AddLife reported first-quarter net sales of SEK 2.65 billion, falling short of the average analyst forecast of SEK 2.74 billion. The company’s reported net sales contracted 2% for the quarter compared with the prior period.
On the profitability side, AddLife recorded earnings per share of SEK 1.04 and reported net income of SEK 128 million. Operating profit before amortization of acquisition-related intangibles - EBITA - was SEK 332 million. The company kept its reported EBITA margin at 12.5% through the quarter.
Management attributed part of the revenue shortfall to adverse currency movements. Exchange-rate effects trimmed both reported sales and EBITA by 4% in the quarter, offsetting some of the underlying growth drivers.
When viewed by growth components, AddLife delivered 3% organic growth and 2% acquired growth. However, those gains were counterbalanced by the sales impact of divested operations and the negative foreign-exchange effects, resulting in the overall decline in reported net sales.
As part of its stated growth strategy, AddLife completed two acquisitions during the quarter, with the new assets located in the United Kingdom and Austria. The acquisitions contributed to the 2% acquired growth recorded for the period.
The quarter therefore combined mixed operational progress - with maintained margins and modest organic expansion - alongside external pressures from currency movements and the accounting effects of divestments. The company’s figures show profitability measures holding steady while reported top-line metrics missed market consensus.
Investors and industry observers will likely note the interplay between underlying growth, recent deal-making activity and the material currency headwinds that subtracted from both sales and EBITA in the quarter.
Financial snapshot
- Net sales: SEK 2.65 billion (consensus SEK 2.74 billion)
- Net sales change: -2%
- Earnings per share: SEK 1.04
- Net income: SEK 128 million
- EBITA: SEK 332 million
- EBITA margin: 12.5%
- Exchange-rate effect: -4% on sales and EBITA
- Organic growth: 3%
- Acquired growth: 2%
- Acquisitions completed: two (UK and Austria)