Fondia Plc: Business Review July–September 2024 - Net sales on level with the comparison period and adjusted operating profit increased
Fondia Plc
Company release
24.10.2024 at 8.30 a.m. EEST
The company complies with the Securities Markets Act half-yearly reporting and publishes business reviews for the first three and nine months of the year, presenting key information on the company's financial performance. The financial information presented in this Business Review is unaudited.
Financial development in July–September and in January–September 2024
| GROUP | 7–9/2024 | 7–9/2023 | 1–9/2024 | 1–9/2023 |
| Net sales, MEUR | 5.3 | 5.3 | 19.1 | 18.9 |
| Change in net sales % | –0.3% | –2.8% | 1.2% | 6.4% |
| EBITDA, MEUR | 0.2 | 0.1 | 1.4 | 1.3 |
| EBITDA % | 3.2% | 1.8% | 7.5% | 6.9% |
| Adjusted EBITDA, MEUR | 0.2 | 0.1 | 1.6 | 1.3 |
| Adjusted EBITDA % | 4.5% | 1.8% | 8.3% | 6.9% |
| Operating profit EBIT, MEUR | –0.1 | –0.1 | 0.8 | 0.7 |
| Operating profit EBIT % | –1.2% | –2.1% | 4.0% | 3.8% |
| Adjusted operating profit EBIT, MEUR | 0.0 | –0.1 | 0.9 | 0.7 |
| Adjusted operating profit EBIT % | 0.0% | –2.1% | 4.8% | 3.8% |
| Number of employees FTE, period average | 158 | 169 | 163 | 163 |
| Number of employees FTE, change in period average % | –6.5% | 14.2.% | 0.0% | 11.6% |
Outlook for 2024 (updated 11.9.2024)
Fondia expects net sales for 2024 to be EUR 26-27 million and an adjusted operating profit to be 6-8%. The market situation remains uncertain, and this has a weakening impact on the ability to assess future business development and the factors affecting it.
CEO Harri Savolainen:
"In the reporting period, we have continued to develop the customer experience and to manage our operations for results, in addition to providing high-quality customer service and employee well-being. Our goal is to ensure not only good customer and employee experience, but also profitable growth and the development of commercial capabilities by leveraging technology and sharpening our operations.
Group net sales decreased by 0.3% in July–September compared to the comparison period. Net sales was weaker than expected and in September we had to lower our outlook for the financial year. In July–September net sales grew by 1.6% in Finland and 28.7% in the Baltics compared to the comparison period. In Sweden, net sales decreased by 10.1% in July–September compared to the comparison period. The market situation continued to have a weakening impact on demand for our legal services. However, there were already some signs of a budding turnaround at the end of the reporting period, following a difficult second quarter.
The Group's adjusted operating profit percentage (EBIT-%) for July–September was 0.0% (–2.1). During the reporting period, we have continued to sharpen our operational and cost management.
The results of the customer and employee satisfaction surveys carried out during the reporting period results are still at a fairly good level. The customer satisfaction survey NPS score was 61 (61) and the results also provided us with additional insight and gave confirmation of development priorities of our operations. Our employee satisfaction survey eNPS score decreased and was 19 (48). The result also reflects our need to clarify our direction, which we are tackling with our employees in the strategy work.
During the reporting period Emma Ridderstad was appointed Managing Director of our Swedish subsidiary and member of the Group Management Team. Emma’s experience and strong dedication complement Fondia's capabilities not only in Sweden, but also within the Fondia Group.
In addition to the development of the MyFondia platform, during the reporting period we started the Leya AI pilot, which aims to strengthen the value creation of our customer work for our customers.
We will continue to focus on legal customer work, sales, added value creation for our customers and employee well-being, and profitability improvement of the business. We will closely monitor possible changes in the market situation. When necessary, we respond quickly to changes as appropriate, without compromising the quality of our customer service or the good customer and employee experience."
Investor communications
Fondia will publish the Business Review for July–September 2024 on Thursday, October 24, 2024, at 8.30 a.m. EEST. The company release on the Business Review will available after publishing on the company’s website https://investors.fondia.com/fi/en/releases-and-publications/reports-and-presentations.
An investor call will be held on Thursday, October 24, 2024, at 10.00 a.m. EEST. The investor call will be held in Finnish and can be accessed online by registering on the company’s website https://fondia.videosync.fi/q3-24-liiketoimintakatsaus/register.
The video and presentation material of the CEO’s presentation and the recording of the investor call are available afterwards on the company’s website https://investors.fondia.com/fi/en/releases-and-publications/reports-and-presentations.
For further information, please contact:
Group CEO Harri Savolainen
tel. +358 (0)40 502 1919
Certified Adviser Aktia Alexander Corporate Finance Oy
tel. +358 (0)50 520 4098
Fondia in brief
Fondia solves the legal needs of companies by combining the best services from internal legal departments and law firms. Fondia operates in Finland, Sweden, Estonia, and Lithuania, and the Group’s net sales in 2023 were EUR 26.1 million. Fondia employs around 190 people.
www.fondia.com
Distribution:
Nasdaq Helsinki Ltd
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