Mehiläinen’s turnover increased in 2012, and group contributions were reduced The company paid more corporate tax than in the previous year

In 2012, the turnover of Mehiläinen came to €256.4 million (2011 pro forma: €238.5 million), showing an increase of 7% per cent from that of 2011 (pro forma figures).

In 2012, Mehiläinen strongly developed its business operations and opened several new units, in various fields of business, all over Finland. Gross investments (excluding real-estate projects and corporate acquisitions) during the financial year totalled €11.4 million (2011 pro forma: €20 million). Business did not develop as expected later in the year, because the number of physician’s appointments subject to compensation by Kela decreased nationwide and the tighter finances of municipalities were reflected in the utilisation rates of units providing social care services.

The Group’s profitability remained good, although it diminished somewhat in comparison with the preceding year on account of costs related to expansion of operations and the unfavourable market trend late in the year. Operating profit stood at €27.2 million (2011 pro forma: €30.5 million), representing 11% of the turnover (2011 pro forma: 13%). The operating profit decreased because of €1.1 million in non-recurring items posted during the financial year in connection with reorganisation of Municipal Services.

Mehiläinen’s group contributions to parent companies taxed in Finland were reduced significantly. The Group’s internal loans were transformed into owners’ equity in late April 2012, and since then the change has affected the amount of group contributions paid by Mehiläinen, which was 28% lower than in 2011 (pro forma).

Because of the smaller group contributions, profit before taxes rose from that of the previous year and came to €2.1 million (2011 pro forma: -€3.4 million). Taxes for the 2012 financial year totalled €1.7 million (2011 pro forma: €0.6 million). Profit for the financial year grew, by €4.3 million, showing a profit of €0.4 million (2011 pro forma: -€3.9 million). The company expects the amount of group contributions to fall and corporate taxes to rise further in 2013, provided that business operations develop in line with expectations. Social care and health care services are exempt from value added tax, so procurement related to business operations does not give entitlement to deduction of value added tax. In addition to corporate tax, Mehiläinen paid €10.7 million (2011 pro forma: €12.0 million) in value added tax within the sphere of tax-like charges.

Mehiläinen Oy did not pay any group contributions abroad or transfer profits to 'tax havens' in 2012; the company has never paid any group contributions abroad or transferred any profits to 'tax havens'. Mehiläinen did not pay any dividends to its owners; the company has not paid dividends to its owners in earlier years, either. The company has not applied for or received any public business subsidies.

For more information, please contact:

Matti Bergendahl, CEO of Mehiläinen Oy, at tel. +358 40 833 5461

Mehiläinen Group is the best-known and most highly valued private provider of health care and social services in Finland. Mehiläinen’s nation-wide service network offers versatile social and health services for private, corporate and municipal customers. Established in 1909, Mehiläinen employs approximately 6,000 professionals. In 2012, the turnover of the Mehiläinen Group was EUR 256.4 million. Mehiläinen belongs to the Nordic Ambea Group, which is one of Europe’s largest providers of health and nursing services.

Published 26.3.2013