Pihlajalinna Interim Report 1 January–30 September 2017 (9 months)
Pihlajalinna Plc Interim Report 9 November 2017 at 8.00 a.m.
Pihlajalinna Interim Report 1 January–30 September 2017 (9 months)
Strong third quarter in Primary and Social Care
Brief look at July–September:
- Revenue amounted to EUR 99.4 (93.9) million – an increase of 6 per cent
- EBITDA amounted to EUR 9.1 (6.8) million
- Adjusted EBITDA amounted to EUR 9.0 (7.8) million – an increase of 15 per cent
- Operating profit (EBIT) was EUR 5.5 (3.6) million
- Adjusted operating profit (EBIT) was EUR 5.4 (4.7) million – an increase of 15 per cent
- Earnings per share (EPS) was EUR 0.09 (0.08)
Brief look at January–September:
- Revenue amounted to EUR 316.1 (295.4) million – an increase of 7 per cent
- EBITDA amounted to EUR 25.2 (20.8) million
- Adjusted EBITDA amounted to EUR 25.6 (21.8) million – an increase of 17 per cent
- Operating profit (EBIT) was EUR 14.6 (11.3) million
- Adjusted operating profit (EBIT) was EUR 15.1 (12.8) million – an increase of 18 per cent
- Number of personnel at the end of the reporting period was 4,767 (4,470)
- Earnings per share (EPS) was EUR 0.34 (0.27)
| KEY FIGURES AND RATIOS | 7–9/2017 3 months |
7–9/2016 3 months |
1–9/2017 9 months |
1–9/2016 9 months |
2016 12 months |
| INCOME STATEMENT | |||||
| Revenue, EUR million | 99.4 | 93.9 | 316.1 | 295.4 | 399.1 |
| EBITDA, EUR million | 9.1 | 6.8 | 25.2 | 20.8 | 27.9 |
| EBITDA, % | 9.2 | 7.3 | 8.0 | 7.1 | 7.0 |
| Adjusted EBITDA, EUR million | 9.0 | 7.8 | 25.6 | 21.8 | 28.9 |
| Adjusted EBITDA, % | 9.1 | 8.3 | 8.1 | 7.4 | 7.2 |
| Operating profit (EBIT), EUR million | 5.5 | 3.6 | 14.6 | 11.3 | 15.1 |
| Operating profit, % | 5.5 | 3.8 | 4.6 | 3.8 | 3.8 |
| Adjusted operating profit (EBIT), EUR million | 5.4 | 4.7 | 15.1 | 12.8 | 16.6 |
| Adjusted operating profit, % | 5.4 | 5.0 | 4.8 | 4.3 | 4.2 |
| Profit before tax (EBT), EUR million | 5.0 | 3.3 | 13.3 | 10.2 | 13.7 |
| SHARE-RELATED INFORMATION | |||||
| Earnings per share (EPS), EUR | 0.09 | 0.08 | 0.34 | 0.27 | 0.39 |
| Equity per share, EUR | 4.80 | 4.74 | 4.74 | ||
| OTHER INFORMATION | |||||
| Return on capital employed (ROCE), % | 11.4 | 9.0 | 10.8 | ||
| Return on equity (ROE), % | 13.3 | 8.7 | 11.1 | ||
| Equity ratio, % | 43.0 | 47.3 | 46.5 | ||
| Gearing, % | 41.7 | 26.8 | 21.9 | ||
| Interest-bearing net debt, EUR million | 43.4 | 27.0 | 22.1 | ||
| Net debt/adjusted EBITDA, 12 months | 1.3 | 1.1 | 0.8 | ||
| Gross investments, EUR million* | 12.8 | 1.1 | 20.5 | 21.9 | 27.4 |
| Cash flow from operating activities, EUR million | 4.2 | 9.8 | 18.5 | 19.1 | 32.3 |
| Cash flow after investments, EUR million | -4.3 | 7.0 | 3.7 | -0.3 | 6.8 |
| Average number of personnel (FTE)** | 3,881 | 3,508 | 3,503 | ||
| Personnel at the end of the period (NOE) | 4,767 | 4,470 | 4,407 |
* Finance leases are not included in the gross investments
** Pihlajalinna has transitioned to reporting the number of personnel on average as full-time equivalents (FTE) instead of the previous Average number of personnel indicator.
Aarne Aktan, CEO of Pihlajalinna:
Pihlajalinna’s third quarter in 2017 was good. Profitability clearly improved, though the organic growth in revenue remained at 2.0 per cent.
The Primary and Social Care (P & S) segment had an excellent third quarter. Particularly the profitability of complete outsourcings exceeded our expectations. The profitability of complete outsourcings in general is better during summer holiday season due to decrease in personnel costs while revenue remains constant throughout the year. The profitability of staffing services remained good.
The third quarter of the Private Clinics and Specialised Care (C & S) segment was in line with expectations. Cost development in Public Specialised Care was better than expected. In accordance with the nature of Public Specialised Care, variations between quarters are fairly big. The profitability of Private Clinics, Occupational Healthcare and surgical operations was in line with expectations. Demand for Dental Care, on the other hand, continued to be weak.
After the reporting period, the Finnish government presented the most recent draft on the legislative proposal concerning the Act on Freedom of Choice, related to the health and social services reform. The proposal did not include any unexpected, major changes. The schedule for the freedom of choice provided by the health and social services reform was postponed again, which will give Pihlajalinna time to prepare for it. We believe that the legislative package will be adopted during the first half of 2018.
The municipal market has been very active due to the postponement of the health and social services reform, but many municipalities are waiting for the final content of the legislative reform.
Pihlajalinna’s outlook for 2017 unchanged
Pihlajalinna’s revenue is expected to grow and adjusted operating profit (EBIT) to improve compared to 2016. In the financial year 2016, revenue was EUR 399.1 million and the adjusted operating profit (EBIT) was EUR 16.6 million.
Pihlajalinna’s Capital Markets Day 2017 and financial reporting in 2018
Pihlajalinna’s Capital Market Day for analysts and institutional investors will be held in on Wednesday, 22 November 2017, at 9:00 a.m.–12:30 p.m. at GLO Hotel Kluuvi, Kluuvikatu 4, Helsinki.
Financial Statements Bulletin 2017: Tuesday, 13 February 2018
Financial Statements and Board of Directors’ report: no later than in week 11
Interim Report January–March: Friday, 4 May 2018
Half-Year Financial Report January–June: Thursday, 16 August 2018
Interim Report January–September: Thursday, 1 November 2018
Pihlajalinna Plc’s Annual General Meeting is scheduled for 5 April 2018 in Tampere, Finland.
Briefing
Pihlajalinna will hold a briefing for analysts and the media on Thursday, 9 November 2017 at 10:00 a.m. in the Paavo Nurmi room at Hotel Kämp, Pohjoisesplanadi 29, 00100 Helsinki, Finland.
Helsinki, 8 November 2017
Pihlajalinna Plc’s Board of Directors
Further information:
Aarne Aktan, CEO, +358 40 342 4440
Tarja Rantala, interim CFO, +358 40 774 9290
Siri Markula, Head of Communications and IR, +358 40 743 2177, siri.markula@pihlajalinna.fi
Distribution:
Nasdaq Helsinki
Major media
investors.pihlajalinna.fi
Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services providers in Finland. The company serves private individuals, businesses, insurance companies and public sector entities, such as municipalities and joint municipal authorities. In its private clinics and hospitals Pihlajalinna provides general practitioner services, specialised care, emergency and on-call services, a wide range of surgical services, occupational healthcare and dental care. In addition, the company offers innovative social and healthcare service provision models to public sector entities.