STOCKHOLM, Oct. 30, 2024 /PRNewswire/ --
Third quarter
-- Revenue amounted to EUR527.8m (EUR440.5m), an increase of 19.8% with an
organic growth of 17.4%.
-- Operating profit (EBIT) was EUR6.7m (EUR18.5m), representing an
operating margin of 1.3% (4.2%), impacted by an impairment charge of
EUR-16.4m.
-- Net result amounted to EUR-5.2m (EUR0.5m), which represents a margin of
-1.0% (0.1%).
-- EBITDA was EUR73.9m (EUR64.8m), an increase of 14.1%. EBITDA margin was
14.0% (14.7%).
-- EBITDAaL amounted to EUR45.1m (EUR39.6m), an increase by 13.8%,
corresponding to an EBITDAaL margin of 8.6% (9.0%).
-- Net cash flow from operating activities was EUR72.3m (EUR57.5m).
-- Basic/diluted loss per share were EUR-0.030 (EUR-0.007).
Nine months
-- Revenue amounted to EUR1,536.0m (EUR1,284.5m), an increase of 19.6% with
an organic growth of 16.1%.
-- Operating profit (EBIT) was EUR47.0m (EUR42.4m), representing an
operating margin of 3.1% (3.3%), impacted by an impairment charge of
EUR-16.4m.
-- Net profit amounted to EUR7.2m (EUR9.8m), which represents a margin of
0.5% (0.8%).
-- EBITDA was EUR211.7m (EUR177.4m), an increase by 19.4%. EBITDA margin
was 13.8% (13.8%).
-- EBITDAaL amounted to EUR129.0m (EUR104.1m), corresponding to an EBITDAaL
margin of 8.4% (8.1%).
-- Net cash flow from operating activities was EUR197.7m (EUR162.5m).
-- Basic/diluted earnings per share were EUR0.053 (EUR0.040).
REVENUE AND EARNINGS
EUR millions (EURm) Q3 Q3 Variance 9M 9M Variance LTM1) FY 2024 2023 2024 2023 2023 Revenue 527.8 440.5 20 % 1,536.0 1,284.5 20 % 1,997.9 1,746.4 Operating profit (EBIT) 6.7 18.5 -64 % 47.0 42.4 11 % 66.0 61.4 Operating profit margin 1.3 % 4.2 % 3.1 % 3.3 % 3.3 % 3.5 % Net result -5.2 0.5 N/M 7.2 9.8 -27 % 15.8 18.4 Net result margin -1.0 % 0.1 % 0.5 % 0.8 % 0.8 % 1.1 % Basic/diluted earnings(/loss) per share, EUR -0.030 -0.007 N/M 0.053 0.040 33 % 0.131 0.118 EBITDA 73.9 64.8 14 % 211.7 177.4 19 % 278.1 243.8 EBITDA margin 14.0 % 14.7 % 13.8 % 13.8 % 13.9 % 14.0 % Adjusted EBITDA 77.3 67.1 15 % 221.8 185.6 19 % 290.1 253.9 Adjusted EBITDA margin 14.6 % 15.2 % 14.4 % 14.4 % 14.5 % 14.5 % EBITDAaL 45.1 39.6 14 % 129.0 104.1 24 % 169.8 144.9 EBITDAaL margin 8.6 % 9.0 % 8.4 % 8.1 % 8.5 % 8.3 % Adjusted EBITDAaL 48.5 41.9 16 % 139.1 112.3 24 % 181.8 155.0 Adjusted EBITDAaL margin 9.2 % 9.5 % 9.1 % 8.7 % 9.1 % 8.9 % EBITA 27.6 24.7 12 % 77.6 59.3 31 % 100.9 82.6 EBITA margin 5.2 % 5.6 % 5.1 % 4.6 % 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=4290811-1&h=1302005789&u=https%3A%2F%2Fwww.medicover.com%2Ffinancial-information&a=www.medicover.com%2Ffinancial-information].
(1)) LTM: last twelve months (1 October 2023 - 30 September 2024)
CEO STATEMENT
We continue to deliver impressive revenue growth, with organic growth for the quarter exceeding 17%, and with strong organic volume growth in both our reporting segments. All of our key markets are reporting strong growth, and we are maturing our Indian hospitals and noting double-digit growth after a dip in the second quarter, which in local currency represents an increase above 13%. We are also pleased to see the margin expansion we have reported for the first half of the year in both divisions continuing, alongside a strong net cash flow from operating activities at EUR72.3m.
Revenue for the quarter amounted to EUR527.8m (EUR440.5m), an increase of 19.8%, with organic growth at 17.4%. Fee-for-service and other services (FFS) grew by 16.2%, representing 56% of total revenue.
EBITDA increased by 14.1% to EUR73.9m (EUR64.8m), corresponding to a margin of 14.0% (14.7%).
In the comparative third and fourth quarters 2023, we derecognised contingent consideration for past acquisitions in the income statement, which meant EUR4.0m lower central administrative costs in Q3 2023 and EUR6.9m in Q4 2023. Adjusted for EUR4.0m we had an EBITDA margin expansion of 20 basis points (bps) in the current quarter compared to last year. In addition, operating profit and net profit are impacted by an acquisition-related, non-cash impairment charge in Q3 2024 of EUR-16.4m. As an illustration and adjusting for these items affecting comparability, our EBITDA grew 21.6% and operating profit grew 59.4% vs last year. This very well illustrates the ongoing operational leverage in the business, as we gradually fill up capacity and drive efficiency. Furthermore, we have opened six new hospitals, whereof five in India, the last two years that are a drag of approximately EUR-4.7m EBITDAaL in the quarter. These will continue to mature and support margin development into 2025 and further.
Healthcare Services revenue grew by 21.7% to EUR370.9m (EUR304.7m), with an organic growth of 18.3%, whereof price representing approximately 9.0pp of this growth. At the end of the quarter the division had 1.8 million members, growing by 15 thousand new members in the quarter. FFS increased by 16.4% in the quarter and represented 51% of divisional revenue.
Healthcare Services EBITDA grew by 23.4% in the quarter to EUR57.5m (EUR46.6m), an EBITDA margin of 15.5% (15.3%). Our Polish business is the key driver of both revenue and EBITDA, in addition we keep maturing our growth investments over the recent years in the other markets, which further illustrates how we can utilise our strong network to grow profitably.
Diagnostic Services revenue amounted to EUR162.8m (EUR140.9m), an increase of 15.5%, with an organic growth of 15.3%, with price representing approximately 4.0pp of this growth. The laboratory test volume increased by 10.7% and 32.6 million tests were performed in the quarter (29.4 million). FFS increased by 15.9% in the quarter, now representing 67% of divisional revenue.
Diagnostic Services EBITDA amounted to EUR26.9m (EUR20.9m), an increase of 28.4%, a strong EBITDA margin expansion to 16.5% (14.8%). This is primarily driven by an increase in FFS, and good test mix development, in line with our strategy to grow across the FFS-dominated markets with higher margins.
We are now more than halfway through our three-year financial targets (2023-2025) and we are well on our way to achieving them.
Financial targets for 2025:
-- organic revenue in excess of 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
For complete report, see attached pdf.
This is information that Medicover AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out below at 7.45 (CET) on 30 October 2024. This interim report and other information about Medicover is available at medicover.com.
Financial calendar
Interim report Year-end 12 February 2025, 7.45 CET
Annual report week 13 2025
Interim report January-March 29 April 2025, 7.45 CEST
Annual general meeting 29 April 2025
Interim report April-June 24 July 2025, 7.45 CEST
Interim report July-September 5 November 2025, 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 CET. If you wish to participate via audiocast please register here [https://c212.net/c/link/?t=0&l=en&o=4290811-1&h=1347957573&u=https%3A%2F%2Fir.financialhearings.com%2Fmedicover-q3-report-2024%2Fregister&a=here]. Via the audiocast you are able to ask written questions.
If you wish to participate via teleconference, please register here [https://c212.net/c/link/?t=0&l=en&o=4290811-1&h=500978602&u=https%3A%2F%2Fconference.financialhearings.com%2Fteleconference%2F%3Fid%3D50050209&a=here]. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
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=4290811-1&h=591449368&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=4290811-1&h=1361220448&u=http%3A%2F%2Fnews.cision.com%2F&a=http%3A%2F%2Fnews.cision.com]
https://news.cision.com/medicover/r/interim-report-july-september-2024,c4058524 [https://c212.net/c/link/?t=0&l=en&o=4290811-1&h=492485024&u=https%3A%2F%2Fnews.cision.com%2Fmedicover%2Fr%2Finterim-report-july-september-2024%2Cc4058524&a=https%3A%2F%2Fnews.cision.com%2Fmedicover%2Fr%2Finterim-report-july-september-2024%2Cc4058524]
The following files are available for download:
https://mb.cision.com/Main/15662/4058524/3082764.pdf Interim report_Q3 2024_Final
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