AMBEA AB January-June 2023
Interim report
Ambea AB (publ) Corp. Reg. No. 556468-4354
Introduction
Implemented measures are strengthening margin and creating conditions for growth
Reporting |
Consolidated key figures
2023 | 2022 | 2023 | 2022 | 2022 | ||||
SEK million | Apr-Jun | Apr-Jun | ∆% | Jan-Jun | Jan-Jun | ∆% | RTM | Jan-Dec |
Net sales | 3,310 | 3,143 | 5 | 6,546 | 6,223 | 5 | 12,958 | 12,635 |
EBITA* | 191 | 229 | -17 | 407 | 424 | -4 | 937 | 954 |
Operating margin, EBITA (%)* | 5.8 | 7.3 | 6.2 | 6.8 | 7.2 | 7.6 | ||
Adjusted EBITA* | 191 | 229 | -17 | 407 | 424 | -4 | 937 | 954 |
Operating margin, adjusted EBITA (%)* | 5.8 | 7.3 | 6.2 | 6.8 | 7.2 | 7.6 | ||
Operating profit/loss, EBIT | 167 | 202 | -17 | 357 | 370 | -4 | 830 | 843 |
Second quarter April-June
- Net sales rose 5 per cent to SEK 3,310 million (3,143). Organic growth was 6 per cent and exchange rate effects had a negative impact of 1 per cent on growth.
- Operating profit (EBIT) totalled SEK 167 million (202).
- EBITA was impacted by two non-recurring items of SEK -16 million net. The comparative period was positively impacted by three non-recurring items totalling SEK 70 million. Excluding non-recurring items, EBITA rose SEK 48 million.
- EBITA was SEK 191 million (229), representing a margin of 5.8 per cent (7.3).
- Profit for the period totalled SEK 46 million (86).
- Earnings per share were SEK 0.51 (0.91) before and after dilution.
- Cash conversion was 103.1 per cent (139.3).
- Free cash flow totalled SEK 369 million (603).
First six months January-June
- Net sales rose 5 per cent to SEK 6,546 million (6,223). Organic growth was 5 per cent.
- Operating profit (EBIT) totalled SEK 357 million (370).
- EBITA was impacted by two non-recurring items of SEK -16 million net. The comparative period was positively impacted by three non-recurring items totalling SEK 70 million. Excluding non-recurring items, EBITA rose SEK 69 million.
- EBITA was SEK 407 million (424), representing a margin of 6.2 per cent (6.8).
- Profit for the period totalled SEK 116 million (152).
- Earnings per share were SEK 1.29 (1.61) before
- and after dilution.
- Cash conversion was 87.8 per cent (109.9).
- Free cash flow totalled SEK 612 million (797).
Operating margin, EBIT (%)* | 5.0 | 6.4 | 5.5 | 5.9 | 6.4 | 6.7 | ||
Profit/loss after tax | 46 | 86 | -47 | 116 | 152 | -24 | 330 | 366 |
Earnings/loss per share before dilution, SEK | 0.51 | 0.91 | -44 | 1.29 | 1.61 | -20 | 3.59 | 3.89 |
Earnings/loss per share after dilution, SEK | 0.51 | 0.91 | -44 | 1.29 | 1.61 | -20 | 3.59 | 3.89 |
Cash conversion (%)* | 103.1 | 139.3 | 87.8 | 109.9 | 85.3 | 95.6 | ||
Free cash flow* | 369 | 603 | -39 | 612 | 797 | -23 | 1,266 | 1,451 |
*Alternative performance measure. For reconciliation of financial statements to IFRS, see Note 6. For purpose and definition, see ambea.com/investor-relations/reports-and-presentations/
Contents
Significant events
- In connection with the handback of rental contracts in Vardaga, an impairment loss of SEK 36 million was recognised for right-of-use assets.
- Revaluation of the earn-out related to the acquisition of SkolPool had a positive earnings effect of SEK 20 million.
Ambea AB (publ) Corp. Reg. No. 556468-4354
Stendi | 13 | ||
Altiden | 14 | ||
Reporting | 8 | Klara and Lära | 15 |
Group | 8 | Group financial statements | 18 |
Nytida | 11 | Parent Company financial statements | 22 |
Vardaga | 12 | Notes | 24 |
Ambea's quarterly report is designed for accessibility
Interim report Q2 2023 | 2
Reporting |
CEO statement: Implemented measures are strengt hening margin and creating conditions for growth
All divisions showed underlying margin improvements in the second quarter. Nytida and Stendi in
particular increased their profitability by meeting the increase in demand while also completing operational improvements. Our organic growth further continued during the period and all divisions opened new care homes.
Occupancy increased in Vardaga and a new major management contract for home care also started in Lin köping. In Denmark and Altiden, we opened our second nursing home under own management, Fribo Greve, which is now welcoming new care receivers.
Ambea's net sales rose 5 per cent to SEK 3,310 million. Excluding non-recurring items, EBITA rose just over 30 per cent quarter-on-quarter. Overall, EBITA amounted to SEK 191 million. The second quarter has many public holidays, which has a negative seasonal effect on our profitability. Nevertheless, we posted favourable earnings and were able to provide more people with secure and sustainable care, which I consider a sign of strength.
Operational improvements
New salary negotiations and the indexation mechanisms of our revenue contracts are now close to completion in all countries, which will create clarity ahead. We have worked intensively to increase occupancy and implement operational improvements to protect our margin in a time of high cost inflation and lagging revenue contract
indexation. This is an important and continuous process that will enable us to invest and continue developing our business operations in order to create value for all of our stakeholders.
Continued positive trend expected
The measures we implemented in Stendi during the first half of 2022 have yielded results. We see continued potential to implement further operational improvements and increase occupancy in our Norwegian operation. In Altiden, the transition is continuing. We are simplifying the structure, creating more efficient operations and reducing administration costs. We are expecting to see clear profitability improvements in Altiden in the second half of 2023 and into 2024. To strengthen Vardaga's margin moving forward, we handed back three rental contracts to property owners during the quarter.
Successful bids are generating additional sales
While new residential facilities under own management and increased occupancy are contributing to our organic growth, successful bids are also a key factor. The recipe is high-quality and clear concepts that are also cost-effi- cient, which leads to our success when it comes to maintaining and winning new public procurement contracts. Over the next 12 months, the net effect will amount to SEK 279 million in additional annual sales, excluding elderly care in Norway.
All divisions showed underlying margin improvements during the quarter.
More accessible quarterly report
During the quarter, Ambea launched a new website with in-depth and clearer information for investors and other stakeholders. We are now taking the next step by impro ving the web accessibility of our quarterly report to make reading easier. It should be easy to find relevant and transparent information about Ambea and I hope you will appreciate the format and contents of the report.
Finally, I would like to thank the entire organisation for all of your invaluable work for our care receivers, which is leading to more placements with us, high-quality care and strong earnings during the quarter.
Mark Jensen
President and CEO Ambea
Ambea AB (publ) Corp. Reg. No. 556468-4354 | Interim report Q2 2023 | 3 |
Quality and sustainability
Quality and sustainability that create quality of life
Reporting |
Our mission is to create enough safe and sustainable care for everyone. To achieve this, we have established a robust quality management system that permeates all areas of our operations. Our approach to quality management is based on our vision, our values and the skills of our employees. We also have clear systems and procedures to support this approach. The aim is that it should be easy for employees to do the right thing, and to spend their time on the right things - care that crea tes quality of life and value. We use a quality index to monitor our units on a monthly basis. The index consists of eight selected quality and HR metrics that give us the status of the unit, and enable us to monitor our units systematically.
Social sustainability is engrained in our DNA. In this area, we are focused on quality, leadership, health and safety, diversity and inclusion, and on spreading
knowledge and developing the competence of our own and the sector's employees.
GOur operations are characterised by robust control, transparency and trust, based on compliance with
internal and external regulations and procedures. We participate in public debate with our knowledge and use our size to influence society and our sector.
By working actively with quality and sustainability, we are contributing to social development and helping to future-proof care.
Sustainable care
In the area of sustainability, we work with Environmental, Social and Governance (ESG) factors, an established framework in the business world that encompasses all sustainability issues.
EWe are working actively to achieve climate-smart care. This means that we are working to reduce the
carbon footprint of our food, consumables, premises and transportation. We have adopted an ambitious target to halve our emissions by 2025, compared with 2019. We have reduced our emissions by 31 per cent* since 2019.
We have adopted an ambitious target to halve our emissions by 2025, compared with 2019.
*Tonnes of CO₂e per unit of revenue, excluding employee commuting.
Ambea AB (publ) Corp. Reg. No. 556468-4354
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Reporting |
Full focus on leadership
During the quarter, we followed up the performance of our managers in a Leadership Review, which forms the basis for continued development and learning.
Leadership Index score, 78 out of 100
To ensure that the style of leadership that Ambea strives for is in place, we ask all employees questions about their line manager twice per year. The
We believe in diversity and inclusion
May was European Diversity Month and we increased our focus on the importance of diversity and inclusion. Ambea wants to contribute to a more open job market and we are constantly working to ensure that our workplaces are inclusive for all employees. For example, we are running a number of projects to offer work experience, training and job opportunities for newly arrived residents. To continue learning and contribute to the continued development
Managers and leaders play a key role in Ambea and we have leadership programmes for our managers. These programmes give the participants a platform for leadership based on our values and strategies, and tools for engaging in active and values-based leadership.
To enable continued development for our unit man- agers, we monitor their performance in a Leadership Review - an annual process that focuses on learning
and development.
"We want to ensure that we are providing our managers with the right support and tools to succeed in their current or future assignments, and to develop in the Group. We use performance and potential to identify and analyse what they need for their continued develop- ment," says Christian Horne, Head of Human Resources and Communications at Ambea.
questions are related to their manag- er's commitment, ability to provide support and coaching, and ability to structure work processes. The target is a score of 80 out of 100. The total Leadership Index score for the quarter was 78.
of these issues, we are a member of Diversity Charter Sweden, a network where members work actively with diversity and an inclusive approach in their organisations. During Diversity Month, we also announced that our Nytida division had become an official supporter of Stockholm Pride, the largest Pride Festival in the Nordic region.
Ambea AB (publ) Corp. Reg. No. 556468-4354
Interim report Q2 2023 | 5
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Ambea AB published this content on 17 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2023 05:17:09 UTC.
