Medicover (MCOV) Q2 2024 earnings summary

Executive summary

• Achieved 20% year-over-year revenue growth in Q2 2024, with organic growth of 16.5% and strong performance across all divisions and geographies, especially Poland.

• Cash generation increased 23% year-over-year, with robust cash flow from operations before working capital changes at €72.6m, 103% of EBITDA.

• Member base reached 1.8 million by end of Q2, with laboratory test volumes up 19.4% year-over-year.

• Poland contributed 50% of group revenue, growing 24%, while Germany and Romania grew 18% and 24% respectively; India saw softer 6% growth due to one-off factors.

• Net profit was €5.9m, down from €7.2m, reflecting higher financial costs; EPS increased to €0.042.

Financial highlights

• Consolidated revenue for Q2 was €509.4m, with acquired revenue of €5.6m and minimal inorganic contribution.

• Adjusted EBITDA rose 28% to €47.1m, margin at 9.2%; EBITDA increased by 21% to €70.6m, margin at 13.8%.

• Operating profit (EBIT) increased 61% to €21.3m, margin at 4.2%.

• Free recurring cash flow reached €11.5m for the quarter and €54m for the half year.

• Net debt increased by €70.5m since the start of the year, with leverage at 3.3x.

Outlook and guidance

• Confident in achieving 2025 financial targets: organic revenue over €2.2bn, adjusted organic EBITDA over €350m, EBIT over €140m, and net debt/adjusted EBITDAAL ≤3.5x.

• CapEx guidance for 2024 remains at 6% of revenue, with slightly reduced spending in Q2.

• India expected to return to double-digit growth in Q3; regulatory environment stable.