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 increased by 12 percent to SEK 1,679m (1,498) during the fourth quarter. Organic growth amounted to 11 percent and exchange rate changes positively affected net sales by 1 percent. EBITA increased by 46 percent to SEK 195m (133), corresponding to an EBITA-margin of 11.6 percent (8.9). EBITA in the previous year was affected by the revaluation of a contingent consideration and one-off costs related to AddVision and Camanio, totalling SEK 19m. Excluding these, the EBITA-margin amounted to 7.6 percent. 

In the financial year, net sales increased by 8 percent to SEK 6,496m (6,042), of which organic growth was 7 percent. Exchange rate changes affected net sales positively by 1 percent. EBITA increased by 9 percent to SEK 746m (684), corresponding to an EBITA-margin of 11.5 percent (11.3). EBITA includes revaluation of contingent considerations of SEK 4m (147) and restructuring costs related to AddVision and Camanio of SEK -10m (-17). Excluding these, EBITA increased by 29 percent, and EBITA margin was 11.6 percent (9.3). Camanio negatively impacted the results by SEK 39m (77), of which SEK 10m (19) relates to a restructuring reserve related to the successive closure of the company, which has now been completed.

Organic growth was very strong in the quarter, reaching 11 percent. This was despite the number of surgeries performed in December being lower than usual due to more holidays in healthcare around Christmas and New Year compared to the previous year.

The companies within Medtech have generally performed well, with some countries including Germany, Spain, Portugal, Ireland, the UK, and Norway experiencing particularly strong development. This is driven by evolving product portfolios and increasing market shares.

The closure of Camanio was completed as planned during the third quarter. The negative annual impact on results of approximately SEK 60m and the cash flow effect of approximately SEK 90m are now completely eliminated from the fourth quarter onwards.

The improvement work within AddVision continues, and several important measures have been implemented during the fourth quarter. The situation remains good in parts of the business, while other areas that had issues have stabilized and show a positive trend. The main focus of activities has been on commercial development for some time, which is yielding results.

Patient waiting lists in healthcare remain long, and no significant reductions in waiting lists occurred during the fourth quarter. However, in several countries, healthcare investments and initiatives to reduce waiting times have been announced, which are expected to start having a positive effect in 2025.