Mehiläinen invested in quality and grew profitably in 2015
Mehiläinen grew intensely in 2015, all while maintaining good operational profitability. This growth was due, in particular, to the acquisition of Mediverkko, implemented at the end of January 2015. It made Mehiläinen an even stronger leader in quality for the health care and social service sector. Mehiläinen employs more than 9,300 professionals at approximately 200 different clinics all over Finland.
2015 was a period of intense growth and development for Mehiläinen. The net turnover (IFRS) of Mehiläinen Group in 2015 totalled €445 million (2014: €325.4 million). Net turnover grew by 36.9% compared with the comparable figure in the preceding year. Overall sales of Mehiläinen Group in 2015, including sales remitted by practitioners, totalled €503.7 million (2014: €385.4 million).
“The majority of this growth in net turnover came from the acquisition of Mediverkko, completed in late January 2015, but we also had organic growth through acquisition of new customers and the establishment of several new units”, states Janne-Olli Järvenpää, the Chief Executive Officer of Mehiläinen.
In the course of the year, Mehiläinen bolstered its position as a comprehensive, full-service enterprise in the health care and social service sector. As an indication of the strength of its broad service offering, Mehiläinen won the first 10-year total outsourcing contract from the municipality of Siikalatva, a first in the company’s history, in a tendering competition that was arranged in 2015 and was fully based on quality criteria.
“Our industry is in a maelstrom of change, as customers’ changing needs, the Government’s healthcare, social welfare, and regional government reform package, and digitalisation alter the established roles and operating processes. The transformation in our field is improving customers’ freedom of choice and challenging service providers to improve not only their operations but also the customer experience”, Järvenpää says of the business environment.
Profitability remained at a good level
Despite this strong growth, Mehiläinen Group’s profitability remained at a good level. Operating margin, adjusted for non-recurring items, was €50.1 million (11.2% of net turnover), operating profit €22.8 million (5.1% of net turnover), and profit for the financial year totalled €6.3 million (1.4% of net turnover.
“The profit for the financial year was burdened by financial expenses, increased by the intense growth and large acquisition, write-offs, and costs related to integration”, Järvenpää says.
In 2015, Mehiläinen paid a total of €3.8 million in taxes for its profit in the 2015 financial year. The broader tax footprint, which includes all taxes and tax-like fees remitted by Mehiläinen, totalled €67.0 million in 2015.
Investments and new clinics
Mehiläinen took full advantage of its opportunities for investments and growth throughout Finland in 2015.
“We invested heavily on improving the customer experience and the impact of care during 2015. In particular, we developed our industry’s most advanced electronic services in occupational health for our corporate customers”, Järvenpää recounts.
“Besides improvements in service quality, we made a multi-million euro investment by opening a new, ultra-modern medical centre and hospital in Oulu. We also opened new occupational health and dental clinics, care service and child welfare units, and enhanced assisted-living units for the disabled in several localities”, Järvenpää describes.
Since the autumn of 2015, Mehiläinen has been responsible for operation of the health centres at Korpilahti and Tikkakoski in Jyväskylä.
“Investments in quality and the customer experience will characterise 2016. We are improving electronic services, occupational health care that is more effective, and thematic nursing homes with a better home-like atmosphere. We will also open numerous new units”, Järvenpää says.
Mehiläinen’s goal is to be the primary choice in matters related to health and care for every person residing in Finland, now and in the future.
Key figures for the 2015 results
- Overall sales €503.7 million
- Net turnover €445.5 million
- Growth in net turnover of 36.9% from the preceding year
- Operating margin adjusted for non-recurring items €50.1 million (EBITDA)
- Reported operating margin €45.2 million
- Operating profit adjusted for non-recurring items before depreciation of intangible rights €38.2 million (EBITA)
- Operating profit €22.8 million
- Taxable profit €19.2 million
- Profit for the financial year €6.3 million