Careium (CARE) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales declined 7.2% year-over-year to SEK 201.7 million, mainly due to infrastructure delays in the UK and Sweden, but profitability remained solid with an 8.2% EBIT margin, supported by efficiency improvements and a focus on profitable contracts.

• Launched the Eye Care/i-Care Center SaaS platform, secured MD Medikus as the first external customer, and began migrating Swedish operations to the new platform.

• Opened a commercial office in Spain, targeting growth in a large and advanced telecare market.

• Signed a new multi-year contract with Oslo municipality, increasing annual contract value.

Financial highlights

• Q3 2024 sales: SEK 201.7m, down 7.2% year-over-year (currency-adjusted: -7.9%); service sales up 3.1% to SEK 164.3m, product sales down 35.6% to SEK 37.4m.

• Gross margin: 42.8% (Q3 2024) vs. 43.5% (Q3 2023), mainly due to product mix.

• EBITDA: SEK 34.3m (margin 17.0%), down from SEK 44.1m (20.2%) last year.

• EBIT: SEK 16.5m (margin 8.2%), compared to SEK 20.7m (9.5%) in Q3 2023.

• Free cash flow: SEK 3.3m, cash at SEK 29.0m, net debt reduced to SEK 180.0m from SEK 227.9m year-over-year.

Outlook and guidance

• Full-year 2024 guidance maintained: organic sales growth of 5–10% and EBIT margin of 7.5–10%.

• No expectation of a catch-up effect in product sales; normalization anticipated as infrastructure transitions resolve.

• Spanish market expected to contribute to growth and profitability in 2025, with initial impact likely later in the year due to tender-based nature.

• Q4 sales velocity supports confidence in meeting guidance.