Ambea’s year-end report 2021

Sales growth and continued favourable demand for elderly care.

CEO comment:

During the year, Ambea achieved its best sales ever, despite these unique times for us and society. This result was made possible by the skills and commitment of our employees and the trust we have gained from our clients. In the fourth quarter, demand for elderly care also continued to grow, a trend that lasted for most of the year.

Toward the end of the year, the impact of the ongoing pandem­ic once again increased. Despite the high level of community transmission, I can safely say that the incidence of severe ill­ness in our units is very rare. In elderly care, all care receivers have been offered a third vaccine dose in good time, which has effectively reduced the risk of severe outcomes. This is obvious­ly gratifying, because it provides security for our care receiv­ers, their loved ones and our employees.

In the fourth quarter, net sales rose 8 per cent to SEK 2,988 million (2,764). Adjusted EBITA was SEK 214 million (200).

During the quarter Stendi was informed that the Supreme Court of Norway will not hear the case related to costs for temporary staff. Ambea became party to this legal proceeding through the acquisition of Aleris Omsorg. The ruling thereby establishes a precedent for similar legal cases and Ambea subsequently reserved an additional SEK 145 million, which was charged to the fourth quarter. Of this amount, SEK 70 million has pre­viously been announced.

In 2022, our efforts to improve margins will continue, while also seeking complementary acquisitions and opening new residential facilities. Finally, I would like to address all of the care receivers, loved ones and clients who have been in contact with Ambea’s units during the ongoing pandemic: We thank you for your trust and we will continue to move towards the realisation of our vision: We make the world a better place, one person at a time.

Fourth quarter October-December

• Net sales rose 8 per cent to SEK 2,988 million (2,764). Acquired growth was 4 per cent, exchange rates had a posi­tive impact of 2 per cent on growth, and organic growth was 2 per cent.
• Operating profit (EBIT) totalled SEK 37 million (174).
• EBITA declined 66 per cent to SEK 69 million (200), repre­senting a margin of 2.3 per cent (7.3).
• Adjusted EBITA, which excluded items affecting compara­bility of SEK -145 million, rose 7 per cent to SEK 214 million (200).
• The adjusted EBITA margin was 7.2 per cent (7.3).
• Loss for the period totalled SEK -37 million (profit: 93)
• Loss per share was SEK -0.39 (earnings: 0.98) before and after dilution.
• Free cash flow totalled SEK 410 million (466).

Full-year January-December

• Net sales rose 4 per cent to SEK 11,478 million (11,083). Acquired growth was 2 per cent and organic growth 2 per cent.
• Operating profit (EBIT) totalled SEK 598 million (717).
• EBITA declined 14 per cent to SEK 712 million (829), repre­senting a margin of 6.2 per cent (7.5).
• Adjusted EBITA, which excluded items affecting compara­bility of SEK -145 million (-50), declined 3 per cent to SEK 857 million (879). The adjusted EBITA margin was 7.5 per cent (7.9).
• Profit for the period totalled SEK 237 million (359).
• Earnings per share were SEK 2.51 (3.80) before and after dilution.
• Cash conversion was 95.7 per cent (103.3).
• Free cash flow totalled SEK 1,139 million (1,270).
• The Board proposes a dividend of SEK 1.15 (1.15) per share for 2021

Telephone conference:

In connection to the announcement, Ambea will host a telephone conference at 10:00 (CET) today. The presentation will be held in English and also available as webcast on www.ambea.com or direct link: https://edge.media-server.com/mmc/p/ryeotqbb

To ensure that you are connected to the conference call, please dial in at least ten minutes before the start of the conference call to register your attendance. Code for registration: 42 85 508.

Dial-in numbers:
Sweden:               +46 (0)8 50 69 21 80
United Kingdom: +44 (0)20 71 92 80 00
United States:      +1 63 15 10 74 95

The quarterly earnings report and associated presentation will be 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 09-02-2022 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.