Daily News
View All NewsDedicare Q2 revenue up 13% despite challenges in Sweden, but profits fall
Dedicare (DEDI: SS), the Swedish staffing firm, reported revenue today for the second quarter ending 30 June 2023 of SEK 478.9 million (€41.6 million), an increase of 13.0% compared with the same period last year.
| (SEK millions) | Q2 2023 | Q2 2021 | Change | Q2 2023 (€ millions) |
| Revenue | 478.9 | 423.9 | 13.0% | 41.6 |
| Operating Profit | 34.4 | 37.3 | -7.7% | 2.9 |
| Operating Margin | 7.2% | 8.7% | - | - |
| EBITDA | 40.7 | 42.1 | -3.3% | 3.5 |
| Profit for the Period | 22.9 | 26.6 | -13.9% | 1.9 |
Krister Widström CEO and Managing Director of Dedicare AB, said, “In the second quarter of the year, the Dedicare group continued to grow and beat its growth target, driven by brisk progress in Norway and Denmark. This was despite negative progress on the Swedish market, due to limitations in contracting across several regions. In earnings terms, the quarter was consistent with our EBIT margin target, despite progress in Sweden and a negative exchange rate impact in Norway.”
Several Swedish regional authorities introduce limits on contracted doctors and nurses, which has a negative impact on the Swedish operation. This meant that revenue in Sweden for the quarter reduced by 15.2% to SEK 121.7 million (€10.6 million). To offset the negative effects, a number of measures were taken to realign operations towards other regions, and to municipalities and private healthcare providers.
“We’re continuing to extend our brand on the Swedish market, and will change the corporate name of the acquired operation H&P Search & Interim to Dedicare Life Science after the summer,” Widström said.
Demand for the operation’s services in Norway is continuing to increase in all business areas, and revenue for the quarter were up by 16.2% to SEK 279.1 million (€24.2 million). The Norwegian krone depreciated in the quarter, and adjusted for currency effects, net sales increased by 23.7%.
In Denmark, revenue increased by 67.5% for the quarter to SEK 67.5 million (€5.8 million). Adjusted for currency effects, net sales increased by 53.1%. The increase relates to both doctor and nurse staffing.
New Markets consists of the acquired operation in the UK. Net sales for the quarter were SEK 10.6 million and had no prior year comparator. Dedicare signed an agreement in September 2022 to acquire UK recruitment and staffing company Templars Medical Agency Ltd.
Revenue for the H1 period stood at SEK 982.1 million (€85.4 million), up 20% over the same period a year ago.
Dedicare traded at SEK 96.00 (€8.35), down 16.67% on the day and 20.75% above the 52-week low of SEK 79.50 (€6.91) set on 14 July 2022. The company has a market cap of SEK 869.84 million (€75.6 million).