Mediclinic in good health after injection from Swiss
Companies / 15 November 2019, 4:30pm / Sandile Mchunu
DURBAN - Diversified private healthcare services group Mediclinic returned to profitability in the six months to end September after an improved performance from one of its key operations in Switzerland.
The group said the operation lifted overall group revenue 9percent to £1.52billion (R29.15bn) from £1.39bn the prior year.
It said adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) also shot up 4percent to £222million from £213m last year.
Mediclinic said revenue rose 6percent in constant currency terms while adjusted Ebitda inched-up by 3percent.
Chief executive Dr Ronnie van der Merwe said the performance was in line with expectations.
Van der Merwe said the group delivered a solid first-half financial performance with all three divisions growing revenue.
He said Ebitda, patient volumes and operating performance were complemented by strong cash conversion.
“I am pleased with the progress we have made in adapting the business to current healthcare trends and changing regulatory environments, especially at Hirslanden in Switzerland,” Van der Merwe said.
“At all three divisions, we continue to supplement our core acute care business through expansion across the healthcare continuum. The growth initiatives we are investing in as a group, or collaborating on with partners, include day case clinics, primary care facilities, sub-acute hospitals, radiology, precision medicine, IVF and digital healthcare solutions.”
Van der Merwe said the Swiss operation, Hirslanden, increased its revenue 5percent to CHF871m (R13.13bn) and pushed its adjusted Ebitda up 3percent to CHF121m.
He said Hirslanden made good progress in growing across the healthcare spectrum and in adapting the business to the regulatory changes affecting the Swiss healthcare system.
“Hirslanden has continued to implement its day case clinic strategy, which focuses on a more efficient, lower-cost service delivery model, attracted additional clinical professionals, delivered ongoing cost management and efficiency savings and also advanced the Hirslanden 2020 strategic project,” Van der Merwe said.
In southern Africa, the group delivered a 7percent increase in revenue to R8.58bn and upped its adjusted Ebitda 2percent to R1.72bn.
The Mediclinic Middle East was the star, with revenue up by 8percent to AED1.62bn (R6.59bn) and adjusted Ebitda increased by 10percent to AED155m.
“Contributing to the division’s growth was the continued ramp-up at the new Mediclinic Parkview Hospital in Dubai and the continued gradual improvement in the Abu Dhabi business where Mediclinic Airport Road Hospital delivered a strong performance,” the group said.
The group holds a 29.9percent stake in Spire Healthcare Group, which delivered an increase in revenue and a 2percent decline in Ebitda in the six months to end June.
The group said inpatient and day case admissions declined 1.3percent while average revenue per case increased by 4.6 percent.
Mediclinic shares closed 0.69 percent lower at R72 on the JSE yesterday.