Careium (CARE) investor relations material

Executive summary

• Net sales grew 5.9% year-over-year to SEK 219.6m, with organic sales up 10.9% adjusted for currency, reflecting growth in all markets.

• Product sales rose 18.1% to SEK 55.6m, and service sales increased to SEK 163.9m, with service sales up 2.3% year-over-year.

• Profit for the period increased to SEK 8.4m, with EPS at SEK 0.31.

• Operating profit (EBIT) declined to SEK 12.5m due to investments in product development, business integration, and onboarding a major Norwegian customer.

• Recurring revenues and long-term contracts provide stability and a solid foundation for future growth.

Financial highlights

• EBITDA decreased 10.4% to SEK 30.1m, with an EBITDA margin of 13.7%.

• EBIT fell 25.1% to SEK 12.5m, with an EBIT margin of 5.7%.

• Gross margin was 43.2%, slightly down from 44.5% year-over-year.

• Free cash flow was negative at SEK -14.0m, impacted by working capital normalization.

• Cash and cash equivalents increased to SEK 37.9m, while net debt decreased to SEK 169.9m.

Outlook and guidance

• Margin pressure from ongoing investments and onboarding of a large customer in Norway expected to continue into Q2.

• Continued benefit anticipated from the transition to digital infrastructure in the UK.

• Focus remains on structural improvement initiatives and onboarding of new CEO.

• Demographic trends and technology transformation in care sector support long-term growth prospects.

• No financial guidance provided.