EEZY PLC -- FINANCIAL STATEMENTS BULLETIN -- 13 FEBRUARY 2025 AT 8:00
Eezy Plc's Financial Statements Bulletin 1-12/2024: Strategic actions are progressing, EBIT still on a modest level
October-December 2024
- Revenue was EUR 41.9 million (EUR 52.1 million in October-December 2023). Revenue decreased by 20%.
- EBITDA was EUR 2.3 million (3.6).
- EBIT was EUR 0.1 million (-0.7) and was 0.3% of revenue (-1.3%).
- EBITDA included EUR 0.1 million (0.8) in personnel expenses related to severance payments and other one-time costs EUR 0.4 million (0.2). In addition, EBIT included EUR 0.5 million (0.0) impairment related to the premises. Total one-time costs were EUR 0.9 million (3.2).
- Earnings per share was EUR -0.03 (-0.06).
- Staffing services AI-powered ERP system development progressed according to plan, and its use was expanded in November to hundreds of customers and thousands of users.
January-December 2024
- Revenue was EUR 174.1 million (EUR 219.0 million in January-December 2023). Revenue decreased by 21%.
- EBITDA was EUR 10.3 million (14.5).
- EBIT was EUR 2.3 million (4.0) and was 1.3% of revenue (1.8%).
- EBITDA includes EUR 0.9 million (1.1) in personnel expenses related to severance payments and other one-time costs EUR 0.5 million (0.5). In addition, EBIT includes EUR 0.9 million (0.0) impairment related to the premises. Total one-time costs were EUR 2.3 million (3.9).
- Earnings per share was EUR -0.01 (0.03).
- In line with our strategy, we have achieved the savings targeted in our profitability programme and have made progress in renewing our operating models.
- Staffing services ERP system was taken into limited production use in April and its use was expanded in November.
Dividend proposal
Board of Directors proposes that no dividend will be distributed for year 2024.
Outlook for 2025
Eezy does not give guidance for 2025.
Key figures (IFRS)
| EUR million, unless otherwise specified | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
| Revenue | 41.9 | 52.1 | 174.1 | 219.0 |
| EBITDA | 2.3 | 3.6 | 10.3 | 14.5 |
| EBITDA, % | 5.5 % | 6.8 % | 5.9 % | 6.6 % |
| EBIT | 0.1 | -0.7 | 2.3 | 4.0 |
| EBIT, % | 0.3 % | -1.3 % | 1.3 % | 1.8 % |
| EPS, basic, EUR | -0.03 | -0.06 | -0.01 | 0.03 |
| EPS, diluted, EUR | -0.03 | -0.06 | -0.01 | 0.03 |
| Net debt / EBITDA | - | - | 5.1 x | 4.0 x |
| Chain-wide revenue | 63.5 | 73.7 | 257.4 | 307.6 |
Siina Saksi, CEO:
"Our strategy is moving forward in a planned way in the unfavourable market situation. During the year, we have achieved the savings in line with our profitability programme and transformed our operating models. Good progress was made in implementing our AI-driven ERP system in Staffing Services. Our EBIT does not yet satisfy us.
Our revenue was EUR 41.9 million (52.1) in the last quarter and EUR 174.1 million (219.0) in January-December. The main reason for the decline in revenue was sluggish demand in Staffing Services.
Revenue in Staffing Services fell by 19 % in October-December compared to the same period last year. In January-December, revenue contracted to EUR 145.5 million (188.3). In the last quarter, demand remained subdued in the construction, manufacturing and trade sectors. In the Horeca sector, our volumes were at a moderate level thanks to excellent customer work and security of supply. We performed well relative to the market in the capital area.
In the Professional Services business area, revenue in the last quarter was EUR 7.7 million (9.6). The fall in revenue is due in particular to weaker demand for employment services at the turning point of the public administration's TE services reform. Demand for headhunting and personal assessment services has also been weak. The last quarter was a good one for research services, with a high order book in being repatriated into revenue.
Our EBIT for the last quarter was EUR 0.1 million (-0.7); 0.3% of revenue (-1.3%). EBIT for January-December was EUR 2.3 million (4.0); 1.3% of revenue (1.8%) including total one-time costs of EUR 2.3 million (3.9). The decline in EBIT was driven by the fall in revenue. We are pleased with the relative sales margin, which remained at the level of the comparison period. Our profitability programme and working capital improvements progressed well and significantly reduced our cost and debt levels. We are pleased with the positive development of cash flow.
We reformed our operating models
The target of transforming our operating models is to take Eezy to new level of productivity and profitability. The most impactful part of this is the introduction of AI-assisted technology. The new system went into limited production in April and was extended in November.
We outsourced 30 finance and HR positions to our partner and will continue to automate these processes going forward into 2025 during a continuous development phase.
Negotiations for vacant office space are still ongoing in a challenging office market.
In autumn 2023, we launched a profitability programme with a target of EUR 3 million savings. These savings are fully reflected in lower costs. In addition, we estimate that the operational model renewal measures launched in summer 2024 will bring us annual cost savings of around EUR 2.8 million. Savings of EUR 0.8 million were achieved in the last quarter. We estimate to reach the full benefits of the technology upgrade in the second half of 2025.
Our priority for 2025 is in customer work
We go into 2025 with enthusiasm. The growth outlook for the economy is still uncertain, but with interest rates coming down, the economy is expected to pick up.
We target to grow faster than the market with the measures mentioned below.
In line with our strategy, we have strengthened our commercial organisation by combining our customer and sales forces into one team. Our customers are very satisfied with our services, with an NPS at an excellent level. In addition to our existing customers, we are looking for growth from new industries and customers. We have decided to strengthen our network of franchise entrepreneurs in smaller cities. With our broader franchise network, we will seek stronger growth from local as well as national clients. This will also improve the efficiency of group operational management.
From February 2025, the majority of our customers and staffed employees are covered by the new technology solution. The new digital operating model will significantly improve our efficiency.
We are negotiating with financers to stabilize the company's financial position. We expect the negotiations to reach a conclusion during spring 2025.?
We are going to reach our strategic targets through focusing on growth, performance improvement and an excellent Eezy employee experience and culture. I would like to thank our employees, customers and partners for the good cooperation in 2024. Together, we will strive for a successful 2025."
Result publication event:
A Finnish-language briefing for analysts and media will be held on 13 February 2025 at 14.00 Finnish time as a webcast at https://eezy.events.inderes.com/q4-2024
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: Financial Statements Bulletin January-December 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
