Mediclinic International expects an uptick in half-year revenue

The group’s performance is also expected to come in higher than pre-pandemic levels.
Image: Supplied

Private healthcare group Mediclinic International expects group revenue for the half-year period ended September 30, 2021 to increase by 12%, boosted by a recovery in patient activity across its divisions, the group said in a trading update on Friday.

The group also projected that performance for the current period at all three divisions, will surpass pre-pandemic levels, with overall group performance expected to  rise by 4%  compared to the half-year ended September 30, 2019.

“I’m pleased with how the group continues to effectively navigate the ongoing impact of the pandemic – and we are thankful to our medical professionals and employees without whom this would not be possible,” group CEO, Dr Ronnie van der Merwe said in a statement.

“Their exemplary efforts and commitment, combined with our clinical protocols, have enabled us to safely meet the ongoing demands for our healthcare services, continue to deliver on our group operational and strategic goals and, recover to pre-pandemic revenue at all three divisions,” van der Merwe added.

Southern Africa performance

The group’s Southern Africa division – which consists of operations in South Africa and Namibia – is expected to increase revenue by 34.5% on the previous period, even rising from pre-pandemic levels by 9.3% when compared to the six months ended September 30, 2019.

“Mediclinic Southern Africa has continued to treat a significant number of Covid-19 patients, while addressing the demand for urgent and elective non-Covid-19 care. It is encouraging to see that, as South Africa transitions out of the third wave, we are observing positive trends in non-Covid-19 activity,” Van der Merwe said.

Read: Mediclinic to procure renewable energy

A disciplined and resilient ship

The group expects a material recovery in group earnings before interest, taxes, depreciation, and amortisation (Ebitda) to about 15.5%, up from 12.1% in the previous comparable period.

Prioritising effective cost base management has seen the group reducing its net debt and improving its cash conversion targets to around 100%  of Ebitda – up from 42% in the previous comparable period.

“The group’s ongoing financial discipline and resilience were demonstrated by the increase in cash and available facilities during the first half of the year, to around £770 million (1H21: £661m and FY21: £679m),” the group said.

“Net debt at around £2 200 million (1H21: £2 391m and FY21: £2 159m) includes additional lease liabilities incurred during the period due to the commissioning of the hospital expansion and new Comprehensive Cancer Centre at Mediclinic Airport Road Hospital in Abu Dhabi,” it stated.

The group said it anticipates it will remain in a good position as it prepares to enter the second half of the year.

“The strong first-half delivered by Mediclinic Middle East, combined with a robust performance at Hirslanden in Switzerland, positions us well heading into the second-half of the year,” Van der Merwe said.

“The group continues to have headroom to all covenants, either waived or effective,” the group added in a statement.

AUTHOR PROFILE

VIDEOS

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: