Medtech

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

For the quarter, Medtech’s net sales increased by 31 percent to SEK 1,367m (1,043), of which organic growth, excluding COVID-19 related sales, was 5 percent and acquired growth was 23 percent. Net sales related to COVID-19 accounted for SEK 0m (32). Exchange rate fluctuations had a positive impact of 7 percent on net sales. EBITA increased by 12 percent to SEK 121m (108) and EBITA margin amounted to 8.9 percent (10.4). The investment in digital solutions for remote patient monitoring and healthcare solutions has had a negative impact on the result of SEK 17m.

During the financial year, Medtech’s net sales increased by 44 percent to SEK 5,210m (3,625), of which organic growth excluding COVID-19 related sales, amounted to 2 percent and acquired growth was 43 percent. Net sales related to COVID-19 accounted for SEK 0m (257). Exchange rate fluctuations had a positive impact of 6 percent on net sales. EBITA increased by 85 percent to SEK 573m (310) and EBITA margin amounted to 11.0 percent (8.6). The reversal of the contingent consideration has had a positive impact on operating profit of SEK 87m. The investment in digital solutions for self-monitoring and healthcare solutions has had a negative impact on the result of SEK 54m.

In the fourth quarter, the number of planned surgical procedures rose again following a period of low activity during the summer due to holidays and recovery in the healthcare systems. The increased number of surgical procedures resulted in organic growth excluding COVID-19 of 5 percent, a significant improvement over the previous quarter.

The EBITA margin for the quarter was 8.9 percent, compared with 10.4 percent last year. Newly acquired companies focusing on advanced surgery contributed to increased profitability, while supplier issues in eye surgery, investments in digital solutions and currency and price effects had a negative impact on profitability. Nevertheless, the EBITA margin improved by 1.4 percentage points (after adjustments) compared to previous quarter. As expected, margins in advanced surgery recovered quickly after a temporary dip in the previous quarter. In eye surgery, new product launches are underway, while the issue of suppliers with delivery problems is being addressed. In addition, the sales team has been strengthened during the quarter. This has resulted in a positive trend in sales and profitability, but further work is needed to reach expected margins over time.

Investments in the further development of digital solutions in homecare continue and affects profitability, corresponding to to approximately one percentage point on the EBITA margin in Medtech. The digital solutions are in an early commercial phase and are now being deployed in several regions and municipalities in Sweden, while plans for international expansion are being developed. The sales trend in homecare was robust and is expected to continue to develop positively, driven by the need to free up hospital beds, streamline patient-healthcare staff interactions, and improve clinical outcomes and quality of life for patients and users.

Restrictions have been lifted resulting in an increase in customer visits, seminars, trade fairs and marketing. This trend paves the way for new product launches, which also occurred during the quarter. In some cases, product launches cover several markets and are carried out in cooperation between several companies in the group.