This release is a summary of Terveystalo's Interim Report January -
January-
- Revenue increased by 2.7 percent year-on-year to
EUR 350.2 (341.1) million.
TheHealthcare Services segment revenue increased by 7.3 percent and wasEUR 268.0 (249.8) million.
Portfolio Businesses' revenue decreased by 8.6 percent and wasEUR 64.7 (70.8) million.
The revenue fromSweden decreased by 9.6 percent and came toEUR 23.0 (25.5) million. In SEK terms, the revenue decreased by 9.0 percent. - There was one working day less than during the comparison period.
- Adjusted1) earnings before interest, taxes, amortization, and impairment losses (EBITA) increased by 29.5 percent year-on-year to
EUR 47.2 (36.5) million, representing 13.5 (10.7) percent of revenue.
The profitability strengthened inHealthcare Services and Portfolio Businesses. Profitability was strengthened by improved operational efficiency, better sales mix, and successful commercial actions.
InSweden , the profitability clearly weakened from the comparison period, mainly due to decreased revenue caused by lower demand and ended contracts. A profit improvement program was launched inSweden during the fourth quarter of 2023 targeting a structural improvement in profitability. The program progressed as planned during the first quarter. -
Items affecting comparability1) with an effect on EBITA were
EUR 4.2 (9.4) million. -
The result for the period was
EUR 23.6 (11.1) million. -
Earnings per share (EPS) was
EUR 0.19 (0.09). - Net debt/adjusted EBITDA was 2.7 (3.3).
-
Cash flow from operating activities was
EUR 49.2 (35.9) million. - NPS (Net Promoter Score) for appointments was 86.4 (84.5).
The figures in parentheses refer to the corresponding period one year ago.
1)Adjustments are material items outside the ordinary course of business, associated with acquisition-related expenses, restructuring-related expenses, gains and losses on the sale of assets, impairment losses, strategic projects, and other items affecting comparability. Adjustments related to the profit improvement programs were approximately
CEO
Terveystalo's first quarter of 2024 was strong. Revenue increased by approximately 3 percent to
The excellent performance of our core business,
We started a profit improvement program in the fourth quarter of 2022 and reached the original target of
The independent profitability measures of the Portfolio businesses also paid off, and the segment's adjusted EBITA strengthened by almost 18 percent year-on-year to approximately
The challenges in the Swedish market were clearly reflected in the results of the
When it comes to health, smooth access to high-quality effective care is critical. Satisfied customers who feel they receive the help and treatment they need are the foundation of everything we do. Our mental health services are an excellent example of effective, high-quality care. Although the number of mental health diagnoses has increased, we have successfully reduced the total number of related sickness absences in our customer organisations. The reduction in the length of mental health-related sickness absences seen in our occupational health population reflects our success in early intervention and the right treatment. For our customer organisations, this translates into lower costs and for the patients, into a healthier everyday life. The high quality of our work is also reflected in very high customer satisfaction and perceived effectiveness of our healthcare services. Our customer satisfaction index for appointments, NPS, exceeded 86 in the first quarter of the year and the PEI index, which measures the perceived effectiveness of care, showed excellent development. At Terveystalo, we focus on health so that our customers can concentrate on meaningful matters.
Meaningful matters,
Guidance for 2024
Terveystalo estimates its revenue for 2024 to grow (2023:
The estimates are based on the first quarter 2024 projections for inflation, consumer demand and employment, normal morbidity, and a predictable labour market in
Guidance on
Terveystalo estimates its revenue for 2024 to grow (2023:
The estimates are based on the end of 2023 projections for inflation, consumer demand and employment, normal morbidity, and a predictable labour market in
Financial targets
Terveystalo's financial targets are:
- annual revenue growth of at least 5 percent through organic growth and acquisitions
- an adjusted EBITA margin of at least 12 percent in 2025
-
net debt/adjusted EBITDA ratio of 3.5x or less
However, indebtedness may temporarily exceed the target level, such as in conjunction with acquisitions. -
to distribute a minimum of 40 percent of net profit as dividends annually
However, the dividend proposal must consider Terveystalo's long-term development potential and financial position.
Key figures
EUR mill. unless stated otherwise | 1-3/2024 | 1-3/2023 | Change, % | 2023 |
Revenue | 350.2 | 341.1 | 2.7 | 1,286.4 |
Adjusted EBITA * 1) | 47.2 | 36.5 | 29.5 | 125.6 |
Adjusted EBITA, % * 1) | 13.5 | 10.7 | - | 9.8 |
EBITA 1) | 43.0 | 27.0 | 59.0 | 104.4 |
EBITA, % 1) | 12.3 | 7.9 | - | 8.1 |
Operating profit (EBIT) | 35.7 | 19.1 | 87.2 | -14.7 |
Operating profit (EBIT), % | 10.2 | 5.6 | - | -1.1 |
Return on equity (ROE) (LTM), % 1) | -5.9 | 1.8 | - | -7.6 |
Equity ratio, % 1) | 34.7 | 37.9 | - | 36.5 |
Earnings per share, EUR | 0.19 | 0.09 | 112.0 | -0.3 |
Weighted average number of shares outstanding, in thousands | 126,605 | 126,551 | - | 126,555 |
Net debt 1) | 564.9 | 584.0 | -3.3 | 598.1 |
Gearing, % 1) | 113.3 | 103.0 | - | 116.0 |
Net debt/Adjusted EBITDA (LTM) * 1) | 2.7 | 3.3 | - | 3.0 |
Adjusted EBITDA (LTM), excluding IFRS 16 * 1) | 156.3 | 122.1 | 28.0 | 142.8 |
Net debt, excluding IFRS 16 1) | 353.9 | 393.5 | -10.0 | 379.0 |
Net debt/Adjusted EBITDA (LTM), excluding IFRS 16 * 1) | 2.3 | 3.2 | - | 2.7 |
Average personnel (FTEs) | 6,020 | 6,507 | -7.5 | 6,426 |
Private practitioners (end of period) | 6,039 | 6,087 | -0.8 | 6,092 |
Sustainability | ||||
PEI-index2) | 3.0 | 2.9 | 3.4 | 2.9 |
Net Promoter Score (NPS), appointments | 86.4 | 84.5 | 2.2 | 84.8 |
*) Adjustments are material items outside the ordinary course of business, associated with acquisition-related expenses, restructuring-related expenses, gain on sale of assets, impairment losses, strategic projects, and other items affecting comparability.
1) Alternative performance measure. In addition to the IFRS figures, Terveystalo presents additional, alternative performance indicators that the company monitors internally, and which provide the company management, investors, stock market analysts, and other stakeholders with important additional information concerning the company's financial performance, financial position, and cash flows. These performance indicators should not be reviewed separately from the IFRS figures, and they should not be considered to replace the IFRS figures.
2) PEI index (Patient Enablement Instrument) is used to measure whether the patient feels that he is coping with his symptoms or illness much better, better, as before, or worse after the reception. The scale is 1-4.
Result briefing
Terveystalo will arrange a webcast and a conference call in English on its result on Friday
You can access the teleconference by registering at the link below.
https://palvelu.flik.fi/teleconference/?id=50048570
After the registration, you will be provided phone numbers and a conference ID to access the conference.
Board of Directors
For further information, please contact:
CFO
Tel. +358 40 584 9722
Tel. +358 10 345 2034
kati.kaksonen@terveystalo.com
Distribution:
Main media
www.terveystalo.com
Terveystalo in brief
Terveystalo is the largest private healthcare service provider in
In 2023, Terveystalo had approximately 1.2 million individual customers in
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