Eezy Plc's Interim Report 1–3/2024: Demand for staffing services remains weak – focus on increasing productivity

EEZY PLC --   INTERIM REPORT   -- 7 MAY 2024 AT 8:00

Eezy Plc's Interim Report 1–3/2024: Demand for staffing services remains weak – focus on increasing productivity

January–March 2024

• Revenue was EUR 41.5 million (EUR 52.8 million in January–March 2023). Revenue decreased by 21%.
• EBITDA was EUR 2.3 million (3.4).
• EBIT was EUR 0.5 million (1.3) and was 1.2% of revenue (2.5%).
• EUR 0.3 million in personnel expenses related to severance payments were recorded in the result.
• Earnings per share was EUR 0.01 (0.02).
  
  

Outlook for 2024

Eezy does not give guidance for 2024.

Key figures (IFRS)

EUR million, unless otherwise specified	1–3/2024	1–3/2023	1–12/2023
Revenue	41.5	52.8	219.0
EBITDA	2.3	3.4	14.5
EBITDA, %	5.5%	6.5%	6.6%
EBIT	0.5	1.3	4.0
EBIT, %	1.2%	2.5%	1.8%
EPS, basic, EUR	0.01	0.02	0.03
EPS, diluted, EUR	0.01	0.02	0.03
Net debt / EBITDA	4.5 x	3.0 x	4.0 x
Chain-wide revenue	60.0	73.8	307.6

Siina Saksi, CEO:

“Demand for staffing in our main sectors, construction and manufacturing, remained weak for the first part of the year. Revenue increased for our Professional services, which is a great achievement in a difficult market. The yearly savings of EUR 3 million, as planned in our profitability program, show in lower fixed costs. Our strategy progresses as planned. We have made significant progress in our new technology roll-out as well as in co-selling our vast service portfolio to our clients.

In the first quarter, our revenue was EUR 41.5 million, decreasing (-21%) due to a sharp drop in demand for Staffing Services. In Staffing Services, demand weakened most in the construction and industrial sectors. These sectors account for nearly half of our revenue in the Staffing Services business area. Orders are also shorter – for the time being, our customers are reluctant to commit to long contracts. The overall staffing market declined by -8% in January-February (vs. 2023. source: HELA). The market volume includes the healthcare sector, which has grown strongly in recent years.

Our Professional Services business area's revenue grew 7% in the first quarter to EUR 8.0 million (7.4), a great result in this challenging economic environment. The growth was driven by Employment Services for the public sector and Employee Surveys. Demand for direct recruitment, personal assessments and light entrepreneurship services has declined in this weak economic climate.

Our EBIT for the first quarter was EUR 0.5 million (1.3), a decrease mainly explained by the decline in the revenue of Staffing Services and the industry focus in our clientele, which was unfavorable in this market situation. EBIT was decreased by one-off costs of EUR 0.3 million in personnel expenses related to severance payments. We have implemented the profitability program we launched in August. Guaranteed yearly savings of EUR 3 million in fixed costs will improve our profitability. We will continue the detailed examination of costs and the optimization of operations according to our plan without compromising the business or our ability to grow faster than the market when the cycle improves.

Our strategy is on track – first results already visible

We published our new strategy "Good Work 2028" in February. Our long-term goals are to grow faster than the market in our Staffing Services, double the revenue of our Professional Services and achieve an EBIT level of 8% in 2028.

A key source for growth is to harness the power of our nationwide network of regional operators, and, of our digital service, which is independent of time and place.

The core of improving profitability lies in leveraging the economies of scale brought by growth and in harnessing technology and artificial intelligence in our core business processes.

In April, we started rolling out the AI-enabled ERP system in Staffing Services with first customers and staffed employees. We see now in practice what a significant source of productivity, growth and competitive advantage our new system, developed by us, is. We will continue the development and deployment work throughout 2024. I am beyond excited about this.

The economic cycle has been exceptionally difficult throughout my time as CEO. However, I still see strong opportunities for growth and productivity gains over this strategic period. Our competitive advantages include the largest national network, a strong and responsible brand, satisfied customers, and a broad client base. We can also offer our customers the widest range of services within the market. We will revolutionize the staffing service industry with our AI-enabled technology. By focusing together with the Eezy team on what we do best in the country, we will achieve our strategic goals.”

Result publication event:

A Finnish-language briefing for analysts and media will be held on 7 May 2024 at 13.00 Finnish time as a webcast at https://eezy.videosync.fi/q1-2024

The briefing will be hosted by CEO Siina Saksi and CFO Joni Aaltonen. 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–March 2024 in PDF format

Further information:

Eezy Plc

Siina Saksi
CEO
siina.saksi@eezy.fi
tel. +358 50 550 3912

Joni Aaltonen
CFO
joni.aaltonen@eezy.fi
tel. +358 40 524 7270

Marleena Bask
Communications and Marketing Director
marleena.bask@eezy.fi
tel. +358 50 352 3643

Attachment

• Eezy_Plc_InterimReport_Q1_2024_ENG

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