A strong quarter for the whole Group

FOURTH QUARTER OCTOBER-DECEMBER

• The Group’s net sales amounted to SEK 257.9 (227.0) million, an increase of 14 percent.
• The Group’s EBITDA was SEK 66.5 (49.6) million, an increase of 34 percent. The increase was 27 percent adjusted for items affecting comparability.
• The EBITDA margin was 26 (22) percent. Adjusted for items affecting comparability, the margin was 24 (22) percent.
• Profit after tax amounted to SEK 40.8 (21.3) million.
• Earnings per share amounted to SEK 2.7 (1.4).
• Cash flow from operating activities was SEK 42.6 (37.0) million.

TWELVE MONTHS JANUARY-DECEMBER

• The Group’s net sales amounted to SEK 916.3 (817.4) million, an increase of 12 percent.
• The Group’s EBITDA was SEK 202.5 (157.2) million, an increase of 29 percent. The increase was 23 percent adjusted for items affecting comparability.
• The EBITDA margin was 22 (19) percent. The margin was 20 (19) percent adjusted for items affecting comparability.
• Profit after tax amounted to SEK 98.1 (64.5) million.
• Earnings per share amounted to SEK 6.5 (4.2).
• Cash flow from operating activities was SEK 116.3 (115.6) million.

ceo'S COMMENTS

Sales growth

The Group’s sales increased by 14 percent in the fourth quarter. Demand was good for the Group's companies and generally high in all geographical markets. Both business areas showed increased sales. Several companies in MedTech experienced good growth, and acquisitions also contributed to some extent. In Specialty Pharma, there was a strong increase in sales in the registered pharmaceutical portfolio. Sales growth for the full year 2021 was 12 percent.

Margin improvement

EBITDA increased by 34 percent. The EBITDA margin was 26 percent, an improvement of 4 percentage points. Adjusted for items affecting comparability, the margin was 24 percent, an improvement of 2 percentage points. Increased volumes, product mix and price adjustments contributed to the higher margin. With regard to purchasing, increased delivery times have contributed to higher inventory levels. EBITDA for the full year 2021 increased by 29 percent. Adjusted for items affecting comparability, the increase was 23 percent. In general, the fourth quarter is often the Group’s strongest quarter in terms of both sales and earnings.

The pandemic is still present and the increased spread of infection was reflected in higher sickness absence in the latter part of the quarter.

Strong financial position and capacity for acquisitions

MedCap is a long-term owner that acquires and develops small and medium-sized life science companies that are strong in a product area or market, and have potential for continuing expansion. The process of developing contacts and acquisition dialogues in several markets continued during the quarter, which presented more opportunities to visit and evaluate companies. The Group has a strong financial position and we see good opportunities for acquisitions.

In conclusion

I note that the fourth quarter was the Group’s strongest quarter ever and we saw positive development in both of the Group's business areas. MedCap has a well-functioning model and is a good home and owner for life science companies with continuing growth. 

Anders Dahlberg, CEO

Stockholm, 10 February 2022

This disclosure contains information that MedCap AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 10-02-2022 06:30 CET.

For more information, contact:

Anders Dahlberg, CEO, Mobile 46 704 269 262,  e-mail anders.dahlberg@medcap.se

About MedCap

MedCap builds successful life sciences companies to improve people's lives. MedCap unites the strengths of a larger the company with the smaller companies' entrepreneurial power, agility, and business acumen. MedCap is publicly listed on NASDAQ Stockholm OMX, with the symbol MCAP. More information is available on the company web site www.medcap.se.