BUSINESS AREA

Medtech

Companies in the Medtech business area provide medical device products within the medtech market and assistive equipment within Homecare.

Net sales within Medtech increased marginally to SEK 1,714m (1,708) during the first quarter. Organic growth amounted to 0.4 percent and exchange rate had a marginally negative impact on net sales. EBITA increased by 16 percent to SEK 231m (198), corresponding to an EBITA margin of 13.5 percent (11.6).

Most companies within Medtech experienced positive sales development during the quarter, but overall growth was low primarily because sales in the UK were not as strong as the previous year. The future prospects in the UK healthcare markets remain positive. The margin improved significantly due to gradual profitability improvements in most companies and significant improvements in some specific companies. 

In the UK, sales to the national healthcare system NHS are typically strong during the first quarter, both in consumables and instrument sales. In the first quarter of 2025, sales to the NHS were good but not as strong as in the corresponding quarter of 2024 when several large instrument deliveries were made. Despite lower instrument sales in the UK, the margin improved compared to the previous year.

Sales in ophthalmic surgery decreased during the quarter as a result of pruning the product portfolio to focus on profitable products. The margin in ophthalmic surgery continued to strengthen, in line with the positive trend that is now established. Relationships with suppliers have generally strengthened, and key suppliers have returned to our companies.

Pruning of the product range to focus on more profitable products occurred in several parts of the business, which has led to higher margins and, in some cases, reduced sales.

In Homecare, demand was somewhat subdued due to restrained investments, especially in renovation and new construction projects. The long-term underlying positive drivers, such as an aging population and new technologies, remain unchanged.

Efforts to expand the product portfolio with new advanced products are making progress, and the trend of larger product companies reviewing their commercial strategies continues, providing opportunities for companies within AddLife to take over new product portfolios.