Interim report Q3 2020

2020-11-06 08:00

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Presentation Q3 2020

Webcast Q3 2020

A stable quarter with good news for personal assistance

Third quarter, July-September 2020

  • Operating revenue was SEK 1,931m (1,928), which is in line with the previous year. Organic growth was 2.2%.
  • Operating profit was SEK 172m (176), a decrease of 3 %. Adjusted operating profit amounted to SEK 172m (172), which is in line with the previous year.
  • Net profit after tax for the period amounted to SEK 109m (128).
  • Basic and diluted earnings per share for the period amounted to SEK 2.05 (2.42).
  • Operating cash flow amounted to SEK 146m (206). 

Interim period, January-September 2020

  • Operating revenue was SEK 5,849m (5,554), an increase of 5%. Organic growth was 4.0%.
  • Operating profit was SEK 370m (298), an increase of 24%. This includes a capital gain of SEK 17m from sale of properties. Adjusted operating profit was SEK 353m (294), an increase of 20%.
  • Net profit after tax for the period amounted to SEK 212m (170).
  • Basic and diluted earnings per share for the period amounted to SEK 3.99 (3.21).
  • Operating cash flow amounted to SEK 463m (375). 

Significant events in and after the third quarter

  • Noora Jayasekara is appointed as new CFO of Humana and takes up the role on 1 September. She was previously Group finance director from 2018.
  • The Swedish government proposes in its budget, with the support of its cooperating parties the Centre Party and the Liberals, that the state reimbursement level for personal assistance shall be increased by 3.5 percent and fixed at SEK 315 per hour for 2021. For Humana, the financial effects of the proposed increase are positive since revenues increase, but the effect on profit depends on several factors. Humana estimates that the proposed increase is at least enough to offset pressure on margins.
  • After the end of the quarter, Humana acquires assistance company RO Omsorg Assistans AB. Full year revenues amount to approximately SEK 50m and the company has about 90 employees.

President and CEO Rasmus Nerman comments on the quarter:

“The third quarter of 2020 was marked by the pandemic just as the last quarter was. Humana continued to manage it well and the quarter can be summarised as stable, both operationally and financially. The quarter also saw positive news on the assistance allowance, we received important confirmation of our quality and once again we have been distinguished for our gender equality work. When Sweden’s most gender-balanced listed companies were selected through the Allbright Award, Humana was one of three finalists”, Rasmus Nerman said.

“Revenue for the quarter amounted to SEK 1,931m and operating profit was SEK 172m, both in line with the previous year. For the nine-month period, revenue increased 5 percent with organic growth of 4 percent, and operating profit increased 24 percent. The operating margin amounted to 8.9 percent for the quarter and 6.3 percent for the nine-month period. Debt continued to decrease and our leverage is now in line with the financial target. We continued to focus heavily on managing the pandemic during the quarter. I feel that we are managing the situation very well and am proud of the perseverance of our fantastic employees. Our Humana Quality Index, which weighs seven quality indicators, such as serious deviations and customer satisfaction, confirms my view. The index has been stable during the pandemic and even improved in the third quarter from 94 to 95, with 100 being the long-term target. Financially, the pandemic had a negative effect on revenue due to lower occupancy. Costs for sickness absences and personal protective equipment (PPE) have increased but the effect on profit is marginal after state subsidies”, Rasmus Nerman said.

Read the full comment in the report.

Conference call

A conference call will be held 6 November 2020 at 09:00 CET, at which President and CEO Rasmus Nerman and CFO Noora Jayasekara will present the report and answer questions.

To participate, call:

SE: +46 8 5664 2706
UK: +44 33 3300 9264
USA: +1 83 3249 8404

This information is information that Humana AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on 6 November 2020 at 08:00 CET.

For more information, please contact:

Noora Jayasekara, CFO, +46 70 318 92 97, noora.jayasekara@humana.se  
Anna Sönne, Head of Investor Relations, +46 70 601 48 53, anna.sonne@humana.se

Humana is a leading Nordic care company providing services within individual and family care, personal assistance, elderly care and special service housing in accordance with LSS. Humana has 15,000 employees in Sweden, Norway, Finland and Denmark providing care for 9,000 individuals and working to achieve the vision “Everyone is entitled to a good life”. In 2019, Humana’s operating revenue was SEK 7,467m. Humana is listed on Nasdaq Stockholm and the company’s headquarters are located in Stockholm.