Sweden's Dedicare Q3 net sales rise 31% on acquisitions

Overview

• Sweden-based healthcare staffing firm's Q3 net sales rose 31% yr/yr, driven by acquisitions

• EBITA and EBITA margin improved significantly from previous year

• Acquisitions in social care made substantial contributions to sales and earnings

Outlook

• Company says healthcare staffing market is stabilising but demand remains hesitant and competition intense

• Dedicare says it will continue to focus on efficiency and profitability amid challenging market conditions

• Company to prioritise development of social care operations and profitability in Denmark

Result Drivers

• ACQUISITIONS - Co said Q3 growth and improved earnings were mainly driven by acquired operations in social care

• EFFICIENCY MEASURES - Rationalisations and improvements in staffing business contributed to stable underlying earnings

• ORGANIC SALES - Organic sales grew 2.1% yr/yr, though organic earnings were flat compared to previous year

Company press release:

Key Details

Analyst Coverage

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)