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EEZY PLC -- INTERIM REPORT -- 9 NOVEMBER 2021 AT 8:00
Eezy Plc's Interim Report 1-9/2021: Excellent profitability
Revenue was EUR 58.3 million (EUR 53.1 million in July–September 2020).
EBITDA was EUR 6.5 million (5.5).
EBIT was EUR 4.7 million (3.7) and was 8.0% of revenue.
Earnings per share was EUR 0.13 (0.10).
Revenue grew by 10%.
Business continued to normalize after Corona.
Revenue was EUR 142.9 million (EUR 147.2 million in January–September 2020).
EBITDA was EUR 14.2 million (10.1).
EBIT was EUR 8.6 million (4.1) and was 6.0% of revenue.
Earnings per share was EUR 0.22 (0.08).
Profit has improved significantly.
Outlook for 2021
Eezy expects revenue to be EUR 190-210 million and EBIT to be EUR 11-14 million.
Key figures (IFRS)
EUR million, unless
EPS, undiluted, EUR
EPS, diluted, EUR
Net debt / EBITDA
CEO Sami Asikainen:
All-time high quarterly profit
"The third quarter is traditionally our strongest quarter. We achieved highest-ever quarterly result, although the pandemic still burdens the business of our horeca sector. Clear revenue growth combined to generic efficiency improvements lifted also our profitability to an excellent level. Similarly as in the previous quarter, we managed to grow all our businesses, and the demand for all our services has been great thanks to the economic growth. In line with our growth strategy, we acquired Triton Henkilöstöpalvelut in October, and KK Valmennuskeskus joined Eezy in November. These acquisitions complement well our offering and their timing is perfect considering the substantial growth in the demand for labour.
Our strategy works
The key theme for this year has been "Back to the growth path" and strategic focus has been on the organic growth. The first quarter was still challenging due to the pandemic, but since spring we have enjoyed clear growth. In the third quarter our revenue grew by 10% to 58.3 million euro. In implementing our strategy we have invested into creating a winning culture by training out people and by uniting processes. We have sought growth in all our units. The 14% growth by our franchise entrepreneurs and the great 90% growth in Flow and Personnel nicely balance our sales mix. Widening the mix will enable good profitability development also in the future. Our "Successful meetings" strategy creates the basis for our customer work, and we want to create successes professionally and positively while respecting individuals. The Eezy people have well succeeded in this work.
Higher than ever demand
For several years we have talked about the mega-trends in the working life, and the labour shortages have impacted several customer segments for long. The labour shortage is not a surprise, but the strong economic growth has amplified the problem. Thus, it is great that the matter is widely and visibly discussed in the media. The age demographics and structural labour market challenges combined to attitude changes will affect labour availability also in the future. For Eezy and the whole industry the situation is two-fold: our growth is slowed down by the labour shortage, but in the big picture our strategic importance for customers has substantially increased. Never before has there been this kind of need for the partnership and services by our industry. The decision makers should take quick actions for increasing the education and employment services funding, for removing the benefit gaps and for easing the import of labour into Finland.
Perfect timing in acquisitions
Our job is to connect work and talent. We have been doing that in the Finnish markets for over 30 years. The labour shortage is an excellent possibility to grow Eezy's business and to widen our offering. There would have been no better time for acquiring Triton, which imports labour from several Eastern European countries. With Triton our import channels grow, and the expertise in our organization grew. We see this acquisition, and the foreign labour in general, as a necessary and important way of solving the shortages in Finland. Our goal is to multiply the current amount of some 300 imported workers during the next few years.
I am also really delighted that since November also Valmennuskeskus, with its long history and wide scope of employment services, is part of Eezy. Our impact on society will grow materially when we now offer training, coaching and rehabilitation services to the public sector. Over 3000 persons get annual employed through the services by Valmennuskeskus Public. Valmennuskeskus is a perfect acquisition, as we will be able to combine the open jobs at Eezy to the 8000 persons to be employed at Valmennuskeskus. In addition, Valmennuskeskus has since 1975 produced preparation courses for university entrance exams. Approx. 10000 young people participate annually in the courses. Through the Valmennuskeskus prep courses Eezy will be able to connect the young people to its services earlier. In future Eezy can help the young people in finding the studying place and enable working during the studying years.
Management model renewed, strategy to be updated
We have renewed our management model during the quarter. The Work and Talent business unit offers services for staff leasing, recruitment, headhunting and relocation, through our own business units as well as through our franchise units. The Growth and Renewal business unit offers organisational and management research and development services. It also develops and sells services and platforms that promote the renewal of the working life, such as light entrepreneurship services.
We have strengthened the management team with the Chief Digital Officer and the Content Director. I am really happy with the composition and expertise of our new management team. With the team we will update our strategy during the remaining part of the year. Our growth will continue both organically and via acquisitions. In addition, we will increase investments into digitalization, machine learning and process automation.
Recovery in horeca sector required for a great Q4 result
After the third quarter, typically the largest in the year, when the Christmas season begins, both horeca and retail sectors will grow, while the industrial and construction sectors quieten toward the year-end. The last quarter is also the most important period for our employee satisfaction survey and development business. The demand outlook for these services looks good, as new, better workplaces are built after the changes by the corona times. I believe that our good growth trend will continue during the last quarter. However, achieving a great success requires a restriction-free Christmas party period and the return of the horeca experts to their workplaces."
Result publication event:
A Finnish-language briefing for analysts and media will be held on 9 November 2021 at 13.00 as a webcast at https://eezy.videosync.fi/2021-q3-tulos
The briefing will be hosted by CEO Sami Asikainen 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://sijoittajat.eezy.fi/en/investors/reports-and-presentations/ before the conference. A recording of the audiocast will be available at the same website later.
Attachment: Interim Report January–September 2021 in PDF format
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