The best result in history is overshadowed by concerns about the future

Hygga’s financial period included plenty of successes, and the company’s net sales increased by roughly a million euros. Despite the challenging trends of the economy and the social welfare and health care sector, Hygga has succeeded in growing its business in recent years. While the company has celebrated the best result in its history, concerns about the future have increased.

The clinic providing outsourced services to the City of Helsinki and dental care to private customers increased its profitability. The company’s investments in areas such as the management of the clinic and supervisory work were also mirrored by successful recruitments and staff comfort.

More than half of the clinic’s net sales come from the City of Helsinki outsourced services and the rest from private customers. The oursourced services agreement with the City of Helsinki concluded at the end of the financial period. The agreement was for 3+1 years, so Hygga was aware of the situation well in advance. Helsinki decided not to arrange a competitive bidding process for the continuation of the agreement. Preparations for the discontinuation of the outsourced services were made during the financial period and, as regards the clinic, the focus was on updating the strategy for the coming years.

We have succeeded in achieving an excellent result in a difficult economic situation.

Significant changes in the service business

The service business focusing on the Hygga Flow ERP system carried out new successful pilots in Finland. In Sweden, Hygga Flow expanded to a new area, and the customer day held there for the first time was a success. Promising results have been achieved on the Swedish market, and the number of clinics is expected to grow in 2025.

Hygga Flow has been widely used in Finland. The financial challenges of the wellbeing services counties have resulted in some terminations of Hygga Flow agreements. The financial impacts of the termination and discontinuation decisions will be reflected by Hygga’s operations in the 2024–2025 financial period.

The terminations and rapid changes in the services business came as a surprise to Hygga – effective systems and concepts were abandoned in order to save money and bridge deficits in the short term. The danger of abandoning methods that maintain productivity is longer wait times for treatment. Hygga is looking for alternative ways to continue providing services to current customers.

Hygga Flow is based on the idea that patients are provided with the treatment they need in one go. The ERP system increases the efficiency of patient care and saves resources but is also a highly responsible solution at the same time. Hygga Flow’s responsibility was examined in a study conducted by Tampere University, which indicated that Hygga Flow’s carbon footprint was 27% smaller than the traditional oral health care operating model. Compared to the traditional model, it consumes 24% less disposable materials, especially microplastics that are harmful to nature, and 25% less electricity and water. The results also highlighted social responsibility, because Hygga Flow was, among other things, found to reduce travel and, thanks to its effectiveness, improve the equality and availability of oral health care.

The focus in 2025 will be on increasing customer numbers

The year 2025 will be challenging for Hygga in terms of both financial and operational aspects. The discontinuation of the Helsinki outsourced services has a significant impact on the company’s net sales, which will be compensated for in the coming financial periods by increasing the number of private customers.

Hygga differentiates itself from its competitors in many ways, such as its effective operating methods and pricing. Hygga is the only private operator on the market that is able to offer a dental examination at a price equal to the Kela reimbursement. The affordable pricing is an important way to increase customer numbers. Hygga is seen as a highly appealing alternative for people who do not currently use any oral health care services.

As regards the service business, the financial period 2024–2025 is expected to be challenging in Finland. The most significant growth opportunities can be seen in Sweden and on other international markets.

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