In the wake of a challenging healthcare staffing market, Swedish staffing firm Dedicare faced a difficult fourth quarter and a tough full year in 2024, with revenue and profit margins taking a significant hit. The company reported a fourth-quarter revenue of SEK 389.0 million (€34.4 million), marking a stark 16.2% decrease from the same quarter in the previous year. These downturns were consistent across all the markets in which Dedicare operates.
Financial Performance Analysis
One of the noteworthy points in Dedicare’s financial report is the steep decline in EBITDA, which fell by 46.4% to SEK 23.6 million (€2.1 million). The EBITDA margin also experienced a considerable drop from 9.5% to 6.1%. Operating profit (EBIT) saw an even sharper decline, plummeting 56.2% to SEK 17.2 million (€1.5 million), with the operating margin narrowing to 4.4%. Moreover, the profit for the period decreased by 57.3%, amounting to SEK 14.4 million (€1.2 million).
Regional Market Conditions
Geographically, the Swedish segment experienced the most significant downturn, with revenue dropping by 33.2% to SEK 75.6 million (€6.7 million). This decline was primarily due to stringent limitations on staff contracting. Additionally, Dedicare observed multiple insolvencies among its competitors in Sweden, with no improvements visible heading into early 2025.
In Norway, the healthcare staffing market faced price pressure and increased competition, particularly in doctor staffing. This dynamic led to a 7.8% drop in net sales to SEK 251.5 million (€22.2 million). The Denmark segment also saw revenue decline by 11.3% to SEK 57.0 million (€5.0 million), largely due to contracting limits on nurse staffing implemented in mid-2023. In the UK, efforts by the NHS to find internal staffing solutions for doctors resulted in a 13.3% revenue decrease, totaling SEK 12.4 million (€1.1 million).
Full-Year Financial Report
For the entire year of 2024, Dedicare’s revenue stood at SEK 1.17 billion (€103.6 million), reflecting a 12.7% reduction from the previous year. CEO Bård Kristiansen noted that the company undertook a cost-saving initiative in May 2024, which resulted in annual savings of SEK 16 million (€1.4 million). Despite these measures, the company remains cautious and expects the market challenges to persist into 2025, focusing on enhancing operational efficiency to navigate the difficult landscape.
Market Reaction and Future Outlook
In the wake of a challenging healthcare staffing market, Swedish staffing firm Dedicare experienced a tough fourth quarter and a challenging full year in 2024. The company faced significant declines in both revenue and profit margins. In the fourth quarter, Dedicare reported revenue of SEK 389.0 million (€34.4 million), which represented a steep 16.2% drop compared to the fourth quarter of the previous year. This downturn was not isolated; it was observed consistently across all markets where Dedicare operates. The declining performance highlighted the struggles the company faced in navigating an increasingly difficult healthcare staffing environment. The firm had to contend with various market pressures and competition, which collectively contributed to its financial strains. Despite these setbacks, Dedicare remained committed to its mission of providing quality healthcare staffing solutions, although the road ahead was expected to be challenging. The overall impact of these market conditions underscored the need for strategic adjustments to sustain growth and stability in the face of ongoing industry challenges.
