MedLife (M) Q4 2024 earnings summary

Executive summary

• Pro forma turnover for 2024 reached RON 2.76 billion, up 25% year-over-year, marking the fifth consecutive year of over 20% growth and surpassing half a billion EUR in revenue in Romania's private healthcare sector.

• Organic growth was 17%, driven by new capacities, strong demand for preventive and complex medical services, and expansion across all business lines.

• EBITDA increased 43% to RON 412 million, with margin improvement to 16.1%; net result turned positive to RON 33 million from a loss last year.

• Five strategic acquisitions expanded geographic reach and specialty coverage, including Personal Genetics, Antares Clinic, Euromedica, RoutineMed Group, VP Med, and Medvarix Clinic.

• Two new hospitals opened in Craiova and Timisoara, enhancing regional infrastructure and digital capabilities.

Financial highlights

• Gross sales rose 25% year-over-year to RON 2.76 billion; operating profit increased 75% to RON 160 million.

• Pro-forma EBITDA margin improved to 16.1% from 13.1% last year; net result margin reached 1.3%.

• Net cash from operating activities was RON 276 million, up 51% year-over-year.

• Net debt to pro-forma EBITDA ratio decreased to 3.8x from 4.6x, reflecting higher EBITDA and disciplined leverage.

• Group total assets grew to RON 3.02 billion, up from RON 2.64 billion at end-2023.

Outlook and guidance

• Focus remains on prudent M&A, maintaining net debt/EBITDA below 4, and margin improvement.

• 2025 priorities include completing ongoing projects (oncology center in Bacău, hyperclinic in Pitești), expanding corporate wellness offerings, and launching imaging research.

• Ongoing investment in technology and digital transformation, including AI integration.

• No major new clinic openings planned beyond current projects; M&A will target geographies not yet covered.

• The company plans to further extend its credit facilities by up to EUR 75 million to support future investments.