Medicover (MCOV) Q4 2024 earnings summary

Executive summary

• Revenue grew 20.3% in Q4 to €555.8m and 19.8% for FY 2024 to €2,091.8m, with strong double-digit organic growth in both Healthcare and Diagnostic Services and significant margin expansion.

• EBITDA increased by 17% for FY to €284.9m; adjusted EBITDA reached €300.0m, with robust cash flow generation.

• Poland remains the largest and fastest-growing geography, with notable contributions from Romania, Germany, and India.

• Announced CEO succession: John Stubbington to succeed Fredrik Rågmark as CEO from May 1, 2025.

• Board recommends a dividend of €0.15 per share, up from €0.12, exceeding the stated dividend policy.

Financial highlights

• Q4 organic revenue growth was 18.6%; FY organic growth 16.7%; full-year revenue reached €2,091.8m, up 19.8%.

• EBITDA for 2024 reached €284.9m, up 17% year-over-year; adjusted EBITDA margin for FY was 14.3% (up 0.4pp excluding prior year exceptional credit).

• Net operating cash flow increased by more than 50% in Q4 year-over-year; free recurring cash flow for the year increased 50% to €107.8m.

• Dividend proposed at €0.15 per share, a 25% increase from the prior year.

• EPS for FY was €0.112 (vs €0.118 prior year); net profit declined 21% to €14.6m, impacted by a €16.4m impairment charge.

Outlook and guidance

• Confident in continuing strong organic growth and margin expansion into 2025, with expectations to exceed €2.2bn revenue and €350m adjusted EBITDA targets.

• CapEx guidance maintained at 5.5%-6% of revenue for 2025.

• Acceleration in India growth expected in 2025 as new hospitals mature and occupancy improves; evaluation of a potential separate listing to support growth.

• Diagnostics expected to maintain double-digit growth, though German growth may moderate from elevated 2024 levels.

• Focus remains on increasing capacity utilisation, operational efficiency, and sustainable growth.