”During the quarter, we have continued the important job of supporting healthcare through these challenging times. We grew organically by 2.2%, which should be seen in relation to a strong comparative quarter of 2019. At the same time, the adjusted operating profit (EBIT) increased by almost 50%. We have seen continued high demand within our US rental operations, as well as within medical beds and therapeutic mattresses,” says Joacim Lindoff, President & CEO. “We have a strong financial position and improved cash flow that provides a solid foundation despite the turbulence around the corona pandemic. We now anticipate a gradual stabilization where our organic net sales growth for the third and fourth quarters, respectively, is expected to be within our 2-4% target interval,” adds Joacim Lindoff.

April-June 2020 in brief

• Net sales increased by 2.3% to SEK 2,264 M (2,212).
  Net sales grew organically by 2.2%.
• Adjusted EBITDA increased by 16.0% to SEK 489 M (421).
• Adjusted operating profit increased by 47.7% to SEK 244 M (165).
• Profit after financial items increased to SEK 152 M (132).
• Earnings per share increased to SEK 0.42 (0.36).
• Cash flow from operations increased to SEK 613 M (255).
• Cash conversion increased to 129.2% (60.7).
• The Group resumes its outlook – organic net sales growth for the third and fourth quarters, respectively, is expected to be within 2-4%.

Telephone conference

Fund managers, analysts and the media are invited to a teleconference on July 17 at 08.00 CET. Please see details below to join the conference:

Sweden: +46 8 505 583 73
USA: +1 833 249 8405
UK: +44 3333 000 804 with PIN: 12136610# (UK only)

A presentation will be held during the telephone conference. To access the presentation, please use this link: https://tv.streamfabriken.com/arjo-q2-2020

Alternatively, use the following link to download the presentation:
https://www.arjo.com/int/about-us/investors/reports--presentations/2020/

A recording of the teleconference will be available for 90 days via the following link: 
https://tv.streamfabriken.com/arjo-q2-2020

For more information, please contact:

Kornelia Rasmussen
Executive Vice President, Marketing Communications & Public Relations
Tel: +46 (0)10 335 4810
Email: kornelia.rasmussen@arjo.com

Maria Nilsson
Investor Relations & Corporate Communications
Tel: +46 (0)10 335 4866
Email: maria.nilsson@arjo.com

This information is information that Arjo AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CET on July 17, 2020.
 

About Arjo
At Arjo, we are committed to improving the everyday lives of people affected by reduced mobility and age-related health challenges. With products and solutions that ensure ergonomic patient handling, personal hygiene, disinfection, diagnostics, and the effective prevention of pressure ulcers and venous thromboembolism, we help professionals across care environments to continually raise the standard of safe and dignified care. Arjo has approximately 6,000 employees worldwide and customers in over 100 countries. In 2019, Arjo sales amounted to approximately SEK 8.9 billion. Arjo is listed on Nasdaq Stockholm and its head office is located in Malmö, Sweden. Everything we do, we do with people in mind. www.arjo.com