MD Medical Group posts 10% revenue growth while EBITDA margin expands to 33% - News — Group of companies "Mother and child"

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 12 months ended 31 December 2023 under International Financial Reporting Standards (IFRS).

Key financial highlights for 2023:

  • Total revenue increased by 9.6% year-on-year (y-o-y) to RUB 27,631 million.
  • EBITDA went up by 16.3% y-o-y to RUB 9,218 million. EBITDA margin rose by 2 p.p. y-o-y to 33.4%.
  • Net profit grew by 65.8% y-o-y to RUB 7,823 million. Net profit margin was 28.3%. Compared to the previous year’s adjusted net profit[1], net profit in 2023 increased by 30.3%.
  • Operating cash flow increased by 21.3% y-o-y to RUB 9,378 million.
  • Capex tripled y-o-y, reaching RUB 3,580 million. Investments were mainly allocated towards the acquisition and launch of MD Group Michurinsky, a new hospital in Moscow.
  • As at 31 December 2023, the Group’s net cash position stood at RUB 9,017 million. The net cash position to EBITDA ratio was 1.0x.
Key operational highlights for 2023[2]:
  • Total deliveries increased by 15.3% y-o-y to 9,891;
  • Total IVF punctures went up by 14.6% y-o-y to 19,326;
  • Total in-patient treatments decreased by 2.5% y-o-y to 146,342;
  • Total out-patient treatments went up by 11.4% y-o-y to 2,123,216.
Key events in 2023 and after the reporting period:
  • MD Group Michurinsky multifunctional hospital opened. In November 2023, the Group launched its new 8,755 sq m hospital acquired earlier in the middle of the year. The amount of investment in the project was RUB 2.8 billion, including additional investment in medical equipment and building renovations
  • Primary listing status on the Moscow Exchange obtained. On 7 November 2023, the Bank of Russia registered the prospectus of the Company's Global Depositary Receipts (GDRs) and admitted them to public trading in Russia. This completed the procedure initiated by the Company to change its listing status on the Moscow Exchange to primary
  • Dividend policy approved. In December 2023, the Board of Directors approved the Company’s dividend policy, stating that MD Medical Group can pay dividends in the amount of up to 100% of net profit, including accrued net profit, if any, based on the Company's consolidated financial statements under IFRS for the past financial year, and based on interim financial statements for the purposes of interim dividends
  • MD Group Zilart multifunctional family clinic launched. In January 2024, the Group opened a new 452 sq m multifunctional medical centre with an annual capacity of over 50,000 out-patient treatments. Total investments in the project exceeded RUB 81 million.
  • 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.

MDMG CEO Mark Kurtser said:

“I am proud to share the remarkable results of our Company in 2023. Amid the recovery of pent-up demand for healthcare services and the resurgence of reproductive behaviour, we hit new highs by demonstrating impressive financial performance, extending the network of our medical facilities, and expanding our geography. Excellent results at the Group level were driven by robust operational performance of our medical centres across Russia.

In 2023, the Company’s revenue rose by 10% to RUB 27.6 billion, while EBITDA increased by 16% to RUB 9.2 billion. Year after year, we persistently demonstrate strong efficiency, with EBITDA margin in 2023 having expanded by 2 p.p. to 33%.

I am pleased to note that women's and children's health services showed consistently high revenue growth. The number of deliveries surged by 15%, nearly reaching the milestone of 10,000. Our focus on providing a wide range of medical services coupled with the patients' care for their health drove up the number of out-patient treatments in Moscow and other regions by 11%.
Our business benefits greatly from both vertical and horizontal diversification, which contribute to its reliability, resilience, and excellent prospects. We continue to grow our network of medical facilities. We opened a new large hospital on Moscow’s Michurinsky Avenue in 2023 and launched a new MD Group Zilart multifunctional family clinic in early 2024. This year, we plan to keep growing by starting the construction of a multifunctional hospital in Domodedovo and the Lapino-3 nuclear medical centre, and opening new clinics in Moscow and other regions.

I would like to take this opportunity to express my sincere gratitude to all of you – our patients for their trust and loyalty, our shareholders and investors for their support, and our medical and management teams for their dedication and professionalism. Together we are writing this story of success, strengthening the health of people, improving the demographics, and making a significant contribution to the development of Russia's healthcare industry.”

[1] In 2022 adjusted for impairment of CIP, PPE and goodwill amounted to RUB 1,287 million.
[2] Detailed information on operational results can be found in the following press-release dated 05.02.2024.

1.     Data is based on management accounts
2.     Minor variations in calculation of totals, subtotals and/or percentage change are due to rounding of decimals
3.     2023 results materials incl. consolidated financial statements are available on the Group’s website:

Analyst and investor conference call:

Date: 1 April 2024
Time: 3.00 PM Moscow
Event Language:  Russian
  • Mark Kurtser, Managing Director
  • Iya Lukianova, CFO
  • Olesya Lapina , IR Director
Registration for the call is available following the link:
A replay of the call will be available on the Company’s website shortly after the end of the live event.

About MD Medical Group

MD Medical Group is a leading provider in the highly attractive Russian private healthcare service market. Today, the Company manages 55 state-of-the-art healthcare facilities, including 11 multidisciplinary hospitals and 44 out-patient clinics in 27 regions of the Russian Federation. In 2023, MD Medical Group's revenue amounted to RUB 27.6 bln while EBITDA was RUB 9.2 bln. The Company's GDRs are traded on Moscow Exchange (MOEX: MDMG).

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