M1 Kliniken (M12) H2 2023 earnings summary

Executive summary

• Revenue grew by 10.9% year-over-year to €316.3 million, with net profit up 65% to €11.7 million.

• The Beauty segment saw sales rise 17.6% to €70.8 million and EBIT margin reach 21.9%.

• Four new specialist centers opened, expanding the network to 58 locations by year-end.

• Restructuring and efficiency programs reduced personnel and material costs, boosting EBITDA margin to 6.6%.

• Acquisition of a Dutch mail-order pharmacy and increased stake in HAEMATO AG to 82% strengthened the value chain.

Financial highlights

• Sales: €316.3m (2023) vs €285.3m (2022); Net profit: €11.7m vs €7.1m; EBIT: €15.7m vs €9.3m.

• EBITDA: €21.0m (up from €15.4m); EBT: €16.4m (up from €10.2m).

• Equity: €143.2m; equity ratio: 67.3% (down from 72.6% due to higher assets).

• Cash flow from operating activities: €7.8m (down from €20.8m, mainly due to inventory build-up).

• Free cash flow: -€1.5m, impacted by investments and share purchases.

Outlook and guidance

• Expecting significant sales and earnings growth in 2024; Beauty segment sales forecasted at €80–90m and EBIT at €18–22m.

• Plan to expand to 80–100 locations by end of 2025; Beauty segment EBIT margin to remain at least 20%.

• Dividend proposal of €0.50 per share.