BUSINESS AREA

Medtech

Companies in the Medtech business area provide medical device products within the medtech market and assistive equipment within Homecare.

The companies within Medtech had a good first quarter and net sales increased by 10 percent to SEK 1,708 m (1,554), of which organic growth was 9 percent and exchange rate changes positively affected net sales by 1 percent. EBITA decreased by 23 percent to SEK 198 m (256), corresponding to an EBITA-margin of 11.6 percent (16.5). EBITA in the previous year was positively affected by the reversal of contingent considerations of SEK 83 million. Adjusted for this EBITA increased by 15 percent and the EBITA margin in the previous year amounted to 11.1%. Camanio has had a negative impact on the result with SEK 21 million, of which SEK 6 million refers to a restructuring reserve related to the successive closure of the company.

 Sales growth in Hospital was strong, especially in the UK and Ireland. Efforts to sell proprietary products in several of AddLife's companies are progressing well. Most companies showed improved profitability.

In eye surgery, the cost-cutting measures are yielding quick and clear results. The companies in Poland and Switzerland achieved a good level of profitability during the quarter. The companies have competitive product portfolios that were updated during the first quarter and efforts to improve profitability are ongoing.

In Homecare, demand for renovation and new construction projects remains weak. Long-term underlying positive factors, such as an aging population and technological advances, remain unchanged. The closure of Camanio is progressing according to plan and customers are being supported as they transition to alternative suppliers. Restructuring costs of SEK 6 million were recognised during the quarter. The cost savings will be realised in the coming quarters and the decommissioning is expected to be completed by the end of the third quarter of 2024