Careium (CARE) Q1 2025 earnings summary

Executive summary

• Growth achieved in all markets except Sweden, with first sales in Spain, a major stationary alarm order in France, and a 12-year contract with Asker and Baerum in Norway valued at SEK 24 million annually.

• Net sales declined 1.6% year-over-year to SEK 207.4 million, with service sales up 3.4% and product sales down 15.5%.

• Gross margin improved to 44.5% (42.9%), aided by regional/product mix and a one-time UK revenue recognition effect.

• EBIT fell 13.0% to SEK 16.6 million due to increased R&D and sales expenses; profit for the period dropped 47.4% to SEK 7.5 million, mainly due to negative currency effects and higher costs.

• Margins remained reasonable despite lower sales and increased investments, supported by positive gross margin development.

Financial highlights

• Organic sales declined by 1.6% year-over-year; adjusted for currency, down 2.3%.

• Service sales rose 3.4% to SEK 160.3m, while product sales fell 15.5% to SEK 47.1m.

• Gross profit: SEK 92.3 million (up 2.2%); gross margin: 44.5% (42.9%).

• EBITDA decreased to SEK 33.6m (margin 16.2%), EBIT to SEK 16.6m (margin 8.0%) due to higher sales/development costs and depreciation.

• Cash flow from operations was SEK 19.3m, free cash flow at SEK -4.4m, impacted by higher taxes and increased investments.

Outlook and guidance

• Net sales, profitability, and free cash flow before acquisitions expected to increase in 2025 versus 2024; guidance unchanged.

• Softer first half anticipated due to Swedish market awaiting new ADDA/tender framework; stronger second half expected.