EEZY PLC -- INTERIM REPORT -- 8 MAY 2025 AT 8:00
Eezy Plc's Interim Report 1-3/2025: Weak demand reduced EBIT, performance improvement program is progressing
January-March 2025
- Revenue was EUR 33.7 million (EUR 41.5 million in January-March 2024). Revenue decreased by 19%.
- Chain-wide revenue was EUR 53.0 million (EUR 60.0 million in January-March 2024). Chain-wide revenue decreased by 12%.
- EBITDA was EUR 1.3 million (2.3).
- EBIT was EUR -0.4 million (0.5) and was -1.1% of revenue (1.2%).
- EUR 0.1 million in personnel expenses related to severance payments were recorded in the result (0.3).
- Earnings per share was EUR -0.04 (0.01).
- AI-assisted technology for Staffing services rolled out on a large scale.
- Franchisee entrepreneur network strengthened with Jyväskylä, Vaasa, and Kuopio offices.
Outlook for 2025
Eezy does not give guidance for 2025.
Key figures (IFRS)
| EUR million, unless otherwise specified | 1-3/2025 | 1-3/2024 | 1-12/2024 |
| Revenue | 33.7 | 41.5 | 174.1 |
| EBITDA | 1.3 | 2.3 | 10.3 |
| EBITDA, % | 3.9% | 5.5% | 5.9% |
| EBIT | -0.4 | 0.5 | 2.3 |
| EBIT, % | -1.1% | 1.2% | 1.3% |
| EPS, basic, EUR | -0.04 | 0.01 | -0.01 |
| EPS, diluted, EUR | -0.04 | 0.01 | -0.01 |
| Net debt / EBITDA | 5.9 x | 4.5 x | 5.1 x |
| Chain-wide revenue | 53.0 | 60.0 | 257.4 |
Siina Saksi, CEO:
" The first quarter was still a period of subdued demand in our industry, and economic uncertainties are reflected in our customers' needs in Staffing. The changes brought about by the public administration's TE services reform are reflected in weaker demand for Employment services. We successfully rolled out our AI-assisted technology for Eezy Staffing services. The benefits of the new digital operating model will start to have impact in the second half of 2025. We continued to implement our performance improvement program, strengthened our franchisee network, and supported sales by creating a joint commercial organization.
Our revenue for the first quarter was EUR 33.7 million (41.5). The main reason for the decline in revenue was weak demand in Staffing services and Employment services. March was clearly stronger than January-February in Staffing services.
Revenue from Staffing Services decreased by 17% in the Group units in January-March and, including the revenue of franchise entrepreneurs, by 10% in the entire chain compared to the first quarter of last year. We have strengthened our franchisee entrepreneur network and agreed to transfer Jyväskylä, Vaasa, and Kuopio offices to our entrepreneurs during the first quarter. We strongly believe in an entrepreneur-driven operating model, through which we aim to achieve growth in both local and national customer relationships and more stable profitability. In terms of revenue, the annual impact of the entrepreneur transfers with 2024 numbers would be approximately EUR 20 million. The industry and construction sectors continued to be sluggish, while the horeca sector was almost on par with the same period last year. We performed well in the capital area relative to the market.
Revenue from Professional services was EUR 6.1 million (8.0) in the first quarter. The changes brought about by the public administration's TE services reform are reflected in weaker demand for Employment services and slow decision-making. Demand for headhunting and personality assessments is also subdued in the challenging economic situation. Sales of employee surveys and transition security services were successful in the first quarter.
Our EBIT for the first quarter was negative at EUR -0.4 million (0.5). The weak EBIT is primarily due to the decline in revenue both in Staffing and Employment services. We are satisfied with the development of our sales margin and the improvement in cash flow from operating activities compared to the same period last year
Financing negotiations concluded
As part of our financial statements, we announced that we were in negotiations with our financiers to stabilize the company's financial position in order to support growth. The negotiations were concluded in April. We agreed with Varma Mutual Pension Insurance Company and Nordea Bank Plc on the renewal of the Company's current financing arrangements.
Focus on improving performance
In April 2025, we launched the third phase of our performance improvement program. In this phase of the program we will accelerate the implementation of the strategy and the benefits of the new technology in Staffing. We will also review the performance of the different businesses, in particular the less profitable businesses and units. The objective of this phase is approximately EUR 4 million profitability improvement. The measures have been identified and will start to have an impact in the second half of 2025.
The goal for the package launched in June 2024 is savings of EUR 2.8 million. The full benefits of e.g. outsourcing will be realized in the second half of 2025. There is uncertainty regarding the timing of the lease liabilities for decommissioned premises in 2025.
A significant part of our strategy and performance improvement program is the benefits of our new, unique technology in terms of work efficiency and 24/7 customer service. The technology is now almost fully operational. The implementation phase will end when the retail sector is included in the system in June. The implementation has gone well, and our customers who place quick shift in particular have been satisfied with the new operating model. 42% of orders are already placed by our customers themselves, and 27% of filled orders are automatched by AI.
This is my last CEO review at Eezy. I would like to warmly thank our customers, owners, board, partners, entrepreneurs, and above all, the wonderful, skilled, and passionate professionals at Eezy for our journey together. I would also like to warmly welcome Johan as he takes the helm for the next phase of Eezy's journey."
Result publication event:
A Finnish-language briefing for analysts and media will be held on 8 May 2025 at 10.00 Finnish time as a webcast at https://eezy.events.inderes.com/q1-2025
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/investors/financials/reports-and-presentations/ before the conference. A recording of the audiocast will be available at the same website later
Attachment: Interim Report January-March 2025 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
