Q2 2026 AddLife AB Earnings Call Transcript
Key Points
- AddLife AB (ADDLF) reported a significant improvement in EBITA margin, reaching 12.6% compared to 11.9% in the same quarter last year.
- The company experienced strong growth in the home care sector, with improving margins and a comprehensive product portfolio.
- Recent acquisitions have meaningfully contributed to earnings growth, enhancing both sales and margins.
- LabTech and MedTech divisions both saw margin improvements, with LabTech increasing to 13.4% and MedTech to 12.8%.
- Operating cash flow increased to SEK165 million from SEK119 million last year, with a strong cash conversion rate of around 100%.
- Revenue growth was slightly held back by strikes in Spain and subdued capital spending in the UK market.
- Operating expenses increased due to growth investments and acquisition costs, impacting overall profitability.
- The company's leverage increased to 2.6x, driven by acquisition and dividend payments, although still below the target of 3x.
- The UK market continues to show hesitation in capital investment, affecting sales momentum.
- Working capital was negatively impacted by higher inventory levels and lower accounts payables, driven by new product introductions and supplier changes.
Good morning, everyone. Welcome to AddLife's second-quarter call.
As usual, we will be providing you with an overview of the quarter; and then, go through the financials; and then, have the Q&A.
After the Q&A, as always, a video from one of our subsidiaries. This time around, from Ropox, one of the companies within the home care area, which we are focusing on a little bit extra in this quarter.
Let's move on to the numbers. In the second quarter, we are really pleased to note that we see positive development across AddLife's companies. Margins, our highest priority, are improving significantly so 12.6% EBITA margin for the group compared to 11.9% in the corresponding quarter of last year.
Margins improved in both business areas. In LabTech, a full percentage point up to 13.4%. In MedTech, a strong improvement to 12.8% EBITA margin.
Improvement initiatives are part of our DNA. In many areas, we have had long-standing improvement efforts.
In home care, we are pleased to note
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