Eezy Plc’s Half-Year Report 1-6/2023: Revenue and EBIT decreased in weakening economic situation

EEZY PLC —   HALF-YEAR REPORT   — 8 AUGUST 2023 AT 8:00

Eezy Plc‘s Half-Year Report 1–6/2023: Revenue and EBIT decreased in weakening economic situation

April–June 2023

• Revenue was EUR 58.1 million (EUR 67.1 million in April–June 2022). Revenue decreased by 13%.
• EBITDA was EUR 3.1 million (4.3).
• EBIT was EUR 1.1 million (2.1) and was 1.9% of revenue (3.2%).
• Earnings per share was EUR 0.01 (0.07).

January–June 2023

• Revenue was EUR 110.9 million (EUR 118.1 million in January–June 2022). Revenue decreased by 6%.
• EBITDA was EUR 6.6 million (6.8).
• EBIT was EUR 2.4 million (2.6) and was 2.2% of revenue (2.2%).
• Earnings per share was EUR 0.03 (0.07).

Outlook for 2023 (given 7.8.2023)

Eezy does not give guidance for 2023.

Previous guidance (given 16.2.2023):
Eezy expects revenue to be approx. EUR 250 million and EBIT-% to grow in 2023.

Key figures (IFRS)

CEO Siina Saksi:

Eezy launches a profitability program and will renew its strategy

“Weakening economic situation affected especially the business development of Staffing services in the second quarter. Our revenue fell to 58.1 million euro in the second quarter (67.1). EBIT was 1.1 million euro (2.1). We will start a wide profitability program to adjust our business to weak economic outlook and will renew our strategy to ensure our competitiveness in future.

Revenue decreased to 58.1 million euro (67.1) due to the weakening demand in Staffing services. Staffing services’ revenue decreased to 50.1 million euro (-16%) in the second quarter, and to 95.5 million euros (-8%) in the first six months. Staffing services business is affected by the weak economic situation especially in industry and construction sectors. The need for workforce has decreased, and our customers are not willing to commit to long working periods due to the weakening economy. Also, there is weakening demand for staffed employees in horeca sector and our customers are cautious in shift planning. Staffing service market decreased by -5.5% in May 2023 according to The Private Employment Agencies Association HELA.

Revenue in the Professional services increased to 8,1 million euro (7,6) in the second quarter, which we consider as a moderately good performance in the challenging environment. Development was good especially in the employment services, which offers employment and integration services to public sector. Also, personnel surveys and leadership coaching have interested our customers – the Finnish companies believe that developing the personnel experience is important also in the weakening economic situation.

EBIT decreased to 1.1 million euro (2.1) in the second quarter. In addition to decrease in revenue, weakened EBIT is due to change is sector mix in Staffing services; the lower margin sector customers have increased their share of revenue. Changes in management team reduced EBIT by 0.3 million euro.

We will start an extensive profitability program and will renew our strategy

I have started to get to know Eezy’s businesses and people. I am impressed about the passion and commitment that Eezy people have towards their jobs. I’m also very proud of the versatility of capabilities and services we have in the working life context; everything from personnel surveys to different kinds of coaching services, strategy and culture design, recruitment and staffing services. However, the recent development of our businesses has been weak, and economic outlook seems unclear towards the end of the year.

In the challenging operating environment, we need to adjust to weaker economic situation and to evaluate our strategy.

To adjust to the current economic situation and outlook, we will start an extensive profitability program. We target for annual cost savings of approximately 3 million euros.

In the profitability program we evaluate the efficiency of our processes and service portfolio. We expect the majority of the savings to arise from personnel costs. For this reason Eezy plans to initiate co-operation negotiations in the group companies. The new ERP with AI features in Staffing services will significantly increase the productivity next year when it is fully in use. It will automatize many of the processes that are now handled manually and will improve our competitive edge by improving customer and employee experience. First pilots will be executed during the autumn 2023.

We have grown strongly by mergers and acquisitions, and there is a lot of potential still in working together as one Eezy. We will continue to focus on active sales efforts and strengthening of our brand both in employee and customer target groups.

We will renew our strategy and the long-term financial targets during autumn. As part of the strategy process we will evaluate the current business portfolio and focus areas.

Profitability program will be implemented so that at the same time we make sure that we are ready and prepared when economic growth again starts. Our business typically grows strongly in upturn when the workforce needs of companies increase. Eezy’s mission to renew the Finnish working life is more accurate than ever. We as a society need high employment in its different forms, and growing, successful companies. Eezy is part of this solution.”

Result publication event:

A Finnish-language briefing for analysts and media will be held on 8 August 2023 at 13.00 Finnish time as a webcast at https://eezy.videosync.fi/2023-q2-results

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: Half-Year Report January–June 2023 in PDF format

Further information:

Eezy Plc

Siina Saksi
CEO
siina.saksi@eezy.fi
tel. +358 (0)50 550 3912

Hannu Nyman
CFO
hannu.nyman@eezy.fi
tel. +358 (0)50 306 9913

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• Eezy_Plc_Half-YearReport_Q2_2023_ENG