EEZY PLC -- INTERIM REPORT -- 10 NOVEMBER 2020 AT 8:00
Eezy Plc's Interim Report 1–9/2020: Good performance in difficult environment
Revenue was EUR 53.1 million (EUR 43.3 million in July–September 2019).
EBITDA was EUR 5.5 million (2.5).
EBIT was EUR 3.7 million (1.3).
Adjusted EBITDA was EUR 6.0 million (5.1).
Adjusted EBIT was EUR 4.1 million (4.0).
Earnings per share was EUR 0.10 (0.02).
Business recovered somewhat during summer.
Eezy's share started trading on the Nasdaq Helsinki main list in September.
Revenue was EUR 147.2 million (EUR 104.2 million in January–September 2019).
EBITDA was EUR 10.1 million (8.4).
EBIT was EUR 4.1 million (5.7).
Adjusted EBITDA was EUR 10.6 million (11.6).
Adjusted EBIT was EUR 5.1 million (8.9).
Earnings per share was EUR 0.08 (0.20).
Corona crisis has affected the business negatively.
Eezy Plc has decided to pay EUR 0.10 per share dividend. Record date is 12 November 2020 and payment date 20 November 2020.
Outlook for 2020
Eezy has on 20 March 2020 cancelled the earlier guidance for year 2020 due to the corona crisis and has not set a new guidance for year 2020.
Key figures (IFRS)
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Adjusted EBIT, %
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CEO Sami Asikainen:
Eezy goes forward with big leaps
"Corona virus is naturally the largest factor characterizing this year. Despite corona we have steadily implemented our strategy while also successfully accommodated to the current business conditions and have invested in creating platform for our future development.
Successful implementation of our strategy
We have nicely reached the goals set for the integration year 2020. Cornerstones in building new Eezy have been the launch and adoption of the new brand, tuning our organization to operate as one united Eezy, and unifying our IT systems. The impact from the brand work can be seen in the continuous growth of work applications, and almost all our staffing units are now using the same IT system. Thanks to our employees, the integration work has succeeded and a respectful and positive Eezy culture has been born.
Trading on Eezy's share moved to the main list of the Nasdaq Helsinki stock exchange in September. The preparations began already last year, but uncertainty on corona postponed our transfer. Moving to the main list strengthens our growth and emphasizes our position as a central actor in the Finnish work life.
Defensive victory over difficulties
We have survived the corona crisis so far without larger damage, thanks to quick and right-sized reactions in spring. Our business has been running the whole time and we have been able to serve our customers in their changing needs.
Corona has most significantly hit our Horeca sector customers, whose business was stopped in spring. Staffing restarted promisingly in summer, but with clearly smaller than normal volumes. Negative impact is also seen in the import of foreign labor.
In the industrial, construction and logistics sectors the effects vary hugely by region and customer. Lots of customers have also developed positively, although the sector as a whole has contracted. Retail sector has mainly developed positively. We have got new customers and have also been able to transfer Horeca employees to the retail sector.
Corona has clearly decreased the volume of our professional services business, but our customers are gradually continuing normal actions also on that front.
Clearly profitable quarter
In the third quarter, our revenue grew by 23% due to acquisitions done in 2019 and was EUR 53.1 million. We missed a significant amount of revenue due to the small volume of Horeca sector, summer festivals, summer work and foreign labor. We estimate that the lost volume from these sectors was roughly EUR 10 million.
EBIT was EUR 3.7 million, approx. 7% of revenue. We are satisfied with our profitability in these conditions. Our profit development and strong cash position also create basis for dividend distribution.
Prepared for continuing challenges
The near-term outlook is still uncertain, and we do not provide concrete guidance. The business conditions of our customers can change rapidly. In the early autumn the economy seemed to open again, but since then the second wave has made everybody more careful. New restrictions on restaurants have weakened the outlook and the next few months will likely be weak in this sector important for us.
Corona may be with us for a long time, and we all need to learn to cope with it. We aim to continue to react quickly to rapidly changing situations, so that we can ensure our profitability while taking care of our employees, thanks to whom our performance so far has been good, despite everything.
We build our future success
We have maintained a strong cash position during the whole pandemic. This enables also inorganic growth for us. In early October we made two acquisitions that strengthen our professional services business. Flow will genuinely create a coaching and consulting business for us. By combining consulting into Eezy Spirit's research and data, we create a unique unit to develop the Finnish working life. Correspondingly Jaakko Lehto and Promotive support our business development in recruiting and outplacement. I am especially happy that both acquisitions brought us lots of knowledge and experienced managers for key positions in the professional services business.
During the autumn we have renewed our management team, which streamlines our decision making. Increased profitability has enabled us to operate profitably in challenging conditions, so I strongly believe that our skillful and motivated employees will find also new ways to grow together with our customers once the situation normalizes again."
Result publication event:
A Finnish-language briefing for analysts and media will be held on November 10, 2020 at 12.00 in the company premises at Itämerenkatu 3, Helsinki, and can the followed as a webcast at https://eezy.videosync.fi/2020-q3-tulokset
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 2020 in PDF format
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