MD Medical Group reports 32% growth in Revenue in FY 2021
en
07.02.2022

7 February 2022 – MD Medical Group Investments Plc (“MD Medical Group”, “MDMG” or the “Company” – LSE, MOEX: MDMG), a leading Russian private healthcare provider, today announces its operating and unaudited financial results for Q4 and FY 2021.

Key financial highlights for FY 2021:

  • Total revenue increased by 31.8% year-on-year (y-o-y) to RUB 25,220 million.

  • Like-for-like revenue (LFL) grew by 31.8% y-o-y.
  • Revenue of the Group’s Moscow hospitals increased by 44.2% y-o-y to RUB 14,013 million thanks to the expansion of Lapino medical cluster[1] and growth in utilization rate for such services as oncology (+69.0% to 17,706), surgery (+16.7% to 1,862) and traumatology (+34.3% to 3,450).
  • Revenue of the Group’s regional hospitals increased by 26.1% y-o-y to RUB 5,803 million thanks to strong performance at Tyumen-1 medical centre and IDK hospital in Samara reaching its target utilization rate.
  • Revenue of the Group’s out-patient clinics in Moscow and Moscow region, as well as regional clinics increased by 7.6% y-o-y to RUB 2,418 million and by 16.6% y-o-y to RUB 2,972 million, respectively, thanks to the recovery in demand for elective medical care in 2021.

Key operational highlights for FY 2021:

  • Total out-patient treatments increased by 15.2% y-o-y to 1,858,633.

  • Total in-patient treatments increased by 29.9% y-o-y to 152,621, while the average check grew by 22.8% to RUB 83 thousand in Moscow and by 10.5% y-o-y to RUB 35 thousand in the regions thanks to the commercial services performance (in addition to the Mandatory Health Insurance programme).
  • Total deliveries grew by 8.2% y-o-y to 8,397, while the average check grew by 11.2% y-o-y to RUB 478 thousand and by 6.8% y-o-y to RUB 165 thousand in Moscow and the regions, respectively.
  • Total IVF cycles increased by 8.3% y-o-y to 16,526, while the average check grew by 7.0% to RUB 251 thousand and 4.3% y-o-y to RUB 230 thousand in Moscow/Moscow region and the regions, respectively.

Mark Kurtser, CEO at MDMG, said:

“2021 was a record year for us despite the continuing challenges posed by the pandemic. We demonstrated strong growth in total revenue by 32%, and by 44% at our hospitals in Moscow. Performance in women’s and children’s health services also continues to increase despite the pandemic, the growth in respective revenue was 16%. The strong results for the Group as a whole were also due to the robust operational performance of our medical centres across the whole network in Russia.

“The first full year of operations at the Lapino-2 surgical facility, which specialises in oncology, saw revenue of RUB 1,798 million and utilisation rate of 40%, while the facility continues to have significant potential for future growth. At the same time, the Lapino-4 infectious diseases facility, which we opened last February, ramped up to full capacity. Lapino-4 is continuing to expand out-patient services for COVID-19 patients, including thanks to telemedicine services, which support a significant increase in patient flows. For COVID-19 patients we also offered high-quality emergency support and have had deliveries in specially designated ‘red zones’, as well as carried out complex cardiological and oncological operations.

“I am pleased to note that in addition to our Moscow hospitals our regional facilities also recorded robust results. In particular, our Tyumen-1 hospital demonstrated strong growth in revenue by 49% to RUB 1,287 million in 2021, while its utilisation rate amounted to 60%.

“Given this success we are continuing to develop our regional network. In January 2022 we opened the 150-bed MD Lakhta multi-disciplinary hospital in St Petersburg, Russia’s second-largest market. This new hospital will temporarily focus on treating COVID patients, and in due course will offer a full range of services for the whole family.

“In the coming days we will also open a new hospital in Tyumen, which will initially also focus on caring for coronavirus cases before switching into multi-disciplinary mode later.

“Overall in 2021 we saw demand for our services begin to recover. Among other metrics, the number of in-patient and out-patient visits across the Group not only increased year-on-year but exceeded the level of 2019, before the pandemic. We believe that demand for private medical care will continue to recover in 2022 as the COVID situation stabilises.

“Growth in the number of out-patient visits to 1,858,663 also confirms that we offer a nationally accessible network with high levels of coverage. Moreover, we are achieving this while maintaining robust margins.

“Over a number of years we have not only met all our patients’ needs, but also taken care of the interests of our shareholders. We make regular high dividend payments. In 2021, our revenue exceeded analysts’ expectations. In 2022, while continuing to invest in the growth of our business, we expect to pay 50% of net profit as dividends – same as in the previous year.

“I would like to express my thanks to our whole team – it is thanks to them that the Group achieved such strong results in what was a challenging year in 2021. I firmly believe that together we will continue to raise the bar in 2022.”

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About MD Medical Group 

MD Medical Group is a leading provider in the highly attractive Russian private healthcare service market. The company manages 46 modern healthcare facilities, including 8 hospitals and 38 out-patient clinics in 25 of the Russian regions. In 2021, MDMG’s revenue amounted to RUB 25.2 billion, up 32% y-o-y. The Company's GDRs are traded on London Stock Exchange (LSE: MDMG) and Moscow Exchange (MOEX: MDMG). 


[1] The Lapino medical cluster includes Lapino-1, Lapino-2 and Lapino-4.

This announcement contains inside information.
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