Sweden's AddLife beats Q3 net sales expectations
Overview
Sweden life science supplier's Q3 net sales rose 7% yr/yr, beating analyst expectations
Adjusted EBITA for Q3 rose 11% and margin improved to 11.5%
Company completed acquisitions in Portugal and Germany, increasing annual sales base
Outlook
Recent acquisitions expected to add about SEK 350 mln in annual net sales
Company expects continued solid growth and improved cash flow
Company did not provide specific financial guidance for upcoming quarters or full year in its press release
Result Drivers
OPERATIONAL IMPROVEMENTS - Co said stronger margins, solid growth and improved cash flow were driven by operational improvements
ACQUISITIONS - Co said strengthened balance sheet enabled increased pace of acquisitions
CASH FLOW - Co reported improved cash flow from operating activities
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | SEK 2.60 bln | SEK 2.57 bln (5 Analysts) |
Q3 EPS | SEK 1.05 | ||
Q3 Net Income | SEK 128 mln | ||
Q3 Adjusted Free Cash Flow | SEK 236 mln | ||
Q3 EBITA | SEK 330 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for AddLife AB is SEK200.00, about 8% above its October 20 closing price of SEK185.20
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 33 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)