ADDvise Group (ADDV) Q1 2025 earnings summary

Executive summary

• Net sales reached SEK 424 million in Q1 2025, with organic growth of 2.6–3% year-over-year, driven by strong healthcare performance and stable demand in medical technology and laboratory solutions.

• EBITA was SEK 75–75.3 million, with a normalized margin of 17.8–18%, and cash flow from operations improved to SEK 36.6–37 million.

• Profit for the period was SEK 25.6 million, with EPS at SEK 0.12, both down year-over-year.

• Rights issue completed in April 2025 raised SEK 457 million, strengthening the balance sheet and supporting M&A strategy.

• Macro environment is uncertain due to geopolitical and trade tensions, but resilient end markets and structural cost initiatives support stability.

Financial highlights

• EBITA margin was 17.8–18%, with cash flow from operations at SEK 36.6–37 million, and net sales up 3% to SEK 424 million.

• Net leverage was 3.7x at quarter-end, reduced to 2.5x pro forma after the rights issue.

• Return on capital employed was 12–17% for the quarter.

• EPS was SEK 0.12, down from SEK 0.20 year-over-year.

• Rolling 12-month EBITA was SEK 268 million (16% margin); return on equity was 9.1%.

Outlook and guidance

• Long-term targets: 15% annual EBITA growth (5% organic, 10% M&A), 15% ROCE, net leverage ≤3.0x, and up to 25% of prior year profit as dividend.

• EBITA and OPEX levels are normalized, with ongoing efficiency improvements and selective M&A focus.

• Market outlook is uncertain due to geopolitical and trade risks, but life science demand remains stable.

• Order intake in April was stable with no observed volatility.