Profitability continued to improve, operating cash flow was strong
This interim report is unaudited. The comparison figures in brackets refer to the corresponding period in the previous year.
A brief look at January-March:
- Revenue was
EUR 183.2 (187.8) million, a decrease of -2.5 per cent. -
In the Private Healthcare Services segment, revenue amounted to
EUR 114.6 (113.0) million, an increase of 1.4 per cent. The divestment of dental care services decreased revenue byEUR 4.8 million . -
In the Public Services segment, revenue amounted to
EUR 72.7 (79.4) million, a decrease of 8.5 per cent. The termination of cost liability for demanding specialised care, along with the gradual transfer of the services agreement of Jämsän Terveys decreased revenue byEUR 12.9 million . -
Comparable organic revenue growth1) was
EUR 13.4 million , 7.9 per cent. -
Adjusted EBITDA was
EUR 26.0 (21.4) million, an increase of 21.2 per cent. -
Adjusted operating profit before the amortisation and impairment of intangible assets (EBITA)2⁾ was
EUR 14.9 (11.0) million, an increase of 35.0 per cent. - Adjusted EBITA was 8.1 (5.9) per cent of revenue.
-
Net cash flow from operating activities was
EUR 31.1 (18.9) million. -
Earnings per share (EPS) was
EUR 0.30 (0.24). - Sickness-related absence rate decreased to 5.3 (6.2) per cent.
- NPS for Private Healthcare Services was 81.2 (78.2) and NPS for Public Services was 77.7 (70.1).
1) The following items have been excluded from the comparison period revenue: the divestment of dental care services, the transfer of cost liability for demanding specialised care, the gradual termination of Jämsän Terveys' service agreement, and COVID-19 services.
2) Alternative performance measure. In addition to the IFRS figures,
Key figures | ||||
1-3/2024 | 1-3/2023 | change % | 2023 | |
INCOME STATEMENT | ||||
Revenue, EUR million | 183.2 | 187.8 | -2.5 | 720.0 |
EBITDA, EUR million | 25.7 | 23.0 | 11.5 | 72.5 |
EBITDA, % | 14.0 | 12.3 | 10.1 | |
Adjusted EBITDA, EUR million ¹⁾ | 26.0 | 21.4 | 21.2 | 80.6 |
Adjusted EBITDA, % ¹⁾ | 14.2 | 11.4 | 11.2 | |
Adjusted operating profit before the amortisation andimpairment of intangible assets (EBITA), EUR million ¹⁾ | 14.9 | 11.0 | 35.0 | 37.8 |
Adjusted operating profit before the amortisation andimpairment of intangible assets (EBITA), % ¹⁾ | 8.1 | 5.9 | 5.2 | |
Operating profit (EBIT), EUR million | 12.7 | 10.5 | 21.0 | 20.6 |
Operating profit (EBIT), % | 6.9 | 5.6 | 2.9 | |
Adjusted operating profit (EBIT), EUR million ¹⁾ | 13.0 | 8.9 | 45.1 | 29.1 |
Adjusted operating profit (EBIT), % ¹⁾ | 7.1 | 4.8 | 4.0 | |
Profit before tax (EBT), EUR million | 10.2 | 7.5 | 36.9 | 8.2 |
SHARE-RELATED INFORMATION | ||||
Earnings per share (EPS), EUR | 0.30 | 0.24 | 23.6 | 0.19 |
Equity per share, EUR | 6.78 | 6.58 | 3.0 | 6.56 |
OTHER | ||||
Return on capital employed (ROCE), % | 4.5 | 4.1 | 11.4 | 4.0 |
Return on equity (ROE), % | 4.5 | 8.1 | -44.2 | 3.4 |
Equity ratio, % | 23.1 | 22.2 | 4.1 | 22.0 |
Gearing, % | 220.1 | 247.2 | -11.0 | 243.9 |
Interest-bearing net debt, EUR million | 331.0 | 364.7 | -9.2 | 352.7 |
Net debt/adjusted EBITDA, 12 months ¹⁾ | 3.9 | 5.3 | -26.3 | 4.4 |
Gearing, excluding IFRS 16, % | 81.3 | 100.5 | -19.1 | 93.56 |
Interest-bearing net debt excluding IFRS 16, EUR million | 128.5 | 153.8 | -16.4 | 142.0 |
Net debt/adjusted EBITDA, excluding IFRS 16, 12 months ¹⁾ | 2.3 | 3.5 | -35.2 | 2.7 |
Gross investments, EUR million ²⁾ | 6.9 | 21.7 | -68.1 | 66.5 |
Cash flow from operating activities, EUR million | 31.1 | 18.9 | 64.5 | 79.0 |
Cash flow after investments, EUR million | 28.5 | 13.1 | 117.1 | 60.5 |
Average number of personnel (FTE) | 4,813 | 4,882 | -1.4 | 4,923 |
Personnel at the end of the period (NOE) | 6,722 | 7,094 | -5.2 | 6,880 |
Practitioners at the end of the period | 2,110 | 2,072 | 1.8 | 2,208 |
NPS, Private Healthcare Services (private clinics) | 81.2 | 78.2 | 3.84 | 79.1 |
NPS, Public Services (municipal outsourcing activities) | 77.7 | 70.1 | 10.84 | 77.8 |
1) Significant transactions that are not part of the normal course of business, are related to business acquisition costs (IFRS 3), are infrequently occurring events or valuation items that do not affect cash flow are treated as adjustment items affecting comparability between review periods. According to
EBITDA adjustments amounted to
2) Assets acquired via leases are regarded as equal to assets acquired by the Group itself, meaning that right-of-use assets pursuant to IFRS 16 are included in gross investments.
In 2024,
- The Group expects the consolidated revenue to decrease from the previous year's level (
EUR 720.0 million in 2023) due to the cost liability for demanding specialised care being transferred to the well-being services county of South Ostrobothnia on1 January 2024 . -
The Group expects the adjusted operating profit before the amortization and impairment of intangible assets (EBITA) to improve from the previous year's level (
EUR 37.8 million in 2023). -
The Group continues measures to strengthen its financial position. Efficiency measures are expected to improve
Pihlajalinna's profitability.
Slowed economic growth and weakened consumer confidence may affect
Previous guidance, issued on
In 2024,
- The Group expects the consolidated revenue to increase from the previous year's level (
EUR 720.0 million in 2023). -
The Group expects the adjusted operating profit before the amortization and impairment of intangible assets (EBITA) to improve from the previous year's level (
EUR 37.8 million in 2023). -
The Group continues measures to strengthen its financial position. Efficiency measures are expected to improve
Pihlajalinna's profitability.
Slowed economic growth, weakened consumer confidence and changes in market interest rates may affect
Tuomas Hyyryläinen, CEO:
The year 2024 has begun according to plan for
We have continued to take determined measures to improve profitability, and the adjusted EBITA increased to
During the review period, we transitioned from Group-level segment reporting to reporting, that better reflects our business operations and organisational structure. The new segment reporting consists of two segments: Private Healthcare Services and Public Services.
Revenue from Private Healthcare Services segment amounted to
Revenue from the Public Services decreased to
The long-term work towards employee well-being continues. The sickness-related absence rate decreased further and was 5.3 (6.2) per cent. We also achieved strong development in customer satisfaction. The NPS for Private Healthcare Services was 81.2 (78.2) and NPS for Public Services was 77.7 (70.1). The well-being and engagement of professionals and customers are reflected in the company's profitability.
Our measures aimed at organic growth, strengthening profitability and our financial position, and developing the company's leadership are progressing. Together with our highly competent professionals and business partners, we will develop
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