Pihlajalinna lowers its 2018 profitability guidance

Pihlajalinna Plc             Stock exchange release            20 June 2018 at 9:30

Pihlajalinna lowersits 2018 profitability guidance

Pihlajalinna lowers its previously published 2018 profitability guidance for the Group. Pihlajalinna now estimates that the Group’s adjusted EBIT will be below adjusted EBIT of 2017. Pihlajalinna does not make any changes to its outlook for 2018 revenue, i.e. Pihlajalinna’s consolidated revenue is expected to increase clearly from 2017 level especially due to M&A transactions.

Pihlajalinna develops its business operations in line with the Group’s strategy, which has required both structural renewal and geographical expansion during the first half of the year. The structural change will take longer than expected and this has an effect on profitability also during the remaining part of the year.

”The first part of the year has been a time of big changes and new beginnings in the company, and the operative performance has been weaker than expected. Despite the weak beginning, we still believe that the planned measures, reforms and new services will strengthen our profitability during the rest of the year. They will nevertheless not be sufficient enough to raise the adjusted profit to last year’s level or above it”, says Pihlajalinna’s CEO Joni Aaltonen.

The revised outlook for 2018:

Pihlajalinna’s consolidated revenue is expected to increase clearly from 2017 level especially due to M&A transactions. Adjusted EBIT is expected to remain below 2017 level.

The previous outlook for 2018 (published on 13 February 2018):

Pihlajalinna’s consolidated revenue is expected to increase clearly from 2017 level especially due to M&A transactions. Adjusted EBIT is expected to improve compared to 2017.

In the financial year 2017, revenue was EUR 424.0 million and the adjusted EBIT was EUR 20.0 million.

Pihlajalinna will publish its January–June result on 16 August 2018.

Pihlajalinna Plc

Further information:
Joni Aaltonen, CEO, +358 40 524 7270

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. Pihlajalinna provides general practitioner services, specialised care, emergency and on-call services, a wide range of surgical services, occupational healthcare, dental care and wellbeing services. In addition, the company offers innovative social and healthcare service provision models to public sector entities.