Attendo's Strong Start: A Promising First Quarter in 2025
May 8, 2025, 11:27 am
Attendo AB has kicked off 2025 with a bang. The company’s first quarter report reveals a robust performance, especially in Finland. This growth is not just a flash in the pan; it reflects strategic decisions and a keen understanding of market dynamics.
In the first quarter, Attendo reported a revenue increase of 8.1%, reaching SEK 4,742 million. This surge is largely attributed to the acquisition of Team Olivia Omsorg, which has now been fully integrated into Attendo’s operations. The acquisition has proven to be a game-changer, bolstering the company’s position in the Scandinavian care market.
Finland has been the star of the show. The operating result there improved significantly, thanks to swift adaptations to new staffing regulations. The staffing requirement for care staff per recipient changed from 0.65 to 0.6, a shift that typically spells trouble for profitability. However, Attendo navigated this change with agility, enhancing productivity and operational efficiency.
The Finnish operations saw earnings soar by 37%, climbing to SEK 189 million. This success stems from effective staff planning and an increase in sold beds. Attendo’s ability to adapt quickly has turned potential setbacks into stepping stones. The company also completed two acquisitions, adding over 200 beds with impressive occupancy rates exceeding 90%.
In Scandinavia, profits rose to SEK 68 million, up from SEK 43 million in the same period last year. The integration of Team Olivia has provided economies of scale, particularly in individual and family care, as well as in care for individuals with disabilities. This strategic move has strengthened Attendo’s market position in complex care needs.
Occupancy rates in Attendo’s homes remained stable at 86%. This consistency is crucial in the care industry, where maintaining high occupancy is key to financial health. The company’s focus on operational efficiency is paying off, and the outlook for the rest of the year appears bright.
Attendo’s strategy is built on delivering high-quality care at a lower cost. This approach not only benefits the company’s bottom line but also adds value to society. However, the company is not afraid to make tough decisions. It has decided to phase out certain home care contracts in Sweden that no longer meet the criteria for sustainable and profitable operations. This decision reflects a commitment to long-term viability over short-term gains.
The financial metrics paint a promising picture. The underlying lease-adjusted operating profit (EBITA) surged by approximately 45% to SEK 234 million. This translates to a margin of 4.9%, up from 3.7%. The operating profit also saw a significant increase, reaching SEK 381 million, with an operating margin of 8.0%.
Attendo’s diluted earnings per share rose to SEK 0.87, up from SEK 0.39. Adjusted earnings per share after dilution climbed to SEK 1.14, compared to SEK 0.58. These figures underscore the company’s strong financial health and its ability to generate value for shareholders.
Free cash flow also improved, amounting to SEK 40 million, up from SEK 20 million. This increase provides Attendo with the flexibility to invest in future growth opportunities. The company’s proactive approach to share repurchases further demonstrates its confidence in its financial position. During the first week of May, Attendo repurchased 117,471 shares, part of a broader program to buy back up to 16 million shares.
The repurchase program is a strategic move to enhance shareholder value. By reducing the number of outstanding shares, Attendo aims to increase earnings per share, benefiting existing shareholders. The total number of shares repurchased during the program has reached over 2.3 million, reflecting a commitment to returning value to investors.
Looking ahead, Attendo is optimistic about its prospects. The company is well-positioned to continue its growth trajectory in both its business areas. With a strong operating model and a solid financial foundation, Attendo aims to gradually improve occupancy rates and operational efficiency.
The company’s leadership is confident in its ability to offset cost inflation in 2025. This assurance is crucial in an industry where rising costs can threaten profitability. Attendo’s focus on sustainable growth is not just a buzzword; it’s a guiding principle that shapes its strategic decisions.
In conclusion, Attendo’s first quarter of 2025 has set a positive tone for the year. The company’s ability to adapt to changing market conditions, coupled with strategic acquisitions, has positioned it for continued success. As it navigates the complexities of the care industry, Attendo remains committed to delivering high-quality care while ensuring long-term financial sustainability. The road ahead looks promising, and Attendo is ready to seize the opportunities that lie ahead.
In the first quarter, Attendo reported a revenue increase of 8.1%, reaching SEK 4,742 million. This surge is largely attributed to the acquisition of Team Olivia Omsorg, which has now been fully integrated into Attendo’s operations. The acquisition has proven to be a game-changer, bolstering the company’s position in the Scandinavian care market.
Finland has been the star of the show. The operating result there improved significantly, thanks to swift adaptations to new staffing regulations. The staffing requirement for care staff per recipient changed from 0.65 to 0.6, a shift that typically spells trouble for profitability. However, Attendo navigated this change with agility, enhancing productivity and operational efficiency.
The Finnish operations saw earnings soar by 37%, climbing to SEK 189 million. This success stems from effective staff planning and an increase in sold beds. Attendo’s ability to adapt quickly has turned potential setbacks into stepping stones. The company also completed two acquisitions, adding over 200 beds with impressive occupancy rates exceeding 90%.
In Scandinavia, profits rose to SEK 68 million, up from SEK 43 million in the same period last year. The integration of Team Olivia has provided economies of scale, particularly in individual and family care, as well as in care for individuals with disabilities. This strategic move has strengthened Attendo’s market position in complex care needs.
Occupancy rates in Attendo’s homes remained stable at 86%. This consistency is crucial in the care industry, where maintaining high occupancy is key to financial health. The company’s focus on operational efficiency is paying off, and the outlook for the rest of the year appears bright.
Attendo’s strategy is built on delivering high-quality care at a lower cost. This approach not only benefits the company’s bottom line but also adds value to society. However, the company is not afraid to make tough decisions. It has decided to phase out certain home care contracts in Sweden that no longer meet the criteria for sustainable and profitable operations. This decision reflects a commitment to long-term viability over short-term gains.
The financial metrics paint a promising picture. The underlying lease-adjusted operating profit (EBITA) surged by approximately 45% to SEK 234 million. This translates to a margin of 4.9%, up from 3.7%. The operating profit also saw a significant increase, reaching SEK 381 million, with an operating margin of 8.0%.
Attendo’s diluted earnings per share rose to SEK 0.87, up from SEK 0.39. Adjusted earnings per share after dilution climbed to SEK 1.14, compared to SEK 0.58. These figures underscore the company’s strong financial health and its ability to generate value for shareholders.
Free cash flow also improved, amounting to SEK 40 million, up from SEK 20 million. This increase provides Attendo with the flexibility to invest in future growth opportunities. The company’s proactive approach to share repurchases further demonstrates its confidence in its financial position. During the first week of May, Attendo repurchased 117,471 shares, part of a broader program to buy back up to 16 million shares.
The repurchase program is a strategic move to enhance shareholder value. By reducing the number of outstanding shares, Attendo aims to increase earnings per share, benefiting existing shareholders. The total number of shares repurchased during the program has reached over 2.3 million, reflecting a commitment to returning value to investors.
Looking ahead, Attendo is optimistic about its prospects. The company is well-positioned to continue its growth trajectory in both its business areas. With a strong operating model and a solid financial foundation, Attendo aims to gradually improve occupancy rates and operational efficiency.
The company’s leadership is confident in its ability to offset cost inflation in 2025. This assurance is crucial in an industry where rising costs can threaten profitability. Attendo’s focus on sustainable growth is not just a buzzword; it’s a guiding principle that shapes its strategic decisions.
In conclusion, Attendo’s first quarter of 2025 has set a positive tone for the year. The company’s ability to adapt to changing market conditions, coupled with strategic acquisitions, has positioned it for continued success. As it navigates the complexities of the care industry, Attendo remains committed to delivering high-quality care while ensuring long-term financial sustainability. The road ahead looks promising, and Attendo is ready to seize the opportunities that lie ahead.