Mehiläinen and Mediverkko expanded and developed in 2014

Key 2014 figures for Mehiläinen and Mediverkko

In 2014, Mehiläinen Oy acquired Mediverkko Yhtymä Oy. The arrangement took effect on 30 January 2015. Thanks to this acquisition, Mehiläinen is expanding strongly and enhancing its position in social services, municipal health services, and in oral health.

The combined pro forma turnover (IFRS) of Mehiläinen and Mediverkko in 2014 was EUR 379.5 million (2013: EUR 365.5 million). The combined turnover increased by EUR 14.0 million, or 3.8% from the previous year. The combined pro forma sales of Mehiläinen and Mediverkko (including sales remitted by practitioners) in 2014 totalled EUR 496.1 million (2013: EUR 480.8 million).

The combined pro forma operating profit of Mehiläinen, former parent companies that merged with it in early 2015, and Mediverkko was EUR 33.8 million, the profit before taxes came to EUR 14.4 million, and the profit for the 2014 financial year stood at EUR 12.1 million. The combined pro forma operating profit was 8.9% of the turnover.

In 2014, Mehiläinen and Mediverkko provided employment for approximately 9,000 people, of whom about 3,900 were full-time employees and the rest part-timers and practitioners. The Mehiläinen of today is one of the most significant employers in social and health services in Finland.

Mehiläinen and Mediverkko invested a total of EUR 18.9 million in Finland in 2014. In addition, the companies signed new lease agreements on nursing homes and other premises, generating construction projects of more than EUR 40 million, with a significant effect on local employment.

Mehiläinen and Mediverkko paid and remitted a total of EUR 65.8 million in taxes and tax-like charges in 2014. The combined tax footprint of Mehiläinen and Mediverkko for 2014 has been published at (in Finnish).

Mehiläinen Group in 2014

In 2014, the Mehiläinen Group’s turnover remained at the previous year’s level, totalling EUR 268.9 million (2013: EUR 268.5 million). The market situation in the private health service industry in 2014 presented many challenges. Mehiläinen continued to improve and expand its operations, both organically and through acquisitions, regardless of the situation in the marketplace. During 2014, Mehiläinen also opened several new clinics in various business areas all around Finland.

The Mehiläinen Group’s profitability decreased in 2014, with an operating profit of EUR 25.3 million (2013: EUR 31.8 million). Operating profit stood at 9.4 percent of turnover (2013: 11.8 percent). Profit before taxes and after group contributions came to EUR 2.3 million (2013: EUR 15.2 million), and the profit for the financial year was EUR 1.0 million (2013: EUR 10.6 million).

Mediverkko Yhtymä Group in 2014

In 2014, the Mediverkko Yhtymä Group’s turnover (IFRS) increased to EUR 110.7 million (2013: EUR 97.1 million) and the operating profit to EUR 7.4 million (2013: EUR 6.6 million) thanks to organic growth and acquisitions.

Mediverkko initiated and signed several new, significant health-care purchase agreements with municipal customers in 2014 and invested in the opening of new health care and dentist clinics and nursing homes all over Finland.

Due mostly to expenses related to the corporate restructuring, Mediverkko Yhtymä Group’s 2014 profit before taxes fell to EUR 3.8 million (2013: EUR 6.4 million) and the net profit to EUR 2.7 million (2013: EUR 4.7 million).

Strong foundation for future growth

“The year 2014 was a challenging one for Mehiläinen in financial terms, due to a difficult market situation, among other reasons. As a result, the company’s profitability deteriorated somewhat, as its turnover remained unchanged. Mediverkko, acquired by Mehiläinen in late January 2015, managed to both improve its operational profitability and increase its turnover in 2014,” says Mehiläinen Group’s CEO Janne-Olli Järvenpää.

“The difficult financial situation notwithstanding, Mehiläinen made strong investments in the development of its services in 2014, and customer satisfaction was at an extremely good level. By estimate, Mehiläinen had more than 700,000 private customers at its medical centres, dental clinics and health care clinics outsourced to Mehiläinen last year. Our NPS index, which measures customer satisfaction, was the highest among the nationwide operators in the industry, assessed by private customers of medical centres and occupational health services (at 81.2, by 59,000 respondents). In early 2015, we expanded the NPS measurement to hospital services, and the results are at the top of our sector of operation (at 91.7, by 1,400 respondents),” Järvenpää continues.

“Mehiläinen’s turnover will see significant growth in 2015, due to, first and foremost, the acquisition of Mediverkko. Organic growth is expected to remain moderate, and maintaining profitability will likely be a challenge in the prevailing market situation. However, the merged company constitutes a solid foundation for future growth and development,” Järvenpää states.

For more information, please contact:
Janne-Olli Järvenpää, CEO, Mehiläinen Group, tel. +358 40 761 1588

Mehiläinen Group is the best-known and most highly regarded private provider of social and health care services in Finland. Mehiläinen and Mediverkko, which merged in 2015, provide the most extensive services for private, corporate and municipal customers. Mehiläinen and Mediverkko have approximately 9,000 employees and practitioners providing such services.

Published 27.5.2015