Labtech

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

Labtech had a strong fourth quarter with sales increasing by 10 percent. The organic sales growth, excluding COVID-19 related sales (which in the comparison quarter amounted to 64) and exchange rate fluctuations, amounted to 13 percent. Exchange rate changes had positive impact of 4 percent on net sales. EBITA increased with 9 percent to SEK 152 m (138), corresponding to an EBITA-margin of 14.5 percent (14.5).  In the previous year, the EBITA margin was positively affected by COVID-19 related sales and a reversal of previously allowance for contingent consideration. Without this contingent consideration, EBITA margin in the fourth quarter previous year was 13.1%.

Labtech’s net sales decreased by 6 percent in the financial year to SEK 3,654 m (3,880), whereof organic sales, excluding COVID-19 related sales and exchange rate changes, increased to 10 percent and acquired growth was 1 percent. Net sales related to COVID-19 have now ceased and is reported as SEK 0 m (760). Exchange rate changes had positive impact of 5 percent on net sales. EBITA decreased by 29 percent to SEK 473 m (667), corresponding to an EBITA-margin of 12.9 percent (17.2).

Diagnostics was stable during the quarter, with continued good margins. Staffing shortage among customers and some cautiousness regarding new investment projects have had a somewhat dampening effect on growth. Global manufacturing firms continue to reassess their commercial strategies and in some cases are dismantling direct sales approach and instead choose distributor models, thereby generating opportunities for AddLife's companies. Recently signed distribution agreements are expected to have significant future potential.
BioMedical & Research achieved robust growth and high profitability in the fourth quarter. Academic research activity is high, generating robust sales of reagents and consumables. Here, too, a cautious approach to large investment projects can be noted. Sales to customers in the pharmaceutical industry saw strong growth.
Delivery and invoicing to customers in Eastern Europe proceeded according to plan in the fourth quarter, leading to excellent sales growth, high margins, and a reduced inventory.
.