Pihlajalinna Plc Financial Statements Release 12 February 2025 at 8:00 a.m.
Pihlajalinna Financial Statements Release 1 January-31 December 2024
Strong organic growth, operating cash flow and profitability development in 2024
This financial statements release is unaudited. The comparison figures in brackets refer to the corresponding period in the previous year.
October-December in brief:
- Revenue amounted to EUR 182.5 (183.0) million - a decrease of -0.3 per cent.
- Comparable organic revenue growth1) was EUR 13.2 million, or 7.8 per cent.
- In Private Healthcare Services segment, revenue amounted to EUR 120.9 (110.7) million. Comparable organic revenue growth1) was 12.0 per cent.
- In Public Services segment, revenue amounted to EUR 65.9 (76.8) million. Comparable organic revenue1) remained at previous year's level.
- Adjusted EBITA2) was EUR 15.4 (9.9) million, an increase of 55.3 per cent.
- Net cash flow from operating activities amounted to EUR 33.1 (26.1) million.
- Earnings per share (EPS) was EUR 0.38 (-0.25).
January-December in brief:
- Revenue amounted to EUR 704.4 (720.0) million - a decrease of -2.2 per cent.
- Comparable organic revenue growth1) was EUR 51.1 million, or 7.8 per cent.
- In Private Healthcare Services segment, revenue amounted to EUR 451.5 (423.1) million. Comparable organic revenue growth1) was 11.1 per cent.
- In Public Services segment, revenue amounted to EUR 267.6 (314.3) million. The termination of cost liability for demanding specialised care, the gradual transfer of the services agreement of Jämsän Terveys Oy and other changes to outsourcing agreements decreased revenue by EUR 61.0 million. Comparable organic revenue growth1) was 1.3 per cent.
- Adjusted EBITA2) was EUR 55.2 (37.8) million - an increase of 46.0 per cent.
- Net cash flow from operating activities amounted to EUR 100.8 (79.0) million.
- Earnings per share (EPS) was EUR 1.13 (0.19).
- The sickness-related absence rate decreased to 5.6 (6.0) per cent.
- Customer satisfaction improved. NPS for Private Healthcare Services was 85 (78) and NPS for Public Services was 78 (75).
- The Board of Directors proposes a dividend of EUR 0.38 per share for the financial year ending on 31 December 2024.
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 transfer of Jämsän Terveys Oy's service agreement, other changes to outsourcing agreements, COVID-19 services and transfers between segments.
2) Alternative performance measure. In addition to the IFRS figures, Pihlajalinna presents additional, alternative performance indicators which the company monitors internally and which provide the company's management, investors, stock market analysts and other stakeholders with important additional information concerning the company's financial performance, financial position and cash flows. These performance indicators should not be reviewed separately from the IFRS figures, and they should not be considered as replacing the IFRS figures.
| Key figures | ||||||
| EUR million | 10-12/2024 | 10-12/2023 | change % | 1-12/2024 | 1-12/2023 | change % |
| INCOME STATEMENT | ||||||
| Revenue | 182.5 | 183.0 | -0.3 | 704.4 | 720.0 | -2.2 |
| Adjusted EBITA ¹? | 15.4 | 9.9 | 55.3 | 55.2 | 37.8 | 46.0 |
| Adjusted EBITA, % ¹? | 8.4 | 5.4 | 7.8 | 5.2 | ||
| Operating profit (EBIT) | 14.6 | -1.9 | 850.3 | 48.5 | 20.6 | 135.6 |
| Operating profit (EBIT), % | 8.0 | -1.1 | 6.9 | 2.9 | ||
| Adjusted operating profit (EBIT) ¹? | 13.5 | 7.7 | 47.7 | 29.1 | 64.2 | |
| Adjusted operating profit (EBIT), % ¹? | 7.4 | 4.2 | 6.8 | 4.0 | ||
| Profit before tax (EBT) | 12.3 | -6.1 | 299.4 | 38.6 | 8.2 | 372.1 |
| SHARE-RELATED INFORMATION | ||||||
| Earnings per share (EPS), EUR | 0.38 | -0.25 | 250.4 | 1.13 | 0.19 | 501.9 |
| Equity per share, EUR | 7.59 | 6.56 | 15.8 | |||
| Dividend per share, EUR (Board of Directors Proposal) | 0.38 | 0.07 | ||||
| OTHER KEY FIGURES | ||||||
| Return on capital employed (ROCE), % | 9.7 | 4.0 | 142.9 | |||
| Return on equity (ROE), % | 19.2 | 3.4 | 459.2 | |||
| Equity ratio, % | 26.8 | 22.0 | 21.9 | |||
| Interest-bearing net debt | 296.6 | 352.7 | -15.9 | |||
| Net debt/adjusted EBITDA, 12 months ¹? | 2.9 | 4.4 | -32.7 | |||
| Interest-bearing net debt excluding IFRS 16 | 101.8 | 142.0 | -28.3 | |||
| Net debt/adjusted EBITDA, excluding IFRS 16, 12 months ¹? | 1.46 | 2.7 | -46.7 | |||
| Cash flow from operating activities | 33.1 | 26.1 | 26.7 | 100.8 | 79.0 | 27.6 |
| Average number of personnel (FTE) | 4,416 | 4,821 | -8.4 | |||
| Personnel at the end of the period (NOE) | 6,493 | 6,880 | -5.6 | |||
| Practitioners ²? | 2,145 | 2,103 | 2.0 | |||
| NPS, Private Healthcare Services | 87.0 | 78.0 | 85.0 | 78.0 | 9.0 | |
| NPS, Public Services | 78.0 | 81.0 | 78.0 | 75.0 | 4.0 |
1) Significant transactions that are not part of the normal course of business, are related to business acquisition or divestment costs (IFRS 3), are infrequently occurring events or valuation items that do not affect cash flow are treated as adjustment items affecting comparability between financial years. According to Pihlajalinna's definition, such items include, for example, restructuring measures, impairment of assets and the remeasurement of previous assets held by subsidiaries, the costs of closing businesses and business locations, gains and losses on the sale of businesses, cost arising from operational restructuring and the integration of acquired businesses, costs related to the termination of employment relationships as well as fines and corresponding compensation payments. Pihlajalinna has also presented costs according to the IFRS Interpretations Committee's Agenda Decision concerning cloud computing arrangements, and reversals of amortisation, as adjustment items. Cloud computing arrangements costs and reversals of amortisation according to the IFRS Interpretations Committee's Agenda Decision has not been presented as adjustment items since 1 January 2024.
EBITDA adjustments in the quarter amounted to EUR -1.1 (9.1) million and EUR -0.8 (8.1) million in the financial year. Adjustments to operating profit during the quarter amounted to EUR -1.1 (9.6) million and EUR -0.8 (8.5) million in the financial year.
2) Dental care services divestment has been excluded from the comparison period.
Pihlajalinna's outlook for 2025
In 2025, Pihlajalinna will focus on organic growth especially in Private Healthcare Services, and continued improvement in profitability.
- The Group estimates consolidated revenue to remain on a par with the previous year's level (EUR 704.4 million in 2024)
- The Group estimates the adjusted operating profit before the amortisation and impairment of intangible assets (EBITA) to increase to at least 9 per cent of revenue (7.8 per cent in 2024)
The Group estimates demand to remain stable. Slow economic growth may affect Pihlajalinna's service demand and financial result more than expected.
Tuomas Hyyryläinen, CEO:
The year 2024 was a successful one for Pihlajalinna. The determined measures we took during the year strengthened the profitability of the business and the company's financial position as planned. Our strong organic growth continued. The results enabled successful refinancing during the second quarter. I am particularly happy with the fact that customer and employee experiences strengthened throughout the year.
Organic revenue growth was 7.8 per cent, surpassing the growth rate of the entire market in 2024. Adjusted EBITA was an all-time high, amounting to EUR 55.2 (37.8) million, and the net debt/adjusted EBITDA ratio developed to a level in line with the set targets, ending up at 2.9 (4.4).
The successful year was driven by cooperation of the entire organisation and commitment to developing our operations. This work continues in 2025.
In Private Healthcare Services, organic revenue growth was 11.1 per cent in 2024. Adjusted EBITA improved to EUR 33.6 (27.2) million. We succeeded in managing our offering, which enabled comprehensively cost-effective and efficient clinical pathways. We strengthened our position as a partner to insurance companies and actively developed joint operational models. In occupational health services, we enabled the growth of billable customer work and succeeded as planned in commercial operations.
In Public Services, the year 2024 was characterised by adjusting to the needs of the wellbeing service counties. The segment's revenue decreased year on year as expected, but adjusted EBITA improved to EUR 21.5 (10.6) million as a result of wide-ranging measures. We proved that with determined action, efficient service production is possible also in the current challenging operating environment. As a partner to the wellbeing service counties, we can together ensure high-quality, impactful healthcare services to the people of Finland.
In December, we announced the deepening of our cooperation with insurance company If. During the year, we have strengthened our position as a partner to insurance companies. We continuously develop our operations in close cooperation with insurance companies to ensure that our care services are quick, needs-based, high-quality, and cost-effective. In this way, we help our partners manage their claims costs and serve their customers with high quality. Our sales to insurance companies increased by 13.8 per cent in 2024.
In 2025, we expect our revenue to remain on the previous year's level and our profitability to improve and reach the 9 per cent margin target we have set for the strategy period. The long-term development we carried out in 2024 creates a solid foundation for the company's profitable growth. I want to extend my warm thanks to all Pihlajalinna people and our partners for the year 2024. We proved that we succeed together.
Webcast for analysts, media and investors
Pihlajalinna will organize a live webcast meeting for analysts, media and investors today, on 12 February 2025 at 10:00 a.m. at: https://pihlajalinna.events.inderes.com/q4-2024. The event will be conducted in Finnish. The recording of the event will be available later on the same website as the live webcast.
Pihlajalinna Plc's full Financial Statements Release for January-December 2024 is attached to this release and available at company's website.
Further information:
Tarja Rantala, CFO, +358 40 774 9290 or tarja.rantala@pihlajalinna.fi
Tuula Lehto, EVP, Communications and Sustainability, +358 40 588 5343 or tuula.lehto@pihlajalinna.fi
Distribution:
Nasdaq Helsinki
Major media
investors.pihlajalinna.fi
Pihlajalinna in brief?
Pihlajalinna is one of the leading providers of private healthcare and social services in Finland. The Group provides comprehensive and quality private clinic and hospital services as well as occupational healthcare and insurance cooperation services. To the wellbeing services counties Pihlajalinna offers social and healthcare service production models, in which the cooperation between the public and private sectors guarantees effective services for citizens. Approximately 6,500 employees and 2,200 practitioners work at Pihlajalinna. In 2024, Pihlajalinna's revenue was 704 million euros. Pihlajalinna's shares are listed on Nasdaq Helsinki Oy. Read more www.pihlajalinna.fi.?
