Half Year 2024 AddLife AB Earnings Call Transcript
Key Points
- AddLife AB (FRA:1AD1) reported strong growth in the second quarter with an 8% increase, or 7% when adjusted for currency and organic factors.
- EBITDA increased by 21%, reflecting successful profitability improvement initiatives.
- Both Labtech and Medtech segments showed strong growth, with Medtech's EBITDA increasing by 37% and margin strengthening to 12.3%.
- Operating cash flow improved significantly to SEK195 million from SEK82 million in the same quarter last year.
- The company successfully reduced net debt by SEK120 million during the quarter, despite paying dividends and acquisition-related costs.
- Labtech experienced a slight margin decline, attributed to delays in instrument projects and cautiousness in academic research due to budget constraints.
- Inventory levels increased by SEK59 million, partly due to supply chain disturbances and the addition of new suppliers and products.
- There are ongoing supply chain issues, particularly in orthopedics, affecting product availability.
- The Medtech segment faces challenges from long patient waiting lists and staffing shortages in healthcare, impacting elective surgery volumes.
- Some areas within the company still require margin improvement, although they are not as significant as the issues faced by Camanio and AddVision.
Good morning, everyone, and welcome to the AddLife second quarter report. We will start with the presentation and then followed by a Q&A session. And after that, I strongly encourage you to stay on for a few more minutes to see a very good video describing the business we have in Eastern Europe, the Biomedica business. So let's get going and talk about the quarter.
In the second quarter, we had really good growth and continued profitability improvement. The growth was 8% or 7% currency adjusted and organic. EBITDA increased by 21%. And we're really starting to see profitability improvement initiatives starting to show clear results in the numbers. Really pleased to note the fact that both business areas are performing really well.
In the quarter, Labtech grew nicely. And you may remember in the last quarter that we had a bit of a weakness at the end, we were pretty confident that that was going to recover and it sure did. And the business also delivers stable margins. Medtech also grew really well. And here we see a
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