Pihlajalinna (PIHLIS) Q3 2024 earnings summary

Executive summary

• Achieved solid comparable organic revenue growth of 8.9% in Q3 2024, with Private Healthcare Services up 14.0%.

• Profitability improved, with adjusted EBITA rising 41% to €13.5m and margin at 8.2%.

• Customer and employee satisfaction remained strong, with NPS in surgical operations at 96 and eNPS in Private Healthcare Services at 20.

• Revenue declined 1.0% in Q3, mainly due to contract changes and divestments in Public Services.

• Upgraded 2024 guidance: adjusted EBITA expected at €53–56 million, up from €37.8 million in 2023.

Financial highlights

• Q3 2024 revenue was €164.0m, down 1.0% from €165.6m in Q3 2023.

• Adjusted EBITA reached €13.5m (up from €9.6m), with margin improving to 8.2% from 5.8%.

• EPS doubled to €0.26 from €0.13 year-over-year.

• Operating cash flow increased to €9.0m from €6.6m.

• 9M 2024 revenue: €522.0m (–2.8% y/y); 9M adjusted EBITA: €39.8m (+42.7% y/y).

Outlook and guidance

• 2024 revenue expected to decrease from €720.0m in 2023 due to transfer of cost liability for specialised care.

• Adjusted EBITA forecast to rise to €53–56m (from €37.8m in 2023).

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