Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ambea AB (FRA:6MA, Financial) reported a 6% increase in net sales, driven by 7% organic growth across its divisions.
- Group EBITA rose by 25%, reaching a margin of 13.4%, a significant improvement compared to the previous year.
- The company achieved strong cash flow, allowing for the conclusion of its second share buyback program and further acquisitions.
- Ambea AB (FRA:6MA) continues to expand its service offerings, with new care facilities and acquisitions contributing to growth.
- The company maintains a strong market position in Sweden, Norway, and Denmark, with stable margins despite political shifts and economic challenges.
Negative Points
- Ambea AB (FRA:6MA) faces political and regulatory risks due to its operation in a tax-financed environment.
- The demand for individual and family care services is volatile, impacting occupancy rates in some segments.
- Altiden and Klara experienced negative growth, affecting overall performance.
- The company has lost a contract in Vardaga that will expire in 2025, which could impact future profitability.
- There is uncertainty regarding the sustainability of high margins in Norway due to the volatile nature of demand for child and youth care services.
Q & A Highlights
Q: Can you provide insights on the demand for child and youth care services at Stendi and expectations for 2025?
A: Mark Jensen, CEO: Childcare demand is inherently volatile, but we've seen strong demand this year, which we expect to continue into the last quarter. However, predicting mid to long-term demand remains challenging due to its volatile nature.
Q: With Altiden's strong profitability, can we expect similar results in Q4?
A: Mark Jensen, CEO: While we don't provide specific guidance for the next quarter, we aim for Altiden to deliver a positive result for the full year. Achieving this will require a strong Q4 performance.
Q: Could you elaborate on the new Danish legislation and its impact on elderly care?
A: Mark Jensen, CEO: Denmark faces high demand for elderly care, and new legislation will allow full freedom of choice for elderly care across the country. This will enable private operators to build new care homes, ensuring fair compensation aligned with municipal costs. We view this as a positive development for meeting future demand.
Q: Regarding the acquisition of Friab, how do the margins compare to Nytida's existing operations?
A: Benno Eliasson, CFO: Friab's margins are expected to align with Nytida's average over time. Initial changes will be necessary, but we anticipate achieving similar margins eventually.
Q: What is driving the solid trend in Vardaga's mature units?
A: Mark Jensen, CEO: The primary driver is high occupancy, complemented by continued operational improvements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
