BUSINESS AREA

Medtech

Companies in the Medtech business area provide medical device products within the medtech market and assistive equipment within Homecare.

Net sales within Medtech amounted to SEK 1,494m during the third quarter, which is unchanged from the corresponding period last year. Organic growth amounted to 3 percent and exchange rate changes negatively affected net sales by 3 percent. EBITA increased by 3 percent to SEK 153m (150), corresponding to an EBITA-margin of 10.3 percent (10.0). EBITA was negatively affected by the revaluation of contingent considerations of SEK 7m and restructuring costs in Camanio. Adjusted for this the EBITA-margin amounted to 10.7 percent. During the quarter Camanio has negatively affected the result by SEK 10m (12), of which SEK 4m refers to restructuring costs related to the closure of the company. From the fourth quarter, the result will not be burdened with any additional costs.

In the interim period, net sales increased by 6 percent to SEK 4,817m (4,544), of which organic growth was 6 percent. Exchange rate changes affected net sales marginally. EBITA amounted to SEK 551m (551), corresponding to an EBITA-margin of 11.4 percent (12.1). EBITA was negatively affected by the revaluation of contingent considerations and restructuring costs related to Camanio of SEK 6m (+86). Adjusted for these the EBITA-margin amounted to 11.6 percent (10.3). Camanio has had a negative impact on the result with SEK 39m (43), of which SEK 10m refers to a restructuring reserve related to the successive closure of the company, which has now been completed.

The number of elective surgery procedures was low during the summer months in line with normal seasonal variations, and organic growth was 3 percent in the quarter.

Patient waiting lists in the countries where AddLife's companies operate have not decreased during the quarter. In the UK, the number of patients waiting for surgeries is essentially unchanged, but there is a clear expectation of reforms and investments in healthcare following the election. These have not yet been implemented but are expected to have a positive effect in 2025.

In the Nordics, the number of surgeries has also been relatively low in the quarter due to seasonal variations, as well as ongoing staff shortages. In some countries, there is a noticeable delay regarding capital investments.

The margin strengthened to 10.7% (10.0), thanks to good cost control and strong growth in advanced products with higher profitability.

The work on profitability improvement initiatives within AddVision continue, and planned organizational changes have been implemented during the quarter. Product portfolios have been more focused on profitable products while less profitable ones have been phased out, leading to reduced sales but better margins.

The closure of Camanio was completed during the third quarter as planned, after all users were migrated to other solutions. The negative result effect, which amounted to approximately SEK 15m per quarter, will be completely gone from the fourth quarter of 2024.