Ambea (AMBEA) Q4 2024 earnings summary

Executive summary

• Net sales increased 7% year-over-year in Q4 2024, with organic growth between 5% and 6% and contributions from acquisitions; EBITA rose 20% in Q4 and 28% for the year, with margin improving to 9.5%–9.7%.

• Profit for the period was SEK 620 million, up 36% year-over-year, and earnings per share increased by 42% to SEK 7.21.

• Board proposes a dividend of SEK 2.20 per share for 2024 and a new share buyback program for up to 2 million shares.

• Achieved significant progress in care quality, employee engagement (eNPS +25), and sustainability, including the graduation of 28 Ukrainian employees as certified care assistants.

• 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 SEK 180 million in annual net sales.

Financial highlights

• Q4 net sales rose 7% to SEK 3,637 million; EBITA up 20% to SEK 344 million, margin 9.5%.

• Group EBITDA/EBITA margin improved to 9.5%–9.7% for Q4 and the year, surpassing targets.

• Operating cash flow reached SEK 876 million in Q4, with free cash flow for the year up 21% to SEK 1,966 million and 43% higher post-tax at SEK 875 million.

• Earnings per share for the year were SEK 7.21 before dilution, up 42% year-over-year.

• Net debt/EBITDA (excl. IFRS 16) improved to 1.7x, well below the 3.25x target.

Outlook and guidance

• Strong demand for care placements and higher occupancy expected to continue, with new unit openings planned for Nytida and Stendi in Q1 2025.

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

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

• Continued focus on quality, sustainability, and innovation to meet growing care demand.