Medicover: Interim report July-September 2024

STOCKHOLM, Oct. 30, 2024 /PRNewswire/ --

Third quarter

• Revenue amounted to €527.8m (€440.5m), an increase of 19.8% with an organic growth of 17.4%.
• Operating profit (EBIT) was €6.7m (€18.5m), representing an operating margin of 1.3% (4.2%), impacted by an impairment charge of €-16.4m.
• Net result amounted to €-5.2m (€0.5m), which represents a margin of -1.0% (0.1%).
• EBITDA was €73.9m (€64.8m), an increase of 14.1%. EBITDA margin was 14.0% (14.7%).
• EBITDAaL amounted to €45.1m (€39.6m), an increase by 13.8%, corresponding to an EBITDAaL margin of 8.6% (9.0%).
• Net cash flow from operating activities was €72.3m (€57.5m).
• Basic/diluted loss per share were €-0.030 (€-0.007).

Nine months

• Revenue amounted to €1,536.0m (€1,284.5m), an increase of 19.6% with an organic growth of 16.1%.
• Operating profit (EBIT) was €47.0m (€42.4m), representing an operating margin of 3.1% (3.3%), impacted by an impairment charge of €-16.4m.
• Net profit amounted to €7.2m (€9.8m), which represents a margin of 0.5% (0.8%).
• EBITDA was €211.7m (€177.4m), an increase by 19.4%. EBITDA margin was 13.8% (13.8%).
• EBITDAaL amounted to €129.0m (€104.1m), corresponding to an EBITDAaL margin of 8.4% (8.1%).
• Net cash flow from operating activities was €197.7m (€162.5m).
• Basic/diluted earnings per share were €0.053 (€0.040).

REVENUE AND EARNINGS

Definition and reconciliation of alternative performance measures are available at www.medicover.com/financial-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 €72.3m.

Revenue for the quarter amounted to €527.8m (€440.5m), 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 €73.9m (€64.8m), 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 €4.0m lower central administrative costs in Q3 2023 and €6.9m in Q4 2023. Adjusted for €4.0m 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 €-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 €-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 €370.9m (€304.7m), 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 €57.5m (€46.6m), 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 €162.8m (€140.9m), 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 €26.9m (€20.9m), 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 €2.2bn
• an adjusted organic EBITDA in excess of €350m
• loans payable net of cash and liquid short-term investments/adjusted EBITDAaL ≤3.5x"

Fredrik Rågmark, 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: [email protected]

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. Via the audiocast you are able to ask written questions.

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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 2023, Medicover had revenue of €1,746 million and more than 45,000 employees. For more information, go to www.medicover.com

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