Comments from Martin Tivéus , Attendo president and CEO
"We saw strong sales in care for older people in Scandinavia during the quarter. Occupancy in Scandinavia is continuing to rise and combined with higher prices in
Long-term, considerably higher prices within Finnish care for older people will be required to compensate for costs linked to the new law on care and services for older people and the steep rise in labour costs in recent years. We will be renegotiating all agreements on care for older people in
Group: High organic growth
We are reporting organic growth of 7 percent in the second quarter, driven mainly by higher customer inflow in Scandinavia and price adjustments in
Scandinavia: Continued strong customer inflow, underlying profit in line with last year
We have opened numerous new and modern nursing homes in
Sales in Attendo Scandinavia increased by about 10 percent compared to the same quarter in 2021. Underlying EBITA was in line with the previous year, while reported lease adjusted EBITA increased by
Finland: Challenges in the Finnish labour market are impacting the occupancy trend and profit
We achieved growth of 8 percent in local currency during the quarter, but financial performance was clearly disappointing. Continued high personnel costs due to imbalances in the labour market and rigid regulatory requirements, high sick leave during the quarter and large increases in the costs for consumables have clearly pressured operating profit, which decreased by
We have, however, received positive long-term indications during the quarter. Our key focus areas in
We finalised negotiations during the quarter of about 20 percent of all contracts ahead of 2023 when the final phase of the nursing home staffing law will be implemented and the staff requirement will increase from the current 0.6 care workers per resident to 0.7. On average, the renegotiated contracts entail price increases of about 30 percent, a level we assess is sufficient to achieve sustainable terms in
The care industry has worked intensively to get politicians and the public to understand the consequences of the new staffing law and the strained situation in the Finnish labour market for care workers. We are now seeing rising awareness, and government agencies and politicians at the national level are working to find solutions to ensure better conditions for care providers to perform their services. The supervisory authorities (AVI/Valvira) have updated their guidelines regarding the share of care staff in nursing homes permitted to be care assistants. This gives us greater flexibility when recruiting staff and it will make it easier to meet the staffing requirements. It also means that the step up to 0.7 in
Timing for meeting the profit target of SEK 4 per share
In the beginning of 2021, Attendo set a goal to reach an adjusted earnings per share of 4 SEK for the full year 2023. As previously mentioned, the challenging situation in Finland affects the timing for meeting this target. Given the good progress regarding price negotiations in Finland, regulatory relief and a positive occupancy trend in Scandinavia, we still expect to reach a profit level of 4 SEK per share, while the timing is likely to be delayed somewhat.
Focus on well-being and quality of life
Our ambition within
Summary of the second quarter 2022- Net sales amounted to
SEK 3,546m (3,207). Organic growth was 6.7 percent. -
Lease adjusted EBITA (EBITA according to the previous accounting standard) was
SEK -11m (53), corresponding to a lease adjusted operating margin of -0.3 percent (1.7). -
Operating profit (EBITA) amounted to
SEK 106m (162), corresponding to an operating margin of 3.0 percent (5.1). -
The loss for the period amounted to
SEK -63m (-19). Diluted earnings per share were SEK -0.39
(-0.12). Adjusted earnings per share after dilution were SEK -0.14 (0.19). -
Free cash flow amounted to
SEK 134m (72). -
There were 21,062 (20,858) beds in
Attendo's nursing homes at the end of the period. Occupancy in the homes was 84 percent (83).
Summary of the period January - June 2022 - Net sales amounted to
SEK 7,028m (6,269). Organic growth was 7.4 percent. -
Lease adjusted EBITA (EBITA according to the previous accounting standard) was
SEK 20m (128), corresponding to a lease adjusted operating margin of 0.3 percent (2.0). -
Operating profit (EBITA) amounted to
SEK 248m (345), corresponding to an operating margin of 3.5 percent (5.5). -
The loss for the period amounted to
SEK -95m (-28). Diluted earnings per share were SEK -0.59
(-0.18). Adjusted earnings per share after dilution were SEK -0.06 (0.45). -
Free cash flow amounted to
SEK 191m (210).
Invitation to presentation
(-0.12). Adjusted earnings per share after dilution were SEK -0.14 (0.19).
- Net sales amounted to
SEK 7,028m (6,269). Organic growth was 7.4 percent. -
Lease adjusted EBITA (EBITA according to the previous accounting standard) was
SEK 20m (128), corresponding to a lease adjusted operating margin of 0.3 percent (2.0). -
Operating profit (EBITA) amounted to
SEK 248m (345), corresponding to an operating margin of 3.5 percent (5.5). -
The loss for the period amounted to
SEK -95m (-28). Diluted earnings per share wereSEK -0.59
(-0.18). Adjusted earnings per share after dilution wereSEK -0.06 (0.45). -
Free cash flow amounted to
SEK 191m (210).
Invitation to presentation
In connection with the release of the report, a webcast presentation will be held at
You can follow the presentation on the following page:
https://tv.streamfabriken.com/attendo-q2-2022
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/
For further information, please contact:
Phone: +46 705 09 77 61 I email: andreas.koch@attendo.com
Stefan Svanström, Head of Community Communications Attendo
Phone: +46 708 67 38 07 I email:stefan.svanstrom@attendo.com
This is information that
attendo.com
https://news.cision.com/attendo/r/attendo-second-quarter-report-2022--strong-growth-and-improved-market-conditions--but-weak-result,c3603703
https://mb.cision.com/Main/13398/3603703/1606284.pdf
https://mb.cision.com/Public/13398/3603703/810aade70fae19d7.pdf
https://mb.cision.com/Public/13398/3603703/868d3fb392c336f9.pdf
(c) 2022 Cision. All rights reserved., source