Positive development across AddLife's companies

Margins strengthen

Continuous efficiency improvements and optimisation of operations are a central part of our business model. Our long-term initiative to develop the portfolio towards more advanced products continue to strengthen gross margins. Overall, these initiatives contributed to improved margins in both Labtech and Medtech during the quarter. Advanced products create greater value for our customers through improved clinical outcomes and more efficient processes. At the same time, they require specialised expertise with high availability and close collaboration with customers. This is something that AddLife’s companies have built up during a long period of time.

Improvement initiatives show clear results

Structured improvement initiatives are under way in several of our companies, and these efforts are yielding clear results.

Within Homecare, we have recently implemented a number of improvement measures in several companies. New products have been launched and sales are trending positively. Taken together, this has resulted in improved margins, and during the quarter Homecare made a positive contribution to AddLife’s average margin.

We have also carried out extensive improvement initiatives within ophthalmic surgery, resulting in lower costs, an updated product portfolio and a clearer sales focus. Margins have improved gradually, and this positive trend continued during the second quarter, demonstrating stability and favourable prospects.

Sales in a positive trend

Group sales increased by 6 percent during the quarter. The underlying organic growth amounted to 4 percent, while acquisitions contributed a further 3 percentage points.

In Medtech, organic growth was 5 percent, adjusted for the previously divested endoscopy business in the United Kingdom. Sales developed strongly during the quarter, despite doctors’ strikes in Spain and continued subdued capital equipment sales in healthcare in the United Kingdom, which held back demand somewhat.

Sales in the Nordic region developed well, driven primarily by strong sales of advanced hospital products. Growth was also good within Homecare.

In Labtech, organic sales growth was 3 percent, while acquisitions contributed 4 percent. Positive effects from previously won tenders continued during the quarter and contributed to good sales of both instruments and consumables. Demand in the research segment has improved for some time and strengthened further during the quarter. Sales were strong in several Eastern European countries, driven by economic growth and increased investment in healthcare, diagnostics and research.

Acquisitions contribute to earnings growth 

Our four recently acquired companies are performing well and made a clear contribution to earnings growth during the quarter. We continue to have a large number of active acquisition processes and are working in parallel to build a long-term pipeline of potential acquisition candidates. AddLife has built strong acquisition capabilities over a long period of time, with clear priorities and criteria, established roles and responsibilities, and strengthened resources. We also systematically and continuously develop our processes based on experience and future ambitions.

Summary and outlook

During the second quarter, we saw positive development in most parts of the business. Sales, earnings and operating cash flow developed well, driven by the dedicated and structured work carried out within our companies. Particularly encouraging are the clear improvements within Homecare and ophthalmic surgery, where extensive improvement efforts have been under way for a longer period.

Our initiatives in advanced products also continue to contribute positively to margin improvement, and we expect to see continued good results from these initiatives. Acquisition activity remains high, creating attractive opportunities to further develop the Group through complementary acquisitions.

AddLife enters the second half of the year with stable underlying growth, strong margins, a well-positioned business and initiatives that create the conditions for continued positive development.

I would like to congratulate our companies on their good results during the quarter and thank all employees for their strong commitment. At the same time, I would like to express my appreciation to our customers and partners for their trust and long-term collaboration, and wish everyone a wonderful summer.

Stockholm July 16, 2026

 

Fredrik Dalborg
President and CEO