The third quarter of 2024 showed strong order intake, +17%, and net revenue growth, +26%. Despite challenging comparative figures from 2023, especially in the pharmaceutical sector and rental of equipment for clinical trials, we showed robust development. Excluding these segments, we saw organic growth of 6% for January-September, reflecting the strength of our business.
July-September 2024
Net revenue for the period was SEK 403.6 million (321.1), an increase of 25.7%
On an organic basis, net revenue declined by 24.6%
Orders received for the period was SEK 421.8 million (360.0), an increase of 17.2%
On an organic basis, orders received decreased by 24.6%
EBITDA for the period was SEK 88.3 million (93.6)
Profit/loss for the period was SEK 11.8 million (34.8)
Basic earnings per share for the period amounted to SEK 0.06 (0.18)
Cash flow from Operations for the period was SEK 32.2 million (28.9)
January-September 2024
Net revenue for the period was SEK 1,229.2 million (976.0), an increase of 25.9%
On an organic basis, net revenue declined by 18.5%
Orders received for the period was SEK 1,361.7 million (1,019.6), an increase of 33.6%
On an organic basis, orders received decreased by 11.5%
EBITDA for the period was SEK 289.6 million (299.4)
Profit/loss for the period was SEK 84.5 million (73.6)
Basic earnings per share for the period amounted to SEK 0.43 (0.40)
Cash flow from Operations for the period was SEK 118.5 million (254.5)
CEO's comment
Strong order intake
The third quarter of 2024 showed continued strong order intake and net revenue growth. Order intake increased by 17% to SEK 422 million (360), where our operations in the Nordic region had a particularly strong order intake during the quarter. We are also seeing signs of increased demand for capital goods in the US market.
Despite challenging comparative figures from 2023, especially in the pharmaceutical sector and rental of equipment for clinical trials, we showed a robust development with a net revenue increase of 26% to SEK 404 million (321). The decrease on an organic basis of 25% is mainly due to strong comparative figures from these product categories. Excluding these segments, we see organic growth of 6% for the period January-September, which reflects the strength we have in our business. We see a robust development in the companies acquired in 2023, which means that laboratory equipment and medical consumables have become the main contributors to the Group's net revenue.
EBITDA was SEK 88 million (94) with a margin of 22% (29%), which is mainly due to a changed product mix. We are actively working to optimize our working capital and cash flows. Our cash position remains strong with a liquidity of SEK 400 million at the end of the quarter. Cash flow for the period was SEK -8 million (-44), largely affected by tax payments for the 2023 income year. This year, we have an increase in investments in equipment for the rental business for clinical trials, which is only natural for this type of business. Working capital build up was lower than in the corresponding quarter of the previous year. Changes in working capital had a negative effect on cash flow during the period of SEK -4 million, compared with SEK -35 million last year.
We continue to carefully evaluate acquisition opportunities, while remaining focused on optimizing our net debt ratio, which is currently above our long-term target.
We look forward to a strong end to 2024 and to continue our long-term strategy to create sustainable value for our customers and shareholders. As the newly appointed CEO, I would like to take this opportunity to thank former CEO Rikard Akhtarzand for all the work that he, together with all employees, has done to take ADDvise to what it is today. In my role as CEO, I will continue to work closely with our teams to improve our operational efficiency to further strengthen our business for continued profitable growth. Together, we will continue our mission to save, prolong and improve people's lives.
Staffan Torstensson, CEO
For further information, please contact:
Staffan Torstensson, CEO
+46(0)70-433 20 19
staffan.torstensson@addvisegroup.se
Johan Irwe, interim CFO
+46(0)73-731 26 11
johan.irwe@addvisegroup.se
Important information:
This information is information that ADDvise Group AB is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on October 24, 2024 at 07:45 CEST.
ADDvise's financial reports are available on ADDvise's website, https://www.addvisegroup.com/investor-relations/financial-and-annual-reports/
The interim report is published in Swedish and English. The Swedish version represents the original.
About ADDvise
ADDvise is an international life science group. Operating a decentralised ownership model, we develop and acquire high quality companies within the business areas Lab and Healthcare. The Group comprises more than 20 companies and generates annual revenues of close to SEK 2 billion. ADDvise is listed on Nasdaq First North Premier Growth Market. Mangold Fondkommission AB, +46 8 503 015 50, CA@mangold.se, is the Company's Certified Adviser. Additional information is available at www.addvisegroup.com.
