AddLife (ALIF) Q2 2024 earnings summary

Executive summary

• Net sales grew 8% year-over-year in Q2 2024 to SEK 2,554m, with 7% organic growth; EBITA rose 21% to SEK 299m and profit after tax increased 116% to SEK 72m.

• Both Labtech and Medtech segments delivered strong sales growth and margin improvements, with Medtech benefiting from restructuring and cost reductions.

• Operating cash flow improved to SEK 195m from SEK 82m, and net debt was reduced by SEK 120m despite dividend and acquisition payments.

• Acquisition of Bonsai Lab, a Spanish cell and molecular biology distributor, aligns with strategic priorities and expands presence in molecular biology.

• Restructuring and efficiency initiatives, especially in AddVision and Camanio, are driving profitability improvements.

Financial highlights

• Net sales reached SEK 2,554m, up 8% year-over-year; EBITA rose to SEK 299m, a 21% increase, with margin improving to 11.7% from 10.4%.

• Net interest expense was SEK 75m, stable over the last four quarters.

• Operating cash flow for Q2 was SEK 195m, driven by sales growth and working capital efficiency.

• Net debt decreased by SEK 120m; net debt to EBITDA reduced to 3.6.

• Cash conversion improved to 82% due to inventory and working capital focus.

Outlook and guidance

• Management expects continued good prospects for the remainder of the year, supported by strong performance in both business areas and recent strategic acquisitions.

• Anticipate further Medtech margin improvement in the second half, though Q3 may see seasonal margin dip.

• Ongoing focus on organic growth, cash flow, and acquisitions.

• Restructuring and efficiency initiatives are expected to continue supporting profitability.

• Market prospects remain favorable, with good demand and well-positioned product portfolios.