MedCap AB: Strong organic growth in both the quarter and the year

FOURTH QUARTER OCTOBER-DECEMBER                 

• The Group's net sales amounted to SEK 322.8 (257.9) million, an increase of 25 percent.
• The Group's EBITDA was SEK 73.3 (66.5) million, an increase of 10 percent. Adjusted for items affecting comparability[*)], the increase was 16 percent.
• The EBITDA margin was 23 (26) percent. Adjusted for items affecting comparability[*)], the margin was 23 (24) percent.
• Profit after tax amounted to SEK 40.5 (40.8) million.
• Earnings per share amounted to SEK 2.7 (2.7).
• Cash flow from operating activities was SEK -39.1 (42.6) million. Adjusted for the advance of approximately SEK 115 million paid for shares in AdderaCare, cash flow from operating activities amounts to SEK 75.7 million.

TWELVE MONTHS JANUARY-DECEMBER

• The Group's net sales amounted to SEK 1,111.3 (916.3) million, an increase of 21 percent.
• The Group's EBITDA was SEK 258.7 (202.5) million, an increase of 28 percent. Adjusted for items affecting comparability[*)], the increase was 27 percent.
• The EBITDA margin was 23 (22) percent. Adjusted for items affecting comparability[*)], the margin was 21 (20) percent.
• Profit after tax amounted to SEK 118.0 (98.1) million.
• Earnings per share amounted to SEK 7.9 (6.5).
• Cash flow from operating activities was SEK 85.5 (116.3) million. Adjusted for the advance of approximately SEK 115 million paid for shares in AdderaCare, cash flow from operating activities amounts to SEK 200.3 million.

Fourth quarter

Sales were very strong in the fourth quarter and the Group grew by 25 percent. There is often slightly higher demand in the fourth quarter than the other quarters, as was also the case this year. The continued positive development in the fourth quarter contributed to annual growth of 21 percent. Growth is largely organic and demand for our products is strong. The companies have been able to meet demand and increase deliveries.

The Specialty Pharma business area continued to perform well in the fourth quarter and sales increased as a result of contracts awarded and continued growth in launched pharmaceuticals.

The MedTech business area also performed well in the fourth quarter, with strong demand particularly in the areas of assistive technology and nutrition. The business area's companies have made progress in both marketing and product development, which contributed both to the positive development during the quarter and to longer-term opportunities.

The Group's EBITDA increased by 16 percent, adjusted for items affecting comparability. Sales mix and, to some extent, the cost increases contributed to a slightly lower gross margin. Expenses increased, driven in part by personnel costs, marketing and development activities and acquisition-driven expenses.

Growth through acquisitions and active ownership

During the quarter, MedCap announced a takeover offer to the shareholders of AdderaCare through its subsidiary Abilia Sverige Holding.
By December 23[rd], the offer had been accepted by approximately 95 percent of the shareholders and was therefore completed. Since the end of the quarter, additional shareholders have accepted the offer, the shares have been taken over, and AdderaCare was delisted from Nasdaq First North on 20 January 2023.

AdderaCare's five subsidiaries provide assistive technology, home adaptation and welfare technology, primarily on the Swedish, Norwegian and Dutch markets. The companies thus complement and broaden MedCap's portfolio of assistive and welfare technology, which currently consists of Abilia. The businesses will be brought together in a new segment of the Group and will help reinforce the offering and reach to our customers and continue to develop and grow the Group's assistive and welfare technology business. Through MedCap, the subsidiaries will have a good home in a larger group and synergies can be realised.

In summary

The fourth quarter was the strongest ever and ended a very good year for the Group. Even after the acquisition of AdderaCare, MedCap has substantial financial headroom to make further acquisitions, and opportunities are continually being evaluated. The Group's growth opportunities, both organically and through acquisitions, are deemed good. We are an active owner with ambition to strengthen the company's existing businesses or contribute new product or market segments where there are opportunities to assume leading niche positions.

I look forward to the journey ahead.

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 10-02-2023 06:30 CET.