Improvements in Norway and Denmark.
As we close the books on the third quarter, we can confirm that the coronavirus pandemic has continued to have a major impact on our elderly care operations. Our other divisions have been less affected and our employees are working actively to prevent the spread of the virus. During the quarter, both Stendi and Altiden reported strong earnings growth. The restructuring programme in Stendi, which was announced in the year-end report for 2019, was concluded during the quarter. The estimated savings are SEK 40 million per year, which is higher than announced at the beginning of the year.
In the third quarter, net sales amounted to SEK 2,732 million (2,843). Compared with the year-earlier quarter, net sales declined SEK 111 million, corresponding to 4 per cent, mainly the result of a weaker NOK, lower rates of occupancy due to the coronavirus and terminated management contracts in Vardaga. Organic growth was -3 per cent. In the third quarter, the estimated impact of the coronavirus situation was SEK -90 million on sales and SEK -50 million on earnings.
Adjusted EBITA rose to SEK 319 million in a third quarter that was adversely impacted by both the coronavirus pandemic and a high number of start-ups, which is a sign of good underlying development.
The effects of the coronavirus situation will continue in the fourth quarter, with a high degree of uncertainty surrounding occupancy growth in particular. In the fourth quarter, we expect an impact of SEK -70-80 million on sales and SEK -30-40 million on earnings, with the greatest impact on Vardaga.
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/dz59u2r5
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 8353859.
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 information is information that Ambea AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, on November 5, 2020 at 07:00 CET.