AddLife (ALIF) Q2 2025 earnings summary

Executive summary

• Margins and profit improved, with EBITA margins above 12% in both Labtech and Medtech, and profit after tax up 63% for Jan–Jun 2025.

• Revenue grew 5% (currency adjusted), with organic growth at 3% and acquired growth at 2%; customer demand remained healthy.

• Acquisition of Edge Medical completed in April 2025, expected to be EBITDA margin accretive and to enhance the product portfolio.

• Profit before tax grew 29% year-over-year, aided by lower interest costs.

• Strong cash flow growth year-to-date, despite dividend payments, acquisition outflows, and currency effects.

Financial highlights

• Net sales rose 1% to SEK 2,578m in Q2; organic growth 3%, acquired growth 2%, currency impact -4%.

• EBITA margin improved to 11.9% (up from 11.4%); EBITA for Jan–Jun up 10% to SEK 650m, margin 12.3%.

• Gross margin increased from 38% to 39% due to price increases and favorable product mix.

• Profit after tax for Jan–Jun increased 63% to SEK 220m; EPS SEK 1.81 (up from 1.11).

• Operating cash flow for Jan–Jun was SEK 359m (up from 292m); Q2 cash flow impacted by working capital changes.

Outlook and guidance

• Expectation of lower interest costs in Q3 following ECB rate cuts; strong headroom on financial covenants.

• Anticipate normalization and improvement in UK capital spending from Q4 onwards, with further acceleration in Q1 next year.

• Acquisition pipeline remains robust, with increased M&A activity expected in the second half and next year.

• Focus remains on profit improvement, organic growth, cash flow, and acquisitions.

• Growth plans and organizational development initiatives are underway to support future expansion.