Dedicare: Political risk brought to mind in Q2 - ABG

• Two large regions in Sweden restrict staffing...
• ...causing challenges for the Swedish operations
• Change not fully offset by other markets

Q2: 11% organic sales growth y-o-y, -2% vs ABGSCe
Dedicare reported Q2 numbers below our expectations, with net sales of SEK 484m (+13% y-o-y) and adj. EBIT of SEK 34.4m (38.4m), corresponding to an adj. EBIT margin of 7.1% (9.0%). This was 2% and 17% below ABGSCe and the main explanation was the headwind in Sweden following the decision of the Stockholm and Sörmlands regions to restrict staffing for doctors and nurses. As a result, the Swedish operation was down 15% y-o-y in sales and profitability sharply declined versus last year. The Stockholm region in isolation was down 33% y-o-y in sales. Norway was also slightly behind our expectations but still grew 16% yo-y with solid profitability while Denmark continued its strong execution with sales up 68% y-o-y under improved margins. The Danish operation contributed with SEK 4.1m in EBIT in the quarter versus Sweden with SEK
4.7m.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/5dfec0481bbb4005bb99a5f7e7c38a15/pdf/political-risk-brought-to-mind-in-q2.pdf