AddLife (ALIF) Q1 2025 earnings summary

Executive summary

• EBITA/EBITDA margin improved significantly in both Labtech (12.1%) and Medtech (13.5%), with overall margin at 12.7% and EBITA/EBITDA growth of 18% year-over-year.

• Net sales rose 5% year-over-year to SEK 2,702m, with 4% organic and 1% acquired growth, and strong performance in Spain and Italy.

• Operating cash flow increased to SEK 239m–240m from SEK 97m, supporting net debt/EBITDA reduction to 2.8, below the 3.0 target.

• Acquisition of Edge Medical in April 2025 expands presence in UK/Ireland orthopedic and neurology markets.

• Strategic focus on margin improvement, organic growth, cash flow, and increased acquisition activity.

Financial highlights

• EBITA/EBITDA margin reached 12.7% for the quarter, up from 11.3%–11.6% last year, with EBITA/EBITDA growth of 18% year-over-year.

• Operating cash flow improved by 146% year-over-year to SEK 239m–240m.

• Net debt reduced by SEK 400m–413m in the quarter and SEK 931m–1bn over the last 12 months.

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

• Equity ratio stable at 41%, with return on working capital at 53%.

Outlook and guidance

• Positive outlook for both Labtech and Medtech, with continued focus on margin improvement, organic growth, and product portfolio optimization.

• Acquisition activity to increase, supported by a strengthened balance sheet and recent Edge Medical acquisition.

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