Attendo's report for the second quarter 2017: Attendo continues to invest to meet growing demand
Attendo continues to invest in new nursing homes and acquisitions to meet a growing demand for care services. Attendo’s profit for the second quarter 2017 increased somewhat compared with the corresponding quarter of 2016, despite negative calendar effects.
Comments by Henrik Borelius, CEO:
“Attendo continued to invest for future growth in the second quarter of 2017, partly by increasing the number of beds under construction and partly through a number of acquisitions. The acquisition of Mikeva strengthens Attendo’s Finnish operations in care for older people while establishing a leading position in social psychiatry.
Own operations showed continued stable growth in both nursing homes and homes for people with disabilities. Attendo opened eleven own homes during the quarter, nine in Finland and two in Sweden. In Finland, construction started of 17 new homes and in Sweden of three, and at the end of the second quarter Attendo had 2,378 beds under construction.
During the second quarter, the leading Finnish care company Mikeva was acquired. The acquisition strengthens Attendo’s activities in social psychiatry and care for people with disabilities, and geographically complements Attendo’s offering in care for older people. In 2016, Mikeva had sales of over EUR 100m and has around 2,800 beds in operation, all under own operations. Attendo also acquired the Swedish home care operations of Humana, which strengthens Attendo’s position in several regions. Attendo also established itself in the Norwegian social psychiatry market through the acquisition of Nøstret.
Net sales in Outsourcing increased compared to the second quarter of 2016, mainly as a result of the two combination contracts that began in Finland in the first quarter of 2017. Net sales in Staffing were slightly lower in the quarter compared with the corresponding period in 2016. The markets for Outsourcing and Staffing are expected to remain challenging but stable.
Profit for the second quarter increased somewhat compared with the corresponding quarter of 2016, despite negative calendar effects. The gain in profit was primarily due to continuous improvement efforts with processes and planning, as well as contributions from acquisitions. Attendo will be opening a significantly higher number of care homes in 2017 than in previous years, which is expected to have a negative impact on earnings in coming quarters.
As part of the quality work, Attendo offers a wide range of activities for its customers. During the quarter, the focus of Attendo’s nursing homes has been on outdoor activities, with the recurring Attendo Fitness Walk taking place at several locations in Scandinavia. This widely appreciated exercise jog is intended to highlight the need for movement, social co-existence and being outdoors.
In summary, Attendo showed a stable quarter with continued high rate of establishment of new homes and a high level of acquisition activity, which is in line with Attendo’s strategy. The expansion of care beds supports society’s needs for welfare services and gives individuals access to personalised care in comfortable care homes.
Summary of the second quarter 2017
- Net sales increased by 9 percent to SEK 2,744 m (2,525). Adjusted for currency effects net sales increased by 7 percent.
- Operating profit (EBITA) increased by 2 percent to SEK 228m (224), representing an operating margin of 8.3 percent (8.9). Compared with the same quarter in the previous year, profit was negatively impacted by calendar effects of approximately SEK 25m.
- Profit for the period amounted to SEK 141m (146), which represents a profit magin of 5.1 percent (5.8) and earnings per share diluted of SEK 0.88 (0.91).
- Operating cash flow amounted to SEK 262m (157).
- A number of acquisitions were completed. The largest acquisition was Mikeva with net sales of EUR 101m (2016).
Invitation to teleconference
The report will be presented at a teleconference on 27 July 2017 at 10:00 am (CET). The teleconference will be hosted by Attendo’s CEO Henrik Borelius and CFO Tomas Björksiöö. The presentation will be held in English.
To participate in the conference, please dial in on any number below:
SE: +46 8 566 426 65
FI: +358 9 817 104 94
UK: +44 20 30 08 98 04
The presentation and the teleconference can also be viewed on the following page:
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
Telefon: +46 708 67 38 07
The information above is such that Attendo AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 CET on 27 July 2017.
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 20 000 employees and is locally anchored with over 500 operations in more than 200 municipalities in Sweden, Finland, Norway and Denmark. www.attendo.com