MD Medical Group posts 18% Revenue gwowth in FY 2020

08.02.2021

8 February 2021, Moscow – MD Medical Group Investments Plc (“MD Medical Group”, “MDMG” or the “Company” – LSE: MDMG), a leading Russian private healthcare provider, today announces its operating and unaudited financial results for Q4 and FY 2020¹.

Key highlights for FY 2020:

Total revenue in FY 2020 increased by 18% year-on-year (y-o-y) to RUB 19,133 mln;
Total deliveries grew 4% y-o-y and amounted to 7,759. Revenue from deliveries increased by 6% y-o-y to RUB 2,434 mln;
Total IVF cycles decreased by 15% y-o-y to 15,264. Revenue from IVF decreased by 10% y-o-y to RUB 3,452 mln;
Total in-patient treatments increased by 46% y-o-y to 116,417. Revenue from in-patient treatments increased by 97% y-o-y to RUB 6,012 mln;
Total out-patient treatments decreased by 8% y-o-y to 1,613,630. Revenue from out-patient treatments decreased by 2% y-o-y to RUB 4,967 mln.

Mark Kurtser, CEO of MD Medical Group, said:

“We closed 2020 on a high note, demonstrating growth in nearly all key operational indicators in Q4.

“For the full year 2020, we significantly increased our revenue by 18% year-on-year, mainly thanks to the development of our in-patient treatment offering. In particular, in-patient days grew 46% year-on-year, primarily in oncology, internal medicine and traumatology, which helped us to nearly double revenue for this business line in 2020. Despite the continued challenging demographic situation in Russia, the Group saw its deliveries increase by 4% year-on-year in FY 2020 and by 12% year-on-year in Q4, which, along with growth in the average check, enabled us to increase the corresponding revenue by 6% year-on-year for 2020. While IVF and out-patient treatments declined during the year due to the pandemic, in Q4 2020 we saw an increase in IVF cycles and nearly flat out-patient performance compared to Q4 2019.

“One of the key drivers for our growth was the Lapino complex, which we significantly expanded to include now three multi-disciplinary buildings. At the same time, our other hospitals and clinics across Russia also demonstrated sustainable results in 2020.

“We are pleased with our performance and achievements. In 2020, we improved and expanded our network by opening two clinics in the Russian regions and the new “Lapino-2” surgery centre, as well as launching the construction of the “Lapino-4” hospital, focused primarily on treating patients with coronavirus. We also continued to deliver on our strategic diversification initiative by significantly strengthening our positions in oncology, surgery and infectious disease treatment. On the back of these developments, MD Medical Group has created a solid foundation for further growth.”

Key operational highlights for FY 2020:

Deliveries

In FY 2020, total deliveries grew 4% y-o-y and amounted to 7,759. Key growth drivers were the Group’s regional hospitals:

Deliveries at Mother&Child Avicenna Novosibirsk clinical hospital grew 21% y-o-y;
Deliveries at Mother&Child IDK Samara clinical hospital grew 16% y-o-y.

Total like-for-like (LFL) deliveries grew 3% y-o-y.
Revenue from deliveries grew by 6% y-o-y and amounted to RUB 2,434 mln, or 13% of the Group’s total revenue.
The average check for deliveries amounted to RUB 430 thsd (up by 6% y-o-y) in Moscow and the Moscow Region, and RUB 154 thsd in the regions (up by 4% y-o-y).

IVF

In FY 2020, total IVF cycles decreased by 15% y-o-y to 15,264. This decline was mainly due to the temporary ban on IVF in a number of the regions where the Group operates amid the COVID-19 pandemic. At the same time, in Q4 2020 the number of cycles grew by 12% compared to Q4 2019 and by 13% compared to Q3 2020, which reflects a recovery in the dynamics of this service line. Cycles completed under the Mandatory Health Insurance (MHI) programme accounted for 54% of the total number of cycles for FY 2020.
Total LFL IVF cycles declined by 15% y-o-y and amounted to 14,860.
Revenue from IVF declined by 10% y-o-y to RUB 3,452 mln, or 18% of the Group’s total revenue.
MHI services accounted for 36% of revenue from IVF (flat y-o-y).
The average check for commercial IVF cycles increased by 5% y-o-y to RUB 316 thsd, while the average check for IVF cycles under MHI increased by 6% y-o-y to RUB 149 thsd.

In-patient treatments

In FY 2020, total in-patient treatments grew by 46% y-o-y to 116,417 on the back of:

A 77% increase in traumatology in-patient treatments;
A 327% increase in internal medicine in-patient treatments, mainly due to the service adjustment at Lapino hospital to treat COVID-19 patients;
A 405% increase in oncology in-patient treatments, mainly due to the Lapino clinical hospital, as well as Mother&Child hospitals in Tyumen and Ufa.

Total LFL in-patient treatments increased by 43% y-o-y to 113,991.
Revenue from in-patient treatments grew by 97% y-o-y to RUB 6,012 mln, or 31% of the Group’s total revenue. This growth was mainly driven by the Lapino clinical hospital.
The average check for in-patient treatments amounted to RUB 67.3 thsd (up by 37% y-o-y) in Moscow and the Moscow Region and RUB 33.0 thsd in other regions (up by 10% y-o-y). Growth in the average check was due to introduction of new services in oncology and surgery – both in Moscow and regional hospitals. The average check was also supported by treatment of COVID-19 patients.

Out-patient treatments

In FY 2020, total out-patient treatments decreased by 8% y-o-y to 1,613,630. The decline in the number of visits to medical facilities was mainly tied to temporary restrictions amid the COVID-19 pandemic and concerns among some patients about visiting public spaces.
Total LFL out-patient treatments declined by 9% y-o-y to 1,583,631.
Revenue from out-patient treatments declined by 2% y-o-y to RUB 4,967 mln, or 26% of the Group’s total revenue.
The average check for out-patient treatments amounted to RUB 3.1 thsd (up by 6% y-o-y).

Revenue and average check

In FY 2020, total revenue grew by 18% y-o-y (up by RUB 2,973 mln y-o-y) to RUB 19,133 mln on the back of revenue growth for the following service lines:

A 6% increase in revenue from deliveries;
A 97% increase in revenue from in-patient treatments;
A 20% increase in revenue from other services.

The average check for key services in FY 2020 amounted to:

RUB 314 thsd for deliveries, up by 1% y-o-y;

Moscow and the Moscow Region – RUB 430 thsd;
Other regions – RUB 154 thsd.

RUB 226 thsd for IVF, up by 6% y-o-y;
RUB 51.6 thsd for in-patient treatments, up by 35% y-o-y;
RUB 3.1 thsd for out-patient treatments, up by 6% y-o-y.

Growth in revenue and in the average check for in-patient treatments was mainly due to strong performance in internal medicine, oncology and traumatology.

Net debt

As of 31 December 2020, net debt decreased by RUB 587 mln, or by 17%, compared to 31 December 2019, to RUB 2,943 mln.

CAPEX
Total CAPEX in FY 2020 decreased by 2% y-o-y to RUB 3,904 mln. Key investments included the significant expansion of the Lapino hospital complex, including the purchase of land plots and various infrastructure works, as well as the completion of the “Lapino-2” hospital and preparations to launch “Lapino-4”.

Operating results for Q4 and FY 2020

Consolidated data							Like-for-like
	FY 2020	FY 2019	y-o-y, %	Q4 2020	Q4 2019	y-o-y, %	FY 2020	FY 2019	y-o-y, %
OBSTETRICS AND GYNAECOLOGY
Deliveries	7 759	7 446	+4%	2 020	1 802	+12%	7 680	7 446	+3%
In-patient treatments (except deliveries)	21 001	22 945	-8%	5 981	5 665	+6%	20 593	22 945	-10%
Out-patient treatments	540 104	575 146	-6%	145 547	148 262	-2%	527 495	567 223	-7%
IVF
IVF	15 264	18 004	-15%	5 023	4 496	+12%	14 860	17 405	-15%
PAEDIATRICS
In-patient treatments	18 659	23 038	-19%	4 244	6 148	-31%	18 469	23 038	-20%
Out-patient treatments	381 247	455 264	-16%	103 463	121 581	-15%	374 904	455 264	-18%
OTHER MEDICAL SERVICES
In-patient treatments	76 757	33 706	+128%	29 979	9 761	+207%	74 929	33 706	+122%
Out-patient treatments	692 279	714 723	-3%	207 200	190 931	+9%	681 232	713 036	-4%
TOTAL
Total deliveries	7 759	7 446	+4%	2 020	1 802	+12%	7 680	7 446	+3%
Total IVF	15 264	18 004	-15%	5 023	4 496	+12%	14 860	17 405	-15%
Total in-patient treatments	116 417	79 689	+46%	40 204	21 574	+86%	113 991	79 689	+43%
Total out-patient treatments	1 613 630	1 745 133	-8%	456 210	460 774	-1%	1 583 631	1 735 523	-9%

Revenue for FY 2020, RUB mln¹

	Consolidated data			Like-for-like
	FY 2020	FY 2019	y-o-y, %	FY 2020	FY 2019	y-o-y, %
Deliveries	2 434	2 305	+6%	2 423	2 305	+5%
IVF	3 452	3 843	-10%	3 378	3 731	-9%
In-patient treatments	6 012	3 046	+97%	5 926	3 046	+95%
Out-patient treatments	4 967	5 069	-2%	4 903	5 033	-3%
Other revenue	2 268	1 897	+20%	2 234	1 897	+18%
Total	19 133	16 160	+18%	18 864	16 012	+18%

Average check for FY 2020, RUB thsd¹

	Consolidated data			Like-for-like
	FY 2020	FY 2019	y-o-y, %	FY 2020	FY 2019	y-o-y, %
Deliveries	314	310	+1%	315	310	+2%
Moscow and the Moscow Region	430	405	+6%	430	405	+6%
Other regions	154	149	+4%	155	149	+4%
IVF	226	213	+6%	227	214	+6%
Commercial cycles	316	300	+5%	315	299	+6%
MHI	149	140	+6%	150	141	+7%
In-patient treatments	51,6	38,2	+35%	52,0	38,2	+36%
Moscow and the Moscow Region	67,3	49,0	+37%	67,3	49,0	+37%
Other regions	33,0	30,1	+10%	32,9	30,1	+10%
Out-patient treatments	3,1	2,9	+6%	3,1	2,9	+7%

^[1]Minor discrepancies in calculating percentage changes and totals in this and other tables of this press release are due to rounding

Data is based on management accounts.

Back to news list

Other news