MedLife (M) Q3 2024 earnings summary

Executive summary

• Consolidated pro-forma turnover reached RON 2 billion, up 24% year-over-year, driven by organic growth and acquisitions.

• Pro-forma net result increased eightfold to RON 30.5 million, despite higher financing costs.

• Operating profit rose 47% to RON 112.9 million; standalone MedLife S.A. returned to profit with RON 146.9k net income.

• Completed major acquisitions, expanding national and regional presence, including Personal Genetics, Antares Clinic, Medvarix Clinic, Euromedica Baia Mare Group, Routine Med Group, and VP-Med Hungary.

• Strong demand for medical services, especially in prevention and complex interventions, supported robust organic revenue growth.

Financial highlights

• Pro-forma revenues reached RON 2.02 billion, up 24% year-over-year; organic growth contributed 17%.

• Pro-forma EBITDA increased to RON 304.1 million, with a margin of 16.1% (up from 13.4% last year).

• Net cash from operating activities rose 71% to RON 213 million for the nine-month period.

• Operating expenses as a percentage of sales decreased by 1.5 percentage points year-over-year, from 96.1% to 94.6%.

• Group interest-bearing debt rose 8.2% to RON 1,689.2 million as of September 30, 2024.

Outlook and guidance

• Two new hospitals (Timisoara and Craiova) set to open by year-end; continued development of MedLife Park project.

• Focus on optimizing operational workflows, enhancing profit margins, and lowering net debt/EBITDA ratio.

• Management confirms sufficient liquidity for at least 12 months and continues to pursue acquisitions and organic growth.

• Ongoing investments in technology, digital transformation, and expansion of integrated medical services.