Pihlajalinna Plc: Pihlajalinna Interim Report 1 January - 31 March 2016 (3 months)

PIHLAJALINNA PLC       INTERIM REPORT          10 May 2016 at 8:00 (EEST)




  • Revenues amounted to EUR 100.1 (47.9) million - an increase of 109 per cent
  • EBITDA amounted to EUR 7.0 (3.0) million - an increase of 132 per cent
  • Operating profit (EBIT) amounted to EUR 4.2 (1.3) million
  • Net cash flow from operating activities amounted to EUR 14.0 (6.9) million
  • Gross investments in the reporting period amounted to EUR 10.3 (14.1) million
  • Number of personnel at the end of the reporting period was 4,228 (2,261)
  • Earnings per share was EUR 0.10 (0.03)
KEY FIGURES AND RATIOS 1-3/2016 1-3/2015 Change% 2015
  3 mths 3 mths   12 mths
Revenue, EUR million 100.1 47.9 109 213.3
EBITDA, EUR million 7.0 3.0 132 11.6
EBITDA % 7.0 6.3 11 5.4
Operating profit excluding non-recurring items (EBIT), EUR million 4.2 1.3 220 4.5
Operating profit % excluding non-recurring items 4.2 2.7 53 2.1
Operating profit (EBIT), EUR million 4.2 1.3 232 3.6
Operating profit % 4.2 2.6 59 1.7
Profit before tax (EBT), EUR million 3.8 0.6 559 1.3
Earnings per share (EPS), EUR 0.10 0.03 216 0.03
Equity per share, EUR 4.56 0.73 527 4.47
Return on capital employed, % (ROCE) 4.8 5.5 -13 3.4
Return on equity, % (ROE) 3.5 22.8 -84 2.3
Equity ratio, % 43.8 8.1 440 50.5
Gearing, % 21.5 633.8   25.2
Net debt/adjusted EBITDA, 12 mths 1.3 5.0 -75 1.9
Interest bearing net debt, EUR million 20.7 69.5 -70 23.5
Gross investments, EUR million 10.3 14.1 -27 44.6
Cash flow from operating activities 14.0 6.9 101 17.7
Cash flow after investments 3.9 2.8 40 -14.4
Average number of personnel 4,206 2,073 103 2,503
Personnel at the end of the period 4,228 2,261 87 3,047

Mikko Wirén, CEO of Pihlajalinna:

Pihlajalinna Group's consolidated revenue grew by 109 per cent during the first quarter, reaching EUR 100.1 (47.9) million. A significant part of this growth was organic, particularly from the new social and healthcare outsourcing contracts in Kuusiokunnat, Jämsä and Kihniö. Profitability developed favourably. EBITDA amounted to EUR 7.0 million - an increase of 132 per cent - and operating profit improved by 232 per cent year-on-year to EUR 4.2 million.

Our revenue grew according to plan, which considerably decreased the relative proportion of administrative costs and thereby improved the year-on-year profitability of all of our businesses. We have successfully implemented part of the social and healthcare outsourcing contracts and reached a satisfactory profitability level in these. Our goal for this financial year is to improve our profitability from last year, and so far we have succeeded in this as planned. 

On 6 April 2016, the Finnish Government's ministerial working group on reforms published further policy outlines on the healthcare and social welfare reform. The main objectives of the reform have remained unchanged: to bridge the sustainability gap in public finances by EUR 3 billion and narrow down differences in health and wellbeing. The governing principle is to improve cost management. The ambitious timetable has remained unchanged: the reform is intended to come into force in January 2019.

The Act on Organising Healthcare and Social Welfare Services will be circulated for consultation in May 2016. Let us hope that a sufficiently large group of private and third-sector operators are also allowed to comment on the proposed Act, not only the representatives of the present public operators. 
The particularly positive aspects of the Government's policy included the freedom of choice and equal operating opportunities for public, private and third sector service providers. In practice, this will require considerably better cost transparency, uniform quality criteria for all operators and a more customer-oriented operating model.

We must ensure that true freedom of choice is put into practice, including in specialised care. Otherwise, the targeted cost savings from the healthcare and social welfare reform will not materialise. A public monopoly is justified only in the most demanding specialised care. The crucial elements of healthcare and social welfare include effective prevention, quick and easy access to primary care and social services, and well-functioning integrated care pathways to cost-effective specialised care services.


Pihlajalinna's consolidated revenue is expected to exceed EUR 400 million in 2016 and the EBIT margin, excluding non-recurring items, is expected to improve compared to 2015.

In the financial year 2015, the EBIT margin, excluding non-recurring items, was 2.1 per cent.


Pihlajalinna will publish an additional two interim reports in 2016:

Report, Publication date
Interim report January-June 2016, Wednesday 17 August 2016
Interim report January-September 2016, Friday 11 November 2016

Helsinki, 10 May 2016

Pihlajalinna Plc's Board of Directors


Pihlajalinna Plc will hold a briefing for analysts and the media on Tuesday 10 May 2016 at 9.30 a.m. at restaurant Savoy, 7th floor, meeting room 2, Eteläesplanadi 14, 00100 Helsinki, Finland.

Registration for the briefing
Participants should register for the briefing starting on 10 May at 9.30 a.m. via email: heidi.rainesalo@pihlajalinna.fi.

Mikko Wirén, CEO, tel. +358 50 3220 927
Niclas Köhler, CFO, tel. +358 40 342 4420
Terhi Kivinen, SVP Communications, Marketing and IR, tel. +358 40 848 4001

Major media

Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services providers in Finland. The Company provides social and healthcare services for households, companies, insurance companies and public sector entities in private clinics, health centres, dental clinics and hospitals around Finland. Pihlajalinna provides general practitioner and specialised care services, including emergency and on-call services, a wide range of surgical services, occupational healthcare and dental care services, in private clinics and hospitals operating under the Dextra brand. Under the Pihlajalinna brand the Company, in cooperation with the public sector, offers social and healthcare service provision models to public sector entities with the aim of providing high quality services for public pay healthcare customers.


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