Attendo's first quarter report 2018: High pace of openings and strong growth
During the first quarter 2018, Attendo continued to open new nursing homes in own operations at a high pace. By the end of the quarter, Attendo had more than 13 800 own beds in operation – almost 50 % more than one year ago. The high pace of openings contributed to a lower result compared to the first quarter 2017.
CEO Pertti Karjalainen comments on the report
“In line with our strategy, Attendo is in a period of numerous openings of new homes and a large number of beds under construction. We are building a solid foundation for future growth and long-term value creation. Attendo now has 13,812 own beds in operation, an increase by around 50 percent since the corresponding period last year.
There was strong sales growth in the contract model Own operations, mainly from acquisitions, but also from openings of new nursing homes during the latter part of 2017. Attendo opened 19 own homes during the quarter, 18 in Finland and 1 in Sweden. Construction of 14 new nursing homes in Finland began. At the end of the first quarter, Attendo had 2,828 beds under construction, almost 700 more than at the end of the first quarter of 2017. When the pace of establishment in the market increases, it is taking somewhat longer to fill new homes.
Net sales in Outsourcing increased slightly compared to the first quarter of 2017. Net sales in Staffing were higher during the quarter, explained by currency effects, new contracts and higher volumes in existing contracts. The outsourcing and staffing markets are assessed to be stable.
Profits for the first quarter were lower than for the corresponding quarter 2017. Acquisitions, improved planning and processes as well as contribution from units that were under start up during the comparison quarter in 2017, made positive contributions to profit. This was offset by the negative impact on profits from newly opened units, write-down of real estate values as well as calendar effects. The close down of integration care operations and home care in Denmark had a negative impact in relation to the comparison quarter, however less than in the preceding quarter. The high opening pace will continue to impact profits in the next quarters, while the negative effects from home care and integration care are expected to decrease.
In 2011, Attendo was the first care provider in the Nordics that published an annual Quality Report aimed at increasing focus and transparency in quality work. For 2017, Attendo has prepared a combined Quality and Sustainability Report that even more clearly highlights the company’s social initiatives overall and our efforts to improve in key quality areas. Attendo’s key contributions to society are to maintain high and consistent quality, establish new operations that help reduce waiting times and develop a workplace that gives satisfied employees opportunities for personal and professional growth.
Attendo is in an intense period with numerous openings during the year. This helps local authorities to reduce waiting times in care for older people, provides more customers with access to modern homes with high quality care, and gives Attendo good opportunities to increase its organic growth. We are also happy to welcome a new permanent CEO to Attendo this autumn, Martin Tivéus.”
Summary of the first quarter 2018
- Net sales increased by 20 percent to SEK 3,200m (2,661). Adjusted for currency effects, net sales increased by 17.6 percent.
- Operating profit (EBITA) amounted to SEK 240m (279), corresponding to an operating margin of 7.5 percent (10.5). Adjusted for write-down of real estate related to integration care of SEK 20m, EBITA amounted to SEK 260m with an operating margin of 8.1 percent.
- Profit for the period amounted to SEK 129m (181) corresponding to a profit margin of 4.0 percent (6.8) and diluted earnings per share of SEK 0.80 (1.13).
- Operating cash flow amounted to SEK 101m (176).
- The total number of beds in own homes was 13,812 (9,249), an increase of 49 percent. The number of beds under construction in own operations was 2,828 across 70 homes.
- Martin Tivéus was appointed as new CEO.
Invitation till teleconference
Investors, analysts and journalists are invited to participate in a teleconference hosted by Attendo’s CEO Pertti Karjalainen and CFO Fredrik Lagercrantz. The presentation will be held in English.
To participate in the conference, please dial in on any number below at least ten minutes before the start of the call:
SE: +46 8 50 55 64 53
FI: +358 981 710 491
UK: +44 20 300 898 04
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The quarterly report and other information material will be made public on:
Attendo AB (publ)
For further information, please contact:
Andreas Koch, Communications and IR-Director Attendo
Phone: +46 705 09 77 61
Stefan Svanström, Communications Director Attendo
Phone: +46 708 673 807
This information is such that Attendo AB (publ) is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the Communication and IR-Director, on 4 May 2018 at 08.00 CET.
Attendo - the leading care and healthcare company in the Nordics
Attendo is the leading private provider of publicly financed care and healthcare services in the Nordic region. The company was founded in 1985 and was first to provide outsourced care for older people in Sweden. In addition to care for older people, Attendo provides care for people with disabilities, individuals and families, and, in Finland, healthcare and dental care. Attendo has more than 24 000 employees and is locally anchored with over 700 operations in more than 200 municipalities in Sweden, Finland, Norway and Denmark. www.attendo.com