Net sales related to COVID-19 accounted for SEK 10m (116) and organic growth, excluding COVID-19 is unchanged. EBITA increased by 67 percent to SEK 95m (57) and EBITA margin amounted to 9.9 percent (13.7).
For the interim period, Medtech’s net sales increased by 113 percent to SEK 2,582m (1,210), of which organic sales decreased by 20 percent and acquired growth was 135 percent, while exchange rate fluctuations had a negative impact of 2 percent. Net sales related to COVID-19 accounted for SEK 230m (247) and organic sales, excluding COVID-19 decreased with 1 percent. EBITA rose 38 percent to SEK 202m (147) and EBITA margin amounted to 7.8 percent (12.1). 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 255m, corresponding to an EBITA margin of 9.9 percent.
The strong sales growth in the Medtech business area is mainly driven by the acquisitions of Healthcare 21 Group and Vision Ophthalmology Group, which have developed according to plan. The integration process have continued during the quarter and through the network within the group, cooperation with other AddLife subsidiaries have started.
The transition in healthcare from focusing on COVID-19 patients to other treatments and elective surgery is taking longer than expected in all countries. The number of surgical procedures in the third quarter has remained at a significantly lower level than normal. In July and August, activity was low as usual due to holidays. The situation in Denmark has also been particularly challenging, as nurses went on strike for eight weeks until the end of August. Only in September did we see clear signs of a shift away from COVID-focused care beginning in most countries. We regained access to customers and saw a gradual increase in the number of procedures and surgeries, accompanied by a corresponding increase in sales.
Regarding homecare companies, we can clearly see that customers have, to a great extent, re-opened in the quarter and sales are starting to increase. Our companies get to meet customers again, try out products and install in homes or separate residential facilities. There have also been occasional fairs in Norway where our companies have had the opportunity to showcase their offerings.