MD Medical Group increases net profit by 30% in 2024

Key financial highlights for 2024:

• Total revenue increased by 19.9% year-on-year (y-o-y) to RUB 33,122 million.

• EBITDA went up by 15.9% y-o-y to RUB 10,681 million. EBITDA margin stood at 32.2%;

• Net profit grew by 30.1% y-o-y to RUB 10,175 million. Net profit margin was 30.7%.
  Adjusted net profit[1] increased by 25.6% to RUB 9,825 million;

• Operating cash flow increased by 18% y-o-y to RUB 11,065 million.

• Capex totalled RUB 2,273 million;

• As at the end of 2024, the Group’s cash position stood at RUB 6,050 million, with no debt financing raised by the Company. The Group’s total lease liabilities recognised as debt under IFRS 16 amounted to RUB 1,400 billion.

Key operational highlights for 2024[2]:

• Total out-patient treatments increased by 15.0% y-o-y to 2,441,914

• Total deliveries increased by 13.4% y-o-y to 11,214

• Total IVF punctures went up by 3.3% y-o-y to 19,970

• Total in-patient treatments increased by 1.4% y-o-y to 148,437 amid a 6.7% uptick in surgeries

MD Medical CEO Mark Kurtser said:

"2024 was a year of strong results and major transformations for us. We managed to maintain high growth rates and solid margins. We continued to actively invest in infrastructure development and to expand our network, opening eight new clinics and acquiring one medical centre. We completed the Company's redomiciliation to Russia to reduce regulatory risks, ensure operational and financial stability, and to eliminate infrastructural constraints on profit distribution through dividends.

The rising solvency of households in 2024 and our flexible regional pricing strategy bolstered demand for and accessibility of our services. Our strong financial position and absence of debt financing enabled us to benefit from the high key rate. Our revenue grew by 20%, profit by 30%, and cumulative dividends in 2024 exceeded 60% of net profit.

A major achievement was the increase in deliveries and IVF services. Our hospitals supported more than 11,000 deliveries, a 13% y-o-y increase, and we celebrated the birth of the 100,000th baby in the Company's history. In assisted reproductive technologies, we consolidated about 18% of the Russian market, with over 45% of treatments resulting in pregnancy – a record figure for the Russian market. Our focus on multifunctional medical care significantly boosted out-patient visits, diagnostics, occupancy rates, and the number of surgeries performed. These achievements are a testament to our doctors' exceptional professionalism, our cutting-edge infrastructure, and our steadfast commitment to embracing innovative technologies.

I extend my deepest gratitude to our employees for their dedication, our patients for their trust, and our shareholders for their unwavering support. I am certain that together we will reach even greater heights in the years to come."

[1] Net profit, excluding gain from reversal of previously recognised impairment from the hospital in Ufa for a total of RUB 350 million.

[1] Detailed information on operational results can be found in the following Press-release dated 05.02.2025 

Notes:

1. This announcement contains inside information
2. Minor deviations in the calculation of totals, subtotals and/or percent changes are due to rounding
3. The Group’s consolidated financial statements are available on the Group’s website: www.mcclinics.com/investors/financial-reports/

Analyst and investor conference call:

Date: 31 March 2025

Time: 12.00 PM MSK

Event Language:  Russian

Speakers:   

·         Mark Kurtser, CEO

·         Iya Lukianova, CFO

·         Olesya Lapina , IR Director

Registration for the call is available following the link: https://us02web.zoom.us/webinar/register/WN_EKYhdYO6RdqbiCJenZgGMw#/registration

A replay of the call will be available on the Company’s website shortly after the end of the live event.

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About MD Medical Group

MD Medical Group is a leading provider in the highly attractive Russian private healthcare service market. Today, the Company manages 65 state-of-the-art healthcare facilities, including 11 multidisciplinary hospitals and 54 out-patient clinics in 31 regions of the Russian Federation. In 2024, MD Medical Group's revenue amounted to RUB 33.1 bln while EBITDA stood at RUB 10.7 bln. The Company's ordinary shares are traded on Moscow Exchange (MOEX: MDMG).