Daily News
View All NewsHedera Q1 revenue down 9.9% due to healthcare hiring limits
Swedish recruitment services firm Hedera Group (HEGR:SS) reported revenue today for the fourth quarter ended 31 December 2023 of SEK 146.9 million (€12.5 million), a decrease of 9.9% compared to last year.
The reduction in revenue is attributable to Hedera Bemanning (Staffing), which saw volume decreased by 45% compared to the first quarter of 2023.
“The quarter has mainly been marked by a sharply declining staffing market,” CEO Johan Sandström said. “We have continued to have good profitability in the business we do, but the decrease in turnover has resulted in an overall weak profitability.”
Healthcare staffing in Sweden was impacted by the regional restrictions on the hiring of healthcare staff.
“The national agreement that started in January has not developed as expected,” Sandström said. “Regions join continuously but interpret the agreement differently. This has resulted in uncertainty among regions, suppliers and consultants alike. We now see that the development is going in the right direction and are convinced that working methods and routines will move forward. Healthcare does not work without staffing companies.”
The fall in operating income was explained for the most part by a decline in volume in the Staffing business during the period.
The report contains corrected Q1 2023 figures below.
| (SEK millions) | Q1 2024 | Q1 2023 | Change | Q1 2024 (€ millions) |
| Revenue | 146.9 | 163.1 | -9.9% | 12.5 |
| Operating income | 1.7 | 4.8 | -64.5% | 0.1 |
| Operating margin | 1.1% | 2.9% | - | |
| EBITDA | 3.0 | 6.0 | -50.0% | 0.2 |
| Profit after tax | 0.4 | 4.0 | -90.0% | 0.0 |
The group operates in two segments: Assistance - includes personal assistance and care activities in Sweden; and Staffing - includes staffing of healthcare services in Sweden.
Hedera Assistance saw revenue increase by 18.5% compared to the previous year. The organic growth in the quarter corresponded to 15%.
In the first quarter, the Staffing segment saw lower volumes compared to the same period last year. Revenue decreased by 45% compared to the first quarter of 2023.
Hedera Group set a new 52-week low during today's trading session when it reached SEK 5.00 (€0.43). Over this period, the share price is down 35.84%. The company last traded at SEK 5.30 (€0.45), down 13.82% on the day. The company has a market cap of SEK 91.64 million (€7.82 million).