Attendo (ATT) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw 12% sales growth to SEK 4.8bn, mainly driven by the Team Olivia acquisition and operational improvements in Scandinavia and Finland.

• Employee engagement and customer satisfaction reached record highs, with NPS, CNPS, and eNPS scores significantly above industry averages.

• Cash flow and financial position strengthened, with free cash flow at SEK 199m and robust balance sheet post-acquisition.

• Profit improvement in Scandinavia was driven by Team Olivia and strong performance in own nursing homes, while Finland maintained profit despite cost/price effects.

Financial highlights

• Net sales reached SEK 4.8bn, up 12% year-over-year; organic growth was 3%.

• Underlying adjusted EBITDA/EBITA improved to SEK 187m, mainly due to Team Olivia and operational improvements.

• Lease-adjusted EBITDA/EBITA margin (R12) improved to 4.6% from 3.7% year-over-year.

• Free cash flow increased to SEK 199m from SEK 115m; operating cash flow rose to SEK 793m from SEK 668m.

• Adjusted EPS after dilution was SEK 0.68 in Q2 2024, up from SEK 0.60.

Outlook and guidance

• EPS target of at least SEK 5.50 per share by 2026, with Team Olivia expected to contribute at least SEK 0.5 per share from 2025.

• Underlying EBITDA/operating profit growth of at least 10% per year anticipated, driven by occupancy, efficiency, price adjustments, new units, and acquisitions.

• Net debt to EBITDA target range set at 1.5–2.5x, with temporary exceedance possible for major acquisitions.

• Dividend policy remains at 30% of adjusted net profit, with ongoing share buybacks and a new program announced for Q3.