Hello, everyone, and welcome to our Q1 report. We will ask you to start out with CEO, Johan Poischel, presenting results followed by our CFO, Helena Saxon. And then we will have a Q and A questions. So please, Jussung.
Thank you, Vivekka, and welcome everybody to this call about our Q1 results. I think we had a strong first quarter. The listed companies had a total share of the return of 19%, Somewhat above the Swedish stock market, that was up 14%. In Patricia, overall good operational performance, Even though it still differs between the company somewhat, but I will come back to that. Yesterday, we announced that we are divesting The Grand Group and The Grand Hotel said.
Tell property, and we come back to that, too. The investments in EKT continue to develop well up 30 Jesu? In the quarter, and the combination with Exeter Property Group was closed in the beginning of this quarter. We have a strong financial position. And last year, we made significant progress towards our 3 sustainability targets.
If we then all in all, this meant that We had a strong development in our adjusted net asset value and the total share and the return was up 16% in the quarter. And then moving over to the listed companies. As mentioned, strong performance in TSR. I think the companies have managed the COVID-nineteen situation well. They have adapted the cost structure, And they have continued to invest in prioritized areas and the companies also keep strong financials.
Top priorities going forward is to capture the opportunities that we see in a number of long term trends, such as demographics, automation, electrification Yes. And also for EKKT, the strong development in alternative investments. Also highly important, of course, is to make sure that The companies keep as much as possible of the efficiency improvements that have been gained during this pandemic. Moving down to Patricia. The organic growth was up 1% in the quarter, And I will say more details about that later on.
The profit growth was up 26%. Adjusted for Acquisition costs in the previous year, the adjusted profit growth was 14%. And then the divestment of GRAND, total consideration SEK 3,900,000,000 After debt amortization in Vectura, we will release about SEK 1,500,000,000 in proceeds. And the reason for the divestment is that we have concluded that the hotel segment does not fit with our investment priorities. And also the divestment further sharpens our portfolio.
Also important to note is that we have found a good new long term owner, and we received a good price that reflects the value pre COVID. Moving to the next page. The organic growth was lower than in the previous quarter, but the profit growth was strong. From the chart, You can also see that the Q2 last year was the low point with an organic growth of down almost 20%. Therefore, looking forward, We will, of course, pay extra attention to not only growth but also the absolute levels when we analyze the figures.
And of course, most Importantly, that could lead to actions in the companies. Moving to the next. We have 4 companies, Melvik, Advanced Instruments, Labri and Tia that represents about Sorry, 60% of total sales in the subsidiaries. But these companies, due to the high margins in the companies, represent close to 80% of the value of all subsidiaries. And as you can see, for these For companies, the development was very strong during the quarter with organic growth between 9% 14%.
And you can also see that the margins increased from already very high levels in these companies. So very strong development in the quarter. Moving to the next, Sarnova, Permobil and BraunAbility, these companies represent about 40% of sales and About 15% to 20% of the value. And the reason for the lower value is, of course, that these are the companies with relatively Lower margin compared to the others. I have stripped the picture here in 2, 1 for Sanovo and 1 for Bruen and Permobil.
And the reason is that when it comes to Cernova, the negative growth in the quarter is primarily soon. Explained by a strong Q1 last year due to the surge in demand and stop gaps when COVID-nineteen started. In addition to that, there was also a negative impact in this Q1 due to a mild flu season. But overall, the conclusion when it comes to Cernova is that the company is developing well. When it comes to permeability and vulnerability, demand remained negatively affected by COVID-nineteen, But we did see an improvement gradually during the quarter.
And for Permobil, we actually saw a slight positive growth in March. You can see that for Permabile, good profit development despite falling sales. And Ron, I believe that I think also held up the margins well given the large drop on the top line. Then moving over to Melviken. Organic sales growth was 14%, Driven by good growth in Wound Care and PT related sales within Surgical.
All geographical regions grow. The emerging markets grow in line with the growth for the whole group. But as there is no PP business soon. In that the underlying business is stronger. Wound Care, as I said, up 5%.
Surgical grew 24% supported by PP contracts. But importantly also that there was a strong growth in Surgical In Q1 last year, especially in March, due to the outbreak of COVID-nineteen. So in the previous year, We saw very strong growth in margin gloves, antiseptics and staff clothing. So it was also, from that perspective, a tough Comparison. So there are positives and there are also negatives when you look on the growth.
When it comes to the customer agreements on TPE, we expect additional sales in the second quarter, But we expect it to be significantly less than in the Q1, but rather similar to the Q2 The last year. So in the Q2, we don't see any big impact from KTE on Nannluche. The profit margin was very strong, up 5 percentage points in the quarter. And the company is stepping up investments even more in the commercial organization In emerging markets and especially here in China. Perma Bill, organic growth minus 7%.
And demand, as I mentioned, was better in the latter part of the quarter. EBITDA margin was Increased slightly, and they launched a new brand, promise, innovating for individuals, which Reflects their ambition to combine software, design, hardware to give a very good user experience for the users. Lavery, then I'm glad to see that Urology and GI, Finally, we saw an improvement with an organic growth of 11%, and the reason is the gradual resumption of elected procedures. On the other hand, in this quarter, growth in the maternal and child health business, which is the clinical innovation acquisition, Was actually negative affected by customer stock gaps in the previous quarter. Profit margin was strong, And the profit margin was 27%.
If we adjust for the cost last year of related to clinical innovation, The margin last year was 17%. So I know I have already talked about The key reasons, so I will not repeat it. Very tough comparison last year with the surge of COVID-nineteen in March, And you can see that also in the bars in the figure. But despite falling sales, the profit margin increased. Moving to Piyab, strong development, organic growth of 9%, All regions grow.
APAC had the highest growth. And over here, there was a very strong growth in China for period. EBITDA margin improved. Some things are structural and moving in the right way. For example, synergies are being realized related to the TAVI acquisition.
Then some Savings here are more short term, for example, reduced travel and marketing expenses. And some of these costs will, of course, gradually come back going forward. Moving down to Advanced Instruments. I'm glad to say that it's The Q2 that we report in suite by this company and it has started really well, as you can see. In this quarter, the organic growth was 11% And the profit margin expanded to 49%.
We will accelerate investment in this business Because of course, with the high profitability and the strong position and the strong growth markets we operate in, key is to grow this business. So we will And both on the commercial side, also on the innovation side, and we will build also, call it, the administrative Functions around it to support that stronger growth. In the quarter, we saw growth in all three Customer segment, but the strongest growth we saw in the biopharma segment. Braunability, as mentioned, was down quite a lot in the quarter, minus 16%. We did see here a gradual improvement in the consumer segment, while the commercial part is still depressed by Low activity among buses and taxes.
Moving over to 3. Subscription base grew, but the service revenue was down 2% in the quarter. And there are two main reasons First, the deterioration of the Danish krona compared to the Swedish krona. And secondly, decreased international roaming due to COVID-nineteen. Also, when you look on these Graphs on the profitability, you should remember that following the divestment of the passive network infrastructure, Earnings will be lower as we have now established a service contract to utilize the divested network asset.
And adjusted for that, EBITDA increased somewhat in the quarter. In the quarter, we received another SEK 0 point SEK 4,000,000,000 related to the divestment of the towers. And in total, this means that we now have received SEK 1,500,000,000. The remaining SEK 3,500,000,000 or SEK 3,600,000,000 will come later in the year of the closing in Italy and the UK. Moving down to EQT, strong development, total return up 30%.
In this quarter, we have the negative cash flow minus SEK 1,000,000,000. And the reason for that is major drawdowns in EKK9. Then leaving the quarter and looking forward, our focus Our strategic priorities are to sharpen our role as an engaged owner and secondly, to ensure that we have an attractive portfolio. So let me say a few words Please. Starting with our ownership.
I wrote in my CEO letter a comment related The sustainable governance. We all know that there are a number of climate, social and economic challenges in the world. And to handle that, of course, strong business You need to act ethically and take, of course, Decisive actions to combat climate change. So this is important for us. We know it's important for our companies to succeed, gain market share and create long term value.
Unfortunately, The suggestion from EU when it comes to sustainable corporate governance, while they might have a good intention, It actually, this counteract its purpose. And the reason is that They are proposing detailed regulation on governance, broadening the purpose of the corporation as an institution. And we fear that this will lead to unfortunate consequences. One thing is that they assume that dividends is showing that the company is short term oriented, Which we totally disagree with. Dividends are an essential part to reallocate capital from companies that do not need it The new companies and other companies that needed to invest in new technologies, not the least to fight climate change.
And secondly, we need to have clear roles and responsibilities. And the suggestion is actually about weakening The ownership rights. And we believe that is dangerous because the owners must be able to hold the board accountable if they do not do what they are there to do. And finally, with this ambiguous and Clear governance model that is being proposed. We fear also that there will be less risk capital Going into the companies in Europe.
And we have already, for many years, seen that the U. S. Companies and companies in Asia Are moving faster when it comes to technology and certain areas. So I think that this is something that We need to work hard. And we have worked hard versus the commission to try to change what we believe is a very dangerous way forward.
Our governance model is based on clear rules and responsibilities with accountability. We always drive what we believe is best for each company. And we have board representation. Owners decide on dividends is a center part of Swedish governance model, and each board Should decide and prioritize when it comes to strategic priorities, including sustainability targets. And the reason is, of course, that the Board of a particular company, they should know the details of that company in that particular industry.
And I think that is very important not to forget. In Europe, we need more investments, More innovation, not more regulation. So all in all, we believe that sustainability, some corporate governance and share of the valley go hand in hand. Moving then over to look on the performance on sustainability. We have 3 focus areas: business ethics, Climate and diversity and inclusion.
And I will not go through all. But you can see in the middle chart here that we have had a strong development. And this graph here Shows the Scope 1 and Scope 2 CO2 emission from all our companies in the portfolio. And you can see it has been reduced by 40% since 2016. We should, of course, be aware that COVID-nineteen Has most likely affected the 2020 figure.
But you can see from the graph that the trend is very clear. So there is a lot of good things going on In our companies. And then the other part, diversity, you can see that we have many nationalities. We believe different mindsets, different backgrounds, And we can also see an improvement on the gender side even if there is more to do. Moving then finally over to the other topic to ensure an attractive portfolio.
We must, of course, divest companies when we come to the conclusion that they are not in line with our strategy. 2 years ago, we divested Aliris. And yesterday, we announced the divestment of Grand Hotel. And over the same or over the last years, we have also invested in 2 new companies, TEA That writes on the automation trend and advanced instrument with measuring equipment to biopharma, Clinical and Food Industry, these are 2 companies where we believe we see that they can grow really strong in the years ahead, And they're also highly profitable with good cash generation. So this is about changing.
Sometimes you need to change Even if you are long term. But I really want to stress the bubble in the middle because it is The most important part, of course, is that we, as a long term owner, make sure that our company is also developing change versus the trends that we see in the global arena. And I will not go through all of them, of course, but If I take one example on the public side and one on the private side, Atlas Copco, a number of years ago, expanded into vacuum That is now growing fast due to the sharp demand for CMS. We have also steered the tooling business Versus the need for lighter material and electric drive today with products within adhesives and riveting. These are example how we continuously must change to where the future growth is.
Permobil, another example, when we bought the company, They only had electric wheelchairs. Now we have manual, we have seating and positioning, and we are also moving more and more into digital to get the better user experience. These are two examples on changing the mix in the portfolio also when it comes to developing the companies. So with that, I hand over to Helena.
Thank you, Johan. Let's have a look at the net asset value development in the quarter. Our adjusted net asset value grew in the quarter by almost SEK 90,000,000,000 and landed at SEK 636,000,000,000 at the end of March. Going over to listed companies, which constitutes 2 thirds of our portfolio. It amounted to SEK 430,000,000,000 at the end of the quarter.
And the total shareholder return, as I already mentioned, was 19% compared to fixed Adex 14%. Looking at the growth on the right hand side, you can see that the performance in the portfolio was mixed with the strongest performance being While the Saab, Electrolux Professionals and in particular, Sobeys had a tougher quarter from a share price perspective. Next slide shows Patricia Industries where performance was relatively weaker with a total return of 4% excluding cash in the quarter. And looking at the sequential change in estimated market value, we can see that La Birendra Malueca increased the market values most at EUR 2,700,000,000 and EUR 2,600,000,000 respectively, while 3rd added a little more than EUR 1,000,000,000. Net proceeds from financial investments amounted to SEK 776,000,000 and there was an additional euros 405,000,000 distributed from 3,000,000 related to the divestment of the passive network infrastructure.
Permobil estimated market value decreased in the quarter due to lower earnings and multiple contraction. And looking at the next slide at the major drivers and the development of the estimated market values, we The level is EUR 2,700,000,000 increase was due to strong earnings, currency and multiples, which all impacted the value positively. Non liquid increase of SEK 2,600,000,000 was due to earnings and currency, which both impacted positively, while multiples impacted negatively. And please also note that the multiple is adjusted to reflect the PTE related profits during the last 12 months. For Pia, both multiples and earnings impacted the value positively, while for Permobil, it was the opposite and Both earnings and the balance of both impacted the value negatively, resulting in a value basis of SEK 1,400,000,000.
Going over to our financial position, It remains very strong. We have a gross cash position of SEK 22,700,000,000 and a net debt of SEK 19.6 leverage at the end of the quarter was below our target range at 3.4%. And then finally, my last slide shows investors' average annual total share of the return as per March 31st, and it shows the year to date performance, the 1, 5, 10 20 years performance. And the graph Shows clearly that we have outperformed our return target of 8% to 9% in all periods and this fixed Rx in all but one period. And we will, of course, as Johan has already said, continue to work hard usual.
That is all from me. And I will now hand over to Lidlika for the Q and A session.
Yes. Thank you, Johan, and thank you, Helena. We will now move over to the Q and A session and we will be guided by our facilitators. So over to you.
Thank you you soon. We currently have one question in the queue That's from the line of Joakim Goenel of DNB Markets. Please go ahead. Your line is open.
Thank you for that. Good afternoon. So Two questions for me. To start off here with the recent Grande transaction, I mean, it was yet another step post the Alaris divestment To prune the portfolio to be more aligned with your investment strategy, totally makes sense. But where would you say you are now in relation to having only strategic assets in
I think that as I mentioned in my presentation Jan, that if I start with the current portfolio, I think we have a continuous job to do. We need to continuously work through Our companies, they are gradually changing and steering to new growth areas. So that's a continuous work. And when it comes to the portfolio, the existing ones, I do not want to comment on that. That is something that we always evaluate, and I've said that many times before.
We are always looking at new to meet this and we are always looking to really see if we are the right owner and the way to maximize long term value. But I will, of course, not speculate it on.
Understood. And I mean, I'm Perhaps reading a bit too much into this, but both on your recent CND and then in your Recent investor material here, it seems that you are portraying Patricia Industries more and more as an, call it, I mean, an aggregate platform of subsidiaries With cash flow and M and A optionality perhaps. So with that being said, do you think it would make sense to assess Patricia Industries is more on a combined entity basis as opposed to assess the stand alone businesses themselves?
Yes. I think that's a good question. Thank you. I think from our point of view, of course, Each company is run independently with their own boards, etcetera, and that's coming back to the governance that I discussed before. But of course, as an owner, we are also supporting all companies, supporting that they can learn from each other and support also from the parent And that I think is important when it comes to geographical expansion, handling sustainability issues.
So we for sure, we look on the individual companies and their performance, but we also, of course, have ambitions for The total performance of the Patricia portfolio when it comes to top line profit, cash flow and total share of the return. So the answer to your question, I think, is both.
All right. I think that's That's all from me. Thank you, Armin.
Thank you very much.
Thank you. Okay. There seems to be no further questions coming through at this time. So I'll hand the floor back to our speakers.
Thank you. By that, we want to say thank you for today, and we will be back in Q2 then. Thank you,