STOCKHOLM , July 25, 2024 /PRNewswire/ --
Second quarter
-- Revenue amounted to EUR509.4m (EUR424.7m), an increase of 20.0% with an
organic growth of 16.5%.
-- Operating profit (EBIT) was EUR21.3m (EUR13.2m), an increase of 61.4%,
representing an operating margin of 4.2% (3.1%).
-- Net profit amounted to EUR5.9m (EUR7.2m), which represents a margin of
1.2% (1.7%).
-- EBITDA was EUR70.6m (EUR58.3m), an increase of 21.1%. EBITDA margin was
13.8% (13.7%).
-- EBITDAaL amounted to EUR43.3m (EUR33.9m), an increase by 27.9%,
corresponding to an EBITDAaL margin of 8.5% (8.0%).
-- Net cash flow from operating activities was EUR47.4m (EUR43.6m).
-- Basic/diluted earnings per share were EUR0.042 (EUR0.037).
First half
-- Revenue amounted to EUR1,008.2m (EUR844.0m), an increase of 19.5% with
an organic growth of 15.5%.
-- Operating profit (EBIT) was EUR40.3m (EUR23.9m), representing an
operating margin of 4.0% (2.8%).
-- Net profit amounted to EUR12.4m (EUR9.3m), which represents a margin of
1.2% (1.1%).
-- EBITDA was EUR137.8m (EUR112.6m), an increase by 22.4%. EBITDA margin
was 13.7% (13.3%).
-- EBITDAaL amounted to EUR83.9m (EUR64.5m), corresponding to an EBITDAaL
margin of 8.3% (7.6%).
-- Net cash flow from operating activities was EUR125.4m (EUR105.0m).
-- Basic/diluted earnings per share were EUR0.084 (EUR0.047).
REVENUE AND EARNINGS
EUR millions (EURm) Q2 Q2 Variance 6M 6M Variance LTM1) FY 2024 2023 2024 2023 2023 Revenue 509.4 424.7 20 % 1,008.2 844.0 19 % 1,910.6 1,746.4 Operating profit (EBIT) 21.3 13.2 61 % 40.3 23.9 69 % 77.8 61.4 Operating profit margin 4.2 % 3.1 % 4.0 % 2.8 % 4.1 % 3.5 % Net profit 5.9 7.2 -16 % 12.4 9.3 34 % 21.5 18.4 Net profit margin 1.2 % 1.7 % 1.2 % 1.1 % 1.1 % 1.1 % Basic/diluted earnings per share, EUR 0.042 0.037 14 % 0.084 0.047 79 % 0.155 0.118 EBITDA 70.6 58.3 21 % 137.8 112.6 22 % 269.0 243.8 EBITDA margin 13.8 % 13.7 % 13.7 % 13.3 % 14.1 % 14.0 % Adjusted EBITDA 74.4 61.1 22 % 144.5 118.5 22 % 279.9 253.9 Adjusted EBITDA margin 14.6 % 14.4 % 14.3 % 14.0 % 14.6 % 14.5 % EBITDAaL 43.3 33.9 28 % 83.9 64.5 30 % 164.3 144.9 EBITDAaL margin 8.5 % 8.0 % 8.3 % 7.6 % 8.6 % 8.3 % Adjusted EBITDAaL 47.1 36.7 28 % 90.6 70.4 29 % 175.2 155.0 Adjusted EBITDAaL margin 9.2 % 8.6 % 9.0 % 8.3 % 9.2 % 8.9 % EBITA 26.2 18.6 41 % 50.0 34.6 45 % 98.0 82.6 EBITA margin 5.1 % 4.4 % 5.0 % 4.1 % 5.1 % 4.7 %
Definition and reconciliation of alternative performance measures are available at www.medicover.com/financial-information [https://c212.net/c/link/?t=0&l=en&o=4219347-1&h=1520291318&u=http%3A%2F%2Fwww.medicover.com%2Ffinancial-information&a=www.medicover.com%2Ffinancial-information].
(1)) LTM: last twelve months (1 July 2023-30 June 2024)
CEO STATEMENT
We continue to deliver strong organic revenue growth and see continued strong momentum in our core markets, with high demand across divisions and geographies, especially in Poland.
The margin expansion and strong operating cash generation we saw in the first quarter have continued in the second quarter, which is tangible proof of the operational leverage as we scale volume in our medical infrastructure.
Revenue for the quarter was up 20.0% to EUR509.4m (EUR424.7m), with an organic growth of 16.5%. Fee-For-Service and other services (FFS) increased by 16.1% in the quarter, now representing 56% of total revenue.
EBITDA in the quarter increased by 21.1% to EUR70.6m (EUR58.3m), representing an EBITDA margin of 13.8% (13.7%).
Healthcare Services revenue grew by a very strong 20.6% to EUR352.6m (EUR292.5m), with an organic growth of 16.4%, whereof price representing around half.
At the end of the quarter, the division had 1.8 million members, growing by 35 thousand new members in the quarter. FFS increased by 18.6% in the quarter and represented 52% of divisional revenue.
EBITDA grew by 22.0% in the quarter to EUR54.6m (EUR44.8m), an EBITDA margin of 15.5% (15.3%), driven by most businesses but especially apparent in our Polish platform. We continue to see improving profit impact from our India facilities becoming more mature. However, this was slightly offset by the hospital in Romania opened in late Q2 2023 and new immature units in India. These are, on the other hand, important initiatives for long-term growth and profitability, and after the end of the quarter, we have opened two new greenfield hospitals in India. In the near term, our primary focus in India is to mature our hospitals to keep driving margin improvement.
Diagnostic Services revenue amounted to EUR162.9m (EUR138.1m), an increase of 17.9%, with an organic growth of 16.0%, with price representing approximately 2.3pp of this growth.
This quarter, too, we saw strong volume growth in the laboratory business. The laboratory test volume increased by 19.4%, and 34.7 million tests were performed in the quarter (29.1 million). Germany continues to drive large volumes, while we continue to grow in our important FFS markets. FFS increased by 11.2% in the quarter, now representing 66% of divisional revenue.
EBITDA amounted to EUR26.4m (EUR20.3m), an increase of 29.8%, and an EBITDA margin of 16.2% (14.7%) - primarily an effect of our growing FFS revenue. These are comforting signs as we still have additional margin-accretive initiatives to implement across the Division.
We are continuing to demonstrate that we can grow well organically and improve margins, and this makes me confident that we are on a good path to achieving the medium-term financial targets for the period 2023-2025.
Financial targets by year-end 2025:
-- organic revenue should exceed EUR2.2bn
-- an adjusted organic EBITDA in excess of EUR350m
-- loans payable net of cash and liquid short-term investments/adjusted
EBITDAaL <=3.5x
Fredrik Ragmark
CEO
This report has not been subject to review by the Company's auditor.
This is information that Medicover AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication through the agency of the contact person set out below at 7.45 (CEST) on 25 July 2024. This interim report and other information about Medicover is available at medicover.com [https://c212.net/c/link/?t=0&l=en&o=4219347-1&h=2106621573&u=http%3A%2F%2Fwww.medicover.com%2F&a=medicover.com].
Financial calendar
Interim report July-September 30 October 2024, 7.45 CET
For further information, please contact:
Hanna Bjellquist, Head of Investor Relations
Phone: +46 70 303 32 72
E-mail: hanna.bjellquist@medicover.com [mailto:hanna.bjellquist@medicover.com]
Conference call: A conference call for analysts and investors will be held today at 09.30 CEST. To listen in please register here [https://c212.net/c/link/?t=0&l=en&o=4219347-1&h=3813018117&u=https%3A%2F%2Fir.financialhearings.com%2Fmedicover-q2-report-2024&a=here]. To ask questions please register here [https://c212.net/c/link/?t=0&l=en&o=4219347-1&h=1516005648&u=https%3A%2F%2Fconference.financialhearings.com%2Fteleconference%2F%3Fid%3D5008726&a=here].
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 2023, Medicover had revenue of EUR1,746 million and more than 45,000 employees. For more information, go to www.medicover.com [https://c212.net/c/link/?t=0&l=en&o=4219347-1&h=3577805871&u=http%3A%2F%2Fwww.medicover.com%2F&a=www.medicover.com]
This information was brought to you by Cision http://news.cision.com [https://c212.net/c/link/?t=0&l=en&o=4219347-1&h=2804064855&u=http%3A%2F%2Fnews.cision.com%2F&a=http%3A%2F%2Fnews.cision.com]
https://news.cision.com/medicover/r/interim-report-april-june-2024,c4018363 [https://c212.net/c/link/?t=0&l=en&o=4219347-1&h=2223509812&u=https%3A%2F%2Fnews.cision.com%2Fmedicover%2Fr%2Finterim-report-april-june-2024%2Cc4018363&a=https%3A%2F%2Fnews.cision.com%2Fmedicover%2Fr%2Finterim-report-april-june-2024%2Cc4018363]
The following files are available for download:
https://mb.cision.com/Main/15662/4018363/2926028.pdf Interim report_Q2 2024
View original content:https://www.prnewswire.co.uk/news-releases/medicover-interim-report-apriljune-2024-302206350.html [https://www.prnewswire.co.uk/news-releases/medicover-interim-report-apriljune-2024-302206350.html]
Medicover