Release Date: July 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Attendo AB (LTS:0RCY, Financial) reported a 26% increase in lease adjusted EBITDA, reaching SEK205 million, driven by operational improvements in Finland and increased sales of beds.
- Customer satisfaction reached an all-time high with a cNPS of 49, up from 45 in the previous year, indicating successful efforts to improve resident care.
- The company opened new care homes in Finland, Sweden, and Denmark, adding over 400 new beds in the past 12 months, supporting sustainable growth.
- Attendo AB (LTS:0RCY) achieved a 25% increase in lease adjusted EPS to SEK0.85 per share, with a rolling 12-month EPS up 48% from the previous year.
- The acquisition of Framja in Sweden is expected to enhance the company's disabled care offering, contributing to EBITDA growth above the annual target.
Negative Points
- Reported net sales decreased by 3% to SEK4.7 billion, impacted by a weaker euro, ended contracts, and lower pricing in Finland's elderly care sector.
- Scandinavia's performance was negatively affected by non-recurring costs related to ended home care contracts and start-up costs for new units.
- Employee engagement, as measured by eNPS, slightly declined, particularly in Finland, due to recent staff restructuring following new staffing requirements.
- Occupancy rates were slightly down due to new openings and seasonality, with some customers leaving for summer holidays.
- The company faced a SEK20 million non-recurring negative impact from terminated home care contracts, with ongoing inefficiencies expected as contracts ramp down.
Q & A Highlights
Q: How will the ended home care contracts in Scandinavia impact performance in Q3 and H2?
A: Mikael Malmgren, Chief Financial Officer: We don't provide detailed guidance, but the impact of ended contracts will be slightly lower than last year. Martin Tiveus, Chief Executive Officer: It takes six months to exit a contract, and during this period, the business ramps down slowly.
Q: What factors contributed to the strong improvement in Finland's performance?
A: Martin Tiveus, Chief Executive Officer: The improvement is due to operational efficiencies and lower staffing requirements. We have been able to focus on operational efficiency after a period of increasing staffing requirements. Mikael Malmgren, Chief Financial Officer: Improved systems, lower personnel turnover, and AI pilots have also contributed to operational efficiency.
Q: Do you expect earnings in Scandinavia to increase year-over-year in the latter part of the year?
A: Martin Tiveus, Chief Executive Officer: We could see improvements during the second half of the year. We are working on operational efficiency and reviewing our home care operating model.
Q: Can you provide a breakdown of the yield costs incurred this quarter?
A: Mikael Malmgren, Chief Financial Officer: The yield costs are mainly related to home care exits, where we have staff employed without corresponding revenues during the exit period.
Q: What is the outlook for volume growth in Finland?
A: Martin Tiveus, Chief Executive Officer: We continue to open units and sell more beds. The demand for elderly care is strong, and queues are building up in most welfare regions. We expect future growth prospects in Finland to be very good.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
