Attendo (ATT) Q3 2024 earnings summary

Executive summary

• Q3 results showed continued financial and operational improvements, with net sales exceeding SEK 18 billion on a rolling 12-month basis and significant profitability recovery over recent years.

• Profit growth was driven by the Team Olivia acquisition and improved summer staffing in Finland, with customer satisfaction outpacing public sector and industry averages in Sweden and Finland.

• The company serves nearly 30,000 people daily with over 34,000 employees across 800 care units, and has diversified into elderly, disabled, individual, family, and social psychiatry care.

• Expanded market position with new brands in Scandinavia and continued focus on scalable, asset-light growth.

• Strategic acquisition of Team Olivia expanded competence and footprint in complex care segments, supporting long-term value creation.

Financial highlights

• Q3 net sales reached SEK 4.9 billion, up 9% year-over-year, with organic growth of 2.2%; nine-month net sales up 9.6% to SEK 14,102m, organic growth 4.3%.

• Lease adjusted EBITA for Q3 was SEK 420m (margin 8.6%), up from SEK 346m in Q3 2023; nine-month lease adjusted EBITA SEK 726m (margin 5.1%).

• Adjusted EPS improved to 1.87 SEK in Q3 2024 from 1.45 SEK in Q3 2023; rolling 12-month adjusted EPS reached 3.84 SEK per share including share buybacks.

• Free cash flow in Q3 was SEK 91m, down from SEK 197m; rolling 12-month free cash flow remains healthy at SEK 714m, despite one-off items and higher vacation payouts.

• Lease adjusted net debt/EBITDA at 2.1x, maintaining a strong balance sheet post-acquisition.

Outlook and guidance

• Expectation to reach break-even in Denmark in Q4, with sequential improvements of SEK 5 million per quarter.

• Anticipated positive impact from reduced staffing requirements in Finland from January 2025, expected to improve labor market balance and occupancy.

• Demographic trends and increasing complexity of care needs support long-term market growth, with ambitious value-creation targets for 2024–2026 leveraging digitalization and active capital allocation.

• Continued share buybacks planned, with a new program targeting up to SEK 150 million before the next report.