Revenue ahead but earnings mixed for Mediclinic
Mediclinic reported a 10% rise in revenue to £1.41bn in its interim results on Thursday, adding that revenue remained flat in constant currency terms.
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The FTSE 100 firm said underlying EBITDA was ahead 5% in the six month period to 30 September at £232m, while it fell 5% at constant exchange rates, while its underlying operating profit was up 3% at £161m.
Its reported operating profit fell 22% to £133m, which the board put down to exceptional items in the period.
Underlying earnings were down 11% to £84m, reflecting lower income from associates, with the board claiming a reported loss of £50m as result of the Spire equity investment impairment charge and other exceptional items.
Mediclinic said underlying earnings per share were down 12% to 11.3p - excluding the impact of Spire's exceptional provision, underlying earnings per share were 5% lower at 12.2p.
Cash conversion stood at 91% of underlying EBITDA, down from 104% year-on-year, while the board maintained its interim dividend at 3.20p per share.
“Given the variability of last year, we have been encouraged by the positive operational trends in our Abu Dhabi business as we progressed through the first six months,” said CEO Danie Meintjes.
“Along with the strong performance from our established Dubai operations, I am confident that Mediclinic Middle East is on track to deliver a strong second half performance resulting in revenue growth and underlying EBITDA margin expansion for the year.”
Meintjes said that in Switzerland and Southern Africa, patient volumes in the first half of the year were down on the prior year period, impacted by the timing of the Easter holiday.
“The management teams in both operating divisions have implemented the appropriate cost-saving programmes and productivity initiatives that should help margins during the second half of the year.”
On a divisional basis, Mediclinic said Hirslanden revenue was stable at CHF 820m, with underlying EBITDA there down 6% to CHF 143m at an underlying EBITDA margin of 17.4%.
Southern Africa revenue was up 4% to ZAR 7.58bn, with underlying EBITDA ahead 6% to ZAR1.59bn at an underlying EBITDA margin of 21.0%.
Middle East revenue fell 5% to AED 1.48bn, with underlying EBITDA there off 26% to AED 125m at an underlying EBITDA margin of 8.5%.
Mediclinic said its guidance for all operating divisions remained unchanged, with current second half trading in line with management expectations.
“We have had a good start to the second half of the financial year, with current trading across all our operating divisions in line with our expectations,” Danie Meintjes added.
“As a leading global healthcare provider, Mediclinic continues to focus on its core strategy of putting ‘patients first’.”
Meintjes said the company achieved that by seeking to offer a value proposition to its patients through improving quality, safety and efficiency.
“The ongoing, long-term investments we make and experienced leadership across the group support the delivery of sustainable growth in the future whilst ensuring we continue to improve the services we offer our patients, funders and clinicians.”
In a separate announcement on Wednesday, Mediclinic confirmed it was considering an amended offer for Spire Healthcare, given share price movements in recent weeks.