<a id="bm-comp-7ddff13a-5674-4f7c-bdeb-d18c47896838" name="bm-comp-7ddff13a-5674-4f7c-bdeb-d18c47896838" class="BMCustomAnchor"></a><table><tr><td bm-component-id="7ddff13a-5674-4f7c-bdeb-d18c47896838" style="vertical-align: top; width:100.000000%;"><ul><li>Q4: Sales in line, but EBIT beat on strong GM</li><li>We slightly cut our sales estimate, but raise adj. EBITA</li><li>Share is trading at 9x-8x '25e-'26e EV/EBITA adj.</li></ul></td></tr></table><a id="bm-comp-7da2c539-c90f-41d1-8bfa-15cd5acfc975" name="bm-comp-7da2c539-c90f-41d1-8bfa-15cd5acfc975" class="BMCustomAnchor"></a><table><tr><td bm-component-id="7da2c539-c90f-41d1-8bfa-15cd5acfc975" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3" style="text-align:left;">Encouraging product sales growth and profitability</h3><p>Careium delivered solid sales in Q4, with organic growth of +12.5% compared to -8% in Q3'24. Product sales increased by 39% y-o-y (vs. -36% in Q3'24), with the UK and other regions growing by 20% and 150%, respectively (albeit from low levels in other regions), and the Nordics declined by -7%, further affected by the market delays. The gross margin was a solid 44.4%, up 1.7pp q-o-q, driven by a favourable product/service mix. Adj. EBITA was up 39% in Q4 y-o-y, and 22% for the full year. We are positive about the earnings trajectory following the better-than-expected cost control, with an adj. EBITA margin of 11% for the full year (up 1.4pp from 9% in FY'23). FCF was SEK 17m, down y-o-y and up q-o-q (SEK 36m in Q4'23 and SEK 3m in Q3'24).</p><h3 class="bm-h3" style="text-align:left;">Guides for a soft H1 and a strong H2 in '25e</h3><p style="text-align:left;">While Careium does not provide detailed guidance for '25e (increased net sales, profitability and cash flow), the report states that we can expect a softer H1 and a stronger H2. Sweden (which we assess makes up ~2/3 of the Nordics segment) is awaiting a new major tender framework, ADDA 2025. ~85% of Swedish business is made through these types of tender frameworks, and the market is awaiting more clarity on ADDA 2025 in H2'25. We also note that the company is expanding into assisted living. Furthermore, leverage is down to 1.1x ND/EBITDA, and Careium comments that it will "continuously evaluate opportunities for acquisitions".</p><h3 class="bm-h3" style="text-align:left;"><font color="#1B2634">Minor sales cuts, but increased adj. EBITA</font></h3><p><font color="#212529">We cut '25e-'26e sales by 2.5-2.7%, mainly on lower sales in the Nordics in H1.</font> We <font color="#212529">raise '25e-'26e</font> adj. EBITA by 5-2% on increased margin assumptions and relatively flat opex estimates<font color="#000000">.</font> For '27e, we expect 8% organic sales and an adj. EBITA margin of 11%. <font color="#000000">The s</font><font color="#212529">hare is trading at 9x-8x '25e-'26e EV/EBITA adj.</font></p></td></tr></table>