The Fourth Quarter in Summary
- Net sales increased 14.8 percent to SEK 228.9 million (199.4)
- Service sales was SEK 165.9 million (154.1)
- Product sales was SEK 63.0 million (45.3)
- Gross margin increased to 44.4 percent (40.2)
- Operating profit (EBIT) increased 59.3 percent to SEK 26.5 million (16.7), corresponding to an operating margin of 11.6 percent (8.4)
- Net result increased 204.9 percent to SEK 22.5 million (7.4) and earnings per share 226.3 percent to SEK 0.89 (0.27)
- Free cash flow was SEK 16.6 million (35.8)
- Cash position was SEK 31.9 million (31.5) at the end of the year
- Renewed multi-year contract with Oslo municipality with an annual value of SEK 50 million (previously SEK 33 million)
- The Board of Directors will propose to the AGM that no dividend will be paid for 2024
January-December in Summary
- Net sales increased 5.6 percent to SEK 870.7 million (824.6)
- Service sales was SEK 648.4 million (614.8)
- Product sales was SEK 222.3 million (209.8)
- Gross margin increased to 42.9 percent (41.3)
- Operating profit (EBIT) increased 41.5 percent to SEK 84 million (59.4), corresponding to an operating margin of 9.7 percent (7.2)
- Net result increased 50.8 percent to SEK 61.6 million (40.8) and earnings per share 54.1 percent to SEK 2.40 (1.56)
- Free cash flow was SEK 36.9 million (61.9)
CEO's commentary
Careium delivered a positive fourth quarter and returned to growth with strong profitability.
Net sales in the quarter grew 14.8 percent to SEK 228.9 million (199.4), EBITDA grew 23.3 percent to SEK 43.8 million (35.5) and EBIT grew 59.3 percent to SEK 26.5 million (16.7). Following increased working capital, the free cash flow amounted to SEK 16.6 million (35.8). The Nordic region was impacted by delays in replacing 2G/3G, whereas we grew fast in our other markets.
For the full year, Careium attained net sales of SEK 870.7 (824.6), a growth of 5.6 percent despite delays of infrastructure upgrades. We also achieved an improvement in profitability with EBITDA up to SEK 150.5 million (138.0) and EBIT up to SEK 84.0 million (59.4), an increase of 9.1 and 41.5 percent, respectively.
In 2024, Careium evolved significantly with a strengthened offering, the launch of the i-Care Centre platform for alarm management, and the recruitment of top talent to shape the future of the technology enabled care industry. Further, we have improved processes with higher levels of integration among our markets.
I'm particularly proud of how the leadership team - across group functions and market units - has worked together to deliver during the year, despite market headwinds, and set a great foundation for 2025.
For 2025, Careium looks forward to launching new innovations across both hardware and software to enable customers and end-users to enjoy the benefits of a strengthened Careium ecosystem - open, transparent and senior-centric. In 2025 we will also focus on developing our assisted living offering as well as our business directly to consumers.
While Careium will start out from humble beginnings volume-wise, assisted living comprises of 30 percent of the technology enabled care market in Europe. We have already installed our technology offering at five pilot sites and will gradually evaluate opportunities to participate in tenders for more locations.
In our offering directly to consumers, we service approximately 20,000 individuals in the UK and Netherlands. We have added talent, developed systems and fine-tuned our processes to strengthen this business.
The technology enabled care industry is fragmented in Europe with multiple smaller entrants struggling and few entities actively driving consolidation. With an excellent market position and strong financials, Careium will pursue organic growth and continuously evaluate opportunities for acquisitions.
I would like to sincerely thank everyone in our care for trusting us, our engaged colleagues across our business, our customers and partners that make us better every day and our shareholders for believing in us.
For 2025, we expect net sales, profitability and free cash flow before acquisitions to increase compared to 2024. Due to the Swedish market awaiting a new major tender framework, we expect the first half of the year to be softer and the second half of the year to be stronger.
Careium is in its strongest position yet. I am confident that we will drive the development of technology enabled care in Europe.
Christian Walén
President and CEO
Webcast
A live broadcast report presentation will be held Thursday 13 February at 1 pm with President and CEO Christian Walén and CFO David Granath.
The webcast is accessed on: https://youtube.com/live/tmjz9KQvkCw?feature=share
The presentation material will be available on: https://www.careium.com/en-gb/investors/financial-information/presentations/
For more information, please contact:
Christian Walén, President and CEO, +46 (0) 739 09 59 65
David Granath, CFO, +46 (0) 73 363 89 01
E-mail: ir@careium.com
Careium is today one of the leading players in technology-enabled care in Sweden, Norway, the United Kingdom and the Netherlands. This position means that Careium is one of the leading players in Europe that provides technology-enabled care. Careium's innovative solutions improve the safety, quality of life and independence of seniors both inside and outside the home. For the care provider, the Company's solutions mean increased efficiency and the opportunity to invest resources in more valuable activities. Careium is one of the few players that can offer the entire chain with security alarms, sensors (fall sensors, smoke detectors, motion detectors, etc.), accessories (cameras, electronic locks, robotic medication assistive devices, etc.) and secure communication with alarm response: we offer a complete digital alarm chain. FNCA Sweden AB is appointed certified adviser.
This information is information that Careium 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 2025-02-13 08:00 CET.
