MedCap’s Net Sales Jump 7%, Stock Drops 2% on Specialty Pharma’s Q1 Challenges

Key Moments:

Revenue Climbs, but Earnings Pressured by Specialty Pharma

MedCap AB (OMX:MCAP) posted net sales of SEK 493.8 million for the first quarter of 2025, up from SEK 461.7 million a year earlier. This marked a 7% rise. While reported EBITA fell 6% to SEK 82.9 million from SEK 88.5 million, the adjusted EBITA margin improved to 17.0% from a reported 16.8%, indicating a recovery from the weaker close to 2024. Excluding items affecting comparability, the decline in EBITA narrowed slightly to 5%.

Net profit after tax came in at SEK 50.7 million, down from SEK 56.1 million. As for earnings per share, they declined to SEK 3.4. Operating cash flow also dropped significantly to SEK 55.4 million, contrasting last year’s SEK 92.4 million.

Assistive Tech Accelerates, Specialty Pharma Disappoints

The Assistive Tech division led the Group’s performance, with a 29% increase to SEK 238.5
Million in sales driven by both acquisitions and solid organic growth. While a minor dilution from lower-margin acquisitions was observed, the business posted earnings growth exceeding 23%, supported by resilient margins that surpassed the Group’s 2024 full-year average.

MedTech’s results were not as impressive, with the segment seeing minor contractions from Q1 2024’s results. Net sales were mostly flat, dropping to SEK 160 million from SEK 160.5 million. The EBITDA margin also fell by 0.8 percentage points. These figures were attributed to Inpac’s new production facility, as it had not reached full operational capacity.

Specialty Pharma suffered a steep earnings decline, as sales fell by SEK 21.6 million. The EBITDA slid from SEK 19 million to SEK 5.5 million, while the EBITDA margin sank to 5.7%, down over 10% from last year. The loss of royalties from its melatonin product in the UK was the biggest factor behind the disappointing performance figures. Additional pressure came from earlier delivery issues and reduced prices and volumes across parts of the existing portfolio.

Strategic Growth and Acquisition Activity Continue

MedCap remains focused on strategic acquisitions and portfolio expansion. During the quarter, the Assistive Tech business acquired Denmark-based Danrehab. All business segments are engaged in discussions with potential acquisition targets, reflecting the Group’s disciplined approach to both platform and add-on growth opportunities.

MedCap Stock Down 2%

The mixed results seemed to weigh on investor confidence, as Tuesday’s early trading hours witnessed MedCap AB’s stock experience a 2.05% downturn. The share price declined to SEK 405.5, down 8.5 basis points from yesterday’s closing figure of SEK 414.

Outlook: Stable Demand and Acquisition-Driven Expansion

CEO Anders Dahlberg noted stable overall demand, primarily from European markets, but acknowledged growing uncertainty due to global trade dynamics. He added that looking ahead, MedCap would continue prioritizing organic growth and targeted acquisitions underpinned by its robust financial position. The Group sees favorable conditions for further development, despite the challenges facing the Specialty Pharma segment.

Q1 2025 Financial Highlights