Ambea's year-end report 2020

Higher earnings despite the pandemic

CEO comment:

In the fourth quarter, the number of coronavirus cases began to rise again. We saw a second wave that is now affecting more geographic regions than the first wave. In Denmark and Norway, the number of cases and the effects on our operations were greater than last spring. Despite the widespread transmission, it was gratifying to see how the number of severe cases and deaths was lower than in the first wave in our units.

In the fourth quarter, net sales amounted to SEK 2,764 million (2,804). Sales were in line with the preceding year, despite a weaker NOK and lower occupancy due to the COVID-19 situation. Organic growth was 0 per cent. Despite a second wave of COVID-19 infections, Ambea reported a strong fourth quarter with EBITA up 38 per cent to SEK 200 million.

In the fourth quarter, the estimated impact of the coronavirus is SEK -100 million on sales, and SEK -35 million on earnings. In Altiden and Stendi, the impact was greater quarter-on-quarter, while the impact in other divisions was either unchanged or slightly lower.

In 2021, we are looking forward to a completed vaccination programme and fewer coronavirus cases as a result. This is a prerequisite for the operation to be able to return to a more normal state, where our focus as always will be to make the world a better place, one person at a time.

Highlights of the fourth quarter 2020:
  • Net sales decreased 1 per cent to SEK 2,764 million (2,804)
  • Operating profit (EBIT) increased to SEK 174 million (110)
  • EBITA increased 38 per cent to SEK 200 million (145), corresponding to a margin of 7.3 per cent (5.2)
  • Adjusted EBITA, excluding items affecting comparability increased 30 per cent to SEK 200 million (154)
  • The adjusted EBITA margin was 7.3 per cent (5.5)
  • Profit for the period was SEK 93 million (36)
  • Earnings per share amounted to SEK 0.98 (0.39) before and after dilution
  • Free cash flow totalled SEK 466 million (471)
Significant events in and after the fourth quarter
  • During the quarter, Ambea estimates the negative impact of the COVID-19 situation to be about SEK 100 million on net sales and SEK 35 million on EBITA. The negative impact includes loss of income due to lower rates of occupancy primarily in elderly care, higher costs for personal protective equipment (PPE) and sick leave, and government support received.
  • During the quarter, Mark Jensen was appointed new President and CEO of Ambea. He will assume his position on 8 March.
  • After the end of the quarter, six operations in residential and day services in Sweden were acquired from LSS Omsorgen. Ambea also concluded an agreement to acquire EKKOfonden's care operations, which provides residential care services for adults with disabilities across Denmark.
  • The negative effects of the coronavirus pandemic on the company are expected to continue in 2021. In the first quarter, the estimated negative impact is SEK 90-100 million on sales and SEK 30-40 million on EBITA.
  • The Board proposes that a dividend of SEK 1.15 (0) per share be paid for 2020.

Telephone conference:

Ambea will host a presentation with the possibility to attend through a telephone conference at 10:00 (CET) today. The presentation will be held in English and will also be available as webcast on: https://edge.media-server.com/mmc/p/8z98xf9z

Dial-in information:

To ensure that you are connected to the conference call, please dial in at least ten minutes before the conference call starts to register your attendance and enter participation code 7444318.

Sweden:                                       +46 (0)8 506 921 80
UK:                                               +44 (0)20 71 92 80 00
US:                                               +1 631 510 7495

The interim report, presentation and other material are available on www.ambea.com

This disclosure contains information that Ambea is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 16-02-2021 07:00 CET.

Source: Cision

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