Labtech

Companies in the Labtech business are active in the market areas diagnostics, biomedical research and laboratory equipment.

Labtech’s net sales decreased by 33 percent in the quarter to SEK 786m (1,169), where of organic sales, excluding COVID-19 related sales, amounted to 4 percent and acquired growth was 5 percent. Net sales related to COVID-19 decreased by 85 percent and accounted for SEK 87m (569). Exchange rate changes had positive impact of 2 percent on net sales. EBITA decreased by 58 percent to SEK 117m (280), corresponding to an EBITA-margin of 14.9 percent (23.9).

Labtech’s net sales decreased by 14 percent in the interim period to SEK 2,066m (2,394), where of organic sales, excluding COVID-19 related sales, amounted to 6 percent and acquired growth was 4 percent. Net sales related to COVID-19 decreased by 51 percent and accounted for SEK 546m (1,108). Exchange rate changes had positive impact of 3 percent on net sales. EBITA decreased by 26 percent to SEK 413m (556), corresponding to an EBITA-margin of 20.0 percent (23.2).

 For the Labtech business, the changes in the second quarter have been significant due to the decrease in sales of COVID-19 products, compared to last year, and a return to a more normal customer offering. PCR testing has declined in all countries and is now focused on patients requiring hospital care, and hospital staff. Future sales of COVID-19 tests in our diagnostics companies depend entirely on how the pandemic evolves, new mutations and different testing requirements in society. We expect that customers will primarily request combination tests – “4-plex solutions” – for the autumn and winter flu season. Our diagnostics businesses report solid underlying growth in our traditional areas, including blood gas analysis, pathology and microbiology, with increased sample volumes in existing instruments.

Sales to research customers have also been affected by a decrease in sequencing of COIVD-19 mutations in the quarter. On the other hand, demand has increased for more traditional laboratory reagents for gene sequencing, cell therapy and cancer immunology. Sales have also increased for instruments and special microscopes, but at the same time delivery times have become extended due to component shortages. In the first half -year, we have seen strong growth in sales of our own advanced instruments in the US, Europe and China.