Dedicare (DEDI) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 declined 8.2% year-over-year to SEK 439.6 million, with EBITA down 44.2% to SEK 21.2 million; adjusted EBITA was SEK 24.1 million, reflecting SEK 2.9 million in restructuring costs.

• The Swedish healthcare staffing market remained weak due to new contracting limits, a healthcare strike, and overtime ban, while Norway saw strong demand but increased price pressure.

• A cost savings programme was initiated, targeting SEK 15 million in annual savings, with full effect expected from Q4 2024.

• Dedicare was reappointed to a major Norwegian healthcare staffing tender, securing a two-year deal with potential extension.

Financial highlights

• Q2 2024 EBITA margin was 4.8% (7.9% in Q2 2023); adjusted EBITA margin was 5.5%.

• Profit for Q2 2024 was SEK 15.3 million (22.9), and for H1 2024 SEK 25.8 million (47.5).

• Basic EPS for Q2 2024 was SEK 1.60 (2.40); H1 2024 was SEK 2.70 (4.97).

• Cash flow from operating activities in Q2 2024 was SEK 1.2 million (9.5), and SEK 22.8 million (51.3) for H1.

• Equity/assets ratio improved to 42.1% (36.8%).

Outlook and guidance

• Market conditions in Sweden expected to remain challenging into Q3 2024; cost savings and organizational changes underway.

• Norwegian market remains robust but faces ongoing price pressure and competition.

• New Norwegian hospital doctor staffing contract to take effect in Q4 2024, estimated annual sales SEK 80–100 million.

• Life science consulting business reorganized at a pan-Nordic level to drive growth.