Ambea’s year-end report 2023
Clear earnings improvement creating future opportunities.
CEO comment:
We ended the year on a strong note and our large divisions, Vardaga, Nytida and Stendi, posted favourable earnings for the fourth quarter. The strong trend for Stendi continued and the division’s occupancy surpassed our expectations, which had a positive impact on earnings. Stendi’s EBITA increased to SEK 70 million (SEK 24 million). Vardaga’s earnings strengthened, driven by increased occupancy and operational improvements. During the period, Nytida opened two new residential facilities under own management with a total of 15 places.
The fact that we delivered a strong financial performance while also receiving high ratings in the quarter’s care receiver surveys is particularly gratifying. In the National Board of Health and Welfare’s Unit Survey, both Vardaga and Nytida scored well above the average for both private and public providers. We are also proud that our employer brand has been strengthened by more of our employees being likely to recommend Ambea as an employer to a friend or acquaintance.
Organic growth and margin improvement
In the fourth quarter, net sales rose 6 per cent to SEK 3,412 million (3,225). Organic growth was 7 per cent. EBITA increased to SEK 286 million (170), corresponding to a margin of 8.4 per cent (5.3).
Share buyback
Free cash flow totalled SEK 592 million (402). Due to the company’s strong financial position and reduced indebtedness, the Board decided to implement a share buyback. The programme comprises a maximum of 3 million shares. The conditions surrounding the buyback have been communicated separately. The dividend proposal for 2024 is SEK 1.50 per share (SEK 1.25 in 2023), in line with the Group’s dividend policy.
Fourth quarter October–December
- Net sales rose 6 per cent to SEK 3,412 million (3,225).Organic growth was 7 per cent and acquired/divested growth was -1 per cent.
- Operating profit (EBIT) totalled SEK 264 million (140).
- EBITA was SEK 286 million (170), representing a margin of 8.4 per cent (5.3).
- Profit for the period totalled SEK 133 million (22).
- Earnings per share were SEK 1.48 (0.24) before and after dilution.
- Cash conversion was 125.7 per cent (121.3).
- Free cash flow totalled SEK 592 million (402).
Full-year January–December
- Net sales rose 5 per cent to SEK 13,312 million (12,635).
Organic growth was 6 per cent and acquired/divested growth was -1 per cent. - Operating profit (EBIT) totalled SEK 981 million (843).
- EBITA was SEK 1,076 million (954), representing a margin of 8.1 per cent (7.6).
- Profit for the period totalled SEK 455 million (366).
- Earnings per share were SEK 5.07 (3.89) before and after dilution.
- Cash conversion was 94.9 per cent (95.6).
- Free cash flow totalled SEK 1,631 million (1,451).
- The Board proposes a dividend of SEK 1.50 (1.25) per share for 2023
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/72p94oom
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 dial in ten minutes before the start time of the conference call.
Telephone conference registration:
https://register.vevent.com/register/BI503887ba91644da99b0188468b86d56b
The quarterly earnings report and associated presentation will be available on www.ambea.com
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 08-02-2024 07:00 CET.
