October - December 2021
Net revenue for the period was SEK 155.0 million (96.8), an increase of 60.1 %. Organic growth was 12.8 %.
Adjusted EBITDA for the period was SEK 19.0 million (12.6)
EBITDA for the period was SEK 19.4 million (16.3)
Adjusted profit/loss for the period was SEK 3.8 million (2.4)
Basic earnings per share for the period amounted to SEK 0.01 (0.05)
Orders received for the period totaled SEK 177.6 million (99.0)
Operating cash flow for the period was SEK 27.1 million (25.6)
January - December 2021
Net revenue for the period was SEK 466.0 million (358.5), an increase of 30.0 %. Organic growth was 4.7 %.
Adjusted EBITDA for the period was SEK 57.1 million (33.3)
EBITDA for the period was SEK 57.3 million (46.2)
Adjusted profit/loss for the period was SEK 12.7 million (1.9)
Basic earnings per share for the period amounted to SEK 0.02 (0.12)
Orders received for the period totaled SEK 505.0 million (362.6)
Operating cash flow for the period was SEK 10.2 million (57.4)
The Group’s position at the end of 2021 was strong. Organic growth in Q4 amounted to 12.8 percent, and adjusted EBITDA increased by 51 percent in the same quarter.
Net revenue in the fourth quarter amounted to SEK 155.0 million, an increase of 60.1 percent compared to the fourth quarter of 2020, when net revenue amounted to SEK 96.8 million. Net revenue increased organically by 12.8 percent. During the fourth quarter, the Group had no tangible revenue attributable to Covid-19.
Net revenue for 2021 amounted to SEK 466.0 million, compared to SEK 358.5 million for 2020, an increase of 30.0 percent. Net revenue for the year increased organically by 4.7 percent. Pro forma net revenue for 2021, with all companies in the Group that we have taken over as of the report date consolidated from January 2021, amounted to SEK 658.0 million. The corresponding pro forma EBITDA amounted to SEK 101.4 million. Our goal is to achieve pro forma net revenue of SEK 1 billion and an EBITDA exceeding SEK 150 million by the end of 2022. Provided that we complete the acquisition of JTECH and Surplus Diabetic as previously announced, we will have reached pro forma EBITDA SEK 150 million by the end of the second quarter of 2022. In light of this, the Board will review the targets for 2022 in the spring.
EBITDA for the fourth quarter amounted to SEK 19.4 million (16.3). Profit after tax for the period amounted to SEK 1.8 million, compared to SEK 6.0 million in the fourth quarter of 2020. Acquisition costs had a negative effect on EBITDA during the fourth quarter of 2021 of SEK 0.6 million, and on the profit for the period after tax of SEK 3.0 million. Adjusted EBITDA for the fourth quarter amounted to SEK 19.0 million (12.6), with the adjusted profit for the period amounting to SEK 3.8 million (2.4).
The year has been characterized by a good inflow of orders. Orders received in the fourth quarter of 2021 increased organically by 11.9 percent compared to the fourth quarter of 2020. The total orders received amounted to SEK 177.6 million (99.0). The orders received for 2021 amounted to SEK 505.0 million (362.6). The organic increase in orders received for 2021 was 9.2%.
We are still experiencing disruptions to our supply chains and have done so for much of 2021. Sick leave in our own production units combined with sick leave among our subcontractors has led to us having to maintain higher safety margins in our stock. This has had a negative impact on our cash flow, which is expected to be normalized by mid-2022 when Omicron has eased off and restrictions have been lifted.
Operating cash flow during the fourth quarter amounted to SEK 27.1 million (25.6). For the full year, it amounted to SEK 10.2 million (57.4). Operating cash flow adjusted for pandemic support and external acquisition costs improved in 2021 compared to 2020.
During 2021, we have seen an increase in the gross margin. This is partly an effect of a return to a product mix with a higher proportion of proprietary products but also of high gross margins in newly acquired subsidiaries. The gross margin in 2021 was 45.9 per cent (38.3).
In December 2021, the application by ADDvise for admission to Nasdaq First North Premier was accepted. Nasdaq First North Premier enables companies to prepare for listing on the Nasdaq Main Market by setting more stringent requirements for information disclosure, corporate governance, and financial reporting.
Lab business unit
Net revenue in the Lab business unit amounted to SEK 63.3 million, which is an increase of 70.8 percent compared to the fourth quarter of 2020, when it amounted to SEK 37.0 million. We continue to see positive signs from our laboratory customers, who are moving away from low-margin consumables towards equipment and projects in cleanrooms and laboratory equipment with better margins. EBITDA for the Lab business unit amounted to SEK 6.9 million, an increase compared to the fourth quarter of 2020, when it amounted to SEK 4.4 million.
Healthcare business unit
Net revenue in the Healthcare business unit amounted to SEK 91.8 million, an increase of 53.5 percent compared to the fourth quarter of 2020, when it amounted to SEK 59.8 million. Prospects in the North American market have improved compared to the first half of 2021, and we expect several planned operations that were postponed during the pandemic to be carried out during the year. EBITDA for the Healthcare business unit amounted to SEK 12.0 million, an increase compared to the fourth quarter of 2020, when it amounted to SEK 11.7 million. We are working hard to improve margins in the Healthcare business unit, and I expect a sequential improvement in 2022, partly due to operational improvements and partly due to acquisitions with higher gross margins.
We continue to work proactively to expand our product portfolio through new and interesting acquisitions within both our business units. In December 2021, ADDvise signed a letter of intent to acquire JTECH Medical Industries (JTECH). JTECH is a US medtech company specializing in developing software and instruments to quantify patient mobility, pain, and muscle strength in the rehabilitation of muscular disorders. The company’s products are primarily used by chiropractors, physicians, and physical therapists. The products are sold internationally. This acquisition is due to be completed in the first quarter of 2022.
In January 2022, ADDvise signed a letter of intent to acquire Surplus Diabetic. Surplus Diabetic is an American medical technology company specializing in the supply of diabetes products such as glucose meters, insulin, and test strips to the American market. Sales are made to pharmacies, wholesalers, and directly to consumers. This acquisition is due to be completed in the second quarter of 2022.
I expect 2022 to be at least as interesting a year as 2021 when it comes to acquisitions. We have a lot of acquisitions in the pipeline that we will have the opportunity to act on if the price is right. The geographical distribution of the candidates for acquisition is good, but the emphasis is on the medtech segment.
In order to deliver on our strong acquisition pipeline, the Board has decided not to propose any dividend for the financial year 2021.
My assessment is that demand in our product segments will increase, and our diverse product portfolio and geographical distribution will benefit us. The medical debt that has built up during the two pandemic years must be paid off. Many planned operations have been postponed, and new healthcare needs have arisen in the wake of the pandemic. This will result in increased investment in healthcare equipment. ADDvise’s long-term revenue growth, however, is driven primarily by a growing and aging population, increased incidence of chronic disease, and greater investment in healthcare, research, and development.
Finally, I would like to thank our staff for their efforts and our shareholders and bondholders for the trust they have given us in 2021. It has continued to be a year of challenges with disruptions to both supply chains and our own production as a result of the pandemic. We are now looking forward to 2022, where we will take ADDvise to new levels in a world recovering from a pandemic.
Rikard Akhtarzand, CEO, ADDvise Group AB (publ)
For further information, please contact:
Rikard Akhtarzand, CEO
+46 8-128 766 08
Bengt Miller, interim CFO
+46 70-691 05 30
ADDvise Group AB (publ), Grev Turegatan 30, SE-114 38 Stockholm, Sweden
This information is information that ADDvise Group AB is required to disclose under the EU Market Abuse Regulation and pursuant to the Swedish Securities Market Act. The information was submitted for publication on February 24, 2022 at 08:45 CET.
ADDvise’s financial reports are available on ADDvise’s website,
The year-end report is published in Swedish and English. The Swedish version represents the original.
About ADDvise Group
ADDvise Group AB (publ) is a leading supplier of equipment to healthcare and research facilities. The Group consists of two business areas, Lab and Healthcare. Sales are global. The Group has a clear acquisition strategy with the aim of raising shareholder value and expanding the business – both geographically and product-wise. ADDvise Group’s shares are listed on Nasdaq First North Premier Growth Market and Mangold Fondkommission AB, +46 8 503 015 50, CA@mangold.se, is the Company's Certified Adviser. Additional information is available at www.addvisegroup.com.