Careium (CARE) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were SEK 201.7m, down 7.2% year-over-year, mainly due to delayed infrastructure upgrades in the UK and Sweden, impacting product sales and customer transitions.

• Profitability remained solid with an EBIT margin of 8.2% despite lower sales, supported by efficiency improvements and a focus on more profitable contracts.

• Launched the i-Care Center SaaS platform, secured MD Medicus as the first external customer, and began migrating Swedish operations to the new platform.

• Established a new commercial office in Spain, targeting growth in one of Europe's largest technology-enabled care markets.

• Signed a new multi-year contract with Oslo municipality post-quarter, increasing annual contract value.

Financial highlights

• Net sales for Q3 2024 were SEK 201.7m, down 7.2% year-over-year; currency-adjusted growth was -7.9%.

• Service sales rose 3.1% to SEK 164.3m, while product sales fell 35.6% to SEK 37.4m compared to Q3 2023.

• Gross margin was 42.8%, slightly lower than 43.5% in Q3 2023, impacted by product mix.

• EBITDA was SEK 34.3m (margin 17.0%), down from SEK 44.1m (20.3%) in Q3 2023.

• EBIT was SEK 16.5m (margin 8.2%), compared to SEK 20.7m (9.5%) in Q3 2023.

Outlook and guidance

• Management expects to achieve 5-10% organic sales growth and a 7.5-10% EBIT margin for the full year.

• Q4 sales velocity supports confidence in meeting guidance.

• Focus remains on sales activity, tender participation, and further development of the i-Care center.