Ambea (AMBEA) Q3 2024 earnings summary

Executive summary

• Net sales increased 6% year-over-year in Q3 2024 to SEK 3,555 million, with 7% organic growth, driven by strong performance in Vardaga, Stendi, and Nytida, and supported by new contracts and higher occupancy.

• EBITA rose 25% to SEK 478 million, with a margin of 13.4%, reflecting operational improvements, especially in Vardaga, Stendi, and Altiden.

• Strategic bolt-on acquisitions in Nytida, including Sorbus and Friab, contributed to growth and pipeline expansion.

• Quality, sustainability, and employee engagement initiatives advanced, including joining the Science Based Targets initiative and recognition for gender balance.

• Profit for the period reached SEK 266 million, up 29% year-over-year.

Financial highlights

• Net sales reached SEK 3,555 million in Q3 2024, up from SEK 3,355 million in Q3 2023, with 7% organic growth.

• EBITA for the group was SEK 478 million, up from SEK 383 million, with a margin of 13.4%.

• Free cash flow (post-tax, excluding IFRS 16) reached SEK 776 million (R12), up 27% from full year 2023.

• SEK 130 million distributed as dividends, SEK 90 million spent on acquisitions, and SEK 431 million on share buybacks.

• Net debt to EBITDA ratio at 2.0x, well below the 3.25x target.

Outlook and guidance

• Continued organic growth expected in Q4, supported by new care home openings, strong demand, and further bolt-on acquisitions.

• Profitability improvements expected in Altiden and Denmark, aiming for a positive full-year result.

• No changes planned to financial targets; focus remains on achieving 8–10% annual growth and 9.5% adjusted EBITDA margin.

• Ongoing expansion of care places and readiness for greenfield development of new care homes.