Second quarter
- Revenue amounted to E424.7m (E362.2m), an increase of 17.2% with an organic growth of 12.9%.
- Operating profit (EBIT) was E13.2m (E15.0m), representing an operating margin of 3.1% (4.2%).
- Net profit amounted to E7.2m (E2.8m), which represents a margin of 1.7% (0.8%).
- EBITDA was E58.3m (E52.8m), an increase by 10.2%. EBITDA margin was 13.7% (14.6%).
- EBITDAaL amounted to E33.9m (E31.3m), corresponding to an EBITDAaL margin of 8.0% (8.7%).
- Net cash flow from operating activities was E43.6m (E27.8m).
- Basic/diluted earnings per share were E0.037 (E0.010).
First half
- Revenue amounted to E844.0m (E743.9m), an increase of 13.5% with an organic growth of 8.7%.
- Operating profit (EBIT) was E23.9m (E37.2m), representing an operating margin of 2.8% (5.0%).
- Net profit amounted to E9.3m (E14.8m), which represents a margin of 1.1% (2.0%).
- EBITDA was E112.6m (E115.1m), a decrease by 2.3%. EBITDA margin was 13.3% (15.5%).
- EBITDAaL amounted to E64.5m (E73.9m), corresponding to an EBITDAaL margin of 7.6% (9.9%).
- Net cash flow from operating activities was E105.0m (E73.6m).
- Basic/diluted earnings per share were E0.047 (E0.090).
REVENUE AND EARNINGS
E millions (Em) | Q2 2023 | Q2 20221) | Variance | 6M 2023 | 6M 20221) | Variance | LTM2) | FY 20221) |
Revenue | 424.7 | 362.2 | 17% | 844.0 | 743.9 | 13% | 1,610.3 | 1,510.2 |
Operating profit (EBIT) | 13.2 | 15.0 | -13% | 23.9 | 37.2 | -36% | 41.9 | 55.2 |
Operating profit margin | 3.1% | 4.2% | 2.8% | 5.0% | 2.6% | 3.7% | ||
Net profit | 7.2 | 2.8 | 154% | 9.3 | 14.8 | -37% | 8.2 | 13.7 |
Net profit margin | 1.7% | 0.8% | 1.1% | 2.0% | 0.5% | 0.9% | ||
Basic/diluted earnings per share, E | 0.037 | 0.010 | 270% | 0.047 | 0.090 | -48% | 0.036 | 0.079 |
EBITDA | 58.3 | 52.8 | 10% | 112.6 | 115.1 | -2% | 214.6 | 217.1 |
EBITDA margin | 13.7% | 14.6% | 13.3% | 15.5% | 13.3% | 14.4% | ||
Adjusted EBITDA | 61.1 | 56.0 | 9% | 118.5 | 123.2 | -4% | 229.2 | 233.9 |
Adjusted EBITDA margin | 14.4% | 15.5% | 14.0% | 16.6% | 14.2% | 15.5% | ||
EBITDAaL | 33.9 | 31.3 | 8% | 64.5 | 73.9 | -13% | 121.5 | 130.9 |
EBITDAaL margin | 8.0% | 8.7% | 7.6% | 9.9% | 7.5% | 8.7% | ||
Adjusted EBITDAaL | 36.7 | 34.5 | 6% | 70.4 | 82.0 | -14% | 136.1 | 147.7 |
Adjusted EBITDAaL margin | 8.6% | 9.6% | 8.3% | 11.0% | 8.4% | 9.8% | ||
EBITA | 18.6 | 19.6 | -6% | 34.6 | 51.3 | -33% | 64.2 | 80.9 |
EBITA margin | 4.4% | 5.4% | 4.1% | 6.9% | 4.0% | 5.4% |
Definition and reconciliation of alternative performance measures are available at www.medicover.com/financial-information.
1) 2022 is restated for IFRS 17 Insurance contracts. For further information, refer to note 1.
2) LTM: last twelve months (1 July 2022-30 June 2023)
CEO Statement
We have delivered strong organic growth in the quarter despite high market uncertainty globally.
In June we inaugurated a new 200 bed state-of-the-art hospital in
As previously communicated, we have slowed down the investment pace moving in line with historic levels, although we have made a few minor acquisitions and opened a few greenfield locations in the dental field in
Our colleagues in
Revenue for the quarter grew by 17.2% to E424.7m (E362.2m), with an organic growth of 12.9%. The comparative quarter last year had Covid-19 related revenue of E28m with less than E1m this quarter, so adjusting for Covid-19 related revenue, revenue growth was an impressive 26.8%. Organic growth excluding Covid-19 related revenue was 22.0%, with price representing approximately 9.8pp of this growth. Annualised, we have added E358m of new revenue over the past 12 months, mostly organic, illustrating our strong growth momentum even in difficult trading conditions.
EBITDA was E58.3m (E52.8m), an increase by 10.2%, representing an EBITDA margin of 13.7% (14.6%). Adjusted EBITDA was E61.1m (E56.0m), a margin of 14.4% (15.5%). Adjusting for the Covid-19 related revenue and earnings, EBITDA margin strengthened 120 basis points to 13.7%.
Fee-For-Service and other services (FFS) increased by 14.8% in the quarter, now representing 58% of total revenue.
EBITDA grew by 51.7% to E44.8m (E29.5m), an EBITDA margin of 15.3% (13.5%), illustrating impact from price growth, gradually maturing younger units and volume leverage.
Diagnostic Services revenue amounted to E138.1m (E147.4m), a decrease by 6.3%, with a negative organic growth of 0.4%. 29.1 million tests were performed in the quarter (29.0 million). FFS decreased by 1.3% in the quarter, now representing 70% of divisional revenue.
EBITDA amounted to E20.3m (E28.9m), a decrease of 29.8%, an EBITDA margin of 14.7% (19.6%). The margin is dampened by increased labour costs and inflationary costs. FFS prices outside
All in all, I'm very satisfied with the quarter and optimistic about the future despite a difficult macroeconomic environment. We expect to see continued improved performance through the second half of the year and into 2024.
Fredrik Rågmark
CEO
This report has not been subject to review by the Company's auditor.
For full report, see attached pdf.
This is information that
Financial calendar
Interim report July-
Interim report Year-end 9 February 2024, 7.45 CET
Interim report January-
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Interim report July-
For further information, please contact:
Hanna Bjellquist, Head of Investor Relations
Phone: +46 70 303 32 72
E-mail: hanna.bjellquist@medicover.com
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Medicover is a leading international healthcare and diagnostic services company and was founded in 1995. Medicover operates a large number of ambulatory clinics, hospitals, specialty-care facilities, laboratories and blood-drawing points and the largest markets are Poland, Germany, Romania and India. In 2022, Medicover had revenue of E1,510 million and more than 44,000 employees. For more information, go to www.medicover.com
https://news.cision.com/medicover/r/interim-report-april-june-2023,c3809688
https://mb.cision.com/Main/15662/3809688/2204704.pdf
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