Capio AB (publ) Interim report January – June 2017

April - June 2017

  • Net sales MSEK 3,881 (3,573). Organic sales growth 0.5% (4.0) and total sales growth 8.6% (3.8)
  • EBITDA[1] MSEK 256 (276) and margin 6.6% (7.7). EBITDA decreased by 7.2%
  • EBITA[1] MSEK 142 (172) and margin 3.7% (4.8). EBITA decreased by 17.4%
  • Operating result (EBIT) MSEK 108 (157) and margin 2.8% (4.4). EBIT decreased by 31.2%
  • Profit for the period[2] MSEK 70 (113). Earnings per share after dilution[2] SEK 0.50 (0.80)

January - June 2017

  • Net sales MSEK 7,795 (7,176). Organic sales growth 1.9% (3.8) and total sales growth  8.6% (3.7)
  • EBITDA[1] MSEK 598 (572) and margin 7.7% (8.0). EBITDA increased by 4.5%
  • EBITA[1] MSEK 374 (367) and margin 4.8% (5.1). EBITA increased by 1.9%  
  • Operating result (EBIT) MSEK 317 (333) and margin 4.1% (4.6). EBIT decreased by 4.8%
  • Profit for the period[2] MSEK 222 (235). Earnings per share after dilution[2] SEK 1.57 (1.67)

[1] Refer to page 33 for definitions of EBITDA and EBITA.
[2] Profit for the period refers to profit attributable to parent company shareholders. Refer to note 2 for calculation of earnings per share (before and after dilution).

CEO comments:
“Nordic develops well while market drop challenges France.”

  • Acquisitions of more than MSEK 900 in annual sales successfully integrated and the acquisition activity is set to continue
  • Continued good organic sales growth and acquisitions drive sales and results in Nordic
  • Digital consultations “Capio Online” and digital support for physical consultations launched in May
  • Weaker private market in France impacts the result, ongoing work to adjust resources – French Q4 2017 margin to exceed Q4 2016
  • Q2 was negatively impacted by fewer working days from Easter and other calendar effects, 1 working day less during the first six months
  • Full year 2017 Group EBITDA growth is expected to exceed 10%

During both Q1 and Q2, the Nordic sales growth was above 13%, driven by the add-on acquisitions and a continued good organic sales growth of 3.6% (3.8) for the first six months. During the same period, the EBITDA result increased by 18% and the margin improved to 6.7% (6.5).

The new market entry into Denmark has so far exceeded expectations. The integration of the ten acquired primary care centers in the west of Sweden (Backa) has been successfully completed, as has the integration of the recently acquired eye specialist clinic in Sweden. These acquisitions will give further leverage to both sales and results going forward.

As planned, the digital concepts have been under test since May 2017 and the full roll-out to Capio’s 750,000 primary care patients in Sweden starts in September 2017 and continues into 2018. The roll-out includes both digital consultations “Capio Online” and algorithm support “Better Visits” for traditional physical consultations. This is intended to improve availability and lead to more precise diagnoses and better treatments. The length of consultations is also expected to become shorter. We see these digital steps as a start of a new era in healthcare provision.

Latest available market statistics from May shows that the private healthcare market in France dropped to a growth of -0.4% during January – May 2017 compared to 2.6% during the same period 2016. Capio’s development has been slightly better than the private market growth.

We believe that the slowdown of Capio’s organic sales growth is temporary and will resume, due to the demographic development and our attractive offer in Modern Medicine. However, we now have full focus on adjusting resources to the current volume growth with further staff and cost reductions – also increasing our flexibility to manage variations in patient volumes going forward. On an annualized basis, this will give a result improvement of approximately MEUR 6. The majority of actions will be implemented by the end of Q3 and are expected to impact results and margins positively in Q4 2017, with a full year pace from Q1 2018. Due to the market drop, we no longer expect to reach an unchanged French EBITA margin for the full year, but following the actions taken the EBITA margin in Q4 is expected to exceed the corresponding margin in Q4 2016.

Introduction of new specialties and the ongoing procurement program is also expected to contribute to improvements during the second half of 2017. The development is also supported by continuous good reductions of AVLOS with a continued 4% reduction of case mix adjusted AVLOS.

In Germany fewer working days compared to 2016 combined with cancellations of planned surgeries at the end of the quarter, burden growth and margins in Q2 2017. This is seen as a temporary drop in volume growth and is expected to recover during the second half of 2017. The recent acquisition of an eye specialist clinic in Bremen will give further leverage to sales and results going forward.

Going forward, the top priority is of course to achieve the planned cost adjustments in France and turn the margin trend upwards.

We maintain the focus on add-on acquisitions in the Nordics, primarily within primary and specialist care. The digital focus will increase further.

For the full year 2017 our expectation is to reach a Group EBITDA growth exceeding 10%.

Thomas Berglund
President and CEO

Presentation of the interim report
Investors, analysts and media are invited to participate in a telephone conference on July 21, 2017 at 09.30 am (CET). President and CEO Thomas Berglund and CFO Olof Bengtsson will present the report and answer questions. The telephone conference will be audio casted live on To participate in the telephone conference, please register at and dial in five minutes prior to the start of the conference call.

Sweden: +46 8 566 426 92
UK: +44 203 008 98 02
US: +1 855 753 22 36
Finland: +35 898 171 04 93
France: +33 170 75 07 12

Prior to the start of the telephone conference, presentation slides will be available at

A recorded version of the audio cast will be available at during the afternoon (CET).

For further information

Thomas Berglund, President and CEO
Telephone: +46 733 88 86 00, E-mail:

Olof Bengtsson, CFO
Telephone: +46 761 18 74 69, E-mail:

Kristina Ekeblad, Investor Relations Manager
Telephone: +46 708 31 19 40, E-mail:

Henrik Brehmer, SVP Group Communication and Public Affairs
Telephone: +46 761 11 34 14, E-mail:

For further information regarding Capio’s IR activities, refer to

This is information that Capio AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person Henrik Brehmer set out above, at 08.00 (CET) on July 21, 2017.

About Capio
Capio AB (publ) is a leading, pan-European healthcare provider offering a broad range of high quality medical, surgical and psychiatric healthcare services through its hospitals, specialist clinics and primary care units. Since the Danish operation was acquired at the beginning of 2017, Capio operates in five countries; Sweden, Norway, Denmark, France and Germany. In 2016, Capio’s 12,435 employees provided healthcare services during 4.7 million patient visits across the Group’s facilities, generating net sales of MSEK 14,069. Capio operates across three geographic segments: Nordic (54% of Group net sales 2016), France (38% of Group net sales 2016) and Germany (8% of Group net sales 2016). For more information about Capio, please see