This article first appeared on GuruFocus .
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Revenue Growth:Increased by 6%, with organic growth at 4% and acquisitions contributing an additional 3%.
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EBITA Margin:Improved to 12.6% from 11.9% in the previous year.
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LabTech EBITA Margin:Increased by 1 percentage point to 13.4%.
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MedTech EBITA Margin:Improved to 12.8% from 12.4% last year.
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Organic Growth:4%, adjusted for divestment and external factors like strikes.
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Profit Expansion (EBITA Growth):11% in the quarter, with organic growth at 5% and acquisitions contributing 6%.
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Gross Margin:Improved by 0.5 percentage points due to price management and product mix.
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Operating Cash Flow:Increased to SEK165 million from SEK119 million last year.
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Net Debt:Increased due to acquisition and dividend payments, with leverage at 2.6x.
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Net Debt-Equity Ratio:0.8x, below the internal guidance of 1x.
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Home Care Turnover:Approximately SEK700 million, with improving margins.
Release Date: July 16, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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AddLife AB ( ADDLF ) reported a significant improvement in EBITA margin, reaching 12.6% compared to 11.9% in the same quarter last year.
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The company experienced strong growth in the home care sector, with improving margins and a comprehensive product portfolio.
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Recent acquisitions have meaningfully contributed to earnings growth, enhancing both sales and margins.
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LabTech and MedTech divisions both saw margin improvements, with LabTech increasing to 13.4% and MedTech to 12.8%.
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Operating cash flow increased to SEK165 million from SEK119 million last year, with a strong cash conversion rate of around 100%.
Negative Points
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Revenue growth was slightly held back by strikes in Spain and subdued capital spending in the UK market.
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Operating expenses increased due to growth investments and acquisition costs, impacting overall profitability.
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The company's leverage increased to 2.6x, driven by acquisition and dividend payments, although still below the target of 3x.
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The UK market continues to show hesitation in capital investment, affecting sales momentum.
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Working capital was negatively impacted by higher inventory levels and lower accounts payables, driven by new product introductions and supplier changes.
Q & A Highlights
Q: Can you elaborate on the hesitation around capital investment in the UK and any shifts during the quarter? A: The hesitation is due to ongoing changes in the NHS, including new procurement guidance. While sales of capital have been slow, we have a strong order book and expect gradual improvements. The number of procedures is growing, and waiting lists are decreasing slightly, indicating a positive trend. Fredrik Dalborg, CEO
Q: The acquisitions seem to have strong margins. Is this expected to continue? A: Yes, the acquisitions have solid growth and margins, and we expect this to continue. These are high-margin companies, and we anticipate maintaining these levels. Fredrik Dalborg, CEO and Christina Rubenhag, CFO
Q: How far along are you with improvements in eye surgery and home care? A: In eye surgery, we've moved from negative to positive EBITA margins and expect gradual improvements. In home care, we see strong growth and efficient operations, contributing to good margins. Both areas are on the right track. Fredrik Dalborg, CEO
Q: Can you explain the working capital dynamics in Q2? A: High inventory levels were due to strong sales at the end of Q1 and Q2. We expected a release in accounts receivables, but strong sales in June tied up capital. We anticipate a release in the future with steadier sales patterns. Fredrik Dalborg, CEO and Christina Rubenhag, CFO
Q: What is the status of your M&A activities? A: We need to increase the pace of M&A. We have several ongoing discussions and feel confident about the pipeline. The number of advanced-stage processes is higher than last year, and we expect to pick up the pace. Fredrik Dalborg, CEO
Q: Is the current profitability level in LabTech sustainable? A: Yes, there are no one-offs contributing to the profitability. The demand in diagnostics and research is stable, and we see positive developments in Eastern Europe and genomics. Fredrik Dalborg, CEO and Christina Rubenhag, CFO
Q: Can you quantify the impact of improvements in home care and ophthalmology on MedTech's EBITA margin? A: While we can't provide specific numbers, both areas contributed positively. Eye surgery margins improved, and home care showed strong growth and increased margins due to product launches and sales. Fredrik Dalborg, CEO
Q: Despite strikes, Spain showed good growth. What is driving this? A: Our MedTech business in Spain is performing well, with a strong product portfolio and underlying growth. The strikes have impacted surgical procedures, but overall growth remains strong. Our LabTech business in Spain and Portugal is also developing nicely. Fredrik Dalborg, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
