Eezy Plc's Financial Statements Bulletin 1-12/2023: Profitability improvement program implemented – renewed strategy sets a clear direction
EEZY PLC -- FINANCIAL STATEMENTS BULLETIN -- 15 FEBRUARY 2024 AT 8:00
Eezy Plc's Financial Statements Bulletin 1-12/2023: Profitability improvement program implemented – renewed strategy sets a clear direction
October–December 2023
- Revenue was EUR 52.1 million (EUR 62.2 million in October–December 2022). Revenue decreased by 16%.
- EBITDA was EUR 3.6 million (4.6).
- EBIT was EUR -0.7 million (2.7) and was -1.3% of revenue (4.3%). EBIT includes an impairment of EUR 2.3 million on trademarks and customer relationships related to acquisitions.
- Earnings per share was EUR -0.06 (0.08).
- A profitability improvement program was implemented, and the strategy renewal project was started.
- EUR 0.8 million in personnel expenses related to severance payments were recorded in the result.
January–December 2023
- Revenue was EUR 219.0 million (EUR 247.6 million in January–December 2022). Revenue decreased by 12%.
- EBITDA was EUR 14.5 million (18.2).
- EBIT was EUR 4.0 million (10.0) and was 1.8% of revenue (4.0%). EBIT includes an impairment of EUR 2.3 million on trademarks and customer relationships related to acquisitions.
- Earnings per share was EUR 0.03 (0.29).
- EUR 1.1 million in personnel expenses related to severance payments were recorded in the result.
Dividend proposal
Board of Directors proposes that no dividend will be distributed for year 2023.
Outlook for 2024
Eezy does not give guidance for 2024.
Key figures (IFRS)
| EUR million, unless otherwise specified | 10–12/2023 | 10–12/2022 | 1–12/2023 | 1–12/2022 |
| Revenue | 52.1 | 62.2 | 219.0 | 247.6 |
| EBITDA | 3.6 | 4.6 | 14.5 | 18.2 |
| EBITDA, % | 6.8% | 7.5% | 6.6% | 7.4% |
| EBIT | -0.7 | 2.7 | 4.0 | 10.0 |
| EBIT, % | -1.3% | 4.3% | 1.8% | 4.0% |
| EPS, undiluted, EUR | -0.06 | 0.08 | 0.03 | 0.29 |
| EPS, diluted, EUR | -0.06 | 0.08 | 0.03 | 0.28 |
| Net debt / EBITDA | - | - | 4.0 x | 2.9 x |
| Chain-wide revenue | 73.7 | 86.4 | 307.6 | 351.6 |
CEO Siina Saksi:
We focus on building a good working life with the renewed strategy
“Eezy's year 2023 is characterized by an economic downturn and a significant decrease in labor needs in the Staffing services business area. Despite the difficult economic conditions, we achieved growth in Professional services. Our revenue in 2023 was 219.0 million euros (247.6 million euros in January–December 2022), a decrease of 12%. Our operating profit shrank to 4.0 million euros (10.0) and was 1.8% of revenue (4.0%). We succeeded in our profitability program and are entering 2024 with a lower cost level and a clear plan following our new strategy.
Our revenue decreased in the last quarter to 52.1 million euros (62.2) due to the sharply weakened demand for Staffing services. The revenue of the Staffing services business area fell in the last quarter to 42.7 million euros (-21%) and in January-December to 188.3 million euros (-14%). The decline occurred across all industries, but it was particularly strong in the construction and industrial sectors, where labor needs have significantly reduced. The entire staffing market contracted by -15% in December (vs. 2022, source: HELA).
The revenue of the Professional services business area grew in the last quarter to 9.6 million euros (8.6) and in January-December 2023 to 31.0 million euros (28.4). The drivers of growth were rehabilitation and integration services provided by Eezy Employment services, as well as employee surveys, as well as consulting and coaching services related to management development. We consider the positive development of Professional services a good achievement during difficult economic times.
Our operating profit for the last quarter was -0.7 million euros (2.7). The operating profit includes an impairment of 2.3 million euros for trademarks and customer relationships. For the entire year of 2023, our operating profit was 4.0 million euros (10.0). The reduction in operating profit is mainly explained by the decrease in revenue from Staffing services and changes in the customer mix, as well as one-time write-downs and costs of approximately one million euros related to the termination of employment relationships as part of the profitability program.
In 2023, we employed about 25,000 people and recruited 500 experts from abroad to Finland. Through Eezy Employment services, we trained about 8,000 people, of whom about 40% found employment in the open labor market or started training. About 200,000 respondents participated in our employee experience surveys, and we coached about 20,000 people on leadership themes.
Year 2024 is a time of ensuring profitability and building foundations for growth
The year begins in a low economic cycle, and our customers' views on their own labor needs and investment capacity are uncertain. We want to ensure profitable operations even during times of quiet demand, and we will carefully monitor our fixed costs in relation to our revenue. Based on economic forecasts, the potentially starting interest rate cuts are expected to have a positive impact on economic development towards the end of the year. In economic cycle turnarounds, our industry has reacted quickly to the economic changes. Due to uncertain economic outlook, we do not provide guidance for 2024.
Our strategy aims for profitable growth
I began my tenure as CEO in June amidst a very difficult economic situation, and the economic climate continues to be challenging. We immediately took action and implemented a substantial profitability program during the fall, in which we, for example, reduced our number of office staff by about 60 and adjusted our other fixed costs to match the current level of our business. We have also made our operating models more agile, reshaped our organization, and now operate closer to our customers. We achieved the profitability program's goal of three million euros in annual cost savings.
During the fall and winter, we conducted a comprehensive market analysis-based strategy work. I strongly believe in the strategy's direction and consider a clear focus and concentration on our strengths as a guarantee for success.
We focus on where we are already strong: services related to our customers' personnel, leadership and corporate culture design. We are more than the sum of our parts: we have a broad nation-wide presence and a range of services for building a good working life with our customers.
For the strategic period extending to 2028, the goal is to grow faster than the market in the company's largest business area, Staffing services, and to double the revenue of the Professional services business area. We have identified significant growth potential both in our current businesses and in new staffing customer sectors, such as the health and social services and office work, which are less cyclical than the construction and industrial sectors that have traditionally been strong for us. Eezy aims for primarily organic growth during the strategic period, but growth can also be supported by acquisitions that complement our operations.
Our goal is to significantly improve our profitability by the end of the strategic period, aiming towards an 8% operating profit. In addition to the scale benefits brought by growth, we will widely harness technology and artificial intelligence in our various services. In particular, the phased introduction of the new AI-powered operating system for Staffing services during 2024 will bring us a significant productivity advantage. We are among the first companies in Finland to utilize artificial intelligence so extensively in our core business processes. This is also a competitive advantage in our sector that is very difficult to copy.
Finally, I would like to thank all Eezy employees. The past few months have not been easy, but I am completely certain that we have all the necessary ingredients for success in our hands. When we focus on doing together what we are already good at, we will succeed and will achieve our goals for the strategic period. The great results from our reputation and customer surveys confirm that our customers trust us and value our professionalism.”
Result publication event:
A Finnish-language briefing for analysts and media will be held on 15 February 2024 at 13.00 Finnish time as a webcast at https://eezy.videosync.fi/q4-2023
The briefing will be hosted by CEO Siina Saksi and CFO Hannu Nyman. During the presentation, there will be an opportunity to ask questions. The presentation material will be available at the company website at https://eezy.fi/en/financials/reports-and-presentations/ before the conference. A recording of the audiocast will be available at the same website later.
Attachment: Financial Statements Bulletin January–December 2023 in PDF format
Further information:
Eezy Plc
Siina Saksi
CEO
siina.saksi@eezy.fi
tel. +358 50 550 3912
Hannu Nyman
CFO
hannu.nyman@eezy.fi
tel. +358 50 306 9913
Marleena Bask
Communications and Marketing Director
marleena.bask@eezy.fi
tel. +358 50 352 3643
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