MedLife (M) Q2 2024 earnings summary

Executive summary

• Consolidated pro-forma turnover reached RON 1.3 billion, up 22.9%–24% year-over-year, driven by organic growth and acquisitions.

• Pro-forma EBITDA rose 41% to RON 199.6 million, with margin improving to 16.0%.

• Net result increased 4.5x to RON 22.8 million, despite high financing costs.

• Operating profit rose 57.1% to RON 78.4 million; net profit attributable to owners increased to RON 20.4 million.

• Completed acquisitions of Personal Genetics, Medvarix Clinic, Provita 2000 Medical Center, and signed agreement to acquire Antares Clinic group.

Financial highlights

• Net sales/revenue grew 22.9% year-over-year to RON 1,310.4 million.

• Pro-forma EBITDA margin improved to 16.0% from 14.7% (IFRS) and 13.3% in H1 2023.

• Net result margin increased to 1.8% pro-forma (1.3% IFRS), up from 0.5% in H1 2023.

• Cash and cash equivalents increased to RON 130.7 million as of June 30, 2024.

• Interest-bearing debt rose to RON 1,590.4 million, reflecting new financing for acquisitions.

Outlook and guidance

• Focus on operational optimization, economies of scale, and consolidating profit margins.

• Plans to inaugurate new hospitals in Timisoara and Craiova by year-end and continue MedLife Park development.

• Intends to pursue prudent acquisitions domestically and regionally, with continued investment in technology and digitization.

• Management confirmed sufficient liquidity and undrawn syndicated loan facilities of EUR 50 million to support further acquisitions and organic growth.

• The Group remains focused on operational efficiency and capitalizing on market opportunities.