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Third party research

Careium: Pushing through a tough H1 - ABG

Careium

This is a third party research report and does not necessarily reflect our views or values

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Q2e: -4.5% organic sales growth, 9% adj. EBITA margin
Expect continued caution in Sweden
Trading at 9x-7x '25e-'27e EV/EBITA adj.


Expect continued softness as H1 comes to an end

We expect Q2 sales and adj. EBITA of SEK 220m and SEK 20m, respectively, corresponding to y-o-y organic sales growth of -4.5% and a margin of 9%. Our estimated negative sales growth is primarily driven by expected soft growth in the Nordics, as we anticipate further caution in the Swedish market given the pending ADDA 2025 framework. For the UK & Ireland, we expect organic sales growth of 5%, as the Q2'24 comps are light. We expect opex to increase by 7% y-o-y, mainly driven by SD&M. On margins, we expect a higher GM y-o-y (44% vs. 42%), given the trajectory over the last three quarters, as well as a higher share of service sales (74% vs. 71% Q2'24). Consequently, our estimated adj. EBITA margin of 9% is 1.5pp lower y-o-y (10.4% Q2'24) due to operating leverage. Keep in mind that Careium has guided for a softer H1 and a stronger H2 for FY'25, and that we expect a recovery in the later quarters.
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