– Successful capital raise to fund growth opportunities
– Acquisition of Clinique La Colline in Geneva and Swissana Clinic Meggen in Lucerne
– Positive impact of currency movements
– Basic normalised headline earnings per share increased by 22% to 185.2 cents
– Interim dividend per ordinary share increased by 11% to 31.0 cents
Leading healthcare group Mediclinic International today reported interim results for the six months to 30 September 2014.Group revenue increased by 19% to R16 828m (2013: R14 128m) for the period under review.
Normalised operating profit before interest, tax, depreciation and amortisation (“normalised EBITDA”) was 18% higher at R3 329m (2013: R2 829m) delivering a normalised EBITDA margin of 19.8% (2013: 20.0%). Basic normalised headline earnings per share increased by 22% to 185.2 cents (2013: 151.4 cents).
Danie Meintjes, CEO of Mediclinic International commented: “We are pleased to report the continued increase in patient numbers at all three platforms. Our results have benefited from this diverse geographic presence and we continue to invest to extend and further improve our service offering.”
The Group’s cash flow continued to be strong converting 111% (2013: 107%) of normalised EBITDA into cash generated from operations. Cash and cash equivalents increased from R3 521m at 31 March 2014 to R4 748m at 30 September 2014.
Mediclinic Southern Africa’s revenue increased by 10% to R6 206m (2013: R5 638m) for the period under review. Normalised EBITDA was 10% higher at R1 332m (2013: R1 214m). The Southern African operations contributed R571m (2013: R490m) to the normalised attributable income of the Group.
The 10% revenue growth in Mediclinic Southern Africa was driven by a 4.8% increase in bed-days sold and a 5.7% increase in the average income per bed-day. The number of patients admitted increased by 1.7%, while the average length of stay increased by 3.0%.During the past six months a number of building projects were completed at various hospitals that created 22 additional beds as well as a number of facility upgrades. The number of beds increased from 7 614 to 7 636.
For the current financial year, Mediclinic Southern Africa has budgeted R937m for capital projects and new equipment to enhance its business. Building projects in progress, which should be completed during the next six months, will add 206 additional beds.
The establishment of the new Mediclinic Midstream (176 beds) is the most significant development. Several building projects in progress across Southern Africa should be completed during the 2016 financial year, which will create 101 additional beds.
The Hirslanden operations in Switzerland increased revenue by 23% to R8 646m (2013: R7 025m) for the period under review. Normalised EBITDA was 18% higher at R1 607m (2013: R1 360m). In Swiss francs, revenue increased by 8% to CHF732m (2013: CHF675m) and normalised EBITDA increased by 4% to CHF136m (2013: CHF131m). Hirslanden contributed R537m (2013: R509m) to the attributable income of the Group or CHF45m (2013: CHF50m) in Swiss francs.
The 8% revenue growth was driven by inpatient admissions increasing by 6.5%, at a constant average length of stay and the average revenue per case increased by 2.7%, mainly due to higher acuity levels.
Hirslanden budgeted CHF65m for the current financial year for capital projects and new equipment to enhance its business. Incremental EBITDA resulting from capital projects in progress or approved is budgeted to amount to CHF6m and CHF8m in 2015 and 2016 respectively.
The number of inpatient beds increased from 1 567 to 1 650 during the period under review, mainly as a result of the acquisition of Clinique La Colline (62 inpatient beds) and Swissana Clinic Meggen (22 inpatient beds).
The major building project in Switzerland completed during the period under review was the Klinik Hirslanden radiotherapy department within the Männedorf public hospital which was commissioned in April 2014.
Building projects in process in Switzerland, which should be completed during the next six months, will add 24 additional beds at Klinik Stephanshorn and involve the upgrade of a number of facilities. Investments in technology will also be made at a number of hospitals.
Mediclinic Middle East’s revenue increased by 35% to R1 976m (2013: R1 465m) for the period under review. Normalised EBITDA increased by 53% to R390m (2013: R255m). In UAE dirhams, revenue increased by 23% to AED681m (2013: AED553m) and normalised EBITDA increased by 41% to AED135m (2013: AED96m). Mediclinic Middle East contributed R295m (2013: R140m) to the attributable income of the Group or AED102m (2013: AED53m) in UAE dirhams.
The 23% revenue growth was driven by inpatient hospital admissions increasing by 11%, while hospital outpatient consultations and visits to the emergency units increased by 12%. Clinic outpatient consultations increased by 19%.
For the current financial year, Mediclinic Middle East budgeted AED177m for capital projects and new equipment to enhance the business in the longer term. EBITDA resulting from capital projects in progress or approved is budgeted to amount to AED4m and AED5m in 2015 and 2016 respectively.
The number of beds remained at 382 during the reporting period, which include 27 day beds available at the clinics. The construction of the North Wing at Mediclinic City Hospital in Dubai is under way and due to open at the end of 2015 at a total estimated cost of AED265m.
“We continue to invest in growth and development across our platforms in the delivery of cost-effective quality healthcare” concluded Danie Meintjes.