Good morning, everyone, and warm welcome to the AddLife Q3 report. As usual, we will take you through the numbers and description of what has happened in the company during the quarter. Then we will open up for a Q&A session, and after that, as usual, we encourage you to stay on for a few more minutes to see an interesting video from one of our companies. This time around, it's from Healthcare 21 Ireland, a very important piece of the puzzle as we are growing throughout Europe and an important platform acquisition, so let's get going with the highlights of the third quarter, so the AddLife companies all had a good quarter in the Q3 of 2025. We saw a strong EBITDA improvement in both business areas. We saw healthy customer demand, currency-adjusted growth increased by 7%, 6% organic, and a nice addition of 1% from acquisitions.
The growth in Labtech was really strong, 9% excluding currency effects. And on the Medtech side, a very healthy demand in spite of the fact that we are updating our product portfolio, and we saw a little bit of a weakness in capital sales. So 5% growth in Medtech, a strong quarter. We are driving profitability improvement initiatives in a handful of companies. These are progressing quite well, but there is more work to do, and we think there is more potential to improve the performance of some of the companies within the group. We're pleased to note that we have achieved our net debt to EBITDA goal of being below three. We stick to that goal. That's a good target for us, we think. But of course, now that we are below that level, we can increase the acquisition activity. So with that, I hand over to Christina to take us through a little bit more of the details of the financials. Welcome, Christina.
Thank you, Fredrik. So the companies within AddLife delivered solid revenue and EBITDA growth in the third quarter. Organic and acquired revenue growth was 7%, and organic and acquired EBITDA growth was 20%. EBITDA has been adjusted for revaluation of contingent considerations and also restructuring costs relating to Camanio. This is SEK 7 million in total and relates to last year. The effects had an impact of 3% negative both on the revenue and on the EBITDA growth side. So total sales growth was 4%, of which organic growth was 6%. Labtech delivered 9% and Medtech 4%. We also had acquired growth of 1% that relates to Edge Medical, and this within Medtech. We had stable gross margin and also strong cost control within the companies. Compared to last year, we also had a positive impact on the OpEx side from the closure of Camanio.
In total, that was SEK 10 million. The EBITDA margin summarized to 11.1%, up from 9.8% last year, and we had significantly lower interest costs in the quarter, SEK 30 million, but then in financial net, we also have exchange gains and losses, and with the loss this quarter and the gain last year, it was a total of -SEK 12 million comparing year over year, but the profit before tax increased with 164%, and profit after tax improved with 228% since also tax rates are coming down, so the EBITDA margin between the quarters can vary a bit, and normally Q3 is the seasonally lowest one, but EBITDA margin is definitely in a positive development, and if we look at EBITDA growth, it was 17% over last year, and the year-to-date EBITDA margin was 11.9% compared to 11% year-to-date last year.
And the improved EBITDA margin comes from both Labtech with 11.2 and Medtech 11.6. Also, normally operating cash flow is slightly slower in the third quarter. This year it was SEK 145, and accumulated operating cash flow was SEK 504 compared to SEK 429 last year. Cash conversion remains high at above 90%, and we are still focusing on inventory reduction and working capital efficiency. So working capital was -SEK 143 million. Inventory increased slightly, mainly due to preparation for an expected strong Q4 sales. Looking at inventory towards revenue, that has remained at a stable level throughout the year at 16%. Also, accounts receivable increased. That was due to strong end-of-quarter sales, but also we had somewhat slow collection due to vacation period, expecting to recover in the fourth quarter. The acquisitions relate to purchase price adjustments for Edge.
The net debt was improved with SEK 52 million, and with loans being majority in euros, we always have an FX impact. This was limited this quarter. When we look at net debt, we include the bank loans, leasing liabilities, contingent considerations, pension liabilities, provisions, and then we deduct cash, so that is the total of our net debt, so with net debt decreased and last 12 months EBITDA increasing, leverage declined to 2.9. This means that we have reached our ambition we set up for ourselves to be at three or below. As said before, debt will be reduced through self-generated cash flow. The interest rate in the quarter was 3.8, below last quarter's 4.2 and significantly lower compared to last year's 5.7. We have two covenants: interest coverage ratio and equity ratio. Interest coverage ratio should be above four. That was 7.9 in the quarter, and equity ratio should be above 25%, and that was 42, meaning that we have solid and increasing headroom to the covenants, and with that, I hand over to Fredrik again.
Thank you very much, Christina, for that thorough review of the numbers, and now we move into the business areas, so starting with Labtech, it had a strong quarter with 9% growth and strong EBITDA margin development. Demand in diagnostics is stable and growing, and as we have talked about in previous quarters, we do have had fantastic success with tenders, both new and renewed, and that helps us to grow, but also to improve margins, and we see that effect in this quarter as well. Demand in pharma remains high, and that is, as you know, an important customer group for us. There is a hesitation in academic research investment. We've talked about that in the past. There are, however, some signs of improvement in this quarter, so we're pleased to see that, so that's great news.
Also, great news is good progress that we see in gene sequencing. This is an area that we have really prioritized. We are active in it in multiple parts of Europe, and we see very strong developments, in particular in Southern Europe, where we have been driving together with customers significant projects that are now coming to fruition. We have added new products both in Southern Europe, but also in Central and Eastern Europe, and we see good progress also in the Nordics. So great progress with an important area of gene sequencing. So moving on to Medtech, we had a nice quarter with 5% growth. And of those 5%, 1% came from acquisitions, which is nice. EBITDA margin improved significantly to 11.6%. And even though the demand is somewhat lower normally in the summer months because fewer surgical procedures are scheduled, we had a healthy development.
In the U.K., however, a little bit lower. There is uncertainty about budgets. There is uncertainty about capital spend that we have discussed previously, and that still continued, unfortunately, in the third quarter. We are working very diligently on continuously evolving the product portfolio towards more advanced and more high-margin products, and in some cases, we see a little bit of a decline on the top line as we remove some of those projects in that process. We wanted to also share with you a somewhat new perspective of our market coverage, so looking at the map you can see here, we have a quite unique pan-European coverage, of course, with a strong presence in the Nordics, but over the years, we have taken conscious and strong steps to establish ourselves all across the European markets.
So we're not only strong in the Nordics, we're strong in Western Europe, Central and Eastern Europe, and Southern Europe, and this gives us some really important benefits. Of course, we have access to a bigger market, both in terms of sales but also in terms of acquisitions. We have more supplier opportunities driven by our strength as a company. We have access to a broader range of acquisition targets, and of course, with that, more attractive multiples, and this is further underlined by the fact that we are also active in both med tech and lab tech across all these regions in Europe, so we got into this very strong pan-European position by making a few relatively large platform acquisitions, and I want to speak a little bit about those two, primarily Healthcare 21 in Ireland and U.K., and MBA in Spain and Portugal.
Starting with Healthcare 21, this acquisition was made in 2021, and since then, it has developed very nicely. As you can see here on the slide, the revenue development has been an impressive 35%. So this is now a company at around SEK 2 billion in turnover. And this has been driven by continued addition of advanced products. Not only has the company grown in a fantastic way, EBITDA margin has improved significantly, 2 percentage points, and it's currently at around 14% EBITDA margin. So that has been driven by continuous efforts in efficiency improvements and increased share of advanced products, and also pruning of products that don't have the profitability profile that we like to see. We're extremely proud of the fact that the profit over working capital, as you well know, an important metric for us within AddLife, has improved significantly as well.
This has been done through a range of efforts: renegotiation with suppliers, stricter inventory management through improved processes and systems, but also, I would say, market-leading collaboration with our partners to ensure efficient payments. Healthcare 21 has also contributed nicely as a platform for acquisitions with O'Flynn Medical, Amet Medical, and Edge Medical. So all very good acquisitions that have been added throughout the years. So a great example of our geographical expansion and also improvement, solid improvement in the performance of this company. So moving forward to MBA in Southern Europe, Spain, and Portugal mainly, an acquisition that was done in 2022. Also there, we've seen a fantastic revenue development, getting close to EUR 100 million in turnover, 25% growth since the acquisition. And this has been driven by adding, continuously adding advanced products and supported by industry-leading service and support.
We have also organized the company in three divisions that has really enabled an accelerated growth. EBITDA margin improvement has been fantastic, three percentage points up since acquisition, and now above 18% EBITDA margin, and this is, of course, through growth in high-margin advanced products, but also a very consistent efficiency and cost control work, and then finally, profit over working capital, again, an important topic for us that has improved tremendously as well within MBA. They have a fantastic forecasting process. They have improved and have now a very tight inventory management process, and they are also very good in managing payments, so these acquisitions, MBA and Healthcare 21, have not only enabled us to become a much more pan-European player, they have also improved their performance quite a bit, and they are a platform for future acquisitions.
So moving forward, I also want to share with you a little bit of an overview of the product portfolio that we have, the different categories in our product portfolio. This is a new way of showing this data, which we haven't done in the past. But what it really highlights is our unique strength in advanced products. So looking at the top of this slide here, we talk about specialist devices and equipment. These are advanced specialist products that often come with proprietary consumables and service revenues as well. This really requires advanced training and technical support, and often also on-site clinical and patient-specific support. So it requires a very competent organization in the field. These are products that are very differentiated and have a high value to the patient and the healthcare system. And you can see some examples of these products that we have in the portfolio.
They are more than 70% of the revenues within MedTech. We also have what we call medical supplies. These are more volume products, oftentimes at lower margin and oftentimes used in surgical procedures. They include products like infusion, transfusion sets, respiration, wound care, surgical procedure packs, and so on, and for AdLife companies, these are an important piece of the puzzle around 29% of revenues. We try often to have these products within our own manufacturer or own brands to further improve the margins, so this gives you a perspective of the product portfolio that we have, and this is something that sets us apart from competition as well. With that, we are about to conclude the presentation about the third quarter results, and I want to underscore that the companies have been doing a fantastic job in this quarter, so thanks to everyone involved.
You're doing an important and great job, so in short, we have seen a significant margin improvement. We have seen a solid organic growth. Profit has improved both in terms of margins, but also further strengthened by lowering interest rates and reduced debt, improving the bottom line performance as well. We have reached our ambition to be below three in terms of net debt to EBITDA, so we're very proud of that, and of course, this strengthened position allows for us to gradually increase acquisition activity again, so a good quarter and exciting times ahead, so with that, we are opening up for Q&A, but I would also like to encourage you again to stay on to see a great video about Healthcare 21 in Ireland. Thank you very much.