This article first appeared on GuruFocus .
Release Date: April 28, 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 ( STU:1AD1 ) maintained a high EBITDA margin of 12.5%, with Labtech achieving a 13.1% margin.
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The company reported a 3% organic growth at the Group level, excluding the divested endoscopy business.
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AddLife AB ( STU:1AD1 ) successfully completed two acquisitions: BioSpectrum in the UK and Covachrom in Austria, enhancing their portfolio.
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Advanced products in both Labtech and Medtech are driving growth and higher margins, with significant potential in genomics and gene sequencing.
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The company has a strong balance sheet, supporting both organic and acquired growth, with net debt to EBITDA at 2.3, below the target of 3.
Negative Points
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Currency fluctuations had a negative impact of 4% on growth, affecting overall financial performance.
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The divestment of the endoscopy business in the UK resulted in a negative impact of 3% on growth.
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Operating cash flow was seasonally weak, with a significant negative impact from working capital changes.
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The Medtech segment experienced a slight decline in EBITDA margin from 13.5% to 12.8%, indicating pressure on profitability.
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Doctor strikes in Spain temporarily reduced growth in the Medtech segment, affecting overall performance.
Q & A Highlights
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Q: Can you elaborate on the working capital tie-up and how it developed through April? A: We saw a clear strengthening in sales in March, which drove up accounts receivables and inventory. This impacted cash flow, but it's typical for Q1 to have weaker cash flow. We can't comment on April sales yet, but we see positive demand trends in both Medtech and Labtech. (Unidentified_1, Unidentified_2)
Q: How broad-based was the positive trend in capital goods sales in the UK, and does the order book support continued growth? A: We've seen increased activity and a reduction in waiting lists, indicating NHS efficiency measures are taking effect. While the endoscopy business was capital-heavy, other products like imaging have seen increased sales. We're cautiously optimistic about continued positive development. (Unidentified_1)
Q: How should we think about the impact of the divested business for the rest of the year? A: The impact will be evenly distributed throughout the remaining quarters. The divested business had a significant impact in Q1, but less so going forward. (Unidentified_1, Unidentified_2)
Q: Are you seeing any cost pressures from the Middle East situation, and how much can you realistically push through price increases? A: We haven't felt significant cost pressures yet, but we're prepared for potential increases in freight and raw material costs. Our companies have handled similar situations well in the past through close collaboration with customers. (Unidentified_1)
Q: Are acquisition multiples staying around the historical range, or is competition pushing prices up? A: Recent acquisitions were at the lower end of the 6-8 range. We don't feel significant competition pressure, as we have a broad presence across Europe and strong relationships with customers and suppliers. (Unidentified_1)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
