EEZY PLC -- HALF-YEAR REPORT -- 6 AUGUST 2024 AT 8:00
Eezy Plc's Half-Year Report 1-6/2024: Demand for staffing services remains subdued - measures to improve productivity are progressing
April-June 2024
- Revenue was EUR 45.7 million (EUR 58.1 million in April-June 2023). Revenue decreased by 21%.
- EBITDA was EUR 2.4 million (3.1).
- EBIT was EUR 0.6 million (1.1) and was 1.3% of revenue (1.9%).
- EUR 0.1 million in personnel expenses related to severance payments were recorded in the result.
- Earnings per share was EUR -0.01 (0.01).
- Staffing services ERP in limited production use in April.
- In June, Eezy launched the next phase in the renewal of operating models aimed at creating an efficient, competitive and scalable way of working for growth.
January-June 2024
- Revenue was EUR 87.2 million (EUR 110.9 million in January-June 2023). Revenue decreased by 21%.
- EBITDA was EUR 4.7 million (6.6).
- EBIT was EUR 1.1 million (2.4) and was 1.2% of revenue (2.2%).
- EUR 0.4 million in personnel expenses related to severance payments were recorded in the result.
- Earnings per share was EUR 0.00 (0.03).
- Staffing services ERP in limited production use in April.
- In June, Eezy launched the next phase in the renewal of operating models aimed at creating an efficient, competitive and scalable way of working for growth.
Outlook for 2024
Eezy does not give guidance for 2024.
Key figures (IFRS)
| EUR million, unless otherwise specified | 4-6/ 2024 | 4-6/ 2023 | 1-6/ 2024 | 1-6/ 2023 | 1-12/ 2023 |
| Revenue | 45.7 | 58.1 | 87.2 | 110.9 | 219.0 |
| EBITDA | 2.4 | 3.1 | 4.7 | 6.6 | 14.5 |
| EBITDA, % | 5.2% | 5.4% | 5.4% | 5.9% | 6.6% |
| EBIT | 0.6 | 1.1 | 1.1 | 2.4 | 4.0 |
| EBIT, % | 1.3% | 1.9% | 1.2% | 2.2% | 1.8% |
| EPS, basic, EUR | -0.01 | 0.01 | 0.00 | 0.03 | 0.03 |
| EPS, diluted, EUR | -0.01 | 0.01 | 0.00 | 0.03 | 0.03 |
| Net debt / EBITDA | - | - | 4.7 x | 3.1 x | 4.0 x |
| Chain-wide revenue | 67.3 | 81.1 | 127.4 | 155.0 | 307.6 |
Siina Saksi, CEO:
"The second quarter of the year continues to be characterised by subdued demand in the Staffing business area. Our strategy is progressing according to plan. The Staffing services' ERP system was successfully taken into limited production in April and will significantly increase the productivity of our Staffing business in the coming years. As part of the strategy, a renewal of operating models will be implemented. We have decided to develop selected financial and human resources management functions together with an outsourcing partner. The annual savings of EUR 3 million in the profitability programme we announced last autumn are reflected in a reduction in fixed costs in the first half of the year, which has helped to defend our operating profit.
Our revenue in the second quarter was EUR 45.7 million (58.1). The reason for the decrease in revenue is mainly the continued weak demand for Staffing services. Labour needs are weak, especially in construction and industry sectors, which have always been the most important sectors for Eezy's business. The overall staffing market declined by 8.6% in January-May (vs. 2023. source: HELA). The biggest sectors in the staffing market are manufacturing, office, social & healthcare services and construction. The industrial, construction and horeca sectors have seen a sharp decline compared to 2023.
In the second quarter, the Professional services business area posted revenues of EUR 8.0 million (8.1), which we consider a good achievement in a difficult economic situation. Employment services for the public sector have been on the rise. Demand for executive search and light entrepreneurial services was lower than in the previous year during the first half of the year.
Our EBIT in the second quarter was EUR 0.6 million (1.1), 1.3% of turnover. The decline in EBIT is due to the fall in turnover in Staffing Services. The result includes personnel expenses related to severance payments of EUR 0.1 million. However, in the face of a sharp fall in revenue, we have been able to defend our EBIT and maintain it at a satisfactory level thanks to our profitability programme.
Operating model renewal progresses as part of our strategy
Our strategy is to increase our EBIT margin to 8%. The three most important measures to achieve this goal are the transformation of our operating model with technology, the economies of scale that revenue growth brings, and the growth of more profitable industries and services in our portfolio.
The Staffing services' AI-powered ERP system project is progressing according to plan. We have implemented the system for a limited group of employees and clients. We believe that the new system and its corresponding operating model will give us a significant competitive advantage that is difficult to replicate, as well as productivity gains by significantly eliminating manual work from our processes.
As part of the renewal of the operating model, it has been decided to develop selected financial and human resources functions together with an outsourcing partner. This will create scalable efficiencies and cost savings for us, as well as ensuring that these functions are continuously developed and kept modern. Over the summer, we have also implemented targeted staff reductions and decided to use our premises more efficiently.
We estimate that these measures, in addition to the annual savings of EUR 3 million in last year's profitability program, will bring us permanent cost savings of around EUR 2.8 million in the future. This will be a significant factor in strengthening our profitability over the strategic period. The measures in question will start in the second half of this year.
In line with our strategy, we will seek growth from nation-wide strength and new business sectors, namely social and healthcare and office. In this context, we have made key personnel recruitments and strengthened the customer management of our strategic customers on a local level.
Eezy operates in a market of significant size, whose long-term growth is driven by trends in our operating environment, including shortages of skilled personnel, work life transformation and the use of technology and AI. We have a strong position in our current business areas and competitive advantages that are difficult to replicate, such as our AI-based ERP system and our nationwide network. We have a proven track record of strong reputation and trust among our customers, and a broad customer base and service portfolio. These factors create strong growth opportunities for us.
I would like to thank our customers, partners and, above all, the people of Eezy for their good cooperation and their "yes, we can" attitude, even in difficult times. We are building good working life for all, together."
Result publication event:
A Finnish-language briefing for analysts and media will be held on 6 August 2024 at 13.00 Finnish time as a webcast at https://eezy.videosync.fi/q2-2024
The briefing will be hosted by CEO Siina Saksi and CFO Joni Aaltonen. During the presentation, there will be an opportunity to ask questions. The presentation material will be available at the company website at https://eezy.fi/en/financials/reports-and-presentations/ before the conference. A recording of the audiocast will be available at the same website later.
Attachment: Half-Year Report January-June 2024 in PDF format
Further information:
Eezy Plc
Siina Saksi
CEO
siina.saksi@eezy.fi
tel. +358 50 550 3912
Joni Aaltonen
CFO
joni.aaltonen@eezy.fi
tel. +358 40 524 7270
Marleena Bask
Communications and Marketing Director
marleena.bask@eezy.fi
tel. +358 50 352 3643
