Capio AB (publ) Interim report January – September 2016
July – September 2016
- Net sales MSEK 3,168 (3,055). Organic sales growth 2.6% (2.3) and total sales growth 3.7% (1.1)
- Operating result (EBITDA)¹ MSEK 200 (188) and margin 6.3% (6.2). EBITDA increased by 6.4%
- Operating result (EBITA)¹ MSEK 94 (86) and margin 3.0% (2.8). EBITA increased by 9.3%
- Operating result (EBIT) MSEK 72 (67) and margin 2.3% (2.2). EBIT increased by 7.5%
- Profit for the period¹ MSEK 34 (29) and adjusted profit for the period¹ MSEK 46 (45). Earnings per share after dilution² SEK 0.24 (0.20) and adjusted earnings per share after dilution² SEK 0.33 (0.32)
January – September 2016
- Net sales MSEK 10,344 (9,974). Organic sales growth 3.5% (2.9) and total sales growth 3.7% (2.3)
- Operating result (EBITDA)¹ MSEK 772 (716) and margin 7.5% (7.2). EBITDA increased by 7.8%
- Operating result (EBITA)¹ MSEK 461 (413) and margin 4.5% (4.1). EBITA increased by 11.6%
- Operating result (EBIT) MSEK 405 (295) and margin 3.9% (3.0). EBIT increased by 37.3%
- Profit for the period¹ MSEK 269 (71) and adjusted profit for the period¹ MSEK 306 (199). Earnings per share after dilution² SEK 1.90 (0.53) and adjusted earnings per share after dilution² SEK 2.16 (1.52)
¹ Refer to page 27 for definitions of EBITDA and EBITA. Profit and adjusted profit refer to profit attributable to parent company shareholders.
² Refer to note 2 for calculations of earnings per share and adjusted earnings per share (before and after dilution).
“Continued positive development in line with our plans – in the quarter France fully compensated for the price decrease.”
- Organic sales growth of 3% and EBITA growth of 9% in the seasonally weak third quarter
- Continued positive development in Nordic from higher volumes and productivity improvements
- France improving further during the third quarter resulting in a flat operating margin development (EBITA) – on track for a flat margin development for the full year 2016
- Germany impacted by lower inpatient volumes in the quarter resulting in a flat result development
Nordic continued to show solid net sales and result development in line with our plans. Organic sales growth in the quarter was 3% and for the first nine months it was just below 4%. Operating margin (EBITA) improved both in the quarter and in the first nine months, compared to the same periods 2015.
The productivity increase in Proximity care in Sweden is continuing in line with plan. Capio S:t Göran’s hospital in Stockholm continued to enjoy close to double digit sales growth as a consequence of the transfer of patient volumes in connection with the preparation of the opening of the down-sized New Karolinska Hospital. The new and larger accident and emergency department (A&E) at Capio S:t Göran that was opened in late April contributed to the continued good growth. Specialist care is successfully growing the geriatric business in Stockholm and is continuing the work to streamline its offer in the free healthcare choice market.
France has in the third quarter fully compensated for the Government’s price cut of over 2% (from March 2016). The margin development has improved quarter over quarter in 2016 as effects from actions are becoming visible in the result. Actions to further improve the development will continue in the fourth quarter. These actions contain reorganization of employees, more efficient procurement, continuous improvements in a few remaining lagging units, and further development of medical specialties. The remaining margin gap compared with last year is expected to be closed during the remainder of the year, which will create a good starting point for next year’s work to continue to improve margins in France.
It is encouraging to see that the growth in patient volumes continued to be very strong in France in the third quarter; 6.1%. This reflects the attractiveness of our focus on Modern Medicine and the continuous shift from in- to outpatient treatments. It can be noted that doctors in Capio Clinique du Tonkin Heart Clinic in Lyon performed the second ever daycare TAVI operation (cardiac valve insertion) in France during the quarter.
Germany had a weaker result development than planned in the third quarter as the start up after the summer period was slower than normal. Development in the first nine months was still strong and the business remains positioned for continued improvements.
The focus going forward is of course on securing the ongoing strong trends in the current businesses. Our focus on e-health for easier patient access, work flow improvements, and standardized medical processes continues. In parallel, we are continuing to actively search for interesting acquisitions to broaden our presence and medical offering.
President and CEO
Presentation of the interim report
Investors, analysts and media are invited to participate in a telephone conference on November 3, 2016 at 09.30 am (CET). President and CEO Thomas Berglund and CFO Olof Bengtsson will present the report and answer questions. The telephone conference will be audio casted live on www.capio.com. To participate in the telephone conference, please register at www.capio.com and dial in five minutes prior to the start of the conference call.
Sweden: +46 8 566 426 91
UK: +44 203 008 98 07
US: +1 855 831 59 47
Finland: +35 898 171 04 93
France: +33 170 75 07 12
Prior to the start of the telephone conference, presentation slides will be available at www.capio.com.
A recorded version of the audio cast will be available at www.capio.com during the afternoon (CET).
February 10, 2017, Full year report January – December 2016
May 3, 2017, Interim report January – March 2017
May 3, 2017, Annual General Meeting 2017
July 21, 2017, Interim report January – June 2017
October 27, 2017, Interim report January – September 2017
Capio’s annual general meeting will be held on Wednesday, May 3, 2017 in Gothenburg, Sweden. The Capio Annual Report 2016 will be available on www.capio.com in April 2017.
For further information
Thomas Berglund, President and CEO
Telephone: +46 733 88 86 00, E-mail: firstname.lastname@example.org
Olof Bengtsson, CFO
Telephone: +46 761 18 74 69, E-mail: email@example.com
Kristina Ekeblad, Investor Relations Manager
Telephone: +46 708 31 19 40, E-mail: firstname.lastname@example.org
Henrik Brehmer, SVP Group Communication and Public Affairs
Telephone: +46 761 11 34 14, E-mail: email@example.com
For further information regarding Capio’s IR activities, refer to www.capio.com