Labtech

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

For the quarter, Labtech’s net sales decreased by 3 percent to SEK 827 m (856). The organic sales growth, excluding COVID-19 related sales and exchange rate fluctuations, amounted to 9 percent. Net sales related to COVID-19 has now ceased and is reported as SEK 0 m (151). Exchange rate changes had positive impact of 7 percent on net sales. EBITA amounted to SEK 99m (116), corresponding to an EBITA-margin of 12.0 percent (13.5).  Reversal of previously allowance for contingent consideration has had a positive effect on operating profit of SEK 15 m. Adjusted for this, EBITA amounted to 10.2%.

Labtech’s net sales decreased by 11 percent in the interim period to SEK 2,604 m (2,922), where of organic sales, excluding COVID-19 related sales, increased to 9 percent and acquired growth was 1 percent. Net sales related to COVID-19 has now ceased and is reported as SEK 0 m (696). Exchange rate changes had positive impact of 5 percent on net sales. EBITA decreased by 39 percent to SEK 321 m (529), corresponding to an EBITA-margin of 12.3 percent (18.1).

The Labtech business continues to develop well with a 9% organic growth excluding COVID-19 and currency effects. Profitability remains healthy in spite of significant COVID-19 related sales in the third quarter and currencies negatively impacting margins in the Swedish and Norwegian businesses. Developments in Eastern Europe were weaker during the quarter due to delivery delays in projects expected to be completed in the fourth quarter. The acquired Biomedical & Research companies active in the European market have been developing very well, showing strong growth and improving margins.

The market is evolving and many of the global manufacturing companies are changing their organisations and market strategies, creating opportunities for the AddLife companies to take on new products and grow market share. The product portfolio is continuously evolving towards more advanced products and the Next Generation Sequencing (NGS) products are now launched both in Italy and Scandinavia, and are generating great customer interest. In some markets a slightly cautious behaviour can be observed regarding larger capital investments, but this is affecting only a small part of the businesses. The AddLife Labtech business is primarily focused on small to medium sized capital investments and related recurring revenue from consumables, making the business less sensitive to fluctuations in the economy. The most significant customer groups are hospital laboratories, academic research and pharmaceutical companies, where the funding is stable, and activity is high.