Net sales for the quarter decreased by 3 percent to SEK 2,733m (2,818). Growth, excluding exchange rate effects, amounted to 2 percent, of which organic growth was 1 percent and acquired growth was 1 percent. Exchange rate effect had a negative impact on net sales of 5 percent in the quarter, corresponding to SEK 124m.

Adjusted EBITA in the quarter decreased by 2 percent to SEK 339m (346) and the adjusted EBITA margin amounted to 12.4 percent (12.3). EBITA totalled SEK 497m (346) and was positively affected by the divestment of operations of SEK 158m. Exchange rate fluctuations had a negative impact on EBITA of 7 percent, corresponding to SEK 24m.

On December 1, the endoscopy business in the United Kingdom was divested after a supplier made a strategic decision to begin direct sales. The effect of the transaction amounted to SEK 158m, which has been recognised as other operating income.

EBITA contribution from acquired companies was held back by low market activity and investments in future growth.

Net financial items amounted to SEK -50m (-79) and profit after financial items totalled SEK 343m (150). Net financial items primarily include interest expenses related to the financing of previous acquisitions as well as exchange rate fluctuations. Interest expenses amounted to SEK -45m (-70) and exchange rate losses to SEK -4m (-1).

Profit after tax increased by 177 percent to SEK 260m (94), and the effective tax rate was 25 percent (38). The slightly high effective tax rate is attributable to the effect of non-deductible interest expenses.

Net sales for the financial year increased by 2 percent to SEK 10,442m (10,286). Growth, excluding exchange rate changes, amounted to 5 percent, of which organic growth was 4 percent and acquired growth was 1 percent. Exchange rate changes had a negative impact on net sales of 3 percent during the financial year, corresponding to SEK 310m.

Adjusted EBITA increased by 8 percent to SEK 1,259m (1,165) and the adjusted EBITA margin amounted to 12.1 percent (11.3). EBITA amounted to SEK 1,417m (1,159). Adjusted EBITA is adjusted for a divestment of operations of SEK 158m during the financial year and for reversed contingent consideration and restructuring costs totalling SEK 6m in the previous year. Currency effects had a negative impact on EBITA of 4 percent, corresponding to SEK 46m.

Net financial items amounted to SEK -221m (-316) and profit after financial items totalled SEK 772m (405). Net financial items mainly include interest expenses related to the financing of previous acquisitions as well as exchange rate fluctuations. Interest expenses amounted to SEK -202m (-300) and exchange rate losses to SEK -10m (0).

Profit after tax increased by 121 percent to SEK 562m (254), and the effective tax rate was 27 percent (37). The slightly high effective tax rate is attributable to the effect of non-deductible interest expenses.

The geopolitical situation in Ukraine and the Middle East has not had any significant economic impact on the financial reports, but it cannot be ruled out that it may do so in the future. With approximately 95 percent of sales and 80 percent of purchases in Europe, AddLife should not be heavily exposed to tariffs and trade barriers by the USA or by other countries as countermeasures. However, there is a risk that subcontractors and components further down the supply chain may be subject to tariffs or trade barriers. We are closely monitoring market developments regarding inflation, tariffs and trade barriers, raw material, component and freight costs, as well as interest rate trends.