ADDvise Group (ADDV) investor relations material

Executive summary

• Profitability and cash flow improved in Q3, with EBITA margin rising to 15.5% from 13.7% year-over-year, supported by efficiency initiatives and improved capital structure despite macroeconomic and FX headwinds.

• Cash flow and earnings met expectations despite soft top-line growth, mainly due to a large Eli Lilly order invoiced in Q3 2024.

• Healthcare segment showed EBITA growth and strong demand, while the Lab segment faced tough comparables due to a large prior-year order.

• FX headwinds from a strengthening Swedish krona and currency volatility impacted results.

• Focus remains on generating strong cash flow to support future acquisitions and long-term shareholder value.

Financial highlights

• Q3 net sales were SEK 363.2 million, a year-over-year decline of 4.8% FX-adjusted and 10% including FX.

• Q3 EBITA was SEK 56.4 million, up 1.8% year-over-year, with a margin of 15.5% (13.7% last year).

• Adjusted net profit was SEK 19 million, compared to -SEK 5 million in Q3 last year.

• Cash flow from operations was SEK 35.3 million, with total cash generation from operations at SEK 53 million.

• Lower financing expenses (SEK 21 million vs. SEK 44 million last year) contributed to improved results.

Outlook and guidance

• Q4 is expected to be strong, consistent with seasonal trends, with no major comparable large orders from last year.

• Margin improvement trend is expected to continue, with healthcare segment performing well and lab segment facing softer comparables.

• Focus remains on efficiency, financial discipline, and growth through organic means and acquisitions.

• Long-term targets include average annual EBITA growth of 15%, ROCE of 15%, net debt/EBITDA ≤3.0x, and up to 25% of prior year profit as dividend.