Pihlajalinna Plc Half Year Financial Report 24 July 2025 at 8:00
a.m. EET
Pihlajalinna Half Year Financial Report 1 January-30 June 2025
Continued improvement in Pihlajalinna's profitability
This Half Year Report release is unaudited. The comparison figures in brackets
refer to the corresponding period in the previous year.
April-June in brief:
· Revenue amounted to EUR 171.3 (174.8) million - a decrease of -2.0 per cent.
· Comparable organic revenue growth[1)] was EUR 0.9 million, or 0.5 per cent.
· In Private Healthcare Services segment, revenue amounted to EUR 117.0
(112.3) million. Revenue increased 4.2 per cent.
· In Public Services segment, revenue amounted to EUR 58.4 (66.1) million.
Changes in outsourcing agreements decreased revenue by EUR 3.6 million.
Comparable organic[1)] revenue decrease was 5,5 per cent.
· Adjusted EBITA[2)]was EUR 14.6 (11.4) million, an increase of 27.7 per cent.
· Net cash flow from operating activities amounted to EUR 25.2 (27.5) million.
· Earnings per share (EPS) was EUR 0.36 (0.19).
· The sale of four special housing service units to Esperi Care was completed
at the end of May.
January-June in brief:
· Revenue amounted to EUR 352.7 (358.0) million - a decrease of -1.5 per cent.
· Comparable organic revenue growth[1)] was EUR 7.8 million, or 2.2 per cent.
· In Private Healthcare Services segment, revenue amounted to EUR 240.8
(226.9) million. Revenue increased 6.1 per cent.
· In Public Services segment, revenue amounted to EUR 119.1 (138.8) million.
Changes in outsourcing agreements decreased revenue by EUR 12.2 million.
Comparable organic[1)] revenue decrease was 5.3 per cent.
· Adjusted EBITA[2)] was EUR 32.6 (26.3) million - an increase of 24.0 per
cent.
· Net cash flow from operating activities amounted to EUR 51.0 (58.7) million.
· Earnings per share (EPS) was EUR 0.83 (0.49).
[1) ]Changes in outsourcing agreements and divestment have 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 as replacing
the IFRS figures.
Key figures
EUR million 4-6/20 4-6/20 change 1-6/20 1-6/20 change 2024
25 24 % 25 24 %
INCOME
STATEMENT
Revenue 171.3 174.8 -2.0 352.7 358.0 -1.5 704.4
Adjusted EBITA 14.6 11.4 27.7 32.6 26.3 24.0 55.2
¹⁾
Adjusted 8.5 6.5 9.2 7.3 7.8
EBITA, % ¹⁾
Operating 13.0 9.5 36.1 29.4 22.2 32.0 48.5
profit (EBIT)
Operating 7.6 5.5 8.3 6.2 6.9
profit (EBIT),
%
Adjusted 13.0 9.6 35.6 29.3 22.5 30.2 47.7
operating
profit
(EBIT) ¹⁾
Adjusted 7.6 5.5 8.3 6.3 6.8
operating
profit
(EBIT), % ¹⁾
Profit before 11.2 6.7 66.6 25.9 16.9 53.1 38.6
tax (EBT)
SHARE-RELATED
INFORMATION
Earnings per 0.36 0.19 88.2 0.83 0.49 69.3 1.13
share (EPS),
EUR
Equity per 7.90 6.94 13.7 7.59
share, EUR
OTHER KEY
FIGURES
Return on 11.5 5.5 107.4 9.7
capital
employed
(ROACE), %
Return on 21.8 6.9 214.4 19.2
equity (ROE),
%
Equity ratio, 28.5 24.3 16.9 26.8
%
Gearing, % 152.5 211.0 -27.7 175.5
Interest 270.8 325.1 -16.7 296.6
-bearing net
debt
Net 2.5 3.6 -29.6 2.9
debt/adjusted
EBITDA, 12
months ¹⁾
Interest 81.4 122.1 -33.3 101.8
-bearing net
debt
excluding IFRS
16
Net 1.1 2.0 -45.8 1.5
debt/adjusted
EBITDA,
excluding IFRS
16, 12 months
¹⁾
Cash flow from 25.2 27.5 -8.5 51.0 58.7 -13.2 100.8
operating
activities
Average number 4,283 4,505 -4.9 4,416
of personnel
(FTE)
Personnel at 6,284 6,721 -6.5 6,493
the end of the
period (NOE)
Number of 2,205 2,091 5.5 2,145
practitioners
NPS, Private 83.0 85.0 85.0 84.0 1.2 85.0
Healthcare
Services
NPS, Public 78.0 79.0 79.0 78.0 1.3 78.0
Services
eNPS (entire 12.0 1.0 1,100 9.0
Group)
[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-30
June 2024 would have been EUR 26.0 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 -3.4 (0.3) million
and EUR -3,4 (0,0) million in the quarter. Adjustments to operating profit
during the review period amounted to EUR 0.0 (0.3) million and EUR 0,0 (0,0)
million in the quarter.
Pihlajalinna's outlook for 2025, updated 30 May 2025
In 2025, Pihlajalinna will focus on organic growth, especially in Private
Healthcare Services, and continued improvement in profitability.
· The Group estimates the revenue to fall slightly below the previous year's
level (EUR 704.4 million in 2024), mainly due to the earlier transfer of
Kuusiolinna Terveys services to the South Ostrobothnia wellbeing services county
and the divestment of special housing services.
· The Group estimates the adjusted operating profit before the amortisation
and impairment of intangible assets (EBITA) increase to at least EUR 65 million
(EUR 55.2 million in 2024).
The Group estimates demand to remain stable. Slow economic growth may affect
Pihlajalinna's service demand and financial result more than expected.
Pihlajalinna's medium-term strategic objectives over the next three years
· Revenue: at least MEUR 700
· Adjusted EBITA%: 12 %
· Net debt/adj. EBITDA ratio: below 2.5x
· Net Promoter Score, NPS: continues over 80
· Employee Net Promoter Score, eNPS: exceeds 30
Pihlajalinna's dividend policy: at least 1/3 of the annual earnings per share,
taking into consideration the company's financial position and financial needs
(unchanged).
Tuomas Hyyryläinen, CEO:
Pihlajalinna's profitability continued to improve, and we achieved strong profit
for the second quarter. Our adjusted EBITA increased by 28 per cent to EUR 14.6
(11.4) million. We have made systematic progress in strengthening our financial
position.
During the second quarter, our revenue decreased as expected to EUR 171.3
(174.8) million due to changes in outsourcing agreements in the Public Services
segment. Employee experience improved further, and customer experience (NPS)
remained on the previous, strong level.
In the Private Healthcare Services segment, revenue grew by 4.2 per cent during
the second quarter. Growth and profitability were affected by the high
utilisation rates in fixed-price occupational healthcare agreements, the timing
of mid-week holidays, the low procurement volumes in the public sector and
particularly by changes in customer guidance by an insurance partner during the
quarter. Despite this, the segment's adjusted EBITA strengthened by 36 per cent
to EUR 8.5 (6.2) million due to the determined measures taken to develop service
offering, streamlined care pathways, and pricing structures. In the Private
Healthcare Services segment, we will deepen our partnerships by developing
overall cost-effective service models, which include occupational healthcare
insurance solutions and value-based care pathways.
In the Public Services segment, revenue decreased during the second quarter as
expected to EUR 58.4 (66.1) million due to contract changes, but adjusted EBITA
in the segment increased to EUR 6.1 (5.2) million. This was achieved through
continued adjustment measures in co-operation with the wellbeing services
counties.
During the review period, we continued to specify the schedules of ending
complete outsourcing agreements and to carry out controlled transfers to the
wellbeing services counties. We announced that social services in Kuusiolinna
Terveys will be transferred to the wellbeing services county of Southern
Ostrobothnia earlier than planned, in August-September. In addition, we made an
agreement with the wellbeing services county of Pirkanmaa on continuing the
services provided by Kolmostien Terveys at least until the end of April 2026,
which will strengthen the revenue for 2026 with an estimated EUR 10 million. We
also clarified our business portfolio by selling our four special housing
service units to Esperi Care. In the Public Services segment, we are focusing on
making controlled changes to the operations and are developing cost-effective
value-based service models to meet the needs of our wellbeing services county
partners.
We are consistently advancing our efforts in line with our renewed strategic
objectives. We offer overall cost-effective value-based care pathways and
produce real value to our stakeholders. We will succeed by engaging in strong co
-operation with our partners and professionals. I would like to thank all
Pihlajalinna employees for their determined work.
Webcast for analysts, investors and media
Pihlajalinna will organise a live webcast meeting for analysts, investors and
media on Thursday, 24 July, 2025 at 10:00 a.m. at
https://pihlajalinna.events.inderes.com/q2-2025.
CEO Tuomas Hyyryläinen, CFO Tarja Rantala and EVP, Communications and
Sustainability Tuula Lehto will be present at the live webcast meeting. The
event will be conducted in Finnish.
Pihlajalinna Plc's full Half Year Financial Report 1 January-30 June 2025 is
attached to this release and available at company's
website (https://investors.pihlajalinna.fi/?sc_lang=en).
Pihlajalinna Plc
Further information:
Tarja Rantala, CFO, +358 40 774 9290, tarja.rantala@pihlajalinna.fi
Tuula Lehto, Executive Vice President, 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 a healthcare reformer, building effective care pathways and the
most attractive corporate culture in the industry. Pihlajalinna offers customer
-driven and effective service models to its partners: insurance companies,
corporations and wellbeing services counties. The Group provides comprehensive,
high-quality services through private clinics, hospitals, remote channels,
occupational healthcare, and tailored social and healthcare solutions for the
public sector. 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.