This release is a summary of Terveystalo's Financial Statements Release 2023. The full release is attached to this stock exchange release and is available on Terveystalo's website at: https://www.terveystalo.com/en/company/investors/reports-and-presentations/
October-
** Revenue increased by 2.3% year-on-year to
The
Portfolio Businesses revenue decreased by 8.8% due to expired outsourcing contracts and was
The revenue from
** Adjusted1) earnings before interest, taxes, amortization, and impairment losses (EBITA) increased by 33.2% year-on-year to
** Items affecting comparability1) with an effect on EBITA were
** The result for the period was
** Earnings per share (EPS) was
** Cash flow from operating activities was 60.6 (76.5) million.
** The profit improvement program had an approximately
January-
** Revenue increased by 2.2% year-on-year to
The
Portfolio Businesses revenue decreased by 8.1% and was
The revenue from
** Adjusted1) earnings before interest, taxes, and amortization (EBITA) increased by 19,4% to
** Items affecting comparability with an effect on EBITA were
** Profit for the period was
** Earnings per share (EPS) were
** Net debt/adjusted EBITDA was 3.0 (3.2).
** Cash flow from operating activities was
** The profit improvement program's initial target of a run-rate EBITA improvement of at least
** Starting from
** The Board of Directors proposes to the Annual General Meeting that a dividend of
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, net 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
President and CEO
Terveystalo's fourth quarter of 2023 was a strong end to a solid year, in line with our expectations. Revenue increased by 2.8% year-on-year to
Our core business,
The profit improvement program focused on our core business and a clear organizational structure have brought excellent results and create a solid foundation for the future. The program exceeded the target set ahead of schedule and achieved a run-rate profit improvement of
Independent profitability improvement measures in the portfolio businesses paid off, and the profitability of the entire segment strengthened markedly year-on-year. The segment's revenue decreased by 8.8% in the fourth quarter, due to the planned contraction of the outsourcing agreement portfolio. The situation in the public pay market is still pending due to the funding challenges of the wellbeing services counties, and there are few new tenders. It is not easy to see a substantial recovery in the market before the second half of 2024.
Macroeconomic and exchange rate weakness impacted the
I am proud of the committed work of Terveystalo employees. During 2023, we strengthened our profitability significantly in all segments despite headwinds and without compromising the high quality of our operations. In 2023, the Group's adjusted EBITA margin strengthened by 1.4 percentage points to 9.8% of revenue in line with our guidance. Our financial position is strong, and we are advancing with a clear agenda towards our financial target of an EBITA margin of 12% in 2025. Our earnings per share excluding non-recurring items for 2023 were
As a company, we have a clear purpose; We fight for a healthier life. Investments in data-driven integrated healthcare in line with our strategy are paying off. We are at the forefront of our industry in adopting technology that streamlines healthcare processes and improves customer value. Our customer satisfaction is record high. We have maintained our position as the preferred employer of professionals in the field, and the medical quality of our services and the effectiveness of treatment are excellent. We will continue to be at the forefront of the industry and build efficient, caring, and effective care for our customers.
Meaningful Matters,
Guidance for 2024
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
10-12/
| 10-12/
| Change, % | 2023
| 2022
| Change, % | |
Revenue | 342.4 | 334.8 | 2.3 | 1 286.4 | 1 259.1 | 2.2 |
Adjusted EBITA * 1) | 39.5 | 29.7 | 33.2 | 125.6 | 105.2 | 19.4 |
Adjusted EBITA, % * 1) | 11.5 | 8.9 | - | 9.8 | 8.4 | - |
EBITA 1) | 34.1 | 23.8 | 43.2 | 104.4 | 95.9 | 8.9 |
EBITA, % 1) | 9.9 | 7.1 | - | 8.1 | 7.6 | - |
EBIT | -58.9 | 12.8 | >-200.0 | -14.7 | 33.9 | -143.3 |
EBIT, % | -17.2 | 3.8 | - | -1.1 | 2.7 | - |
Return on equity (ROE), % 1) | - | - | - | -7.6 | 4.1 | - |
Equity ratio, % 1) | - | - | - | 36.5 | 40.2 | - |
Earnings per share (EUR) | -0.51 | 0.06 | >-200.0 | -0.33 | 0.19 | >-200.0 |
Weighted number of shares outstanding, in thousands | 126,556 | 126,548 | - | 126,555 | 126,508 | - |
Net debt | - | - | - | 598.1 | 566.6 | 5.6 |
Gearing, % 1) | - | - | - | 116.0 | 95.7 | - |
Net debt/adjusted EBITDA (last 12 months) 1) | - | - | - | 3.0 | 3.2 | - |
Adjusted EBITDA (last 12 months), | - | - | - | 142.8 | 122.2 | 16.8 |
Net debt, excluding IFRS 16 | - | - | - | 379.0 | 386.8 | -2.0 |
Adjusted net debt/adjusted EBITDA (last 12 months), excluding IFRS 16*1) | - | - | - | 2.7 | 3.2 | - |
Average personnel (FTEs) | - | - | - | 6 426 | 6 552 | -1.9 |
Private practitioners (end of period) | - | - | - | 6 092 | 5 928 | 2.8 |
Sustainability |
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|
|
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PEI index2) | - | - | - | 2.9 | 2.9 | -2.5 |
Net Promoter Score (NPS), appointments | - | - | - | 84.8 | 82.7 | 2.5 |
Employee Net Promoter Score (eNPS) | - | - | - | 19 | 28 | -32.1 |
*) 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 Wednesday
You can access the teleconference by registering at the link below.
https://palvelu.flik.fi/teleconference/?id=50048569
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:
Principal 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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