Careium (CARE) Q4 2024 earnings summary

Executive summary

• Achieved a positive Q4 and full-year 2024 with strong profitability, meeting the lower end of growth and upper end of profitability guidance.

• Net sales grew 14.8% in Q4 2024 to SEK 228.9 million, with full-year growth of 5.6% to SEK 871 million, driven by both product and service sales.

• Operating profit (EBIT) rose 59.3% in Q4 and 41.5% for the year, reflecting improved efficiency and higher sales.

• Launched new products including the Abby mobile social alarm and i-Care Centre platform.

• Renewed multi-year contract with Oslo municipality, increasing annual value from SEK 33 million to SEK 50 million.

Financial highlights

• Q4 organic sales growth was 14.8% (12.5% adjusted for currency), with gross margin up to 44.4% from 40.2%.

• Q4 EBITDA was SEK 43.8m (19.1% margin), EBIT SEK 26.5m (11.6% margin); full-year EBIT SEK 84m.

• Free cash flow for Q4 was SEK 16.6m; full-year free cash flow was SEK 37m, down from SEK 62m, due to increased net working capital.

• Cash at year-end was SEK 31.9m, with net debt reduced to SEK 164.9m (leverage 1.1).

• Equity ratio increased to 64.6% (from 62.4%).

Outlook and guidance

• Net sales, profitability, and free cash flow before acquisitions are expected to increase in 2025.

• Softer first half of 2025 anticipated due to Swedish market delays, with stronger performance expected in the second half.

• Focus on launching new hardware/software, expanding assisted living and direct-to-consumer, and evaluating acquisitions.