Capio AB (publ) Interim report January – September 2017

July - September 2017

  • Net sales MSEK 3,455 (3,168). Organic sales growth 2.2% (2.6) and total sales growth 9.1% (3.7)
  • EBITDA¹ MSEK 168 (200) and margin 4.9% (6.3). EBITDA decreased by 16.0%
  • EBITA¹ MSEK 53 (94) and margin 1.5% (3.0). EBITA decreased by 43.6%  
  • Operating result (EBIT) MSEK 18 (72) and margin 0.5% (2.3). EBIT decreased by 75.0%
  • Profit for the period² MSEK -7 (34). Earnings per share after dilution² SEK -0.03 (0.24)

January - September 2017

  • Net sales MSEK 11,250 (10,344). Organic sales growth 2.0% (3.5) and total sales growth 8.8% (3.7)
  • EBITDA¹ MSEK 766 (772) and margin 6.8% (7.5). EBITDA decreased by 0.8%
  • EBITA¹ MSEK 427 (461) and margin 3.8% (4.5). EBITA decreased by 7.4%  
  • Operating result (EBIT) MSEK 335 (405) and margin 3.0% (3.9). EBIT decreased by 17.3%
  • Profit for the period² MSEK 215 (269). Earnings per share after dilution² SEK 1.53 (1.90)

¹Refer to page 32 for definitions of EBITDA and EBITA.
²Profit 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:

“Increased focus on execution of our strategy.”

The quarter showed a weaker than expected performance, why we, as earlier announced, have updated the full year 2017 Group EBITDA growth guidance (5-7% vs. previously “exceeding 10%”) and published preliminary quarterly results for the third quarter (Q3) 2017. 

In the Nordic segment, inpatient activity continued to develop positively during Q3 – both in terms of volume growth and reduction of AVLOS. This development is more prominent in Capio S:t Göran and geriatric care in Stockholm. Outpatient activity was also high, mainly driven by acquisitions.

The organic sales growth increased during Q3 and was 4.3% (3.3). The EBITDA result was MSEK 153, corresponding to a growth of just above 20%. Accumulated, EBITDA was MSEK 447, corresponding to a growth of 19%. Compared with our previous guidance, the development was impacted by a shortfall of MSEK 15 within primary care in Stockholm, where the county is changing from a per visit reimbursement model to a capitation model. A combination of insufficient adjustment of staff to fit the new model and somewhat lower productivity in terms of seeing patients, have caused both a slight decline in sales and higher than planned staff costs. This is now being corrected.

The growth of the French private healthcare market remained low also during the seasonally lower third quarter. Organic growth was almost flat, and Capio was in line with the market.

The shift from in- to outpatient treatment is continuing, facilitated by introduction of improved treatment methods (Modern Medicine) and pushed by the government’s price reductions of close to 7% of medical sales over three years (approx. MSEK 200 in nominal terms for Capio since 2015). During Q3, the number of outpatients increased by 4.1% while the inpatients decreased by 1.3%. This should be seen in the perspective of 1 working day less in Q3 2017 (in the high production month of September) vs. Q3 2016. AVLOS was reduced by 0.7%, which contains the expanded geriatrics speciality with longer AVLOS than most other specialties. Adjusted for geriatrics and case mix, AVLOS decreased by approx. 4%.

3 hospitals have generated most of the negative impact of MSEK 35 compared to the previous guidance. These hospitals have been late adjusting production resources and productivity to the lower price level and weak market. Another three hospitals are under some pressure, but are gradually improving. The remaining 16 hospitals perform in total at the expected level. Already during summer, we started to prepare programs to reduce staff with about 130 FTEs. Impacts will be visible from October and the staff and cost reductions will gradually come up to full speed by the end of the year.

Capio is improving healthcare
Capio’s strategy in short is to implement Modern Medicine that shortens treatment times and transfers treatments from in- to outpatient activities (Rapid Recovery). With Modern Management, the change can be sped up and the development of improved and faster patient flows is focused. This is good for patients – and for payers and society at large. The development is encouraged and enforced by governments in all European countries. Growth through acquisitions is also an important part of our strategy.

We are delivering on our strategy, which e.g. is visible in the continued shortening of average length of stay (AVLOS) and the increase in outpatient activity. So far this year, we have made a number of acquisitions which are adding close to MSEK 1,000 in net sales on an annual basis. We continue to see a long-term market growth and increased demand for our services. However, short-term swings in demand sometimes occur and so far this year we have not been fast enough adjusting our resources to the lower than expected volume growth, which is now being corrected.

Digitalization of growing importance for healthcare
We continue to develop our digital concepts for doctor consultations, which are now being implemented within primary care in Sweden. When fully implemented in 2018, all of Capio’s 750,000 listed primary care patients will have access to digital services.

Going forward
For the full year 2017, the expectation is to reach a Group EBITDA growth of 5-7%. This is a decrease compared to previous guidance of a growth exceeding 10% for the full year 2017. The guidance that the French EBITA margin for Q4 2017 will exceed the margin in Q4 2016 (which was 4.7%) remains, which is supported by the staff and cost reduction program and a favorable calendar effect.

Thomas Berglund
President and CEO

Presentation of the interim report
Investors, analysts and media are invited to participate in a telephone conference on October 27, 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 93
UK: +44 203 008 98 04
US: +1 855 753 22 37
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. The information was submitted for publication, through the agency of the contact person Henrik Brehmer set out above, at 08.00 (CET) on October 27, 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