Q2 2025 AddLife AB Earnings Call Transcript
Key Points
- AddLife AB (FRA:1AD1) achieved significant margin improvements in both Labtech and Medtech, with EBITA margins exceeding 12%.
- The company reported a healthy customer demand, with a currency-adjusted sales increase of 5% and organic growth of 3%.
- Acquisitions contributed positively to growth, adding 2% to the overall sales increase.
- The gross margin improved from 38% to 39%, driven by price increases and a favorable product mix.
- Operating cash flow improved by 25% year-over-year, indicating strong cash management and efficiency improvements.
- Net debt increased to 3.1, slightly above the company's target of 3.0 or below, due to acquisition costs and currency effects.
- The company faced negative currency effects, impacting revenue by 4% and EBITA by 5%.
- There was a slowdown in capital sales in the UK, attributed to government budget uncertainties, affecting Medtech's performance.
- Inventory levels remained flat despite revenue growth, indicating potential inefficiencies in inventory management.
- The acquisition-related costs of SEK8 million offset the positive EBITDA contribution from the Edge Medical acquisition in the quarter.
Good morning, everyone, and a warm welcome to the AddLife Second Quarter Report. Christina and I will take you through the highlights of the report. And after that, we will have a Q&A session, as always. And as you may remember, we like to show you a little bit of a summary of some of our companies.
So this time around, we are -- we have recorded a video with MBA, our Spanish and Portuguese company that are fantastic in orthopedic surgery and now expanding into other fields of advanced surgery and hospital products. But let's get started now with the numbers.
So I'm really pleased to share with you all that the AddLife companies continue to deliver on the priorities that we have set out. And the number one priority, as you may remember, is to improve margins and profit. So we saw a significant margin improvement in both business areas actually. Both Labtech and Medtech achieving a level above 12% EBITA margin. So -- and that's a significant increase for both business areas.
We saw a healthy customer demand
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