BUSINESS AREA

Labtech

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

Labtech's net sales increased by 8 percent in the second quarter to SEK 941m (872). The organic sales growth amounted to 8 percent. Exchange rate changes had a marginally positive impact on net sales. EBITA increased by 2 percent to SEK 109m (107), corresponding to an EBITA-margin of 11.6 percent (12.2). 

Labtech's net sales increased by 2 percent in the interim period to SEK 1,804m (1,777). The organic sales growth amounted to 2 percent. Exchange rate changes had a marginally positive impact on net sales. EBITA decreased by 6 percent to SEK 208m (222), corresponding to an EBITA-margin of 11.5 percent (12.5). 

Sales development in Labtech was good in the second quarter. During the first quarter, sales were weak in the month of March but a recovery occurred as expected  in the following months. 

In several Nordic countries, which are important markets for Diagnostics, there are budget constraints in healthcare. This, combined with staff shortages, has in some cases led to delays in instrument sales. However, no projects have been cancelled or lost to competition, so planned instrument sales are expected to occur later in the year. At the same time, there are targeted investments in new technologies that improve and enhance the quality of care. Sales of consumables remain strong.

After a weak first quarter the development in the Eastern European markets was positive. The supplier backlog situation improved, and new suppliers are generating sales.

Large global product companies continue with cutbacks and weakened service organizations, a situation that creates opportunities for AddLife's companies to gain market share. At the same time, the companies are working on adding new products in the prioritized segments. 

In Biomedical & Research, demand in academic research was somewhat cautious, especially regarding investments in instruments, which in some cases are postponed. However, sales of consumables remain strong. The weaker development in academic research is compensated by strong demand from industrial research customers, especially pharmaceutical companies. During the quarter, demand was strong for advanced products in cell and molecular biology. 

In July, BonsaiLab, a leading Spanish distributor in cell and molecular biology, was acquired. The acquisition expands AddLife's presence in this prioritized and fast-growing market segment, a segment where AddLife's companies are already well-established in the Nordics and several other markets.