In the first quarter of 2025, net revenue increased organically with continued good profitability, which shows stable demand in medical technology and laboratory solutions. Cash flow from operating activities was strong, driven by improved working capital while EBITA, the company’s new main profit measure, decreased compared to the same quarter last year. Through increased operational efficiency, an adapted cost structure and a strengthened balance sheet, the Group is well equipped to meet market challenges and continue its growth journey.
January–March 2025
Net revenue was SEK 424.0 million (413.4), an organic increase of 2.6%
Orders received was SEK 402.5 million (406.0), an organic decrease of 0.9%
EBITA was SEK 75.3 million (78.1), a decrease of 3.6%
Profit for the period was SEK 25.6 million (42.9)
Basic earnings per share amounted to SEK 0.12 (0.20)
Operating cash flow was SEK 36.6 million (33.4), an increase of 9.6%
Net debt to EBITDA was 3.7 times (2.4), pro forma with cash from the rights issue in April 2025 2.5 times
CEO’s comment
ADDvise continues to develop with a focus on profitable growth and financial discipline
In the first quarter of 2025, net revenue increased by 2.6 percent organically to SEK 424 million. EBITA amounted to SEK 75.3 million (78.1), the margin was 17.8 percent (18.9). Cash flow from operating activities amounted to SEK 36.6 million (33.4) and increased by 10 percent compared to the same quarter last year, indicating stable cash generation. The result reflects a continued focus on efficiency, profitability and growth.
Orders received decreased marginally compared to the same period last year. We see stable demand for medical equipment as well as for laboratory solutions.
In the Healthcare business unit, net revenue increased by 10.3 percent to SEK 270.5 million (245.2), mainly driven by stable demand for diabetes products. EBITA amounted to SEK 49 million (49.7), corresponding to a margin of 18.1 percent (20.3). The margin reduction is largely explained by a change in the product mix.
In the Lab business unit, net revenue decreased by 8.7 percent to SEK 153.5 million (168.1). The decrease is mainly due to tough comparative figures, as we received a number of major deals in the cleanroom business in the first quarter of last year. This is a natural effect of the business model as it involves projects over a longer period of time. EBITA amounted to SEK 34.4 million (38), corresponding to a maintained margin of 22.4 percent (22.6).
We continue to work with a clear focus on cost awareness and operational efficiency throughout the Group. By adapting our cost structure, we ensure good profitability even under varying market conditions.
The market outlook is marked by uncertainty due to heightened geopolitical tensions and potential trade conflicts, including changes in U.S. trade and foreign policy following the new administration taking office in January 2025. In life science, however, demand is structurally less cyclical than many other sectors. We thus continue to contribute to extending, improving and saving people’s lives, regardless of economic developments.
In March, the Swedish krona strengthened against several major currencies, including the US dollar and the Brazilian real. Approximately half of the Group’s sales are in US dollars and significant operations are conducted in Brazil. In both cases, sales are mainly made by local subsidiaries that also have costs in the same currency. However, the Group may be affected by exchange rate fluctuations in the future when both sales and earnings are translated into Swedish kronor.
With regard to the US administration’s trade policy, we see that the direct effect of tariffs is limited as only a small part of the Group’s net revenue is to and from the US. We continuously monitor any indirect impact on input goods and supply chains.
A rights issue was carried out during the quarter and provided the Group with SEK 457 million before issue costs. The share issue is the start of our work to reduce financial costs and increase cash flow, thereby creating good conditions for continuing to acquire profitable and successful companies within Lab and Healthcare. The pro forma net debt after the issue amounts to 2.5 times EBITDA.
ADDvise’s strategy is to generate EBITA growth through acquisitions and organically, while maintaining financial discipline and a focus on returns. The Board of Directors has adopted updated long-term financial targets: an average annual EBITA growth of 15 percent and a return on capital employed of 15 percent.
We continue to work with full focus on developing the business in accordance with these targets together with customers, employees and shareholders.
Staffan Torstensson, CEO
For further information, please contact:
Staffan Torstensson, CEO
+46(0)70-433 20 19
staffan.torstensson@addvisegroup.se
Johan Irwe, interim CFO
+46(0)73-731 26 11
johan.irwe@addvisegroup.se
Important information:
This information is information that ADDvise Group AB is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on May 9, 2025 at 07:45 CEST.
ADDvise’s financial reports are available on ADDvise’s website, https://www.addvisegroup.com/investor-relations/financial-and-annual-reports/
The interim report is published in Swedish and English. The Swedish version represents the original.
About ADDvise
ADDvise is an international life science group. Operating a decentralised ownership model, we develop and acquire high quality companies within the business areas Lab and Healthcare. The Group comprises more than 20 companies and generates annual revenues of close to SEK 1.7 billion. ADDvise is listed on Nasdaq First North Premier Growth Market. Mangold Fondkommission AB,
+46 8 503 015 50, CA@mangold.se, is the company's Certified Adviser. More information is available at www.addvisegroup.com.