AddLife (ALIF) Q1 2025 earnings summary

Executive summary

• EBITA margin improved to 12.7% from 11.3% year-over-year, with Labtech at 12.1% and Medtech at 13.5%, reflecting strong operational performance.

• Net sales rose 5% to SEK 2,702m, with 4% organic and 1% acquired growth; Labtech grew 12% while Medtech was flat due to prior year instrument sales in the UK.

• EBITA increased 18% to SEK 343m, and profit after tax nearly doubled to SEK 120m; EPS rose to SEK 0.98 from SEK 0.52.

• Operating cash flow improved to SEK 239m from SEK 97m, supporting net debt reduction and renewed acquisition activity.

• Acquisition of Edge Medical in April 2025 expanded presence in orthopedic surgery in the UK and Ireland.

Financial highlights

• EBITA margin reached 12.7% in Q1 2025, up from 11.3% in Q1 2024; EBITA grew 18% year-over-year.

• Operating cash flow was SEK 239m–240m, up from SEK 97m in the prior year.

• Net debt reduced by SEK 400m–413m in Q1 and SEK 931m–1bn over the last 12 months; leverage (net debt/EBITDA) at 2.8, below the target of 3.0.

• Interest costs declined to SEK 58m from SEK 77m year-over-year, with further reductions expected.

• Equity ratio at 41%; debt to equity at 0.9; interest coverage ratio at 6.0.

Outlook and guidance

• Positive outlook for both Labtech and Medtech, with continued focus on margin improvement, organic growth, and cash flow.

• Acquisition activity to increase, supported by a strengthened balance sheet.

• Cash conversion expected to normalize to above 90% for 2024 due to inventory build for new products.

• Stable demand expected in healthcare and research, with limited sensitivity to economic cycles.