BUSINESS AREA
Labtech
Companies in the Labtech business area are active in the market areas diagnostics, biomedical research and laboratory equipment.
| 3 months ending | 12 months ending | ||||
|---|---|---|---|---|---|
| SEKM | 31 Mar 24 | 31 Mar 23 | change | 31 Mar 24 | 31 Dec 23 |
| Net sales | 863 | 905 | -5% | 3,612 | 3,654 |
| Organic growth, % | -5% | 10% | 10% | ||
| EBITA | 99 | 115 | -14% | 457 | 473 |
| EBITA-margin | 11.5% | 12.7% | 12.6% | 12.9% | |
Labtech's net sales decreased by 5 percent in the first quarter to SEK 863 m (905). The organic sales growth amounted to -5 percent. Exchange rate changes had a marginally positive impact on net sales. EBITA decreased by 14 percent to SEK 99 m (115), corresponding to an EBITA-margin of 11.5 percent (12.7).
Sales growth in Labtech was weak in the quarter, especially in March. This weakening in demand
deemed to be temporary. Some uncertainty about tax-financed budgets was noted in the Nordic countries and some instrument investments have been delayed. Following a robust finish to the previous year in the Eastern European markets, the first quarter of 2024 saw a slight downturn.
Several Labtech companies are also experiencing delayed deliveries from suppliers, which has affected sales in the quarter. The ongoing effort to update product portfolios and add and commercialise new advanced products continues.
The companies within Labtech have done a good job with the gross margin, maintained good cost control, and have been able to defend their margins despite the decrease in volume.
In Diagnostics, although some instrument sales projects have been postponed, none have been abandoned and they are projected to finish later in the year. Staff shortages in laboratories and in purchasing departments may contribute to delays in purchases, but could also boost interest in the automated solutions offered by AddLife's companies. Major competitors are downsizing their local staff in their country organizations, which may lead to new distribution agreements for AddLife's companies or weakened competition, creating opportunity to expand market share and opportunity to recruit key personnel.
In Biomedical & Research, demand was weak in March, especially for instruments, while sales of consumables performed well. Sales to industrial research customers remained strong, as did sales of proprietary products.
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