Medtech

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

For the quarter, Medtech’s net sales increased by 15 percent to SEK 1,496 m (1,296), of which organic growth was 8 percent and exchange rate fluctuations had a positive impact of 8 percent on net sales. EBITA increased by 12 percent and amounted to SEK 145 m (129) and EBITA margin amounted to 9.7 percent (10.0).  The investment in digital solutions for remote patient monitoring and healthcare solutions has had a negative impact on the result of SEK 15 m.

For the interim period, Medtech’s net sales increased by 17 percent to SEK 3,050 m (2,597), of which organic growth amounted to 10 percent and acquired growth was 1 percent. Exchange rate fluctuations had a positive impact of 6 percent on net sales. EBITA increased by 47 percent to SEK 401 m (273) and EBITA margin amounted to 13.2 percent (10.5). The reversal of the contingent consideration, primarily linked to the acquisition of Addvision, has had a positive impact on the result of SEK 83m and adjusted for this EBITA amounted to 10.4 percent. The investment in digital solutions for remote patient monitoring and healthcare solutions has had a negative impact on the result of SEK 30 m.

Medtech demonstrated solid growth for the quarter, with the margin at the upper end of the historical range of 8-10%, despite the negative impact from our eye surgery business.

In eye surgery, growth continues, but margins remain low. The sales organisation has been strengthened in key markets to adapt to an updated and more advanced product portfolio. Those products that were previously cancelled because of delivery problems and terminated supplier contracts are now being replaced by new products. The suppliers who have encountered issues in their internal processes are now launching updated versions of their products to address this. A training program for sales combined with development of applied sales methods have been implemented during the quarter.

High activity in planned surgery continues across Europe, driving growth for high margin products in specialised orthopaedic surgery and laparoscopy, as well as for general surgery products. The companies are developing well and are actively working to develop the portfolio, both individually and in co-operation with other companies within AddLife. During the quarter, a new collaboration entered into force that includes a portfolio of products in areas such as cancer therapy and covers several countries in Europe.

In the home care market segment, there is a great demand for products that enable health care and social services at home, and we see a positive sales trend in this area.