Year-end Report 1 January – 31 December 2023: Continued growth and healthy profitability sum up an intensive year
Fourth quarter 2023
- Net sales SEK 464.1 million (499.3)
- EBITDA SEK 44.1 million (37.9), adjusted for non-recurring items, SEK 33.2 million (40.6)
- EBITDA margin 9.5 percent (7.6), adjusted for non-recurring items, 7.2 percent (7.6)
- EBIT SEK 39.3 million (31.3), adjusted for non-recurring items, SEK 28.4 million (34.0)
- EBIT margin 8.5 percent (6.2), adjusted for non-recurring items, SEK 6.1 percent (6.7)
- Profit after financial items SEK 41.5 million (29.9)
- Profit for the period SEK 33.7 million (25.1)
- Basic earnings per share SEK 3.53 (2.64)
- Diluted earnings per share SEK 3.50 (2.61)
The period January – December 2023
- Net sales SEK 1,970.7 million (1,768.0)
- EBITDA SEK 172.8 million (156.1), adjusted for non-recurring items, SEK 162.1 million (160.2)
- EBITDA margin 8.8 percent (8.8), adjusted for non-recurring items, 8.2 percent (7.6)
- EBIT SEK 148.4 million (135.9), adjusted for non-recurring items, SEK 137.7 million (140.0)
- EBIT margin 7.5 percent (7.7), adjusted for non-recurring items, 7.0 percent (7.9)
- Profit after financial items SEK 139.9 million (130.3)
- Profit for the period SEK 110.4 million (101.3)
- Basic earnings per share SEK 11.55 (10.69)
- Diluted earnings per share SEK 11.44 (10.59)
Performance measures
Dividend
Dedicare’s Board of Directors has proposed an ordinary dividend of SEK 6.50 per share (6.00), corresponding to SEK 62.2 million (57.4) for the financial year 2023. The group’s dividend policy is that the annual dividend should amount to at least 50 percent of consolidated net profit. The proposed dividend corresponds to 56.3 percent (56.6) of net profit for the year. Dedicare’s equity/assets ratio amounts to 37.2 percent (29.9) after the proposed dividend, which is consistent with the group’s long-term target of at least 30 percent.
Chief Executive Officer’s statement
Compared to an exceptionally robust quarter in 2022, the fourth quarter of the year was weaker for Dedicare in terms of revenue performance, while profitability remained stable. Progress was good in Norway in Denmark despite a negative currency effect from appreciation of the Swedish krona. Contracting limits in several of Sweden’s regions continued to impact our business. 2023 overall was very strong; I can proudly sum up the year as us continuing our expansion, and our yearly sales were nearly SEK 2 billion, implying growth of 11.5 percent. Our EBIT margin was 7.5 percent (adjusted for non-recurring items, 7.0 percent), so we achieved our growth and profitability targets for the year.
The Dedicare group’s net sales in the fourth quarter were SEK 464.1 million, down 7.0 percent on the corresponding quarter of the previous year. The strong comparative quarter, but also the currently challenging Swedish market, and Swedish krona appreciation in the quarter explain the downturn. EBIT in the quarter was SEK 39.3 million (31.3), with an EBIT margin of 8.5 percent (6.2). Items affecting comparability had a positive profit impact, and excluding these items, the EBIT margin in the quarter was 6.1 percent (6.7). Meanwhile, we can summarise the full year 2023 as strong financially. Net sales were SEK 1,970.7 million, and growth of 11.5 percent for the year was above our financial target of 10 percent. Organic growth was 8.8 percent. EBIT for the year was SEK 148.4 million (135.9), with an EBIT margin of 7.5 percent (7.7) (adjusted for non-recurring items, 7.0 percent) also in line with our financial target of 7 percent.
We continued our positive progress in the quarter in Norway, our largest market, with healthy demand. Our deal with the Norwegian specialist healthcare sector came into effect in October and enables Dedicare to provide nurses for all Norway’s hospitals. This deal was a contributor to high demand for nurses in the quarter. Dedicare Norway has continued to win market shares for 21 consecutive quarters, and compared to an exceptionally strong quarter in the previous year, net sales in local currency increased by 2.9 percent. However, due to a stronger Swedish krona, net sales in Norway fell by 3.9 percent on the previous year to SEK 272.8 million for the quarter. The quarter’s EBIT margin was an excellent 9.0 percent (9.6). All business areas made very positive progress. For the full year, net sales for this segment were SEK 1,175.1 million, up 15.7 percent on the previous year (21.1 percent in local currency).
In the Sweden segment, regional limits on contracted healthcare staff continued to have a negative impact on our business. Net sales in the quarter were SEK 113.4 million, a 24.0 percent decrease on the corresponding quarter of the previous year. The altered market conditions in Sweden also impacted the full year, with net sales down by 14.3 percent to SEK 482.3 million. To meet these challenges on the Swedish market, we reviewed our organisation, which will enable us to address the needs of the healthcare sector even better. Positive news for our future, which also underscores the pressing need ahead, was that the major nationwide tender for contracting health and medical care staff for all Sweden’s 21 regions secured definitive approval. This deal, where Dedicare is one of the successful providers, is worth SEK 38 billion, and clearly demonstrates that despite contracting limits, the regions still view contract staff as serving an important function for the supply of doctor and nursing skills to provide cost-efficient healthcare nationwide in the coming years. Another positive change in this deal, which came into effect in January 2024, is that it also requires the providers appointed to arrange occupational pension and insurance for their consultants. Dedicare has been pushing this issue for several years and welcomes the healthcare regions now taking more responsibility for ensuring good conditions for everyone working in healthcare.
Going forward, our operations in life science, which focus on recruitment and consulting operations in pharmaceuticals, biotechnology and medical devices, will be organised as an autonomous business area at a pan-Nordic level going forward. Our clients view the Nordics as a single market, and this organisational realignment adapts us accordingly, improving our potential and efficiency.
Net sales progressed positively in the Denmark segment in the quarter, growing by 15.0 percent to SEK 63.6 million. However, EBIT was poor, and the EBIT margin in the quarter was 0.2 percent (5.2). Limits to hiring nurses on long-term contract were introduced in the quarter. To address this change, we restructured parts of our business in the quarter. Consequently, non-recurring costs had a negative profit impact totalling SEK 1.1 million. Denmark reported a very positive full year, growing by 47.9 percent to SEK 264.5 million, with an EBIT margin of 5.0 percent (4.9) being Denmark’s best year ever. It’s positive to note that after the end of the quarter, we secured a keynote strategic doctor staffing deal in North Jutland.
The New Markets segment, consisting of our business in the UK, made several advances in the quarter. We secured a doctor staffing agreement in Ireland, and also won two major nationwide deals in the UK. Net sales grew by 32.4 percent to SEK 14.3 million in the quarter. In the full year, the first for this segment, net sales were SEK 48.8 million.
At group level, I’d like to especially highlight the launch of our new business concept, Dedicare International, targeting nurses, doctors and nursing assistants across the Nordics that want to work in foreign countries. Dedicare already possesses long-term, rigorous experience of cross-border assignments in Sweden, Norway and Denmark, but we’re now taking the next step on our international journey. We already have consultants working on the Falkland Islands, and offer assignments in the UK and Australia. Dedicare international represents a unique opportunity for healthcare staff. We also hope to help enhance the attractions of the healthcare profession and attract more people into healthcare education. This initiative is also a major step in Dedicare’s growth strategy and vision of becoming one of Europe’s leading recruitment and staffing providers in healthcare, life science and social work.
In summary, I can conclude that 2023 was a really good year for Dedicare. We didn’t just achieve all our financial targets, but also our key quality targets for customer and consultant satisfaction. We were recognised as Staffing Provider of the Year in Sweden and named Norway’s Best Workplace. I’m really proud of all the great achievements of our staff in the year and am looking confidently towards continuing to develop our businesses in 2024 alongside all my committed colleagues.
Krister Widström, CEO and Managing Director
This information is mandatory for Dedicare AB (publ) to publish pursuant to the EU Market Abuse Regulation (MAR) and the Swedish Securities Markets Act. This information was submitted for publication through the agency of the above contact at 8 a.m. CET on 9 February 2024
Krister Widström, CEO & Managing Director, +46 (0)70 526 79 91
Anette Sandsjö, CFO, +46 (0)73 343 44 68