Mediclinic lifted group revenue by 12 percent to £1.58 billion (R31.8bn) in the six months to September 30, 2021, ahead of pre-pandemic levels across all three its primary dividends, the diversified international private hospital group said in a trading statement on Friday.
There was also a material recovery in the earnings before interest tax depreciation and amortisation (Ebitda) margin to around 15.5 percent from 12.1 percent in the first half of the 2021 financial year.
Investors showed their appreciation of the improving results by lifting the share price 10.93 percent to R69.55 on the JSE on Friday afternoon.
Chief executive Dr Ronnie van der Merwe said the group continued to effectively navigate the pandemic, and the exemplary efforts of the medical professionals and employees enabled the group to safely meet the ongoing demands for its healthcare services and continue to deliver on group operational and strategic goals.
“Mediclinic Southern Africa continued to treat a significant number of Covid-19 patients, while addressing the demand for urgent and elective non-Covid-19 care.” Positive trends in non-Covid-19 activity was encouraging as South Africa transitioned out of the third wave.
“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,” he said in a statement.
The revenue increase was driven by a recovery in patient activity across all three divisions. Compared with the first half of the 2020 financial year, which was pre-pandemic , revenue was up in all three divisions and 4 percent at the group, with Hirslanden and Mediclinic Middle East delivering volumes in excess of pre-pandemic levels.
The Ebitda margin benefited from margin improvements at all three divisions compared with the same last year. Cost base management remained a priority, including the impact of Covid-19-related costs.
“Various initiatives have been established to support the return towards pre-Covid-19 profitability at all divisions,” said Van der Merwe.
Cash and available facilities in the first half of the year increased to around £770m from £661m in the first half of the 2021 financial year, and £679m for the full 2021 financial year.
Net debt at around £2.2bn fell from £2.39bn in the first half of 2021, and was up slightly from £2.12bn for the full 2-21 financial year.
At September 2021, Mediclinic comprised 74 hospitals, five subacute hospitals, two mental health facilities, 19 day care clinics and 20 outpatient clinics. Mediclinic also holds a 29.9 percent interest in Spire Healthcare Group plc, a leading private UK based healthcare group and listed on the LSE.