Pihlajalinna (PIHLIS) Q2 2024 earnings summary

Executive summary

• Profitability and customer satisfaction improved, with comparable organic revenue growth of 6.5% in Q2 2024 and 9.5% in Public Healthcare Services.

• Adjusted EBITA rose to €26.3 million (up 43.6% year-over-year), and EPS increased to €0.49 from €0.31.

• Net cash flow from operating activities was €58.7 million, up from €46.3 million.

• Customer satisfaction remained high, with NPS scores improving in both private and public services.

• Sickness-related absence rate and personnel numbers decreased, reflecting operational adjustments.

Financial highlights

• Q2 2024 revenue was €174.8 million, down from €183.6 million year-over-year, mainly due to outsourcing contract changes.

• H1 revenue: €358.0 million (down 3.6% year-over-year); adjusted EBITA: €26.3 million (up 43.6%).

• Adjusted EBITA margin increased to 6.5% from 4.0% year-over-year.

• EPS improved to €0.49 from €0.31 year-over-year.

• Free cash flow after investments: €50.0 million (up from €35.4 million).

Outlook and guidance

• 2024 adjusted EBITA is expected to exceed €48 million, up from €37.8 million in 2023.

• Revenue is expected to decrease from €720 million in 2023 due to contract changes and transfer of cost liability for specialised care.

• Demand is expected to remain steady, but economic slowdown and weak consumer confidence may impact results.