We create value for people and society by building strong and sustainable businesses
Our goal remains to generate attractive total shareholder returns by growing our net asset value, paying a steadily rising dividend and delivering on our ESG targets. To succeed, we focus relentlessly on performance, portfolio and people.
Christian Cederholm
President & CEO of Investor
Highlights during the second quarter
- Adjusted net asset value (NAV) amounted to SEK 969.4bn (SEK 317 per share) on June 30, 2024, an increase of SEK 69.0bn, or 8 percent, with dividend added back, during the quarter. Total shareholder return amounted to 9 percent, compared to 2 percent for the SIXRX return index.
- Listed Companies generated a total return of 11 percent. We invested SEK 2.8bn in Ericsson.
- Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to 2 percent (2 percent including cash), driven by earnings growth.
- Within Patricia Industries, sales growth for the major subsidiaries amounted to 9 percent, of which 7 percent organically in constant currency. Reported EBITA grew 7 percent and adjusted EBITA grew 10 percent.
- Mölnlycke reported organic sales growth of 8 percent in constant currency, with the largest business area Wound Care also growing 8 percent. The profit margin was unchanged.
- Sarnova and BraunAbility completed strategic add-on acquisitions for a total enterprise value of SEK 5.6bn. All acquisitions were financed by each respective company. Mölnlycke and Permobil distributed EUR 200m and SEK 600m respectively to Patricia Industries.
- The value change of Investments in EQT was -4 percent. Net cash flow to Investor amounted to SEK -5m.
- Leverage was 1.4 percent as of June 30, 2024 (1.7 percent as of December 31, 2023). Gross cash amounted to SEK
Financial information*
6/30 2024 | 3/31 2024 | 12/31 2023 | ||
Adjusted NAV, SEK m* | 969,376 | 915,109 | 818,386 | |
Adjusted NAV, SEK per share* | 317 | 299 | 267 | |
Reported NAV, SEK m*1) | 836,267 | 786,703 | 716,768 | |
Reported NAV, SEK per share*1) | 273 | 257 | 234 | |
Market capitalization (both share classes), excluding repurchased shares, SEK m | 885,675 | 819,914 | 712,694 | |
Share price (B-share), SEK | 290.20 | 268.65 | 233.50 | |
Q2 2024 | H1 2024 | |||
Adjusted NAV, sequential change, incl. dividend added back, SEK m* | 68,970 | 165,693 | ||
Adjusted NAV, sequential change, incl. dividend added back, %* | 8 | 20 | ||
Reported NAV, sequential change, incl. dividend added back, SEK m*1) | 64,267 | 134,202 | ||
Reported NAV, sequential change, incl. dividend added back, %*1) | 8 | 19 | ||
Market capitalization, sequential change, incl. dividend added back, SEK m* | 76,788 | 184,009 | ||
Market capitalization, sequential change, incl. dividend added back, %* | 9 | 26 | ||
Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | |
Consolidated net sales, SEK m | 16,112 | 14,831 | 31,076 | 28,841 |
Consolidated profit/loss, SEK m | 65,147 | 45,309 | 132,103 | 78,121 |
Basic earnings per share, SEK | 21.29 | 14.80 | 43.17 | 25.53 |
- Financial measures that are not defined or specified in the applicable financial reporting framework. For more information, see page 18 and 31-32. Change in market capitalization with dividend added back reflects the change in total market capitalization (both share classes) with the dividend paid out added back. Change in net asset value with dividend added back includes the full dividend approved by the AGM.
1) In the reported net asset value, the wholly-owned subsidiaries and partner-owned investments within Patricia Industries are reported according to the acquisition and equity method
t.
Overview annual average performance
YTD | 1 year | 5 years | 10 years | 20 years | |
Adjusted NAV incl. dividend added back, % | 20.2 | 27.3 | 20.1 | ||
Investor B, total return, % | 25.9 | 37.0 | 23.5 | 19.4 | 17.8 |
SIXRX return index, % | 10.6 | 18.4 | 12.7 | 11.4 | 11.6 |
INVESTOR Q2 2024 2
CEO statement
Dear fellow shareholders,
During the second quarter 2024, our adjusted net asset value reached SEK 969bn, an increase of 8 percent, including dividend added back. Our total shareholder return was 9 percent, compared to 2 percent for the SIXRX return index.
The geopolitical situation is challenging. In addition to military conflicts, rising protectionism is negatively affecting global trade. Moreover, global demand remains mixed. While the overall US economy continues to show relative strength, weakness in Germany is holding Europe back and the expected Chinese recovery is taking time. Consumers are still under pressure, and recent inflationary data has been volatile. Market expectations of lower interest rates are intact, but the pace and magnitude of central bank rate cuts is hard to predict. In this environment, agility remains key. While we cannot direct the wind, we can adjust the sails, pushing and supporting our companies to work relentlessly on performance here and now, and simultaneously investing to future-proof their businesses.
Listed Companies
Listed Companiespercent, outperforming the SIXRX by 9 percentage points. The outperformance was broad-based, partly driven by strong first quarter reports.
Ericsson is the world leader in mobile network technology and has a strong market position. Its core mobile networks business is profitable, and we believe that the company is well positioned to drive new growth. We invested SEK 2.8bn in Ericsson during the quarter, at a valuation we find attractive.
Patricia Industries
The total return during the quarter was 2 percent, driven primarily by earnings growth.
Sales growth for the major subsidiaries was 9 percent, of which 7 percent organically in constant currency. Adjusted EBITA grew 10 percent.
Mölnlycke reported organic growth of 8 percent in constant currency, driven by all business areas. Wound Care also grew by 8 percent organically in constant currency. Underlying profitability was essentially flat. Mölnlycke distributed EUR 200m to Patricia Industries.
Laborie, Permobil and Advanced Instruments all reported strong growth and profitability. Growth was supported by
TM.
Atlas Antibodiessales remain at low levels, largely due to weak demand from biotech customers. The company is doing a good job protecting profits. Over time, the key value driver is to return to growth.
Organic profitable growth always remains the top priority for our companies. That said, accelerating growth and innovation through add-on acquisitions to bring new products, technologies, customers and competence aboard, remains an integral part of our strategy. The work with such acquisitions is continuous in nature. However, the rate of closing is inherently volatile.
During the quarter, Sarnova and BraunAbility completed strategic add-on acquisitions for a total enterprise value of SEK 5.6bn. The acquisitions were financed by each company respectively.
Investments in EQT
The reported value change of Investments in EQT was -4 percent, driven by the negative total return in EQT AB. Investment activity remained high. Net cash flow to Investor was close to zero.
We stay on course
Our goal remains to generate attractive total shareholder returns by growing our net asset value, paying a steadily rising dividend and delivering on our ESG targets. To succeed, we focus relentlessly on performance, portfolio and people. As owners, we support our companies to capture profitable growth, including opportunities related to AI, innovation and the green transition. We also work with our own portfolio composition over time.
Attracting, developing and retaining top talent in our companies and at Investor is crucial. Over the last year, the boards of our portfolio companies were further strengthened.
We have a portfolio of strong, well-run companies, and a great team at Investor. It will require hard work, and the road will not always be straight, but I am confident that we are in a good position to continue building best-in-class companies and grow our net asset value. Thank you for your trust in our work.
Christian Cederholm
President & CEO
INVESTOR Q2 2024 3
Net asset value overview
Adjusted values | Reported values | |||||||||
Number of | Ownership | Share of total | Value, | Value, | Value, | Value, | ||||
shares | capital/votes (%) | assets (%) | SEK m | SEK m | SEK m | SEK m | ||||
6/30 2024 | 6/30 2024 | 6/30 2024 | 6/30 2024 | 12/31 2023 | 6/30 2024 | 12/31 2023 | ||||
Listed Companies | ||||||||||
Atlas Copco | 835,653,755 | 17.0/22.3 | 17 | 164,958 | 143,400 | 164,958 | 143,400 | |||
ABB | 265,385,142 | 14.3/14.3 | 16 | 155,968 | 118,035 | 155,968 | 118,035 | |||
AstraZeneca | 51,587,810 | 3.3/3.3 | 9 | 85,687 | 69,695 | 85,687 | 69,695 | |||
SEB | 456,198,927 | 21.7/21.8 | 7 | 71,364 | 63,321 | 71,364 | 63,321 | |||
Epiroc | 207,635,622 | 17.1/22.7 | 4 | 43,665 | 41,552 | 43,665 | 41,552 | |||
Saab1) | 163,890,488 | 30.2/39.7 | 4 | 41,300 | 24,862 | 41,300 | 24,862 | |||
Nasdaq | 58,182,426 | 10.1/10.1 | 4 | 37,198 | 33,968 | 37,198 | 33,968 | |||
Sobi | 122,964,760 | 34.7/34.7 | 4 | 34,769 | 32,729 | 34,769 | 32,729 | |||
Wärtsilä | 104,711,363 | 17.7/17.7 | 2 | 21,233 | 15,206 | 21,233 | 15,206 | |||
Ericsson | 311,492,541 | 9.3/24.5 | 2 | 20,522 | 16,859 | 20,522 | 16,859 | |||
Husqvarna | 96,825,353 | 16.8/33.8 | 1 | 8,210 | 8,025 | 8,210 | 8,025 | |||
Electrolux | 50,786,412 | 17.9/30.4 | 0 | 4,458 | 5,480 | 4,458 | 5,480 | |||
Electrolux Professional | 58,941,654 | 20.5/32.5 | 0 | 4,112 | 3,213 | 4,112 | 3,213 | |||
Total Listed Companies | 71 | 693,444 | 576,345 | 693,444 | 576,345 | |||||
Patricia Industries | Total exposure (%) | |||||||||
Subsidiaries | ||||||||||
Mölnlycke2) | 99.6 | 9 | 89,985 | 77,690 | 19,782 | 19,839 | ||||
Laborie | 98.5 | 3 | 25,049 | 20,569 | 11,278 | 10,995 | ||||
Sarnova | 95.7 | 2 | 19,110 | 15,335 | 6,845 | 6,998 | ||||
Permobil2) | 98.3 | 2 | 18,528 | 14,548 | 4,928 | 5,211 | ||||
Advanced Instruments | 98.4 | 1 | 13,321 | 9,839 | 8,788 | 8,284 | ||||
Piab2) | 97.5 | 1 | 12,004 | 10,543 | 6,024 | 6,238 | ||||
BraunAbility | 93.6 | 1 | 11,546 | 8,551 | 2,078 | 1,521 | ||||
Vectura | 99.7 | 0 | 4,049 | 6,823 | 5,184 | 7,130 | ||||
Atlas Antibodies | 93.3 | 0 | 1,465 | 1,931 | 2,261 | 2,299 | ||||
Total subsidiaries | 20 | 195,058 | 165,828 | 67,166 | 68,514 | |||||
Tre Skandinavien | 40.0/40.0 | 1 | 7,809 | 6,796 | 2,593 | 2,493 | ||||
Financial Investments | 0 | 2,093 | 1,651 | 2,093 | 1,651 | |||||
Total Patricia Industries excl. cash | 21 | 204,960 | 174,275 | 71,851 | 72,657 | |||||
Total Patricia Industries incl. cash | 218,779 | 183,574 | 85,670 | 81,956 | ||||||
Investments in EQT | ||||||||||
EQT AB | 174,288,016 | 14.0/14.0 | 6 | 54,430 | 49,480 | 54,430 | 49,480 | |||
Fund investments | 4 | 34,531 | 32,608 | 34,531 | 32,608 | |||||
Total Investments in EQT | 9 | 88,961 | 82,088 | 88,961 | 82,088 | |||||
Other Assets and Liabilities3) | 0 | -3,843 | -385 | -3,843 | -385 | |||||
Total Assets excl. cash Patricia Industries | 100 | 983,522 | 832,323 | 850,413 | 730,706 | |||||
Gross debt* | -39,656 | -38,789 | -39,656 | -38,789 | ||||||
Gross cash* | 25,510 | 24,851 | 25,510 | 24,851 | ||||||
Of which Patricia Industries | 13,819 | 9,299 | 13,819 | 9,299 | ||||||
Net debt | -14,147 | -13,938 | -14,147 | -13,938 | ||||||
Net Asset Value | 969,376 | 818,386 | 836,267 | 716,768 | ||||||
Net Asset Value per share | 317 | 267 | 273 | 234 | ||||||
- In May 2024, Saab made a 4:1 share split.
- Including receivables related to Management Participation Program foundations. For Mölnlycke, the receivable corresponds to less than 1 percentage point of the total exposure (1), for Permobil to approximately 2 percentage points (2) and for Piab to approximately 3 percentage points (3).
- As per 6/30 2024, including liability for dividend to shareholders of SEK 3,675m to be paid in November 2024.
INVESTOR Q2 2024 4
Overview
For balance sheet items, figures in parentheses refer to year-end 2023 figures. For income statement and cash flow items, they refer to the same period last year.
Net asset value
During the first half of 2024, adjusted net asset value increased from SEK 818.4bn to SEK 969.4bn. The change in adjusted net asset value, with dividend added back, was 20 percent during the period (17), of which 8 percent during the second quarter (9).
Reported net asset value increased from SEK 716.8bn to SEK 836.3bn. The change in reported net asset value, with dividend added back, was 19 percent during the period (14), of which 8 percent during the second quarter (8).
Total adjusted assets by business area
SEK m
1 200 000
1 000 000
800 000
600 000
- 000
- 000
0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24
Listed Companies | Patricia Industries ex cash | Investments in EQT | ||
Net debt and cash flow
Net debt totaled SEK 14,147m on June 30, 2024 (13,938), corresponding to leverage of 1.4 percent (1.7).
Our target leverage range is 0-10 percent (net debt/total adjusted assets) over a business cycle. While leverage can fluctuate above and below the target level, it should not exceed 20 percent for a longer period of time.
Gross cash amounted to SEK 25,510m (24,851) and gross debt to SEK 39,656m as of June 30, 2024 (38,789). The
years on June 30, 2024 (10.8).
Leverage development
Percent 20
15
10
5
0
-5
Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
20 | 20 | 20 | 21 | 21 | 21 | 21 | 22 | 22 | 22 | 22 | 23 | 23 | 23 | 23 | 24 | 24 |
Leverage target range | Leverage | |||||||||||||||
SEK m | H1 2024 | H1 2023 |
Opening net debt | -13,938 | -10,263 |
Listed Companies | ||
Dividends | 11,663 | 9,165 |
Divestments | 0 | 914 |
Other capital distributions | 18 | 46 |
Investments, net of proceeds | -2,832 | -1 |
Management cost | -89 | -79 |
Total | 8,760 | 10,045 |
Patricia Industries | ||
Proceeds | 5,528 | 465 |
Investments | -1,021 | -742 |
Management cost | -180 | -157 |
Other1) | 192 | 142 |
Total | 4,520 | -292 |
Investments in EQT | ||
Proceeds (divestitures, fee surplus and | 1,593 | 2,438 |
carry) | ||
Drawdowns (investments and management | -2,597 | -2,304 |
fees) | ||
Management cost | -6 | -5 |
Total | -1,010 | 128 |
Investor groupwide | ||
Dividend to shareholders | -11,028 | -10,109 |
Management cost | -104 | -74 |
Other2) | -1,347 | -2,654 |
Closing net debt | -14,147 | -13,218 |
- Incl. currency related effects and net interest paid.
- Incl. currency related effects, revaluation of debt and net interest paid.
Management cost
management cost amounted to SEK 378m during the first half of 2024 (316).
As of June 30, 2024, rolling 12-month management cost amounted to 0.08 percent of the adjusted net asset value (0.08).
The Investor share
The price of the Investor A-share and B-share was SEK
287.70 and SEK 290.20 respectively on June 30, 2024, compared to SEK 231.50 and SEK 233.50 on December 31, 2023.
The total shareholder return (Class B-share) amounted to 26 percent during the first half of 2024 (16), of which 9 percent during the second quarter (6).
The SIXRX return index was 11 percent during the first half of 2024 (11), of which 2 percent during the second quarter
(2).
shares, was SEK 885,675m as of June 30, 2024 (712,694).
Average annual total return
Percent 40
35
30
25
20
15
10
5
0
YTD | 1 year | 5 years | 10 years | 20 years | ||||
Investor B | SIXRX | |||||||
INVESTOR Q2 2024 5
Listed Companies
Listed Companies include ABB, AstraZeneca, Atlas Copco, Electrolux, Electrolux Professional, Epiroc, Ericsson, Husqvarna, Nasdaq, Saab, SEB, Sobi and Wärtsilä. These are multinational companies with strong market positions and proven track records.
Highlights during the quarter
- The total return amounted to 11 percent compared to 2 percent for the SIXRX return index.
- Shares in Ericsson were purchased for SEK 2.8bn.
Performance
Total return (excluding management costs) amounted to 22 percent during the first half of 2024 (17), of which 11 percent during the second quarter (9).
The SIXRX return index was 11 percent during the first half of 2024 (11), of which 2 percent during the second quarter
(2).
Total return, Listed Companies
Percent | ||||
50 | ||||
40 | ||||
30 | ||||
20 | ||||
10 | ||||
0 | ||||
-10 | ||||
-20 | ||||
-30 | ||||
2020 | 2021 | 2022 | 2023 | 2024 |
Listed Companies | SIXRX |
Contribution to net asset value (adjusted and reported) amounted to SEK 125,859m during the first half of 2024 (81,209), of which SEK 67,979m during the second quarter (45,649).
Contribution to net asset value
SEK m | Q2 2024 | H1 2024 | H1 2023 |
Changes in value | 65,685 | 114,285 | 72,123 |
Dividends | 2,339 | 11,663 | 9,165 |
Management cost | -45 | -89 | -79 |
Total | 67,979 | 125,859 | 81,209 |
Contribution to net asset value and total return
Q2 2024 | H1 2024 | ||||||
Total | Total | ||||||
Value, | Contribution, | return | Contribution, | return | |||
SEK m | SEK m | (%)1) | SEK m | (%)1) | |||
Atlas Copco | 164,958 | 16,328 | 10.9 | 22,727 | 15.9 | ||
ABB | 155,968 | 24,598 | 18.7 | 40,633 | 33.3 | ||
AstraZeneca | 85,687 | 10,756 | 14.4 | 17,058 | 24.9 | ||
SEB | 71,364 | 5,343 | 8.1 | 13,283 | 21.6 | ||
Epiroc | 43,665 | 2,464 | 5.9 | 2,500 | 6.0 | ||
Saab | 41,300 | 2,573 | 6.4 | 16,569 | 66.3 | ||
Nasdaq | 37,198 | -1,770 | -4.5 | 3,493 | 10.3 | ||
Sobi | 34,769 | 1,893 | 5.8 | 2,041 | 6.2 | ||
Wärtsilä | 21,233 | 4,169 | 24.4 | 6,214 | 41.2 | ||
Ericsson | 20,522 | 2,593 | 17.1 | 1,209 | 7.5 | ||
Husqvarna | 8,210 | -575 | -6.4 | 298 | 3.7 | ||
Electrolux | 4,458 | -397 | -8.2 | -1,022 | -18.6 | ||
Electrolux | 4,112 | 49 | 1.2 | 946 | 29.5 | ||
Professional | |||||||
Total | 693,444 | 68,023 | 10.9 | 125,948 | 21.8 | ||
Dividends received
Dividends received totaled SEK 11,663m during the first half of 2024 (9,165), of which SEK 2,339m during the second quarter (4,953).
Dividends received, Listed Companies
SEK m
- 000
- 000
- 000
- 000
- 000
- 000
0
2020 | 2021 | 2022 | 2023 | 2024 |
Investments and divestments
During the second quarter 2024, 44,746,806 B-shares in Ericsson were purchased for a total consideration of SEK 2.8bn.
Husqvarna chairperson exercised all options, sold by Investor in 2019, and bought 226,804 B-shares in Husqvarna for a consideration of SEK 16m from Investor. New 5-year options, with a strike price of 110 percent of the share price, were sold to the chairperson in Ericsson for a total consideration of SEK 2m.
During the first quarter 2024 there were no investments or divestments.
Listed Companies, value distribution, June 30, 2024
Electrolux | Electrolux 1% | Husqvarna 1% | |
Ericsson 3% | |||
Professional 1% | |||
Atlas Copco | Wärtsilä 3% | ||
Sobi 5% | |||
24% | |||
Nasdaq 5%
Saab 6%
SEK 693bn
Epiroc 6%
ABB 22%
SEB 10%
AstraZeneca
12%
- Calculated as the sum of share price changes with reinvested dividends, including add-on investments and/or divestments.
INVESTOR Q2 2024 6
Patricia Industries
Patricia Industries develops wholly-owned companies in the Nordics and in North America. Holdings include Advanced Instruments, Atlas Antibodies, BraunAbility, Laborie, Mölnlycke, Permobil, Piab, Sarnova, Vectura, Tre Skandinavien and Financial Investments.
Highlights during the quarter
- Total return amounted to 2 percent, driven by earnings growth.
- Sarnova and BraunAbility completed strategic add-on acquisitions for a combined enterprise value of SEK 5.6bn.
- Mölnlycke distributed EUR 200m and Permobil SEK 600m to Patricia Industries.
Operating performance
During the first half of 2024, sales growth for the major subsidiaries was 8 percent (22). Organic growth was 7 percent in constant currency (12). EBITA amounted to SEK 6,182m (5,707), an increase of 8 percent (37). Adjusting for items affecting comparability, EBITA grew by 10 percent (34).
During the second quarter 2024, sales growth amounted to 9 percent (22). Organic growth was 7 percent in constant currency (13). EBITA amounted to SEK 3,197m (2,982), an increase of 7 percent (40). Adjusting for items affecting comparability, EBITA grew by 10 percent (34).
As of June 30, 2024, on a rolling 12-month basis, the
Skandinavien) combined sales and EBITDA amounted to SEK 64.9bn (59.6) and SEK 15.8bn (14.0) respectively. During the second quarter 2024, sales and EBITDA amounted to SEK 16.9bn (15.6), and SEK 4.1bn (3.8) respectively.
Patricia Industries, adjusted values, June 30, 2024
Financial | ||
Vectura 2% | Investments | |
Tre Skandinavien 4% | 1% | Atlas |
BraunAbility 6% | Antibodies 1% | ||||
Piab 6% | |||||
Advanced | Mölnlycke | ||||
Instruments | |||||
SEK 205bn | 44% | ||||
6% | |||||
Permobil 9% |
Sarnova 9%
Laborie 12%
Reported EBITDA (subsidiaries & 40% of Tre Skandinavien)
SEK m | |||||||||||||||||||||||||||||||||||||
4 500 | 16 000 | ||||||||||||||||||||||||||||||||||||
4 000 | 14 000 | ||||||||||||||||||||||||||||||||||||
3 500 | 12 000 | ||||||||||||||||||||||||||||||||||||
3 000 | 10 000 | ||||||||||||||||||||||||||||||||||||
2 500 | |||||||||||||||||||||||||||||||||||||
8 000 | |||||||||||||||||||||||||||||||||||||
2 000 | |||||||||||||||||||||||||||||||||||||
6 000 | |||||||||||||||||||||||||||||||||||||
1 500 | |||||||||||||||||||||||||||||||||||||
1 000 | 4 000 | ||||||||||||||||||||||||||||||||||||
500 | 2 000 | ||||||||||||||||||||||||||||||||||||
0 | Q4 17 | Q3 22 | 0 | ||||||||||||||||||||||||||||||||||
Q1 15 | Q2 15 | Q3 15 | Q4 15 | Q1 16 | Q2 16 | Q3 16 | Q4 16 | Q1 17 | Q2 17 | Q3 17 | Q1 18 | Q2 18 | Q3 18 | Q4 18 | Q1 19 | Q2 19 | Q3 19 | Q4 19 | Q1 20 | Q2 20 | Q3 20 | Q4 20 | Q1 21 | Q2 21 | Q3 21 | Q4 21 | Q1 22 | Q2 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | ||
Quarterly | LTM (RHS) |
Major subsidiaries, performance
Q2 2024
Org. growth, | |||||||
constant | Operating cash | ||||||
SEK m | Sales | currency | EBITDA | EBITDA (%) | EBITA1) | EBITA (%) | flow |
Mölnlycke | 5,905 | 8 | 1,684 | 28.5 | 1,495 | 25.3 | 1,319 |
Laborie | 1,153 | 21 | 333 | 28.9 | 313 | 27.2 | 232 |
Sarnova | 2,773 | 0 | 383 | 13.8 | 329 | 11.9 | 283 |
Permobil | 1,639 | 12 | 377 | 23.0 | 323 | 19.7 | 259 |
Advanced Instruments | 441 | 11 | 201 | 45.7 | 192 | 43.6 | 197 |
Piab | 813 | 2 | 200 | 24.6 | 162 | 19.9 | 139 |
BraunAbility | 3,221 | 5 | 421 | 13.1 | 364 | 11.3 | 398 |
Vectura | 55 | 141 | 25 | 46.0 | 3 | 4.7 | -445 |
Atlas Antibodies | 71 | -35 | 24 | 33.4 | 15 | 21.7 | 15 |
Total | 16,071 | 3,649 | 22.7 | 3,197 | 19.9 | 2,398 | |
Reported growth y/y, % | 9 | 7 | 7 | ||||
Organic growth, y/y, % | 7 | ||||||
H1 2024 | |||||||
Org. growth, | |||||||
constant | Operating cash | ||||||
SEK m | Sales | currency | EBITDA | EBITDA (%) | EBITA1) | EBITA (%) | flow |
Mölnlycke | 11,528 | 6 | 3,338 | 29.0 | 2,915 | 25.3 | 2,306 |
Laborie | 2,210 | 21 | 632 | 28.6 | 595 | 26.9 | 360 |
Sarnova | 5,467 | 3 | 789 | 14.4 | 682 | 12.5 | 484 |
Permobil | 3,122 | 11 | 701 | 22.4 | 596 | 19.1 | 407 |
Advanced Instruments | 816 | 9 | 353 | 43.2 | 336 | 41.1 | 353 |
Piab | 1,600 | 0 | 410 | 25.6 | 338 | 21.1 | 231 |
BraunAbility | 5,984 | 6 | 784 | 13.1 | 677 | 11.3 | 327 |
Vectura | 120 | 113 | 57 | 47.6 | 4 | 3.1 | -978 |
Atlas Antibodies | 149 | -32 | 55 | 36.8 | 39 | 26.0 | 45 |
Total | 30,997 | 7,119 | 23.0 | 6,182 | 19.9 | 3,534 | |
Reported growth y/y, % | 8 | 8 | 8 | ||||
Organic growth, y/y, % | 7 |
1) EBITA is defined as operating profit before acquisition-related amortizations.
INVESTOR Q2 2024 7
Value development
Contribution to adjusted net asset value amounted to SEK 35,006m during the first half of 2024 (34,538), of which SEK 4,618m during the second quarter (16,671).
Contribution to adjusted net asset value
SEK m | Q2 2024 | H1 2024 | H1 2023 | |
Changes in value | 4,693 | 35,193 | 34,704 | |
Management cost | -91 | -180 | -157 | |
Other | 16 | -8 | -9 | |
Total | 4,618 | 35,006 | 34,538 | |
Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to 20 percent (19 percent including cash) during the first half of 2024, of which 2 percent (2 percent including cash) during the second quarter. The return during the second quarter was positively impacted by earnings growth.
For more information on valuation, see page 35.
Investments and divestments
During the first half of 2024, investments amounted to SEK 1,021m, of which SEK 258m during the second quarter. The add-on acquisitions in Sarnova and BraunAbility were funded by each company respectively.
Divestments amounted to SEK 73m during the first half of 2024, of which SEK 43m during the second quarter.
Distributions received
During the first half of 2024, distributions to Patricia Industries amounted to SEK 5,455m, of which SEK 2,942m during the second quarter mainly related to distribution from Mölnlycke and Permobil.
Distribution to Patricia Industries
SEK m
- 000
- 000
- 000
- 000
- 000
- 000
- 000
0
2020 | 2021 | 2022 | 2023 | 2024 |
Patricia Industries, net cash | |||
SEK m | Q2 2024 | H1 2024 | H1 2023 |
Beginning of period | 11,031 | 9,299 | 11,823 |
Net cash flow | 2,726 | 4,508 | -277 |
Internal transfer to Investor | - | - | - |
Other1) | 61 | 12 | -16 |
End of period | 13,819 | 13,819 | 11,530 |
1) Includes currency-related effects, net interest and management cost.
Patricia Industries | valuation overview | ||||
Estimated market | Change Q2 | ||||
values, SEK m, | 2024 vs. Q1 | ||||
6/30, 2024 | 2024 SEK m | Major drivers | Comments | ||
Subsidiaries | |||||
Mölnlycke | 89,985 | -3,318 | Multiples and currency impacted | Applied EV/adjusted LTM EBITDA 17.0x | |
negatively, mitigated by higher earnings. | |||||
SEK 2.2bn distribution to Patricia | |||||
Industries | |||||
Laborie | 25,049 | 1,337 | Earnings impacted positively, mitigated | Applied EV/adjusted LTM EBITDA 19.2x | |
by currency impact. | |||||
Sarnova | 19,110 | -237 | Multiples and currency impacted | Applied EV/adjusted LTM EBITDA 15.8x | |
negatively | |||||
Permobil | 18,528 | 993 | Earnings impacted positively. SEK 0.6bn | Applied EV/adjusted LTM EBITDA 14.9x | |
distribution to Patricia Industries | |||||
Advanced Instruments | 13,321 | 639 | Earnings and cash flow impacted | Applied EV/adjusted LTM EBITDA 21.7x. | |
positively, currency impacted negatively | |||||
Piab | 12,004 | 1,101 | Multiples impacted positively | Applied EV/adjusted LTM EBITDA 17.7x | |
BraunAbility | 11,546 | 1,748 | Earnings and multiples impacted | Applied EV/adjusted LTM EBITDA 11.6x | |
positively, currency impacted negatively | |||||
Vectura | 4,049 | -539 | Estimated market value of the property | ||
portfolio less debt and cost | |||||
Atlas Antibodies | 1,465 | -385 | Earnings impacted negatively | Applied EV/adjusted LTM EBITDA 18.2x | |
Partner-owned | |||||
investments | |||||
Tre Skandinavien | 7,809 | 415 | Multiples and earnings impacted | Applied EV/reported LTM EBITDA 6.4x | |
positively | |||||
Financial Investments | 2,093 | 212 | Multiple or third-party valuation, share price | ||
Total | 204,960 | ||||
Total incl. cash | 218,779 |
INVESTOR Q2 2024 8
A world-leading medtech company that specializes in sustainable solutions for wound care and surgical procedures. Read more at www.molnlycke.com
Activities during the quarter
Group
- Organic sales growth amounted to 8 percent in constant currency, driven by all business areas and all major regions.
- The EBITA margin was largely unchanged. Underlying profitability was supported by sales growth and product mix, partly offset by increased logistics costs.
- Expanding its presence in the Middle East, Mölnlycke increased its ownership in a joint venture with Tamer Group, a leading healthcare distributor in Saudi Arabia. This setup enables Mölnlycke to offer localized manufacturing in the region, starting with Trays by the end of 2024.
- Mölnlycke successfully issued a 10-year EUR 500m bond and simultaneously repurchased approximately 45 percent of its outstanding EUR 500m bond maturing in 2025.
- Mölnlycke distributed EUR 200m to Patricia Industries.
- After the quarter, Mölnlycke invested USD 15m for around 8 percent ownership in Nasdaq-listed MediWound, an Israel- based provider of next-generation enzymatic therapeutics, focused on non-surgical wound debridement. The companies have also entered into a collaboration agreement, granting Mölnlycke specific rights such as having a representative attend the meetings on MediWound's R&D Committee.
Wound Care
- Organic sales growth amounted to 8 percent in constant currency, with growth across all regions.
Operating Room Solutions
- Organic sales growth amounted to 7 percent in constant currency, driven by volume growth, mix and price. The Trays category remained the main driver.
Gloves
- Organic sales growth amounted to 7 percent in constant currency, on the back of an improved supply situation, and a comparison period negatively impacted by distributors reducing inventory.
Key figures, Mölnlycke
Income statement items, | 2024 | 2023 | Last 12 | ||||
EUR m | Q2 | H1 | Q2 | H1 | months | ||
Sales | 514 | 1,012 | 475 | 955 | 1,981 | ||
EBITDA | 146 | 293 | 135 | 271 | 567 | ||
EBITA | 130 | 256 | 119 | 239 | 497 | ||
Sales growth, % | 8 | 6 | 4 | 8 | |||
Organic growth, | 8 | 6 | 6 | 9 | |||
constant currency, % | |||||||
EBITDA, % | 28.5 | 29.0 | 28.4 | 28.4 | 28.6 | ||
EBITA, % | 25.3 | 25.3 | 25.0 | 25.0 | 25.1 | ||
Cash flow items, EUR m | Q2 | H1 | Q2 | H1 | |||
EBITDA | 146 | 293 | 135 | 271 | |||
Lease payments | -5 | -11 | -6 | -12 | |||
Change in working capital | -14 | -59 | -7 | -71 | |||
Capital expenditures | -12 | -20 | -10 | -22 | |||
Operating cash flow | 115 | 202 | 112 | 166 | |||
Acquisitions/divestments | - | - | - | 0 | |||
Shareholder | -200 | -200 | - | - | |||
contribution/distribution | |||||||
Other1) | -49 | -103 | -20 | -36 | |||
Increase(-)/decrease(+) in net | -134 | -100 | 92 | 129 | |||
debt | |||||||
Key ratios | ||
Working capital/sales, % | 19 | |
Capital expenditures/sales, % | 2 | |
Balance sheet items, EUR m | 6/30 2024 | 12/31 2023 |
Net debt | 1,610 | 1,510 |
6/30 2024 | 6/30 2023 | |
Number of employees | 8,725 | 8,705 |
- Includes effects of exchange rate changes, interest, tax and change in lease liabilities.
• | The previously announced closing and relocation of a | ||||||
Mölnlycke, distribution of sales and organic sales growth | |||||||
manufacturing unit in Malaysia was successfully completed. | |||||||
• | Mölnlycke was awarded a 4-year Biogel contract in Skåne, | Organic growth, constant | |||||
Sweden, where sustainability in product life cycle | Share of sales, (%) | currency, (%) | |||||
management and materials was a key differentiator. | Last 12 months | Q2 2024 | |||||
Antiseptics | Wound Care | 59 | 8 | ||||
• | Organic sales growth amounted to 24 percent in constant | Operating Room | 26 | 7 | |||
Solutions | |||||||
currency, supported by a stable supply situation. | |||||||
Gloves | 12 | 7 | |||||
Antiseptics | 3 | 24 | |||||
Mölnlycke, sales and margin development |
EUR m | Total | 100 | 8 | ||||||||||||||||
600 | 35 | ||||||||||||||||||
500 | 30 | Mölnlycke, distribution of sales by geography | |||||||||||||||||
Share of sales, (%) | |||||||||||||||||||
25 | |||||||||||||||||||
400 | 2023 | ||||||||||||||||||
20 | Europe, Middle East, Africa | 58 | |||||||||||||||||
Americas | 33 | ||||||||||||||||||
300 | |||||||||||||||||||
Asia Pacific | 10 | ||||||||||||||||||
15 | |||||||||||||||||||
200 | 10 | Total | 100 | ||||||||||||||||
100 | 5 | ||||||||||||||||||
0 | 0 | ||||||||||||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |||
20 | 20 | 20 | 21 | 21 | 21 | 21 | 22 | 22 | 22 | 22 | 23 | 23 | 23 | 23 | 24 | 24 | |||
Sales | EBITDA, % | EBITA, % | |||||||||||||||||
INVESTOR Q2 2024 | 9 |
A provider of diagnostic and therapeutic products within Gastroenterology, Urology & Urogynecology, and Obstetrics, Gynecology & Neonatal.
Read more at www.laborie.com
A US provider of specialty healthcare and safety products, services and software for the US emergency medical services (EMS), acute care and cardiac response markets. Read more at www.sarnova.com
Activities during the quarter
- Organic sales growth amounted to 21 percent in constant currency. All product areas grew, with the OptilumeTM urethral strictures product contributing significantly.
- The EBITA margin continued to be impacted by significant investments in the launch of OptilumeTM for the treatment of benign prostatic hyperplasia (BPH) and increased research and development activity.
Key figures, Laborie
Income statement items, | 2024 | 2023 | Last 12 | |||||
USD m | Q2 | H1 | Q2 | H1 | months | |||
Sales | 108 | 210 | 89 | 173 | 395 | |||
EBITDA | 31 | 60 | 29 | 54 | 111 | |||
EBITA | 29 | 56 | 28 | 51 | 103 | |||
Sales growth, % | 21 | 21 | 2 | 4 | ||||
Organic growth, | 21 | 21 | 2 | 5 | ||||
constant currency, % | ||||||||
EBITDA, % | 28.9 | 28.6 | 32.8 | 31.1 | 28.2 | |||
EBITA, % | 27.2 | 26.9 | 31.1 | 29.3 | 26.0 | |||
Cash flow items, USD m | Q2 | H1 | Q2 | H1 | ||||
EBITDA | 31 | 60 | 29 | 54 | ||||
Lease payments | -1 | -2 | -1 | -1 | ||||
Change in working capital | -3 | -15 | -14 | -13 | ||||
Capital expenditures | -3 | -6 | ||||||
-6 | -9 | |||||||
Operating cash flow | 12 | 34 | ||||||
22 | 34 | |||||||
Acquisitions/divestments | - | -3 | ||||||
-1 | -3 | |||||||
Shareholder | ||||||||
- | - | - | - | |||||
contribution/distribution | ||||||||
Other1) | -16 | -21 | -6 | -16 | ||||
Increase(-)/decrease(+) in net | ||||||||
5 | 10 | 5 | 15 | |||||
debt | ||||||||
Key ratios | ||
Working capital/sales, % | 16 | |
Capital expenditures/sales, % | 5 | |
Balance sheet items, USD m | 6/30 2024 | 12/31 2023 |
Net debt | 426 | 435 |
6/30 2024 | 6/30 2023 | |
Number of employees | 1,070 | 905 |
- Includes effects of exchange rate changes, interest, tax and change in lease liabilities.
Activities during the quarter
- Organic sales were flat in constant currency, with growth impacted by a notably strong prior-year quarter and market- driven headwinds for Cardiac Response, partly offset by strong growth in Emergency Preparedness.
- Adjusting for acquisition-related expenses in the quarter, the underlying EBITA margin declined by 1 percentage point, driven by continued investments in the commercial organization, digital platform, and warehouse optimization.
- Sarnova acquired One Beat Medical, a distributor of automated external defibrillators (AEDs), accessories and CPR training services across the U.S. The purchase price of approximately USD 160m was funded with cash on hand and incremental debt. For the 12-month period ending June 30, 2024, One Beat Medical sales were approximately USD 77m.
- Sarnova acquired incremental equity interest from its co- investor in the Digitech emergency medical services (EMS) revenue cycle management (RCM) business, increasing its ownership from approximately 60 to approximately 90 percent. The business will be further integrated into and operate as a business unit within Sarnova. The purchase price was approximately USD 150m, funded with cash on hand and incremental debt.
-
Sarnova acquired QuadMed, a U.S. distributor of EMS
Preparedness business unit. The purchase price was up to USD 12m, depending on certain revenue milestones, funded with cash on hand.
Key figures, Sarnova
Income statement items, | 2024 | 2023 | Last 12 | ||||
USD m | Q2 | H1 | Q2 | H1 | months | ||
Sales | 260 | 519 | 247 | 492 | 1,017 | ||
EBITDA | 36 | 75 | 40 | 74 | 159 | ||
EBITA | 31 | 65 | 35 | 64 | 138 | ||
Sales growth, % | 5 | 6 | 17 | 14 | |||
Organic growth, | 0 | 3 | 17 | 14 | |||
constant currency, % | |||||||
EBITDA, % | 13.8 | 14.4 | 16.2 | 15.0 | 15.6 | ||
EBITA, % | 11.9 | 12.5 | 14.2 | 13.0 | 13.5 | ||
Cash flow items, USD m | Q2 | H1 | Q2 | H1 | |||
EBITDA | 36 | 75 | 40 | 74 | |||
Lease payments | -1 | -2 | -1 | -2 | |||
Change in working capital | -3 | -20 | 1 | 14 | |||
Capital expenditures | -5 | -8 | -4 | -7 | |||
Operating cash flow | 27 | 46 | 36 | 78 | |||
Acquisitions/divestments | -305 | -311 | - | - | |||
Shareholder | - | - | - | - | |||
contribution/distribution | |||||||
Other1) | -17 | -18 | -20 | -32 | |||
Increase(-)/decrease(+) in net | -296 | -283 | 16 | 46 | |||
debt | |||||||
Key ratios | |||||||
Working capital/sales, % | 15 | ||||||
Capital expenditures/sales, % | 1 | ||||||
Balance sheet items, USD m | 6/30 2024 | 12/31 2023 | |||||
Net debt | 757 | 474 | |||||
6/30 2024 | 6/30 2023 | ||||||
Number of employees | 1,465 | 1,405 | |||||
1) Includes effects of exchange rate changes, interest, tax and change in lease liabilities.
INVESTOR Q2 2024 10
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