Comments from Martin Tivéus , Attendo president and CEO
"With vaccination programmes completed in all of our markets, residents in our nursing homes have been significantly better protected than during the second wave of the pandemic and we have seen very few cases of serious illness among our customers. Short term however, the quick transmission of Omicron has led to a sharp increase in sick leave, which creates challenges in operations and clearly pressured profits in the fourth quarter. At the same time, we are pleased to see continued strong inflow of new customers to our nursing homes in
Scandinavia: Continued good customer inflow to nursing homes
During the quarter, we opened 100 new beds in own operations, and are consequently closing the year with a total of 600 new beds. During the autumn, we have seen a gradual normalisation of demand for nursing home placements and, despite openings, we managed to increase total occupancy with one percentage point to 80 percent in the quarter. There is still a long journey back to a satisfying occupancy level. Since the start of the pandemic, occupancy rate in our nursing homes has decreased significantly, driven by lower customer inflow as well as more openings. Regaining a total occupancy rate of around 90 percent is one of our key focus areas in 2022 and 2023. The way to achieve this is through customer focus, high quality of care, and a good cooperation with our payors.
Net sales in Attendo Scandinavia increased by around 7 percent to
Finland: Profits pressured by high personnel costs combined with lower public compensation
Demand for care beds in
As a consequence of the rapid transmission and national quarantine regulations, sick leave reached record high levels during the end of the quarter. In an already strained labour market, this led to increased costs for overtime and external staffing. During the same period, we have had to increase staffing as new legal requirements came into force at the turn of the year. In total, these factors affected the result negatively.
Lease adjusted EBITA amounted to
Sick leave has continued to rise in early 2022 in line with the rapid spread of Omicron. With the current record high sick leave levels, we expect a negative effect on profits of
Our main focus for Attendo Finland in 2022 is to achieve sustainable business terms and to be able to secure staff to comply with increasing staff requirements. During the fourth quarter of 2021, we renegotiated parts of our framework contracts in
Group: Good organic growth
Organic growth amounted to 5 percent, driven mainly by higher customer inflow in
Value creation and financial targets
In early 2021,
The target of
We still have significant potential to improve our methods in all segments, and possibilities for value creating acquisitions. We expect the pandemic to affect profit in 2022 but to a lesser extent than in 2021 and anticipate very limited impact in 2023. The primary risks related to the target are the price negotiations in
Summary of the fourth quarter 2021- Net sales amounted to
SEK 3,338m (3,065). Organic growth was 5.4 percent. -
Lease adjusted operating profit (EBITA), i.e. EBITA according to the previous accounting standard, amounted to
SEK 65m (87), corresponding to a lease adjusted operating margin of 2.0 percent (2.8). The effects of the pandemic are estimated to have affected profits by a net of just above SEK -40m (0). -
Operating profit (EBITA) amounted to
SEK 172m (193), corresponding to an operating margin of 5.2 percent (6.3). -
The loss for the period amounted to
SEK -8m (4). Diluted earnings per share were SEK -0.06 (0.02). Adjusted diluted earnings per share were SEK 0.21 (0.31). -
Free cash flow amounted to
SEK 153m (132). -
There were 21,093 (20,349) beds in
Attendo's homes at the end of the period. Occupancy in homes was 84 percent (81). -
High sick leave due to Omicron, and shortage of staff are expected to affect first quarter profits, primarily in Attendo Finland.
Summary of the January-December period 2021- Net sales amounted to
SEK 12,867m (12,288). Organic growth was 4.4 percent. -
Lease adjusted operating profit (EBITA), i.e. EBITA according to the previous accounting standard, amounted to
SEK 400m (375), corresponding to a lease adjusted operating margin of 3.1 percent (3.1). The effects of the pandemic are estimated to have affected profits by a net of about SEK -80m (-120). In comparison with 2020, profit in 2021 is negatively affected by SEK 96 million regarding non-recurring effects (excluding pandemic effects). -
Operating profit (EBITA) amounted to
SEK 836m (797), corresponding to an operating margin of 6.5 per-cent (6.5). -
Profit for the period amounted to
SEK 59m (-904). Diluted earnings per share were SEK 0.35 (-5.63). Adjusted diluted earnings per share were SEK 1.48 (1.43). -
Free cash flow amounted to
SEK 249m (428). -
The Board of directors is proposing no dividend for the 2021 financial year.
Invitation to teleconference
- Net sales amounted to
SEK 12,867m (12,288). Organic growth was 4.4 percent. -
Lease adjusted operating profit (EBITA), i.e. EBITA according to the previous accounting standard, amounted to
SEK 400m (375), corresponding to a lease adjusted operating margin of 3.1 percent (3.1). The effects of the pandemic are estimated to have affected profits by a net of aboutSEK -80m (-120). In comparison with 2020, profit in 2021 is negatively affected bySEK 96 million regarding non-recurring effects (excluding pandemic effects). -
Operating profit (EBITA) amounted to
SEK 836m (797), corresponding to an operating margin of 6.5 per-cent (6.5). -
Profit for the period amounted to
SEK 59m (-904). Diluted earnings per share wereSEK 0.35 (-5.63). Adjusted diluted earnings per share wereSEK 1.48 (1.43). -
Free cash flow amounted to
SEK 249m (428). - The Board of directors is proposing no dividend for the 2021 financial year.
Invitation to teleconference
In connection with the release of the report, a teleconference will be held at
SE: +46 8 505 583 74
FI: +358 981 710 520
You can follow the presentation and the conference on the following page:
https://tv.streamfabriken.com/attendo-q4-2021
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-year-end-and-q4-report-2021--increased-occupancy-in-challenging-period,c3502312
https://mb.cision.com/Main/13398/3502312/1532442.pdf
https://mb.cision.com/Public/13398/3502312/a5f8bd5d0a9dd636.pdf
https://mb.cision.com/Public/13398/3502312/a200f7bf82cfaa6e.pdf
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