Swedish technology group Addtech AB on Tuesday reported a 7% rise in first-quarter net sales, but said organic growth slowed to 1% amid a reduced pace of acquisitions.
Net sales for the quarter ended June 30 rose to 5.84 billion Swedish kronor from 5.44 billion kronor a year earlier.
Operating profit before amortization of intangible assets, or EBITA, increased by 11% to 922 million kronor, the company said.
"With clear variations between different parts of the operations, sales grew by 7 percent, of which 1 percent was organic," Chief Executive Niklas Stenberg said in a statement, adding that exchange rate fluctuations had a 4% negative impact on sales.
The 1% organic growth compares with 2% in the same period a year ago and 7% two years prior.
Addtech, which grows through acquiring niche technology companies, said it completed two acquisitions in the quarter with total annual sales of about 330 million kronor, down from seven acquisitions with annual sales of 855 million kronor in the same period last year.
Profit after tax for the quarter increased by 13% to 562 million kronor.
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