EBITDA for the third quarter increased by 24 percent

THIRD QUARTER JULY-SEPTEMBER

• The Group’s net sales amounted to SEK 202.3 (175.4) million, an increase of 15 percent.
• The Group’s EBITDA was SEK 49.5 (35.1) million, an increase of 41 percent. Adjusted for one-time income^*), the increase was 24 percent.
• The EBITDA margin was 24 (20) percent. Adjusted for items affecting comparability^*), the margin was 19 (17) percent.
• Profit after tax from continuing operations amounted to SEK 25.7 (13.4) million.
• Earnings per share amounted to SEK 1.8 (0.8).
• Cash flow from operating activities was SEK 23.2 (3.5) million.

NINE MONTHS JANUARY-SEPTEMBER

• The Group’s net sales amounted to SEK 658.4 (590.4) million, an increase of 12 percent.
• The Group’s EBITDA amounted to SEK 136.0 (107.6) million, an increase of 26 percent. Adjusted for one-time income^*), the increase was 21 percent.
• The EBITDA margin was 21 (18) percent. Adjusted for items affecting comparability^*), the margin was 19 (17) percent.
• Profit after tax from continuing operations amounted to SEK 57.3 (43.2) million.
• Earnings per share amounted to SEK 3.8 (2.9).
• Cash flow from operating activities was SEK 73.7 (79.8) million.

CEO’S COMMENTS

Net sales increased by 15 percent and EBITDA by 41 percent in the third quarter. Adjusted for items affecting comparability, EBITDA increased by 24 percent.

The positive development was driven by the MedTech business area, which showed strong growth with good profitability. All companies in the business area contributed to the increase in sales and earnings.

Abilia experienced good demand in the Swedish and Norwegian markets, while the UK market and the export business did not achieve expected sales levels. Abilia has a leading position in Sweden and Norway in welfare technology for users with special needs. The company is also working actively to identify growth opportunities internationally through, for example, new distributors.

Cardiolex also continued to experience good demand for its ECG products and solutions in the third quarter.

Inpac showed the strongest sales growth, and consequently a significant increase in earnings. Demand increased most in the Nutrients business area, continuing the positive trend seen during the year. On a comparative basis, the same quarter in the previous year included a positive non-recurring effect arising from an agreement with the former nutrients owner.

Multi-Ply, which provides components for X-ray systems, showed increased sales during the quarter, approaching pre-pandemic levels.

The Specialty Pharma business area had lower sales and earnings due to continued weak demand in contract manufacturing (CDMO). Unimedic Pharma (excluding CDMO) increased both its sales and margins in the quarter. The growth was driven by higher volumes, particularly in its own product portfolio.

In conclusion, it is positive to note that the pandemic is increasingly loosening its grip on society and business. For the Group, this meant that more meetings could take place between colleagues and with customers, partners and potential acquisitions during the quarter.

Anders Dahlberg, CEO

Stockholm, 29 October 2021

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 29-10-2021 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.