Eezy Plc negative profit warning: Weaker gross margin development and non-recurring items decrease profitability

EEZY PLC -- INSIDER INFORMATION -- 21 NOVEMBER 2022 AT 18.35

Eezy Plc negative profit warning: Weaker gross margin development and non-recurring items decrease profitability

Eezy Plc decreases the guidance for year 2022 regarding profitability. Total revenue in October matched our expectations, but the developments in the various staffing segments affected gross margin negatively. Our expectations for November-December have decreased especially regarding sales to the horeca and retail sectors.

The scope of the planned cost savings actions is being refined in the currently ongoing change negotiations. Eezy seeks larger than previously expected permanent savings, slightly over 2 million euro on annual basis. The non-recurring costs caused by the cost saving actions, approx. 0.5 million euro, will be booked into year 2022 accounts.

CEO Sami Asikainen: "The short-term outlook looks challenging, and the market developments do not support us. However, we expect the last quarter EBIT to be near the level of Q4/2021, despite the larger than expected non-recurring personnel costs. We want to enter the new year with a lower cost structure, so that we can efficiently operate in the challenging market conditions.

New guidance:

Eezy expects revenue to grow and EBIT to be 4-5% of revenue in 2022.

Old guidance (published 8 August 2022):

Eezy expects revenue to grow and EBIT to be 5-6% of revenue in 2022.

Further information:

Sami Asikainen
CEO
sami.asikainen@eezy.fi
tel. +358 (0)40 700 9915