The First Quarter in Summary
- Net sales decreased 1.6 percent to SEK 207.4 million (210.7)
- Service sales increased 3.4 percent to SEK 160.3 million (155.0)
- Product sales decreased 15.5 percent to SEK 47.1 million (55.8)
- Gross margin increased to 44.5 percent (42.9)
- Operating profit (EBIT) amounted to SEK 16.6 million (19.1), corresponding to an operating margin of 8.0 percent (9.1)
- Profit for the period amounted to SEK 7.5 million (14.3) and earnings per share to SEK 0.29 (0.56)
- Cash flow from operating activities was SEK 19.3 million (28.9)
- Cash flow from investing activities was SEK -23.6 million (-12.3)
- Cash position was SEK 37.4 million (46.4) at the end of the quarter
- Careium delivered growth in all markets except Sweden, which was impacted by lower revenue up-front from leasing contracts
- A 12-year contract with Asker and Baerum in Norway was signed with an annual value of SEK 24 million
- Guidance for 2025 remains unchanged: For 2025, we expect net sales, profitability and free cash flow before acquisitions to increase compared to 2024. Due to the Swedish market awaiting a new major tender framework, we expect the first half of the year to be softer and the second half of the year to be stronger.
CEO's commentary
Careium delivered growth in all regions except Sweden. Gross margin increased to a healthy 44.5 percent. Continued initiatives in development and sales weighed on margins short-term. Most importantly, we are on the right strategic track, expanding our product range and sales reach.
Net sales in the quarter decreased by 1.6 percent to SEK 207.4 million (210.7) while gross profit increased to SEK 92.3 million (90.3). All markets showed growth, except Sweden which was impacted by lower revenue up-front from leasing contracts. We expect improved business momentum in Sweden once the new version of the major framework agreement (ADDA 2025) comes into effect during the second half of the year.
Despite growth in gross profit, EBIT decreased to SEK 16.6 million (19.1), due to initiatives in sales and development as well as depreciations. Notably, R&D expenses nearly doubled to SEK -8.0 million (-4.2). We do these initiatives to capitalize on our position and service our markets with a greater speed, quality and innovation.
At the end of the quarter, we had a cash position of SEK 37.4 million (46.4) and access to SEK 32.5 million via a credit facility. Cash flow was affected negatively by SEK -11.9 million (-3,1) from taxes paid in the quarter.
Our previously communicated initiatives are progressing well, particularly in the consumer business, assisted living and product innovation.
We have added focus on the consumer segment, as it has a different dynamic, potential, cost-to-serve and degree of control than the public sector. In the quarter, we welcomed our first talent within e-commerce to consumers to build on the strong base of our 20 000 private pay customers. The initial focus is to restructure our web presence to drive growth, mainly in the strongest private pay markets the UK and Netherlands.
Assisted living represents 20-30 percent of the revenue potential across Europe. To capture this opportunity, we are expanding our presence with our first contracts in Denmark and entered the qualification stage for the main framework agreement in Sweden.
The ongoing development of our digital ecosystem with our flagship platform i-Care Center is progressing well, supported by significant R&D expenses. We now have migrated ~60% of our Swedish end-user base to the system improving performance and efficiency. Interest is growing, and we have a growing pipeline of potential customers across Europe.
We are working through a solid pipeline of opportunities for potential acquisitions. Our ambition is to approach companies matching our profile, focused on integration and efficiency opportunities.
Careium is in a great position in European technology enabled care. We are thankful for the trust placed in our services from over 500 000 seniors across Europe.
Christian Walén
President and CEO
Webcast
A live broadcast report presentation will be held Thursday 24 April at 10.30 am with President and CEO Christian Walén and CFO David Granath.
The webcast is accessed on: https://youtube.com/live/a2RYHwkU2-U?feature=share
The presentation material will be available on: https://www.careium.com/en-gb/investors/financial-information/presentations/
For more information, please contact:
Christian Walén, President and CEO, +46 (0) 739 09 59 65
David Granath, CFO, +46 (0) 73 363 89 01
E-mail: ir@careium.com
About Us
Careium is today one of the leading players in technology-enabled care in Sweden, Norway, the United Kingdom and the Netherlands. This position means that Careium is one of the leading players in Europe that provides technology-enabled care. Careium's innovative solutions improve the safety, quality of life and independence of seniors both inside and outside the home. For the care provider, the Company's solutions mean increased efficiency and the opportunity to invest resources in more valuable activities. Careium is one of the few players that can offer the entire chain with security alarms, sensors (fall sensors, smoke detectors, motion detectors, etc.), accessories (cameras, electronic locks, robotic medication assistive devices, etc.) and secure communication with alarm response: we offer a complete digital alarm chain. FNCA Sweden AB is appointed certified adviser.
This information is information that Careium 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 above, at 2025-04-24 08:00 CEST.
