Inside information, negative profit warning: Eezy Plc launches a profitability program, removes guidance and renews its strategy

EEZY PLC -- INSIDE INFORMATION -- 7.8.2023 at 11.45

Inside information, negative profit warning: Eezy Plc launches a profitability program, removes guidance and renews its strategy

As preliminary information Eezy’s revenue in 1-6/2023 was 110.9 million euros and EBIT 2.4 million euros. Estimates of development during late summer and early autumn have weakened, which creates uncertainty to reaching the guidance.

To adjust to the current economic situation and outlook Eezy launches an extensive profitability program. Eezy targets for annual savings of approximately 3 million euros. In the profitability program Eezy evaluates the efficiency of the processes and service portfolio. Majority of the savings are expected to arise from personnel costs. For this reason Eezy plans to initiate co-operation negotiations in the group companies. This may lead into terminations, part-time work and other similar changes, that might cause non-recurring costs. We also aim to improve productivity through increasing automatization.

Eezy will renew its strategy and update the long-term financial targets during end of 2023. As part of the strategy process the current business portfolio and focus areas will be evaluated.

Eezy removes guidance for 2023 because of impacts of the profitability program and the uncertainty related to the economic situation.

CEO Siina Saksi: ”Revenue of the end of the summer has been a disappointment to us. Economic situation towards the end of the year is not encouraging. We will adjust our business to downturn and renew our strategy during the remaining part of this year. The profitability program will be implemented in such way, that we are competitive and prepared when economic growth starts again. Our industry’s business typically grows strongly in upturn when the demand for workforce increases.”

Eezy Plc will publish the Interim report for 1-6/2023 on Tuesday 8 August 2023 approx. at 8.00.

New guidance:

Eezy does not give guidance for 2023.

Old guidance (published 16 February 2023):

Eezy expects revenue to be approx. EUR 250 million and EBIT-% to grow in 2023.

Further information:

Siina Saksi
CEO
[email protected]
puh. +358 50 550 3912