Humana (HUM) Q4 2024 earnings summary

Executive summary

• Annual revenue reached SEK 10.3 billion in 2024, up 7% year-over-year, with Q4 revenue up 12% to SEK 2,687m.

• Adjusted operating profit rose 18% to SEK 518m, with margin improving to 5.0%; Q4 adjusted EBIT margin was 4.4%.

• Completed divestment of 21 elderly care homes in Finland for EUR 25m, supporting specialization strategy.

• Integration of Team Olivia in Norway completed, doubling Norwegian operations and exceeding synergy expectations.

• Board proposed a SEK 1.00 per share dividend and resolved to repurchase up to 1 million shares.

Financial highlights

• Adjusted EBIT increased 18% year-over-year; full-year adjusted EBIT margin rose to 5.0% from 4.6% in 2023.

• Q4 net profit after tax was SEK 29m; full-year net profit was SEK 145m.

• Operating cash flow for Q4 was SEK 331m; full-year operating cash flow reached SEK 865m.

• SEK 55 million in cost savings targeted by end of 2026, with SEK 10 million from group consolidation.

• Net debt/adjusted EBITDA improved to 3.0x, meeting the financial target.

Outlook and guidance

• Focus on cost control, consolidation, and specialization to support organic growth and margin improvement.

• Targeting 5% annual organic growth (excluding Personal Assistance) and a medium-term operating margin of 7%.

• Efficiency improvements in Sweden and group consolidation expected to yield SEK 65m in annual savings by end of 2026.

• Full effect of Team Olivia Norway acquisition synergies expected in 2025.

• Commitment to science-based net zero climate targets, a first in the Nordic care market.