Pihlajalinna - Results largely in line
Pihlajalinna’s Q2 results came in largely according to expectations. Top line growth continued strong and certain cost items remained high.
- Q2 revenue grew by 21.9% y/y and amounted to EUR 173.7m, compared to the EUR 169.5m/166.6m Evli/consensus estimates. Corporate customer revenue was EUR 56.0m vs the EUR 52.7m/51.8m Evli/consensus estimates, while private customers amounted to EUR 27.4m vs the EUR 22.4m/23.4m Evli/consensus estimates. Public sector customers came in at EUR 108.8m, compared to the EUR 113.0m/109.8m Evli/consensus estimates. Revenue grew 5.3% on an organic basis and customer volumes, excluding municipal outsourcing arrangements and Covid-19 testing, grew 69% y/y (28% without M&A transactions). Organic growth was at an especially good level in occupational health services and surgical operations.
- Covid-19 services revenue was EUR 3.2m in Q2 (EUR 8.2m a year ago).
- Adjusted EBITDA was EUR 16.9m vs the EUR 16.4m/17.0m Evli/consensus estimates, while adjusted EBITA was EUR 7.3m vs our EUR 7.9m estimate. Adjusted EBIT landed at EUR 5.2m, compared to the EUR 5.9m/6.3m Evli/consensus estimates. Employee benefit expenses were again exceptionally high due to sickness-related absences which increased costs by some EUR 2.5m. Meanwhile Pihlajalinna’s supply of appointments and imaging services grew by nearly 38%. The costs of complete outsourcing arrangements were still fairly high, but profitability improved slightly in Q2 thanks to efficiency improvement programs, index adjustments and service fee refunds.
- Pihlajalinna guides FY ’22 revenue to increase substantially, while adjusted EBITA is expected to be on a par with 2021 (unchanged).