Pihlajalinna Plc Interim Report 30 April 2025 at 8:00 a.m.
Pihlajalinna Interim Report 1 January-31 March 2025
Pihlajalinna's profitability improved, steady revenue growth in Private Healthcare Services continued
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 181.4 (183.2) million - decrease of -1.0 per cent.
- Comparable organic revenue growth1) was EUR 6.9 million, or 3.9 per cent.
- In the Private Healthcare Services, revenue amounted to EUR 123.8 (114.6) million. Revenue increased 8.1 per cent.
- In the Public Services, revenue amounted to EUR 60.7 (72.7) million. Changes in outsourcing agreements decreased revenue by EUR 8.6 million. Comparable organic revenue decrease1) was 5.2 per cent.
- Adjusted operating profit before the amortisation and impairment of intangible assets (EBITA)2? was EUR 18.1 (14.9) million, an increase of 21.2 per cent.
- Adjusted EBITA increased to 9.9 (8.1) per cent of revenue.
- Net cash flow from operating activities was EUR 25.8 (31.1) million.
- Earnings per share (EPS) was EUR 0.47 (0.30).
1) Changes in outsourcing agreements has been excluded from the comparison period revenue.
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 to replace the IFRS figures.
| Key figures | ||||
| EUR million | 1-3/2025 | 1-3/2024 | change % | 2024 |
| INCOME STATEMENT | ||||
| Revenue | 181.4 | 183.2 | -1.0 | 704.4 |
| Adjusted EBITA ¹? | 18.1 | 14.9 | 21.2 | 55.2 |
| Adjusted EBITA, % ¹? | 9.9 | 8.1 | 7.8 | |
| Operating profit (EBIT) | 16.4 | 12.7 | 28.9 | 48.5 |
| Operating profit (EBIT), % | 9.0 | 6.9 | 6.9 | |
| Adjusted operating profit (EBIT) ¹? | 16.4 | 13.0 | 26.1 | 47.7 |
| Adjusted operating profit (EBIT), % ¹? | 9.0 | 7.1 | 6.8 | |
| Profit before tax (EBT) | 14.7 | 10.2 | 44.2 | 38.6 |
| SHARE-RELATED INFORMATION | ||||
| Earnings per share (EPS), EUR | 0.47 | 0.30 | 57.0 | 1.13 |
| Equity per share, EUR | 7.92 | 6.78 | 16.7 | 7.59 |
| OTHER KEY FIGURES | ||||
| Return on capital employed (ROACE), % | 10.7 | 4.5 | 137.1 | 9.7 |
| Return on equity (ROE), % | 19.5 | 4.5 | 331.9 | 19.2 |
| Equity ratio, % | 28.0 | 23.1 | 21.3 | 26.8 |
| Gearing, % | 162.8 | 220.1 | -26.0 | 175.5 |
| Interest-bearing net debt | 289.1 | 331.0 | -12.7 | 296.6 |
| Net debt/adjusted EBITDA, 12 months ¹? | 2.8 | 3.9 | -28.3 | 2.9 |
| Interest-bearing net debt excluding IFRS 16 | 95.4 | 128.5 | -25.8 | 101.8 |
| Net debt/adjusted EBITDA, excluding IFRS 16, 12 months ¹? | 1.3 | 2.3 | -42.5 | 1.5 |
| Cash flow from operating activities | 25.8 | 31.1 | -17.3 | 100.8 |
| Average number of personnel (FTE) | 4,237 | 4,565 | -7.2 | 4,416 |
| Personnel at the end of the period (NOE) | 6,301 | 6,722 | -6.3 | 6,493 |
| Practitioners | 2,180 | 2,141 | 1.8 | 2,145 |
| NPS, Private Healthcare Services | 86.0 | 82.0 | 4.9 | 85.0 |
| NPS, Public Services | 79.0 | 78.0 | 1.3 | 78.0 |
1) Pihlajalinna has changed the definition of adjustment items affecting comparability effective from 1 January 2025. The change simplifies the previous definition. The comparison figures have not been adjusted, as the change does not materially affect the adjusted key figures reported for the year 2024.
Pihlajalinna's definition of adjustment items affecting comparability effective from 1 January 2025:
Items affecting comparability are non-recurring and material events that are not part of normal day-to-day operations. Items affecting comparability include, among other items, costs related to business acquisitions, costs related to restructuring measures, impairment of assets, and gains and losses arising from the sale or discontinuation of business operations. Items affecting comparability only include events with an impact on profit or loss of more than EUR 0.1 million.
Pihlajalinna's definition of adjustment items affecting comparability that was used until 31 December 2024:
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 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, costs 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 Jan 2024.
According to the updated definition, adjusted operating profit before amortisation of intangible assets (EBITA) for the comparison period 1 January-31 March 2024 would have been EUR 14.6 million, and adjusted EBITA for the financial year 1 January-31 December 2024 would have been EUR 54.4 million.
EBITDA adjustments during the review period amounted to EUR 0.0 (0.3) million. Adjustments to operating profit during the review period amounted to EUR 0.0 (0.3) million.
Pihlajalinna's outlook for 2025 (unchanged)
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:
Pihlajalinna's profitability continued to improve in the first quarter of 2025. The demand for private healthcare services continued to grow, and insurance company sales increased by 12 per cent compared to the previous year. Business focus shifted even more strongly from Public Services to Private Healthcare Services.
Revenue for the first quarter, EUR 181.4 (183.2) million, remained on the previous year's level despite the changes in ending outsourcing agreements and the weakened public sector market. Our determined efforts progressed, and our adjusted EBITA increased by more than 20 per cent to EUR 18.1 (14.9) million, with the adjusted EBITA margin increasing to 9.9 per cent. Customer and employee experience continued to strengthen.
Revenue growth in Private Healthcare Services was 8.1 per cent, enabled by strong insurance and corporate sales. Adjusted EBITA was EUR 12.1 million (10.7) thanks to well-progressing development measures started in 2024. We paid particular attention to enhancing our comprehensive clinical pathways, which was also reflected in improved customer experience: our NPS score was 86 (82).
In Public Services, revenue for the first quarter decreased as expected to EUR 60.7 (72.7) million. Despite business changes, adjusted EBITA for the segment increased to EUR 6.0 (4.2) million. This was enabled by the continuing adjustment measures particularly in outsourcing agreements. Regardless of the changes, customer experience (NPS) in Public Services also increased to 79 (78).
Pihlajalinna's first CSRD-compliant externally assured sustainability report has been published. Reporting gives corporate sustainability activities much needed consistency and transparency. We are developing our operations in accordance with our selected focus areas, as evidenced by our recent commitment to near-term Science Based Climate Targets (SBTi).
The first quarter of 2025 showed us that our good profitability continues. We succeed by answering customer needs through collaboration between our professionals and partners and by continuing to develop our operations in a determined way. I want to thank all Pihlajalinna people and our partners for the excellent cooperation.
Webcast for analysts, investors and media
Pihlajalinna will organise a live webcast meeting for analysts, investors and media, on Wednesday, 30 April, 2025 at 10:00 a.m. at https://pihlajalinna.events.inderes.com/q1-2025/register. 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 Interim Report 1 January-31 March 2025 is attached to this release and available at company's website.
Pihlajalinna Plc
Further information:
Tarja Rantala, CFO, +358 40 774 9290, 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.?
