Continued strong growth in the quarter – EBITDA increased by 63 percent

Fri, Oct 27, 2023 06:30 CET

THIRD QUARTER JULY-SEPTEMBER

The Group’s net sales amounted to SEK 364.5 (241.5) million, an increase of 51 percent.
The Group’s EBITDA was SEK 81.0 (69.7) million, an increase of 16 percent. Adjusted for items affecting comparability previous year^*), the increase was 63 percent.
The EBITDA margin was 22 (29) percent. Adjusted for items affecting comparability^*), the margin was 22 (21) percent.
Profit after tax amounted to SEK 38.3 (36.6) million.
Earnings per share amounted to SEK 2.6 (2.5).
Cash flow from operating activities was SEK 61.0 (43.8) million.

NINE MONTHS JANUARY-SEPTEMBER

The Group’s net sales amounted to SEK 1 130.8 (788.5) million, an increase of 43 percent.
The Group’s EBITDA was SEK 227.1 (185.3) million, an increase of 23 percent. EBITDA adjusted for items affecting comparability^*)amounted to 242.5 million, an increase of 47 percent.
The EBITDA margin was 20 (24) percent. Adjusted for items affecting comparability^*), the margin was 21 (21) percent.
Profit after tax amounted to SEK 110.0 (77.4) million.
Earnings per share amounted to SEK 7.4 (5.2).
Cash flow from operating activities was SEK 153.3 (124.5) million.

Third quarter

Sales increased by a full 51 percent, largely due to acquisitions but also good organic growth of over 20 percent.

With effect from the third quarter, MedCap reports in three business areas: Assistive Tech, MedTech and Specialty Pharma. All business areas showed strong sales growth and experienced generally good demand.

The new Assistive Tech business area had high demand, particularly in the Norwegian and Swedish markets, and a strong sales increase during the quarter. The businesses that were acquired in the beginning of the year also contributed to the earnings and we see that synergies are being realised.

MedTech also increased sales in most markets, with Nutrition and ECG in particular contributing to the increase. The acquired companies SurgiCube and Toul Meditech were added to the business area during the quarter. The business area’s sales were also positively affected by currency effects.

Specialty Pharma continued to show good growth, with international sales making a strong contribution in the quarter. However, we are seeing increased competition which is expected to affect profitability in the segment in the short term. Work on business development continues, both in the Nordic region and internationally, with high priority.

Overall, the Group delivered a very strong third quarter with high sales growth and increased earnings. EBITDA increased by 63 percent adjusted for items affecting comparability previous year, and the margin was 22 percent.

Three business areas

The new “Assistive Tech” business area encompasses operations in assistive and welfare technology with the aim of linking and utilising expertise about users, product development and the market. The new business area provides a platform and a home for companies in the same sector, with network and synergies that enable both organic and acquisitive growth.

Tove Christiansson, who has been a subsidiary Managing Director in the MedCap Group since 2015, has been appointed as Assistive Tech’s Business Area Manager and brings solid experience to continue to develop and support existing and new companies in the business area.

We see this as a natural step in the Group’s growth and a confirmation of our long-term model. Since the first investment in GEWA, nowadays Abilia, in 2007, active ownership has created a successful group of companies that now form a new business area. After the end of the quarter, as a step in further building the business area, Swedelift was acquired which broaden the offering in accessibility.

MedCap now has three business areas, and in all of them we see good opportunities to continue to grow and allocate capital to create value for customers and shareholders.

In summary

The Group delivered a very strong third quarter with a combination of organic and acquisitive growth. In general, we see good demand in the market, but we appreciate that the economy and competition can affect certain markets. Acquisitions are a cornerstone of MedCap’s strategy, and we see good opportunities to utilise the Group’s strong balance sheet for further acquisitions in a slower acquisition market, with competition likely to be lower and with continued good access to potential transaction. The Group’s three business areas provide excellent platforms for growth and good homes for life science companies.

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 27 October 2023 06:30 CET.

For more information, contact:

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

Om MedCap:

MedCap bygger framgångsrika företag inom Life Science för att förbättra människors liv. MedCap förenar de större bolagets styrka med de mindre bolagens entreprenöriella kraft, smidighet och affärsmannaskap.

MedCap handlas under symbolen MCAP på NASDAQ Stockholm. Mer information finns att läsa på hemsidan www.medcap.se.