Attendo reports a strong finish to the year 2024, both operationally and financially. Both sales and profit increased significantly in Finland, driven by price changes and increased operational efficiency, mainly related to staffing. We also improved the result slightly in Scandinavia, mainly as a result of the acquisition of Team Olivia, which was fully integrated into the business during the quarter. Lease-adjusted earnings amounted to SEK 4.08 per share, above the target of SEK 4 per share set in 2021.
Statement from Martin Tivéus, Attendo president and CEO
"2024 was an important year for Attendo, both operationally and financially. Our mission is to create value for customers, relatives and payors through good, person-centered care. By delivering on our strategy, we strengthened our position as a leading care provider in both the Swedish and Finnish markets. The strategically important acquisition of Team Olivia Omsorg provided further economies of scale, strengthened our market position and developed our capabilities in complex care needs. It is also pleasing to see that we ended the year with our best ever results in national customer satisfaction surveys in both Finland (Institute of Health and Welfare) and Sweden (National Board of Health and Welfare). Satisfied customers combined with committed employees are a prerequisite for Attendo's continued success.
A strong fourth quarter
We ended the year with a strong fourth quarter and showed solid growth in both sales and earnings. Sales increased by 10 percent to SEK 4.9 billion, mainly driven by the acquisition of Team Olivia and increased sales in Finland. Adjusted for non-recurring items, the underlying lease adjusted operating profit (EBITA) also increased in the quarter by approximately SEK 120 million to SEK 254m (136), mainly due to improved conditions and higher staffing efficiency in Finland and the acquisition in Scandinavia. Cash flow remained strong and enabled the repurchase of own shares of SEK 124.5m during the period.
Still, we had spare capacity in both our markets during the fourth quarter and a lower-than-expected occupancy rate, mainly due to seasonal effects and continued strained public finances. With a stronger focus on sales, reduced staffing requirements in Finland and improved operational efficiency, we believe we have good opportunities to strengthen occupancy in 2025.
Continued positive performance in our Finnish operations
Profit in the Finnish operations increased by 89 percent to SEK 185 million (98), mainly driven by a positive price development and improved operational efficiency. As we concluded a large part of the contract negotiations for the January reform with reduced staffing requirements during the fourth quarter, we have a good view of the price and cost situation as we enter 2025. We expect continued stability in price development and continued positive results from our improved operational efficiency.
Team Olivia fully integrated into the Scandinavian operations
Profit in the Scandinavian operations increased by 12 percent to SEK 69 million (61), adjusted for non-recurring items. The improvement in profit is mainly due to the acquisition of Team Olivia. However, the margin declined, partly because earnings continued to be negatively affected by ended outsourcing contracts, and partly because of a negative calendar effect (mainly linked to the Christmas holidays) year over year. The integration of Team Olivia, completed in the fourth quarter, has taken more focus than expected from daily operations. Although we are not fully satisfied with the result in the fourth quarter, we have achieved a lot structurally over the year. With the integration completed, a stronger organization in place and new offerings, we have good opportunities to improve profitability during 2025.
External surveys in the autumn show very good results from new customers in the acquired business, proof that we have acquired a high-quality company. In connection with the integration, we launched two new brands - "Viljan" for our merged operations in Individual and Family Care (IOF) and "Unika" for our operations in disabled care (LSS). Our ambition is to become a leading provider of highly specialized care in these segments. Our size and broad skills base allow us to invest in specialist skills and training, something that individual municipalities or smaller operators find difficult to do at a reasonable cost. This puts us in a unique position to meet society's growing needs in highly specialized care.
Focus on quality and efficiency key for the future
We have continuously demonstrated that Attendo creates benefits for people in need of care, society and shareholders. Our focus on quality, customer care and efficiency continued to generate good results in 2024. More customers and good quality are what enable continued growth and improved profitability for the group.
With a strong finish to 2024, we reached our financial target of adjusted earnings per share of SEK 4 for the full year and see this as a milestone towards our long-term target of adjusted earnings per share of at least SEK 5.50 for 2026. Our strategic progress in 2024 is very important for both the future of the company and the value creation for all Attendo's stakeholders. I would like to conclude by extending my warmest thanks to Attendo's customers for their trust and to our employees for a very successful year."
Summary of the fourth quarter 2024
- Net sales amounted to SEK 4,878m (4,422). Total growth amounted to 10.3 percent, of which organic growth was 2.2 percent.
- Lease adjusted operating profit (EBITA) excluding integration and close down costs of SEK 29m amounted to SEK 254m (136) corresponding to a margin of 5.2 percent. Profit including integration and close down costs amounted to SEK 225m (136), corresponding to a margin of 4.6 percent (3.1).
- Operating profit (EBITA) amounted to SEK 394m (275), corresponding to an operating margin of 8.1 percent (6.2).
- Profit for the period amounted to SEK 108m (58). Diluted earnings per share were SEK 0.70 (0.36). Adjusted earnings per share after dilution amounted to SEK 0.97 (0.54).
- Free cash flow amounted to SEK 422m (404).
- The number of beds in Attendo's homes at the end of the period was 21,159 (20,575). Occupancy in homes was 85 percent (86).
Summary of the period January - September 2024
- Net sales amounted to SEK 18,980m (17,287). Total growth amounted to 9.8 percent, of which organic growth was 3.7 percent.
- Lease adjusted operating profit (EBITA) excluding integration and close down costs amounted to SEK 1,024m (745), corresponding to a margin of 5,4 percent (4,3). Profit including integration and close down cost was SEK 951m (745), corresponding to an operating margin of 5.0 percent (4.3).
- Operating profit (EBITA) amounted to SEK 1,520m (1,333), corresponding to an operating margin of 8.0 percent (7.7).
- The profit for the period amounted to SEK 450m (376). Diluted earnings per share were SEK 2.85 (2.33). Adjusted earnings per share after dilution were SEK 4.08 (3.02).
- Free cash flow amounted to SEK 732m (724).
- Board proposes a dividend of SEK 1.20 (1.00) per share for the financial year 2024, equivalent to about 30 percent of the adjusted profit for the year in line with Attendo's dividend policy.
Invitation to presentation
In connection with the release of the report, a webcast presentation will be held at 10.00 am (CET), hosted by Attendo CEO Martin Tivéus and CFO Mikael Malmgren.
You can follow the presentation on the following page:
https://attendo.events.inderes.com/q4-report-2024
Analysts and investors will have the opportunity to ask questions during the presentation by calling in. To obtain call-in details, please send your request to: kommunikation@attendo.se.
The quarterly report and other information material will be made public on:
https://www.attendo.com/
Attendo AB (publ)
For further information, please contact:
Mikael Malmgren, Chief Financial Officer
Phone: +46 8 586 252 00 I email: mikael.malmgren@attendo.com
Stefan Svanström, Head of Community Communications
Phone: +46 708 67 38 07 I email: stefan.svanstrom@attendo.com
This is information that Attendo AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above at 08.00 CET on 6 February 2025.
attendo.com
Attendo - the leading care company in the Nordics| For over 40 years, seeing, supporting and strengthening people with care needs has been the starting point of everything Attendo does. In addition to care for older people, Attendo provides care for people with disabilities and social care for individuals and families. Attendo has around 33,000 employees and is locally anchored with almost 800 units in Finland, Sweden and Denmark. Every day Attendo has tens of thousands of encounters with its customers. In all these encounters, our employees manifest Attendo's shared values of care, commitment and competence.
