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View All NewsDedicare Q4 revenue down 7% amid strong comparative quarter
Swedish staffing firm Dedicare (DEDI: SS) reported turnover today for the fourth quarter ended 31 December 2023 of SEK 464.1 million (€41.1 million), down 7.0% compared with the same period last year.
The group cited a strong comparative quarter, but also the currently challenging Swedish market and the strengthening of the krona during the quarter.
| (SEK millions) | Q4 2023 | Q4 2022 | Change | Q4 2023 (€ millions) |
| Revenue | 464.1 | 499.3 | -7.0% | 41.1 |
| EBITDA | 44.1 | 37.9 | 16.3% | 3.9 |
| EBITDA margin | 9.5% | 7.5% | - | - |
| Operating profit | 39.3 | 31.3 | 25.5% | 3.4 |
| Operating margin | 8.5% | 6.2% | - | - |
| Profit for the period | 33.7 | 25.1 | 34.2% | 2.9 |
Krister Widström, President and CEO said, “The fourth quarter of the year was, in comparison to a very strong quarter in 2022, weaker for Dedicare in terms of revenue development, while profitability continued to be stable. In Norway and Denmark, the development was good, despite a negative currency effect due to the strengthening of the Swedish krona. Restrictions on the hiring of personnel in several regions in Sweden continued to affect operations.”
In Norway, the group’s largest market, Dedicare continued to see a positive development during the quarter with strong demand. After an agreement came into effect in October, Dedicare can now supply nurses to all hospitals in Norway. The agreement contributed to great demand for nurses in the quarter. For 21 quarters in a row, Dedicare Norway has continued to gain market share, however with the strengthening of the Swedish krona, revenue was down 3.9%.
In the Sweden segment, regional restrictions in terms of hiring healthcare personnel continued to negatively affect operations. Revenue in the quarter amounted to SEK 113.4 million (€10.0 million), which is a decrease of 24.0% compared to the same quarter last year.
In the Denmark segment, revenue grew during the quarter by 15% to SEK 63.6 million (€5.6 million).
Within the New Markets segment, which includes the UK business, the group noted progress during the quarter. It won a doctor staffing contract in Ireland and signed a number of contracts in the UK. Revenue grew by 32.4% to SEK 14.3 million (€1.2 million) in the quarter.
For the full year period, revenue for the group totalled SEK 1.97 billion (€174.6 million), an increase of 11.4% over the prior year.
Dedicare shares last traded at SEK 97.70 (€8.66), down 6.95% on the day and 22.89% above the 52 week low of SEK 79.50 (€7.05) set on 17 October 2023. The company has a market cap of SEK 807.93 million (€71.6 million).