GROUP DEVELOPMENT

Group development

SECOND QUARTER

Net sales in the quarter increased by 1 percent to SEK 2,578m (2,554). The growth, excluding exchange rate effects, amounted to 5 percent, of which organic growth was 3 percent and acquired growth was 2 percent. Exchange rate effects had a negative impact with 4 percent on net sales during the quarter, corresponding to SEK -110m.

Increased net sales with improved gross margin and good cost control resulted in adjusted EBITA increased to SEK 307m (292), and the EBITA margin amounted to 11.9 percent (11.4). Adjusted EBITA excluding currency effects increased by 10 percent. Currency effects had a negative impact on EBITA by 5 percent, corresponding to SEK -14m. Adjusted EBITA is cleared of a reversed contingent consideration of SEK 7m in the previous year.

Net financial items amounted to SEK -54m (-79) and profit after financial items amounted to SEK 146m (113). Net financial items primarily include interest expenses related to financing of previous acquisitions and exchange rate fluctuations. Interest expenses amounted to SEK -52m (-76) and exchange rate losses to SEK -0m (3). The profit after tax increased by 39 percent to SEK 100m (72) and the effective tax rate was 29 percent (38). The slightly high effective tax rate is attributable to the effect of non-deductible interest.

 JANUARY – JUNE, 2025

Net sales in the interim period increased by 3 percent to SEK 5,280m (5,124). The growth, excluding exchange rate changes, amounted to 5 percent, of which organic growth was 4 percent and acquired growth was 1 percent. Exchange rate changes had a negative impact of 2 percent on net sales in the interim period, corresponding to SEK -116m.

EBITA amounted to SEK 650m (590), and the EBITA margin was 12.3 percent (11.5). EBITA growth excluding currency effects amounted to 12 percent, of which currency effects had a negative impact on EBITA by 2 percent, corresponding to SEK -14m.

Net financial items amounted to SEK -117m (-165) and profit after financial items amounted to SEK 318m (213). Net financial items mainly include interest costs related to financing of previous acquisitions and exchange rate fluctuations. Net interest amounted to SEK -109m (-152) and exchange rate losses to SEK -1m (-6). The profit after tax increased by 63 percent to SEK 220m (135) and the effective tax rate was 30 percent (36). The slightly high effective tax rate is attributable to the effect of non-deductible interest costs.

The geopolitical situation in Ukraine and the Middle East has not had any significant economic impact on the financial reports, but it cannot be ruled out that it may do so in the future. With approximately 90 percent of sales and 80 percent of purchases in Europe, AddLife should not be heavily exposed to tariffs and trade barriers by the USA or by other countries as countermeasures. However, there is a risk that subcontractors and components further down the supply chain may be subject to tariffs or trade barriers. We are closely monitoring market developments regarding inflation, tariffs and trade barriers, raw material, component and freight costs, as well as interest rate trends.