The third quarter in summary

• Net sales increased by 6.0 percent to SEK 213.7 million (201.7)
  • Net sales increased by 9.4 percent adjusted for currency effects
  • Net sales increased despite a negative impact of SEK 21.9 million by financial lease classifications
• Gross margin increased to 44.2 percent (42.8)
• Operating profit (EBIT) was SEK 14.3 million (16.5), and the operating margin was 6.7 percent (8.2)
  • Administrative costs included one-time items of SEK 4.6 million related to management changes
• Profit for the period amounted to SEK 8.6 million (10.8) and earnings per share to SEK 0.32 (0.41)
• Free cash flow increased to SEK 14.1 million (3.3)

CEO’s statement
Careium returned to growth in the third quarter, delivering higher net sales, gross margin, profitability (adjusted for one-offs) and free cash flow. Building on this positive momentum, we have also started identifying initiatives to unlock Careium’s full potential.

Net sales increased 9.4 percent in the quarter adjusted for currency. We delivered growth across all markets except Sweden, which was impacted by financial leases. However, adjusted, for the impact of financial lease classifications, net sales increased 11 percent in the Nordics. The UK grew by 17 percent, and we nearly doubled sales in Germany, one of our emerging markets. Netherlands reported modest growth.

Product sales increased 77.5 percent to SEK 66.3 million (37.4), while service sales decreased 10.3 percent to SEK 147.3 million (164.3).

Gross margin increased to 44.2 percent (42.8). Adjusted for one-offs of SEK 4.6 million, EBIT and EBITDA also increased. Importantly, our free cash flow improved to SEK 14.1 million (3.3).

I have now been with the company for two months as its CEO. During this time, I have visited most of our markets and met with several customers. My early observation is that we have achieved a lot as a company, but we still have areas for improvements. Together with management, we are starting to identify actions that will strengthen our customer focus, organization and market position.

In my view, Careium has a strong position in several key European markets. In addition, Careium has several early bridgeheads in markets with large elderly populations. Being a young company based on several acquisitions, we clearly have further tasks to accomplish to fully leverage synergies and build a unified and modern European health tech company.

I have also noted that a large portion of our revenue is recurring with relatively long customer contracts. This part of the business, including both managed services and products, provides predictable and stable growth opportunities.

Another early industry observation is Careium’s potential in the combination of growing and aging population and new digital technologies. The markets are in different stages of this transformation and there are opportunities to tap into.

Careium is well positioned to take an active role in the consolidation. However, we should tread diligently, looking for complementary businesses with clear synergies.

I would like to summarize by stating that the Careium team has generated a positive momentum in the third quarter. At the same time, there is clearly important work remaining to unlock Careium’s full potential.

Short term, we reiterate our financial targets for 2025. From the first quarter of 2026, the impact of financial lease accounting will be significantly reduced. This is an important step in providing even clearer reporting for the capital markets.

With a longer perspective in mind, Careium has a clear possibility to establish itself as the leader in technology enabled care across Europe.

Peter Heuman
CEO

Webcast
A live broadcast report presentation will be held Friday 24 October at 10.30 am with CEO Peter Heuman and CFO David Granath.
The webcast is accessed on: https://youtube.com/live/8tb3QiKK4U8
The presentation material will be available on: https://www.careium.com/en-gb/investors/financial-information/presentations/