Mediclinic cautious despite jump in first-half revenues
By Abigail Townsend
Date: Wednesday 16 Nov 2022
(Sharecast News) - Mediclinic International reported a jump in interim revenues on Wednesday, but warned that the testing economic climate would likely weigh on second-half trading.
The private hospital group - which is being acquired by a consortium in a £3.7bn deal - said group revenues rose 10% in the six months to 30 September, to £1.73bn, or by 2% on a constant currency basis.
Inpatient admissions rose 13.7%, while day case admissions jumped 21.9%.
Adjusted earnings before interest, tax, depreciation and amortisation eased 1% to £246m, or by 8% on a constant currency basis after the margin fell to 14.2% from 15.8%. The London-listed firm said earnings had been impacted by higher costs, primarily due to Covid-19 related staff absenteeism, nurse shortages in Switzerland and capacity expansion in the Middle East.
Looking ahead, Mediclinic - which has operations in Switzerland, Southern Africa and the Middle East - noted: "Since the 2022 full year results, the impact of seasonality and the worsening wider macroeconomic environment has been more pronounced, as reflected in the 2023 first half results.
"Increasing macroeconomic uncertainty, inflationary pressures and the risk of further Covid-19 and related disruptions to staffing and scheduling, will likely impact the previously anticipated increase in patient activity in Switzerland the Middle East, and limit the group's ability to full offset incremental costs increases in the two divisions."
Mediclinic agreed to be acquired in August by a consortium consisting of South Africa's Remgro and Switzerland's MSC Mediterranean Shipping. It was the consortium's fourth offer after earlier approaches were rejected.
Remgro, an investment firm, already owns around 45% of Mediclinic, South Africa's third-biggest hospitals operator.
The deal is expected to complete in the first quarter of 2023.
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