Ambea’s interim report April-June 2021

Clear signs of recovery

CEO comment:

I can say with great satisfaction that we have had a very limited number of infections and no serious cases of illness within Ambea during the past quarter. After the vaccination of the elderly, we have been able to return to more normal everyday operations – with activities, companionship and the possibility of visits from nearest and dearest. We are now seeing, month by month, a clearly positive occupancy trend in our existing units and this trend is set to continue in the third quarter.

During the second quarter, Ambea’s net sales rose 3 percent. New residential placements and increased occupancy, as well as acquisitions and positive currency effects are behind the positive trend, although this was offset by elderly care contracts that were handed back. Despite positive signs, EBITA for the second quarter was SEK 146 million, which is 16 per cent lower than the same quarter in 2020.

In the years to come, Ambea will undoubtedly have a very important role in ensuring that society’s care provision is sufficient for everyone, since demographics are driving additional needs in our areas. These are needs that – in constructive and trustful cooperation with the municipalities in our three Nordic countries – we want to address with individually adapted and high-quality care.

Highlights of the second quarter 2021:

• Net sales increased 3 per cent to SEK 2,851 million (2,776)
• Operating profit (EBIT) increased to SEK 119 million (136)
• EBITA decreased 11 per cent to SEK 146 million (165), corresponding to a margin of 5.1 per cent (5.9)
• Adjusted EBITA, excluding items affecting comparability decreased 16 per cent to SEK 146 million (174)
• The adjusted EBITA margin was 5.1 per cent (6.3)
• Profit for the period was SEK 37 million (53)
• Earnings per share amounted to SEK 0.39 (0.56) before and after dilution
• Free cash flow totalled SEK 371 million (382)

Significant events in the second quarter:

• During the quarter, Ambea estimates the negative impact of the COVID-19 situation to be about SEK 85 million on net sales and SEK 40 million on EBITA. The negative impact includes loss of income due to lower rates of occupancy primarily in elderly care, higher costs for personal protective equipment (PPE) and sick leave, and government support received.
• Altiden, Ambea’s Danish business, completed the acquisition of EKKOfonden’s care operations. The operations include 166 beds in social care for adults across Denmark.

Telephone conference:

Ambea will host a presentation with the possibility to attend through a telephone conference at 10:00 (CET) today. The presentation will be held in English and will also be available as webcast on: https://edge.media-server.com/mmc/p/n7khk6jd

Dial-in information:

To ensure that you are connected to the conference call, please dial in at least ten minutes before the conference call starts to register your attendance and enter participation code 5078331.

Sweden:                              +46 (0)8 506 921 80

UK:                                         +44 (0)20 71 92 80 00

US:                                         +1 631 510 7495

The interim report, presentation and other material are available on www.ambea.com

This disclosure contains information that Ambea is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 23-07-2021 07:00 CET.

For more information, contact:

Benno Eliasson, CFO
E-mail: ir@ambea.se

Ambea press contact
Telephone: +46 (0)10 33 00 501
E-mail: press@ambea.se

Ambea is the market leading care provider in Sweden, Norway and Denmark respectively, with over 900 care units and around 26,000 employees. We offer services in disabled care, individual and family care, and elderly care with a focus on residential care and own management. We aim to be the quality leader in all that we do and our vision is to make the world a better place, one person at a time. The company was founded in 1996 and its head office is located in Solna, Sweden. Ambea is listed on Nasdaq Stockholm.