A stronger company in a growing market

AddLife enjoyed a successful year in 2017. Our growth journey continued and our subsidiaries gained additional market shares. Three acquisitions were completed which together are expected to add about SEK 225 million in annual sales. In the latter part of the year we focused more on streamlining our group and integrating completed acquisitions to strengthen our base for future growth.

The Life Science market in the Nordic region is growing at an estimated 2–3 percent annually. AddLife increased its sales in 2017 by 20 percent, including organic growth of 5 percent. Our subsidiaries’ strong offerings pave the way for continually gaining market share. The business climate is still good, with investments in both instruments and consumables in a market with a clear growth trend. The trend in society with a growing and aging population suffering from chronic diseases that require lengthy treatment is clear. To sum up, our business continues to make a difference for more efficient and more patient-friendly health care.

We are growing more than the market

Compared with 2016, which was an abnormally strong year, 2017 was a somewhat more normal year for AddLife. Nevertheless, net sales increased 20 percent to SEK 2,333 million with profit growth (EBITA) of 24 percent to SEK 234 million. Once again we exceeded our target of 15 percent earnings growth. Profit margin (EBITA) strengthened from 9.7 to 10.0 percent. A strong cash flow during the year provides great potential for continued investments in both our existing business and new acquisitions. 

Increased our visibility as a company

We had yet another good year in 2017 and further strengthening our position on the market.

Kristina Willgård, CEO AddLife

We conducted our first Capital Markets Day in September 2017. From having been a newly listed participant in the stock market in 2016, we have grown into a relevant company that delivers results on a stable basis. Our increased visibility has led to increased interest from the capital market, but especially from potential acquisition targets and suppliers who would like a pan-Nordic partner. 

Three acquisitions with future potential

AddLife constantly searches for and evaluates potential acquisition candidates. During the year we completed three acquisitions in Medtech which together are expected to add about SEK 225 million in annual sales. Two of these companies, Hepro and Krabat, are active in home care. We see great potential here in a field that we believe will grow over the next few years. The acquisition of Techno Medica will complement our existing product portfolio primarily in enteral nutrition. During the second half of the year we slowed our acquisition pace and focused on streamlining and improving our Group. We are now ready for continued growth and more acquisitions with a more efficient organisation as a base.

Clearer collaboration between subsidiaries

Both of our business areas – Labtech and Medtech – continued to strengthen their market positions with competitive offerings. The level of expertise in our subsidiaries is high, with strongly motivated and dedicated employees who think innovatively and constantly strive to improve their performance. Over the course of the year we continued our efforts to strengthen our internal networks and offer even more employees the opportunity for growth through AddLife Academy in order to leverage the full potential of the entire Group. A natural collaborative climate with shared values serves as the basis for learning from one another, finding “best practices” and working together towards our high-level goals. With this approach we can take advantage of everyone’s skills and the Group network can accelerate growth within the subsidiaries faster.

A future with great opportunities

AddLife is continuing its journey with a successful business model where we engage in “small-scale business - large-scale wise”. We will continue to build on the strategy of acquiring, developing and maintaining future companies. We will continue to be relevant on the Life Science market and offer a strong product portfolio that meets the increasing demands of the customers. If we are to succeed, we must be innovative and attract new suppliers with cutting edge technology, while nurturing our existing agents. We must also continue to attract the best employees with initiative and customer focus, who will drive the business forward. Our endeavour to contribute to sustainable development in the company and society as a whole is a natural part of our business. I look forward to expanding the AddLife Group with the goal of doubling our business within five years.

Our dedicated employees

I would like to extend a warm thank you to all of our fabulous employees for your tremendous dedication in 2017! We could never have achieved such success without your efforts. Now we are aiming even higher to jointly realise our vision of improving people's lives. 

Stockholm, March 2018

Kristina Willgård
President and CEO of AddLife