AddLife AB (publ)

Revenue increased 6% in the quarter, with 4% organic growth and 3% acquisition growth. EBITA growth was 11%, and the EBITA margin improved to 12.6% from 11.9% a year ago. Gross margin improved by 0.5 percentage point, profit before tax was up 29%, and operating cash flow rose to SEK 165 million from SEK 119 million last year. Labtech EBITA margin improved to 13.4% from 12.4%, and Medtech EBITA margin improved to 12.8% from 12.4%. Leverage increased to 2.6x, net debt/equity was 0.8x, and earnout liabilities of SEK 114 million were booked. Management did not provide formal next-quarter or full-year guidance, but said margin expansion remains a key priority going forward and that the UK capital market remains slow but with a strong order book. They also said acquisition activity should increase and that recent deals are expected to keep contributing to earnings.

Fredrik Dalborg struck an upbeat but measured tone, emphasizing that positive development was broad-based across the portfolio. He highlighted stronger margins, better growth in Home Care, continued improvement in eye surgery, and solid contributions from acquisitions. He also framed product mix shifts toward advanced products as an important long-term driver and said the company is actively working to accelerate M&A.

Christina Rubenhag focused on the mechanics behind the quarter’s improvement: 6% revenue growth, 0.5 percentage point gross margin expansion, 12.6% EBITA margin, and 11% EBITA growth. She said OpEx increased due to growth investments and acquisitions, but operating cash flow still improved to SEK 165 million and cash conversion stayed around 100%. She also noted leverage rose to 2.6x mainly because of about SEK 400 million in acquisition and dividend payments, while net debt/equity remained 0.8x, below internal guidance of 1.0x.

Analysts pressed on the weak UK capital-products market, asking about conversion in the second half and whether book-to-bill had changed; management said demand remained hesitant because of NHS procurement changes, but there is a solid order book and gradual improvement, not a dramatic shift. Questions on acquisitions focused on whether the higher margins of recent deals were sustainable; management said the acquired companies are genuinely high-margin businesses and that current levels should continue. Analysts also asked about working capital, Spain strike impacts, and Labtech/eye surgery trends; management said June and Q1 ending effects delayed receivables release, Spain’s strikes reduced procedures about one week per month, Labtech had no major one-offs, and eye surgery/home care are still improving gradually.