Humana (HUM) Q2 2024 earnings summary

Executive summary

• Adjusted operating profit rose 40% year-over-year to SEK 107 million, driven by improvements in elderly care, efficiency in personal assistance, and strategic actions including acquisitions and divestments.

• Net revenues increased by 5% year-over-year to SEK 2,534 million, with organic growth at 1.3% and over 5% excluding personal assistance.

• Strategic actions included the divestment of 21 elderly care units in Finland for EUR 25 million, acquisition of Team Olivia Norway, and exit from Denmark.

• CEO transition announced, with Nathalie Boulas Nilsson appointed as new President and CEO effective July 22, 2024.

• Net profit after tax was SEK 0 million, down from SEK 38 million in Q2 2023.

Financial highlights

• Adjusted operating profit reached SEK 107 million, the highest ever for Q2, with a margin of 4.2% (5.4% excluding personal assistance).

• Net revenues for Q2 were SEK 2,534 million, up from SEK 2,410 million in Q2 2023; organic growth was 5.5%.

• Operating cash flow was SEK 172 million, up from SEK 129 million year-over-year.

• Net debt increased to SEK 1,727 million, with leverage at 3.8x adjusted EBITDA.

• Negative items affecting comparability included SEK 9 million in damages claim costs, SEK 9–10 million in transaction costs, and SEK 10–20 million from remeasurement of contingent consideration.

Outlook and guidance

• Continued focus on improving net client inflow in personal assistance and adapting cost base.

• Integration of Team Olivia Norway is a key priority to realize synergies.

• Specialization strategy and development of social outcome measurement to continue.

• Anticipated completion of Finnish elderly care divestment in H2 2024 and Danish operations divestment post-period.

• Ongoing transition in Swedish personal assistance, with expectations for improved reimbursement models.