Eezy Plc's Interim Report 1-9/2023: Revenue and EBIT continued to decrease - we build stronger Eezy
EEZY PLC -- INTERIM REPORT -- 7 NOVEMBER 2023 AT 8:00
Eezy Plc's Interim Report 1–9/2023: Revenue and EBIT continued to decrease – we build stronger Eezy
July–September 2023
- Revenue was EUR 56.0 million (EUR 67.3 million in July–September 2022). Revenue decreased by 17%.
- EBITDA was EUR 4.4 million (6.8).
- EBIT was EUR 2.3 million (4.7) and was 4.1% of revenue (7.0%).
- Earnings per share was EUR 0.05 (0.14).
- A profitability improvement program and the strategy renewal project were started during the period.
January–September 2023
- Revenue was EUR 166.8 million (EUR 185.4 million in January–September 2022). Revenue decreased by 10%.
- EBITDA was EUR 11.0 million (13.6).
- EBIT was EUR 4.7 million (7.3) and was 2.8% of revenue (3.9%).
- Earnings per share was EUR 0.08 (0.21).
Outlook for 2023 (since 7 August 2023)
Eezy does not give guidance for 2023.
Key figures (IFRS)
| EUR million, unless otherwise specified | 7–9/2023 | 7–9/2022 | 1–9/2023 | 1–9/2022 | 1–12/2022 |
| Revenue | 56.0 | 67.3 | 166.8 | 185.4 | 247.6 |
| EBITDA | 4.4 | 6.8 | 11.0 | 13.6 | 18.2 |
| EBITDA, % | 7.9% | 10.1% | 6.6% | 7.3% | 7.4% |
| EBIT | 2.3 | 4.7 | 4.7 | 7.3 | 10.0 |
| EBIT, % | 4.1% | 7.0% | 2.8% | 3.9% | 4.0% |
| EPS, undiluted, EUR | 0.05 | 0.14 | 0.08 | 0.21 | 0.29 |
| EPS, diluted, EUR | 0.05 | 0.13 | 0.08 | 0.21 | 0.28 |
| Net debt / EBITDA | - | - | 3.5 x | 3.0 x | 2.9 x |
| Chain-wide revenue | 78.9 | 94.1 | 233.9 | 265.2 | 351.6 |
CEO Siina Saksi:
We are building a stronger Eezy during the hard economic situation
“Weak economic situation affected especially the Staffing services’ development in the third quarter. Our revenue fell to 56.0 million euro in the third quarter (67.3). EBIT was 2.3 million euro (4.7). We have adjusted our operations to the decreased revenue, and renewal of our strategy is proceeding as planned.
Revenue decreased to 56.0 million euro (67.3) due to the strongly weakening demand in Staffing services. Staffing services’ revenue decreased to 50.1 million euro (-19%) in the third quarter. Staffing services’ main role is to offer flexibility to our customers personnel needs, and in a weak economic situation the number of staffed employees decreases. Construction and industry sectors are emphasized in Eezys customer portfolio, and the need for employees has decreased especially within these sectors. There is a decrease in demand also within horeca and retail sectors.
Revenue in the Professional services increased to 6.0 million euro (5.9) in the third quarter. Eezy’s Employment Services unit, offering training, coaching and rehabilitation services for job seekers, immigrants and employers, has continued to develop positively. There is strong demand e.g. for career planning, employment and entrepreneurship training services in a weak economic situation. Also, the number of students in immigrant integration trainings has increased.
The demand for consulting projects related to business and company culture development as well as non-recurring personnel research is suffering in a weak economic situation. There is also insecurity in purchase decision making. On the other hand, resettlement and transition security services offered by Eezy Personnel are facing a growing demand when there are a lot of lay-offs and change negotiations in companies.
The EBIT decreased to 2.3 million euro (4.7) in the third quarter. In addition to decrease in revenue, weakened EBIT is due to change is sector mix in Staffing services; lower margin sector customers have increased their share of revenue.
Profitability program in full swing
We kicked-off a profitability program aimed to reach three-million-euro annual cost savings in August. We have carried out extensive change negotiations, and as a result we decreased our personnel by over 60, which accounts for ~10% of our total staff. We renewed our leadership model in Staffing services to become more agile and lowered the organizational hierarchy. We are also improving the agility within the customer and staffed personnel interface – our mission is to help our customers in their staffing and personnel related issues as well as offer possibilities to employment throughout Finland.
In addition to personnel costs, we have also cut other fixed costs. With these measures we will reach the profitability program target during 2024.
Strategy renewal proceeding as planned
Eezy has strongly been built by mergers and acquisitions, and during the whole 4-year history of the company, the operating environment has been quite exceptional. Our focus on our traditionally strong sectors; construction, industry and horeca, is creating challenges for us now, and can be seen in the development of our revenue and EBIT.
In our strategy project, we evaluate the operating environment of our different business areas and identify the potential to grow. We analyze our opportunities in different markets and select the future focus areas.
We have already identified business areas, where Eezy’s strengths - our national and local presence, large customer base and versatile service offering – can be utilized. Our objective is to decrease the risks related to economic cycles by e.g. focusing on counter-cyclical businesses.
Already now, we can lean on our strengths and help our customers in e.g. extensive investment programs, where there are needs for staffing, complex recruitments and leadership trainings.
One of the most important development project next year is our new ERP system with AI features in Staffing services. The new system and operating model will automatize manual processes and tasks, and will improve remarkably the customer and employee experience by e.g. fast and easy order management.
Eezy will be operationally strong during the low economic situation thanks to the changes and strategy work done, and ready for the economic upturn.”
Result publication event:
A Finnish-language briefing for analysts and media will be held on 7 November 2023 at 13.00 Finnish time as a webcast at https://eezy.videosync.fi/2023-q3-tulos
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: Interim Report January–September 2023 in PDF format
Further information:
Eezy Plc
Siina Saksi
CEO
[email protected]
tel. +358 (0)50 550 3912
Hannu Nyman
CFO
[email protected]
tel. +358 (0)50 306 9913
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