Interim report Q4 2019
A weak finish to an eventful year
Q4, October–December 2019
- Operating revenue was SEK 1,912m (1,700), an increase of 12%, of which organic growth was 0.7%.
- Operating profit was SEK 71m (82), a decrease of 13%. The profit was affected by integration costs of SEK -6m (-) for Coronaria Hoiva. The effects of IFRS 16, the new accounting standard that came into effect on 1 January 2019, on operating profit amounted to SEK 16m (-).
- Net profit after tax for the period amounted to SEK 18m (51).
- Earnings per share for the period before and after dilution amounted to SEK 0.35 (0.97).
- Operating cash flow amounted to SEK 220m (136).
Full year, January–December 2019
- Operating revenue was SEK 7,467m (6,725), an increase of 11%, of which organic growth was 2%.
- Operating profit was SEK 369m (391), a decrease of 6%. The profit was affected by integration costs of SEK -14m (-) for Coronaria Hoiva. The effects of IFRS 16 on operating profit amounted to SEK 46m (-).
- Net profit after tax for the period amounted to SEK 187m (245).
- Earnings per share for the period before and after dilution amounted to SEK 3.54 (4.62).
- Operating cash flow amounted to SEK 595m (285).
Significant events in and after the fourth quarter
- Humana’s Board proposes that the 2020 AGM approves a dividend of SEK 0.70 per share for the 2019 financial year and that the remaining profit be carried forward.
- The Board of Directors has revised Humana’s financial targets.
President and CEO Rasmus Nerman comments on the quarter and on the full year:
“Humana’s operating revenues amounted to SEK 1.9bn during the fourth quarter and to nearly SEK 7.5bn for 2019. This is an increase of 11 percent and well in line with our annual growth rate target. However, operating profit was weak: SEK 71m for the quarter and SEK 369m for the full year. This is equivalent to an operating margin of 4.9 percent for the full year, which is not sufficient to reach our profitability target. Both the quarter and the year were strong in terms of cash flow”, Rasmus Nerman said.
“2019 was a year with a high level of activity. We continued to build a sustainable Nordic care group while experiencing strong growth, but we grappled with several challenges as well. Today Humana has an even sharper focus on profitability. We need to improve profitability in several segments. At the same time, large parts of our operations are very stable and we are confident about the future, since we can see that we have an even more important role to play as a provider of cost-effective quality care in the welfare sector”, he said.
During autumn 2019 the Board of Directors and Group management performed a strategic review of Humana that resulted in a new business plan. At the Board meeting before the publication of this quarterly report, the Board of Directors decided to revise the Group's financial targets. The revised financial targets, which are effective as of 2020, are as follows after taking into account the IFRS 16 accounting standard and Humana's financial position:
An operating margin of 7% over the medium term.
Annual organic revenue growth of 5% over the medium term. Bolt-on acquisitions may generate additional annual growth of 2-3 %.
Interest-bearing net debt not exceeding 4.5 times EBITDA, i.e. operating profit before depreciation, amortisation and impairment (see Note 9b, Financial definitions and intent). Debt may temporarily exceed the target level, for example in connection with acquisitions.
Previous financial targets (through 2019):
Previous target: An operating margin of approximately 6% over the medium term.
Previous target: Annual growth rate of 8-10% over the medium term, achieved through organic growth as well as bolt-on acquisitions.
Previous target: Interest-bearing net debt to EBITDA of no more than 3.0 times. However, debt may temporarily exceed the target level, for example in connection with acquisitions.
A conference call will be held 13 February 2020 at 09:00 CET, at which President and CEO Rasmus Nerman along with Vice President and CFO Ulf Bonnevier will present the report and answer questions. To participate, call:
SE: +46 8 5664 2693
UK: +44 33 3300 9270
USA: +1 83 3526 8347
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, at 08:00 CET on 13 February 2020.
For more information, please contact:
Ulf Bonnevier, Vice President and CFO, +46 70 164 73 17, firstname.lastname@example.org
Anna Sönne, Head of Investor Relations, +46 70 601 48 53, email@example.com
Humana är ett ledande nordiskt omsorgsföretag som erbjuder tjänster inom individ- och familjeomsorg, personlig assistans, äldreomsorg och bostäder med särskild service enligt LSS. Humana har cirka 16 000 engagerade medarbetare i Sverige, Norge, Finland och Danmark som utför omsorgstjänster till 9 000 människor. Vi arbetar efter visionen ”Alla har rätt till ett bra liv”. 2019 uppgick rörelseintäkterna till 7 467 Mkr. Humana är börsnoterat på Nasdaq Stockholm och har huvudkontor i Stockholm.