Continued strong growth – EBITDA increased by 46 percent

SECOND QUARTER APRIL–JUNE           

• The Group’s net sales amounted to SEK 386.1 (284.1) million, an increase of 36 percent.
• The Group’s EBITDA was SEK 86.6 (59.4) million, an increase of 46 percent.
• The EBITDA margin was 22 (21) percent.
• Profit after tax amounted to SEK 46.8 (21.1) million.
• Earnings per share amounted to SEK 3.2 (1.4).
• Cash flow from operating activities was SEK 39.7 (24.4) million.

HALF-YEAR JANUARY–JUNE

• The Group’s net sales amounted to SEK 766.3 (546.9) million, an increase of 40 percent.
• The Group’s EBITDA was SEK 146.0 (115.6) million, an increase of 26 percent. EBITDA adjusted for items affecting comparability*) amounted to 161.4 million, an increase of 40 percent.
• The EBITDA margin was 19 (21) percent (21 percent adjusted for items affecting comparability*)).
• Profit after tax amounted to SEK 71.6 (40.8) million.
• Earnings per share amounted to SEK 4.8 (2.7).
• Cash flow from operating activities was SEK 92.3 (80.7) million.

“Continued strong growth in the second quarter – EBITDA increased by 46 percent”

Second quarter

The Group delivered a strong second quarter with high sales growth, increased earnings and progress for both MedTech and Specialty Pharma.

Sales showed good growth in the second quarter and the Group’s net sales increased by 36 percent, with strong organic growth continuing at around 13 percent.

The Specialty Pharma business area continued to perform very well with strong demand in all businesses. Sales growth for the registered pharmaceutical portfolio continued, and the increased share of sales coming from the registered pharmaceutical portfolio contributed to the business area’s improved margin. Demand for unlicensed pharmaceuticals and contract manufacturing was also high, and during the quarter it was decided to make capacity-increasing investments in production. The prioritised business development work, aimed at broadening the company’s portfolio and sales, continued.

The MedTech business area delivered strong growth with good demand for Abilia, Cardiolex and Inpac in particular, all of which reported good results. Here, too, it is pleasing to note the companies’ strong organic growth. The acquisition of AdderaCare also contributed to the strong growth. The acquired companies are now part of the Group’s assistive technology cluster and the process of developing their business plans, in both the short and longer term, continued during the quarter.

The Group’s EBITDA increased by 46 percent and the margin was 22 percent. The MedTech business area’s margin was affected by the mix, with lower margins in acquired businesses, while several companies in the business area showed good margin development. The Specialty Pharma business area significantly strengthened its margin due to strong growth and the product mix.

Growth through acquisitions and active ownership

MedCap remains highly ambitious regarding acquisitions and there was a high level of activity during the quarter. The deal-flow was relatively large and is being continuously evaluated with some processes having been completed and several dialogues still in progress.

After the end of the quarter, the acquisitions of SurgiCube and Toul Meditech were announced, both of which provide solutions for ultra clean air in surgical environments during procedures such as eye and orthopaedic surgery. The solutions are cost-effective and contribute to flexibility, capacity and quality for both hospitals and smaller clinics. We see potential to grow the platform and expanding sales and distribution to more markets and segments. We are pleased to welcome these businesses to MedCap's MedTech business area.

In summary

The Group delivered a very strong second quarter with a favourable combination of organic and acquired growth. Changes in the economy are difficult to predict, but so far the Group’s companies have experienced good demand and positive development. MedCap’s financial position is strong and we see good opportunities for the Group’s business development going forward.

Anders Dahlberg, CEO

Stockholm 28 July 2023

This information is information that MedCap AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted through the agency of the contact person below for publication at 06.30 CET on 28 July.

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.