Pihlajalinna - Outsourcing costs burdened EBIT
Pihlajalinna’s Q4 revenue grew as expected but profitability fell short of estimates due to the increased costs within total outsourcing arrangements.
- Q4 revenue grew by 12.8% y/y to EUR 154.7m, compared to the EUR 156.4m/152.1m Evli/consensus estimates. Private customer revenue was EUR 23.3m vs the EUR 26.4m/24.2m Evli/consensus estimates, while corporate customers contributed EUR 38.8m vs the EUR 40.8m/37.3m Evli/consensus estimates. Public sector customers were EUR 111.3m, compared to the EUR 107.2m/108.9m Evli/consensus estimates.
- Covid-19 services amounted to EUR 10.1m.
- Adjusted EBITDA landed at EUR 14.9m vs the EUR 18.0m/17.5m Evli/consensus estimates. Adjusted EBIT was EUR 6.0m, compared to the EUR 9.2m/8.8m Evli/consensus estimates. Higher costs within total outsourcing arrangements weighed down profitability. Negotiations concerning cost compensation had not produced desired outcomes by the end of the year. Pihlajalinna continues to negotiate with certain municipal clients.
- Pihlajalinna expects FY ’22 revenue to increase substantially and adjusted EBITA to stay level. The integration of Pohjola Hospital means H1’22 profitability will be below that of the previous year. The acquisition will increase revenue by at least EUR 50m in FY ’22. Covid-19 services revenue is expected to decline.
- The BoD proposes EUR 0.30 per share dividend to be distributed, compared to the EUR 0.35/0.31 Evli/consensus estimates.