MD Medical Group increases EBITDA by 15% and more than triples Net profit
11 September 2023 – MD Medical Group Investments Plc (“MD Medical Group,” “MDMG,” the “Group” or the “Company” – MOEX: MDMG), a leading Russian private healthcare provider, announces its audited consolidated financial statements for the 6 months ended 30 June 2023 under International Financial Reporting Standards (IFRS).
Key financial highlights for H1 2023:
-
Total Revenue increased by 5.7% year-on-year (y-o-y) to RUB 12,853 million.
-
EBITDA went up by 15.2% y-o-y to RUB 4,099 million. EBITDA margin rose by 2.6 p.p. y-o-y to 31.9%. Regional hospitals strongly contributed to the EBITDA growth, reflecting the Group's effective regional development strategy.
-
Net profit more than tripled y-o-y, reaching RUB 3,368 million. Net profit margin was 26.2%.
-
Operating cash flow increased by 39.4% y-o-y to RUB 4,366 million.
-
Capex amounted to RUB 1,950 million, up 155.9% y-o-y. Investments were mainly allocated towards the acquisition of a ready for service hospital in Moscow to be launched in H2 2023.
-
As at 30 June 2023, the Group’s net cash position stood at RUB 6,008 million. The net cash position to LTM EBITDA ratio was 0.7x.
Key operational highlights for H1 2023[1]:
-
Total out-patient treatments increased by 8.4% y-o-y to 991,887.
-
Total in-patient treatments decreased by 1.1% y-o-y to 70,715.
-
Total IVF cycles went up by 13.7% to 9,349.
-
Total deliveries increased by 9.6% y-o-y to 4,502.
Key events during H1 2023 and after the reporting period:
-
Medical centre opened in the Moscow Region. On 13 January 2023, MD Medical Group opened a new out-patient medical centre, Mother & Child Mytishchi, with a capacity of up to 24,000 appointments per year. Total investments in the project stood at around RUB 23 million.
-
Delisting of GDRs from the London Stock Exchange. Following the Group’s applications submitted to the UK Financial Conduct Authority (the “FCA”) and the London Stock Exchange (the “LSE”), the Company’s global depositary receipts were removed from the FCA’s Official List and their admission to trading on the LSE has been cancelled as of 22 June 2023.
-
Completing the acquisition of a hospital in Moscow. On 17 July 2023, MD Medical Group completed the acquisition of a ready for service hospital in Moscow. The Company plans to use the existing facilities of the asset to launch a new multidisciplinary hospital MD Group Michurinsky in the second half of 2023. The amount of investment in the project is estimated at RUB 2,840 million, including additional investment in medical equipment and building renovations. The project will be financed from the Group’s own funds.
-
Change of GDR programme depositary. On 10 April 2023, MD Medical Group launched the procedure for changing the depositary bank that administers the Company’s Global Depositary Receipts (GDR) programme. RCS Issuer Services S.A.R.L. was appointed as the new depositary bank effective from 8 August 2023.
-
Redomiciliation to SAR. On 31 August 2023, the Group's Extraordinary General Meeting of shareholders resolved to redomicile the Company to the Special Administrative Region of Oktyabrsky Island, Kaliningrad Region, Russian Federation (“SAR”).
Notes:
- 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 highly attractive Russian private healthcare service market. Today, the Company manages 49 state-of-the-art healthcare facilities, including 10 multidisciplinary hospitals and 39 out-patient clinics in 26 regions of the Russian Federation. In 2022, MD Medical Group's revenue amounted to RUB 25.2 bln while EBITDA amounted to RUB 7.9 bln. The Company's GDRs are traded on Moscow Exchange (MOEX: MDMG).
[1] For more details on operational highlights, see our press release dated 31 July 2023