Medtech

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

As of April 1, 2021, the Biomedica companies are included as a whole in the business area Labtech. The aim is that such an allocation is more consistent with how the companies are monitored internally and will better capture the growth opportunities in the companies. All key financial indicators have been recalculated in accordance with the new breakdown. Previously, the Biomedica companies were distributed with 60 percent in Labtech and 40 percent in Medtech.

For the quarter, Medtech’s net sales increased by 132 percent to SEK 1,043m (449), of which organic sales increased by 5 percent and acquired growth was 126 percent. Exchange rate fluctuations had a positive impact of 1 percent on net sales. Net sales related to COVID-19 accounted for SEK 32m (8) and organic growth, excluding COVID-19 was 2 percent. EBITA increased by 119 percent to SEK 108m (49) and EBITA margin amounted to 10.4 percent (11.0).

For the financial year, Medtech’s net sales increased by 119 percent to SEK 3,625m (1,659), of which organic sales decreased by 13 percent and acquired growth was 133 percent, while exchange rate fluctuations had a negative impact of 1 percent. Net sales related to COVID-19 accounted for SEK 257m (255) and organic sales, excluding COVID-19 was unchanged. EBITA rose 58 percent to SEK 310m (196) and EBITA margin amounted to 8.6 percent (11.8). Transaction costs of SEK 31m and stamp duty of SEK 24m related to the acquisitions of shares have been charged to the result. EBITA excluding acquisition-related costs amounted to SEK 365m, corresponding to an EBITA margin of 10.1 percent. 

Sales in the Nordic markets amounted to 32 percent of net sales compared to 83 percent last year. The change in geographical markets is due to the acquisitions in Europe during the year. 

The strong sales growth in the Medtech business area is both for the full year and the quarter, driven by the acquisitions made during the year. All acquisitions have performed well and in line with our expectations. Our major acquisitions, Healthcare 21 and AddVision (previous Vision Ophthalmology Group), have reported both sales and EBITA in 2021 in line with the previous year, which is expected in the current market situation.

The market situation has been highly volatile during both the year and the quarter, entirely due to the evolution of the pandemic. Sales of elective surgery products declined as the number of COVID-19 cases increased. The opportunity to meet customers was restricted once again. The positive transition that had begun in hospitals to increase the number of surgical procedures stalled and surgery backlog continued to grow. The number of planned operations in the fourth quarter was at a lower level than before the pandemic. The biggest challenge for hospitals to continue with operations has been the staff shortage due to the high number of infections. Our companies increased sales of other medical technology products during the quarter. At the same time, several companies have been actively working to increase margins, both through price increases to compensate for higher raw material and freight costs and by terminating less profitable supplier contracts.

For home care companies, the community finally opened up at the beginning of the quarter and our companies were able to meet customers, try out products, participate in exhibitions and install in homes or dedicated housing. Homecare companies have faced challenges during the year due to supply disruptions and increased commodity prices. We continue to see strong interest in the market for both our digital solutions and other assistive technology, but due to the restrictions in December, customers held off on investments. This quarter's acquisition of Camanio's digital health business and the Telia Health Monitoring business enhances our ability to become a driving force in the development of tomorrow’s digital health care and social services.