MD Medical Group maintains strong EBITDA margin

5 September 2022 – MD Medical Group Investments Plc (“MD Medical Group,” “MDMG,” the “Group” or the “Company” – LSE and MOEX: MDMG), a leading Russian private healthcare provider, announces its audited consolidated financial statements for the 6 months ended 30 June 2022 under International Financial Reporting Standards (IFRS).

Key financial highlights for 1H 2022:

• Total revenue increased by 1.3% year-on-year (y-o-y) to RUB 12,159 mln.

• EBITDA went down by 5.8% y-o-y to RUB 3,559 mln. EBITDA margin dropped by 2.2 p.p. y-o-y to 29.3%.

• Adjusted Net profit decreased by 9.4% y-o-y to RUB 2,393 mln. Adjusted Net profit margin was 19.7%.

• Operational cash flow declined by 15.9% y-o-y to RUB 3,132 mln.

• Capex amounted to RUB 762 mln, up 7.0% y-o-y. Investments were mainly allocated towards the launch of new projects: MD Lakhta in St Petersburg, MD Tyumen-2 and an out-patient clinic in Yekaterinburg.

• As at 30 June 2022, the Group’s Net Cash position stood at RUB 85 mln. The Net Cash position to EBITDA ratio was 0.0x.

Key operational highlights for 1H 2022[1]:

• Total out-patient treatments decreased slightly, by 2.1% y-o-y, to 878,458.

• Total in-patient treatments decreased by 7.4% y-o-y to 70,937.

• Total IVF cycles increased by 0.8% y-o-y to 8,223.

• Total deliveries increased by 2.0% y-o-y to 4,109.

Key events during 1H 2022 and after the reporting period:

• Hospital launched in St Petersburg. In January 2022, MD Medical Group opened a new multi-functional hospital MD Lakhta in St Petersburg. Its core business is women’s and children’s healthcare with a focus on childbirth and gynaecological surgery. Total investments in the project amounted to circa RUB 2 bln.

• Hospital launched in Tyumen. In February 2022, MD Medical Group launched a new multi-disciplinary hospital MD Tyumen-2. Total investments in the project amounted to approximately RUB 1 bln.

• Novosibirsk Centre for Reproductive Medicine renovated. On 16 June 2022, MD Medical Group completed the renovation of its medical centre in Novosibirsk, increasing its capacity to 1,000 IVF cycles per year. Total investments in the project amounted to some RUB 23 mln.

• Medical centre opened in Moscow. On 23 June 2022, MD Medical Group opened a new out-patient medical centre, Mother & Child Butovo, with a capacity of 30,000 visits per year. Total investments in the project amounted to circa RUB 16 mln.

• MGIMO Med University launched. On 1 September 2022, MD Medical Group in cooperation with the Moscow State Institute of International Relations (MGIMO) opened medical university MGIMO Med.

• VTB loan repaid early. In Q3 2022, MD Medical Group repaid the loan it had taken out from VTB in 2018 by settling all outstanding obligations in the amount of RUB 2,166 mln ahead of schedule.

Notes:

1.    The Group’s consolidated financial statements are available on the Group’s website: www.mcclinics.com/investors/financial-reports/

About MD Medical Group

MD Medical Group is a leading provider in the Russian private healthcare service market. The Company manages 50 modern healthcare facilities, including 10 hospitals and 40 out-patient clinics in 25 regions of Russia. In 2021, MD Medical Group's revenue amounted to RUB 25.2 bln while EBITDA amounted to RUB 8.3 bln. The Company's GDRs are traded on London Stock Exchange (LSE: MDMG) and Moscow Exchange (MOEX: MDMG). 

[1] Detailed information on operational results can be found in the following press release from 1 August 2022