• Mergers between manufacturers of hospital supplies and laboratory products continued in 2001.
• Tamro MedLab group's net sales grew by 4.0% to EUR 92.6 million.
• The prospects for improving Tamro MedLab group's profitability are good.

Operating environment and markets

Mergers between manufacturers of hospital supplies and laboratory products continued in 2001. Tamro MedLab maintained its strong position as a supplier of world class products, enabling it to offer its customers a wide range of quality products for a variety of needs.

Financial performance and operations

Tamro MedLab group's net sales were the most upbeat in Finland and Denmark. The group was successfully restructured, and this showed in the result.

On 1 March 2001 Tamro MedLab Finland rolled out the Movex information system according to plan and without glitches. The Movex system is already in use in Sweden's and Norway's MedLab companies, where it has proved its worth as a support for business operations. Tamro MedLab's electronic marketplace MedLabMarket was upgraded as well. The market place has gained wide popularity and already has about one thousand registered users.

A subsidiary, Tamro MedLab SIA, was established in Latvia.

During the year, logistics focused on boosting the efficiency of Finnish operations and improving quality. The materials flow from supplier to customer was transferred from marketing to logistics. A satisfactory level was achieved in capacity and reliability of delivery. The outsourcing of warehouse operations was finalised. Finland switched to the euro without problems.

Tamro MedLab group's business is divided into two very different business units: Med and Lab. Healthcare products (medical supplies and equipment) are Med's territory and they are sold to hospitals and various healthcare facilities in all of Tamro MedLab's countries of operation, i.e., the Nordic and Baltic countries. Laboratory products are sold in Finland, Sweden and Norway to industrial, research and educational laboratories.

Med's sales developed favourably in Finland, Norway and Denmark. The focus of Finland's equipment sales was reconsidered and this boosted sales.

The sales of treatment equipment for diabetes patients were started in the entire market area. Diabetes treatment is one of the fastest growing healthcare sectors. Throughout the market area other product groups were included in the sales programme as well. Development of the TamroMed trademark continued and new products were added to the TamroMed family.

Lab's business operations are divided into laboratory supplies and life science products. In Finland, sales of life science and clean room products grew the fastest. In order to serve better its customers, Tamro MedLab opened its own presentation, sales and service point at Biomedicum in Helsinki. Sweden was awarded the ISO 9002 certificate. The streamlining measures taken in Norway were a success.

Outlook for 2002

Steady growth is expected to continue in the hospital product market. The input in life science research will continue in 2002, further boosting the sales of Lab products. The prospects for improving Tamro MedLab group's profitability are good.