Quality through specialisation


Interim report January - June 2020: Swift adaptation to manage the pandemic gave results

  • Revenues decreased in the quarter due to Covid-19
  • Positive quarterly results owing to adaptation in the businesses and cost-cutting measures
  • Vårdsamverkan’s best quarterly results so far
  • GHP has supported the care of Covid-19 patients with staff, materials and equipment

Second quarter 2020

  • Sales revenues amounted to SEK 317.0 million (335.7)
  • Organic growth amounted to -8.2 percent (15.8)
  • EBITDA increased to SEK 45.2 million (38.1)
  • EBITDA margin increased to 14.3 percent (11.4)
  • EBIT increased to SEK 20.5 million (17.1)
  • EBIT margin increased to 6.5 percent (5.1)
  • Result after tax amounted to SEK 11.5 million (12.7)
  • Result per share amounted to SEK 0.13 (0.17)

First half 2020

  • Sales revenues increased to SEK 700.0 million (666.1)
  • Organic growth amounted to 1.7 percent (16.5)
  • EBITDA increased to SEK 99.4 million (80.3)
  • EBITDA margin increased to 14.2 percent (12.0)
  • EBIT increased to SEK 50.4 million (38.5)
  • EBIT margin increased to 7.2 percent (5.8)
  • Result after tax amounted to SEK 34.6 million (27.9)
  • Result per share amounted to SEK 0.43 SEK (0.35)

CEO’s comments
This spring has placed great demands on our business, where rapid action and adaptation have been necessary. As a health care Group, GHP has had to manage the consequences of the pandemic at close quarters. In the Nordic Region we have lent personnel, material and equipment to the public hospitals at the same time as we have had to cancel the appointments of all risk-group patients. In International we have adapted to almost only taking care of Covid-19 patients in the UAE and in Kuwait the hospital is now temporarily a paediatric hospital. Furthermore, in some parts of the business we have been forced to furlough members of staff, temporarily reduce new employment levels and terminate consultants. Even though this has been tough, it has been incredibly pleasing to see the commitment and ability of all our employees, who in our decentralised organisation have made these rapid changes work fantastically well.

Normally we would not have been able to manage a loss of sales of this magnitude in such a fine way and extraordinary efforts have been necessary on the part of our employees. There are many positive things from the swift adaptation and the commitment that we can take with us into the future but we need to return to our normal demand to achieve a sustainable level of profitability. There is a lot indicating that this will be the case as early as after the summer holiday, when the staff we have lent will probably come back.

In the Nordic Region the lending of anaesthesia staff to public health care has created a large imbalance in which professional groups we have available at the same time as fewer people have sought care and we have cancelled risk-group appointments. Furthermore, our business in Denmark was forbidden from operating on patients for a while. We have managed this by reducing our costs at the same time as we have taken on new, more relevant assignments such as cancer surgery and geriatrics. During the second half of the quarter we experienced a certain recovery.

In International the hospitals in the UAE and Kuwait have adapted their businesses in an exemplary manner so as to be able to support society during the pandemic. In Ajman most of the health care has focused on managing Covid-19 patients and in Kuwait the scaling
up of the hospital has been put on hold in order to instead support the public sector in the form of a paediatric hospital. This means that our revenues will be lower for a period but these important efforts strengthen GHP’s position in the region over time.

Vårdsamverkan’s positive contribution has been extra clear this quarter. The segment improved its results in the quarter, based on a combination of the fact that less health care is purchased as a result of Covid-19, but also because the work of analysing and improving the
care chains is bearing fruit. Moreover, in several parts of the Group we have been able to take advantage of the technical solutions that Vårdsamverkan has developed. During the pandemic the knowledge in Vårdsamverkan has been used to accelerate the use of digital care meetings at our clinics.

Even though the second quarter has largely been characterised by the ongoing pandemic, we have continued to work on business development in all three of our segments, and this has worked surprisingly well. We see increased opportunities to grow in new markets,
with new collaboration and with new clinics. We experience that there is great demand for the services and the models we offer and therefore our investments in business development are important even when society faces tough challenges.

We have an intensive quarter behind us and we are prepared for the fact that we have a period ahead of us that will mean a lot of hard work. The way that our organisation has handled the situation during the second quarter convinces me that we will also be able to adapt to manage coming challenges and opportunities very well. Have a good summer and stay safe!

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