Ambea’s interim report July – September 2024
Long-term quality management supports earnings improvements
CEO comments:
In the third quarter, Ambea continued to add more care places, and showed favourable organic growth and continued earnings improvement. Our financial results are based on the high-quality care our employees provide every day, and we are therefore pleased that during the quarter, Vardaga once again achieved a score that is above the industry average in the National Board of Health and Welfare’s Annual Care Receiver Survey. It is also gratifying that Ambea is once again climbing in Universum’s annual survey of Sweden’s Best Employers.
Vardaga’s earnings showed a positive trend, driven by increased occupancy and operational improvements.
The positive earnings trend also continued for Stendi, with stable occupancy that supported the improved earnings.
Nytida delivered stable earnings as usual, although the quarter was impacted by lower occupancy in the Individual and family care sector, where demand varied more than in other areas. During the quarter, Nytida opened two new residential facilities and added four places to an existing residential facility, a total of 16 new places. In addition, an agreement was signed for a new care home with 20 places. We also completed the acquisition of Sorbus vårdboende during the quarter, and made another major acquisition after the end of the quarter – care provider Friab’s operations in foster homes, HVB homes and assisted living facilities, with annual sales of about SEK 180 million. I would like to welcome all new employees and care receivers to Ambea!
Altiden performed favourably, in line with our expectations for the third quarter, which was an exceptionally strong season for Denmark. We will continue to work as planned to strengthen profitability in Denmark and are expecting continued profitability improvements in the coming quarters.
Organic growth and margin improvement
Net sales rose 6 per cent to SEK 3,555 million (3,355). The increase was due to the good organic growth of 7 per cent. EBITA was SEK 478 million (383) and the operating margin was 13.4 per cent (11.4)
Third quarter July–September
- Net sales rose 6 per cent to SEK 3,555 million (3,355). Organic growth was 7 per cent, acquired/divested growth was 1 per cent, and currency and calendar effect was -2 per cent.
- EBITA was SEK 478 million (383), representing a margin of 13.4 per cent (11.4).
- Operating profit (EBIT) totalled SEK 455 million (360), representing a margin of 12.8 per cent (10.7).
- Profit for the period totalled SEK 266 million (206).
- Earnings per share were SEK 3.14 (2.30) before dilution and SEK 3.13 (2.30) after dilution.
- Cash conversion was 66.0 per cent (78.6).
- Free cash flow totalled SEK 385 million (427).
Webcast/telephone conference
In connection to the announcement, Ambea will host a telephone conference today at 10:00 (CET). The presentation will be held in English and available as webcast on www.ambea.com or direct link: https://edge.media-server.com/mmc/p/jqd3ukhz
Telephone conference
To participate the conference call, register before the call using the link below. Upon registration you will receive a dial-in number and a unique personal PIN code. To ensure that the connection to the conference call is working, please call ten minutes before the conference call is due to start.
Registration:
https://register.vevent.com/register/BI70c53170f6b64f389eaac3fc06b6b0eb
The quarterly earnings report and related presentation will be available on ambea.com/investor-relations/reports/reports-and-presentations
This disclosure contains information that Ambea is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 06-11-2024 07:00 CET.