In This Article:
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Revenue: Net sales increased to SEK4.4 billion, up 8% year-over-year.
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Organic Growth: 8% organic growth in the first quarter, excluding foreign exchange effects.
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EBITA: Increased by SEK51 million to SEK292 million.
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Lease Adjusted EBITDA: Increased from SEK116 million to SEK161 million.
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Occupancy Rate: Group occupancy at the end of the first quarter was 86%.
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Free Cash Flow: SEK736 million on a rolling 12-month basis.
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Net Debt to EBITDA: Reduced to 1.2% from 3.6% last year.
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Adjusted EPS: Improved due to better lease adjusted EBITDA, with a target of SEK4 per share in 2024.
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Team Olivia Acquisition: Acquired for SEK950 million, expected to positively impact from Q2 onwards.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Attendo AB (LTS:0RCY) reported an 8% organic growth and a 39% increase in EBITA year over year, driven by improvements in Finland.
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The acquisition of Team Olivia's care business in Sweden is expected to strengthen Attendo's position in disabled care and individual and family care segments.
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The company has significantly strengthened its financial position, reducing net debt to EBITDA, allowing for active capital allocation and selective M&A.
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Attendo has implemented new evidence-based methods to measure and improve the quality of life for nursing home residents, showing positive initial results.
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The company has set a target to achieve at least SEK5.50 earnings per share by 2026, indicating confidence in future growth and profitability.
Negative Points
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Sales in Q1 were lower than anticipated, impacting staffing efficiency and personnel costs.
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The overall result was negatively affected by losses in Denmark and ended outsourcing contracts.
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Occupancy rates remained flat, with a target to increase by only two to three percentage points in 2024.
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Scandinavia experienced margin pressure due to a sharp drop in occupancy during the pandemic and issues in Denmark.
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Higher salary increases in Finland are expected to impact Q2 and Q3 earnings negatively.
Q & A Highlights
Q: Can you provide an indication of the price increases in Q1 year over year in Scandinavia and Finland? A: The price increase was approximately 4% in both business areas.
Q: How much sequential underlying improvement can we expect in earnings in Scandinavia in Q2 versus Q1 before adding Team Olivia? A: We expect it to be slightly better than Q1 underlying.
Q: How are you able to improve margins sequentially in Finland despite unchanged occupancy, considering the early Easter holidays in Q1? A: There was a slight negative impact from the seasonality of Easter, but the sequential improvements in profitability are primarily related to the Q1 price increase compared to last year.