Growth at Humana means that we help more people achieve having a good life. The company has clear financial goals and growth presupposes high quality in our care services and profitability. Organic growth will be attained by starting up new operations and developing our services. The company also evaluates opportunities for acquisitions.

Profitability

Humana is a company with a focus on long-term and profitable growth. Over the years, Humana has maintained stable margins. For the past five years, the Group has had an annual revenue growth of 5.2 percent and an operating margin of 5.4 percent on average. The focus is on growing with profitability and quality going forward. In the medium term, profitability shall amount to 7 percent annually.

Organic growth

Humana's growth shall primarily be attained in an organic way and in the medium term, organic growth shall amount to 5 percent annually. Humana is growing organically by developing its offering and by starting new units. All of Humana's five business areas have a clear growth strategy for growing organically.

During 2020, five new Humana elderly care homes were being constructed in Sweden (Vallentuna, Ängelholm, Falkenberg and Norrtälje). They will be able to accommodate 320 residents and operations will start up in 2021. We also concluded an agreement for a new elderly care home under own management in Täby with 90 flats. Construction will begin this year and the opening is planned for the autumn of 2022. 

Acquisition-driven growth

Humana complements and accelerates organic growth through acquisitions that can increase revenues by 2–3 percent. The acquisition strategy has three primary aims:

  • to strengthen geographical presence, ­existing operations and/or the degree of specialisation in the offering
  • to drive innovation and complement existing operations with new service areas where Humana sees growth potential
  • to achieve volume and economies of scale

Humana evaluates opportunities for acquisitions in line with the Group’s strategy. The company seeks operations that have growth potential and whose core values, leadership and quality are consistent with Humana’s. 

Debt

Higher earnings and lower investments have helped to gradually reduce debt. Leverage, measured as interest-bearing net debt in relation to adjusted EBITDA, fell to 4.3 times in 2020. According to the financial ­target the leverage ratio should not exceed 4.5 times, even though it may temporarily be higher, for example in connection with acquisitions.

Risks

Humana's risk management is described under Risks and risk management.