Group Performance in the quarter

Net sales in the quarter increased by 9 percent to SEK 2,544 m (2,326). Organic growth, excluding COVID-19 and exchange rate changes, amounted to 9 percent. Net sales related to COVID-19 have now ceased and are reported as SEK 0 m (64). Exchange rate changes had a positive impact of 4 percent on net sales in the quarter, corresponding to SEK 90 m.

The quarter has been charged with one-off costs related to profitability improving measures within Homecare and AddVision which amount to a total of SEK 134 m. The costs relate to impairment of intangible fixed assets of SEK 106 m, impairment of tangible fixed assets of SEK 19 m and restructuring costs of SEK 8 m. The one-off costs burden sales costs with SEK 54 m, administration costs with SEK 8 m and research and development include write-downs amounting to SEK 70 m.
EBITA increased by 8 percent to SEK 278 m (258) and the EBITA margin amounted to 10.9 percent (11.1). Reversal of previously reserved additional purchase price has in the quarter had a positive effect on the operating profit by SEK 46 m (16), while the one-off costs have had a negative effect on the operating profit by SEK 27 m. Exchange rate changes had a positive impact on EBITA, corresponding to SEK 10 m. 

Net financial items amounted to SEK -57 m (-72) and profit after financial items amounted to SEK 2 m (77). Net financial items mainly include interest costs related to financing of previous acquisitions and exchange rate fluctuations. Net interest amounted to SEK -71 m (-45) and exchange rate gains to SEK 16 m (-26). Exchange rate changes are linked to recalculation of loans and contingent considerations in foreign currency. The profit before tax for the quarter amounted to SEK 2 m and the profit after tax amounted to SEK -41 m (62). The higher effective tax rate in the quarter is attributable to the effect of non-deductible interests and deficits that have not been assessed as capitalizable in the subsidiary Camanio.

Group Performance in the financial year

Net sales in the financial year increased by 7 percent to SEK 9,685 m (9,084). Acquired growth was marginally positive and organic growth, excluding COVID-19 and currency changes, amounted to 10 percent. Net sales related to COVID-19 have now ceased and are reported as SEK 0 m (760). Exchange rate changes had a positive impact on net sales of 6 percent, corresponding to SEK 520 m.

The financial year is impacted by non-recurring costs of SEK 134 m. Increased commercial activity and strengthened sales organization have increased sales costs, which has driven sales growth and strengthens the growth potential going forward. EBITA decreased by 7 percent to SEK 1,135 m (1,221) and EBITA-margin amounted to 11.7 percent (13.4). The decrease is largely explained by the ceased COVID-19 sales. Reversal of previously allowance for contingent consideration has had a positive impact on the operating profit of SEK 147 m (101) in the financial year.  Exchange rate changes had a positive effect on EBITA with 5 percent, corresponding to SEK 59 m.

Net financial items amounted to SEK -246 m (-206) and profit after financial items amounted to SEK 339 m (602). The net financial items include mainly interest costs related to the acquisitions as well as exchange rate changes. Interest net amounted to SEK -267 m (-103) and exchange rate gains to SEK 30 m (-95). Exchange rate changes are related to recalculation of loans and contingent considerations in foreign currencies. Profit after tax for the year amounted to SEK 192 m (483) and the effective tax rate was 43 percent (20), affected by the effect of non-deductible interests and deficits that have not been assessed as capitalizable in the subsidiary Camanio. 

The war in Ukraine has not had a significant economic impact on the financial reports, but it can not be ruled out that this will happen in the future. We follow market developments closely, where we notice rising inflation, higher raw material, component costs, shipping costs and energy costs and greater uncertainty about interest rate developments. We follow the development in the Middle East but, at this point in time, our assessment is that this doesn’t have a significant impact on the group. Regarding the development in the Red Sea, it has a minor impact on shipping prices and delivery times.