Ambea (AMBEA) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 2024 and full-year results with 7% net sales growth, 5–6% organic growth, and 20–28% EBITA/EBITDA increase, reaching a 9.5–9.7% margin, driven by higher occupancy, operational improvements, and successful acquisitions.

• Significant progress in care quality, employee engagement (eNPS +25), and sustainability, including 28 Ukrainian employees graduating as certified care assistants and CSRD reporting preparations.

• Expanded own management pipeline to over 10,000 beds, with 1,308 additional beds in development, and completed four bolt-on acquisitions, notably Friab, adding up to 232 beds and SEK 180 million in annual net sales.

• Board proposes a dividend of 2.20 SEK per share, up from 1.50 SEK, and a new share buyback program for up to 2 million shares in Q1 2025.

• Care quality and satisfaction remain high, with private providers outperforming public in national surveys.

Financial highlights

• Q4 net sales increased by 7% year-over-year, with organic growth at 5–6% and acquired growth at 1–1.5%.

• Group EBITA/EBITDA rose by 20–28% to a 9.5–9.7% margin; Vardaga and Stendi showed significant margin improvements.

• Operating cash flow and cash conversion remained strong, with Q4 cash conversion above 100% and free cash flow for the year at 1,966 MSEK.

• EPS increased by 42% to 7.20–7.21 SEK, and proposed dividend by 47% versus last year.

• Net debt/EBITDA improved to 1.7x, well below the 3.25x target.

Outlook and guidance

• Continued strong demand for care placements and higher occupancy expected to drive growth.

• New unit openings planned for Nytida and Stendi in Q1 2025; further improvements anticipated in Altiden's profitability.

• Ongoing M&A discussions with a focus on bolt-on acquisitions; robust acquisition pipeline.

• Targeting 8–10% annual growth and maintaining adjusted EBITDA/EBITA margin at or above 9.5%.

• Focus remains on quality, sustainability, and innovation to meet rising care needs.