MedCap (MCAP) Q1 2025 earnings summary

Executive summary

• Net sales grew 7% year-over-year to SEK 493.8 million, driven by acquisitions and strong Assistive Tech performance, while organic growth was flat; excluding Specialty Pharma, organic growth was 6% year-over-year.

• EBITA margin recovered to 17% after a weaker Q4, but EBITA declined 5–6% year-over-year due to Specialty Pharma weakness, lost Melatonin royalties, and transaction costs; adjusting for lost royalties, EBITA increased 2%.

• Profit after tax was SEK 50.7 million, with EPS at SEK 3.4, both down from the prior year.

• Good sales in Assistive Tech and MedTech; Specialty Pharma performed weaker as expected.

• Ongoing M&A dialogues in all business areas, with a positive outlook for further acquisitions and a strong financial position.

Financial highlights

• Q1 2025 net sales reached SEK 493.8 million, up 7% year-over-year.

• Adjusted EBITA was SEK 84.2 million, down 5% year-over-year; reported EBITA was SEK 82.9 million, down 6%.

• EBITA margin stood at 17.0%, down 2.1 percentage points year-over-year.

• Profit after tax: SEK 50.7 million; cash and cash equivalents: SEK 315.2 million at quarter-end.

• Last twelve months (LTM) revenue was SEK 1,839 million with a 17% EBITA margin.

Outlook and guidance

• Profit in Specialty Pharma expected to improve in the second half of the year, with significant improvement dependent on new product additions, portfolio renewal, and M&A.

• Demand in core European markets remains stable, with favorable market conditions expected to continue.

• Good outlook for M&A, with active business development and ongoing acquisition discussions.