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Summary of Mediclinic results for the six months ended 30 Sept 2023 and outlook for the year ending 31 Mar 2024
Remgro Limited
Registration number 1968/006415/06
ISIN ZAE000026480
JSE and A2X Share code REM
("Remgro")
SUMMARY OF MEDICLINIC GROUP LIMITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
AND OUTLOOK FOR THE YEAR ENDING 31 MARCH 2024
INTRODUCTION
Given that Mediclinic Group Limited ("Mediclinic" or "Group") is no longer listed due to the acquisition by Manta Bidco
Limited (a consortium made up of Remgro and MSC Mediterranean Shipping Company SA) of the entire issued share
capital of Mediclinic, there is no regulatory requirement for Mediclinic to release financial results. However, considering
the significant contribution by Mediclinic to Remgro's results and intrinsic net asset value, Remgro believes that it is
appropriate to release a summary of Mediclinic's 2024 half-year financial results and an outlook for the year ending
31 March 2024.
Remgro is therefore releasing a voluntary statement highlighting the salient points of Mediclinic's performance for the six
months ended 30 September 2023 and an outlook for the year ending 31 March 2024. Mediclinic's financial results,
including divisional results and reconciliations ("Mediclinic Abridged Results"), can be accessed at the following link on
Remgro's website https://www.remgro.com/investor-centre/mediclinic-results/.
SUMMARY OF MEDICLINIC GROUP LIMITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
SALIENT FEATURES
- 5% growth in Group revenue to $2 199m (1H23: $2 102m), a 5% increase in constant currency terms
- Adjusted EBITDA decreased 4% to $285m (1H23: $297m), a 3% decrease in constant currency terms
- Adjusted EBITDA margin decreased 8% to 13.0% (1H23: 14.2%)
- Switzerland: 11.6% (1H23: 13.0%)
- Southern Africa: 17.5% (1H23: 18.6%)
- Middle East: 11.9% (1H23: 11.4%)
- Adjusted earnings were flat at $81m (1H23: $81m)
GROUP RESULTS
Reported results Adjusted results(1)
1H24 1H23 1H24 1H23
$'m $'m Variance(2) $'m $'m Variance(2)
Revenue 2 199 2 102 5% 2 199 2 102 5%
Adjusted EBITDA(3) 285 297 (4)%
Operating profit 113 143 (21)% 150 157 (5)%
Earnings(4) 69 98 (29)% 81 81 1%
Headline earnings 44 98 (55)%
Net incurred debt(5) 1 536 1 432 7%
Cash conversion(6) 63% 72%
1. The Group uses adjusted income statement reporting as non-IFRS measures in evaluating performance and to provide
consistent and comparable reporting. Refer to the policy and "Reconciliations" section on pages 6-8 of the Mediclinic
Abridged Results.
2. The percentage variances are calculated in unrounded dollar values and not in millions.
3. Adjusted earnings before interest, tax, depreciation and amortisation ("EBITDA").
4. Earnings refers to earnings attributable to equity holders.
5. Net incurred debt reflects bank borrowings and excludes IFRS 16 lease liabilities.
6. Cash conversion is calculated as cash generated from operations as a percentage of adjusted EBITDA.
Adjusted results
The Group performance for the six months to 30 September 2023 was impacted by a weak performance in Switzerland,
partially offset by an outperformance in the Middle East. Group revenue was up 5% at $2 199m (1H23: $2 102m) and up
5% in constant currency terms. This result was driven by a 1.3% growth in inpatient admissions and a 3.9% growth in day
case admissions, partly offset, however, by lower average revenue per case due to mix changes and below-inflation tariff
increases. The strong growth in day case admissions confirms the ongoing outmigration of care trend which the Group is
addressing through its strategy of expanding across the continuum of care, entering new care settings outside of the hospital
environment.
Adjusted EBITDA was down 4% at $285m (1H23: $297m) and down 3% in constant currency terms. The Group's adjusted
EBITDA margin was 13.0% (1H23: 14.2%). This decline reflected a softer revenue performance coupled with increased
employee and contractor costs in Switzerland as well as additional employee and energy costs in Southern Africa, the latter
due to increased loadshedding.
OUTLOOK FOR THE YEAR ENDING 31 MARCH 2024
Mediclinic continues to navigate the post-pandemic environment, which has introduced both macro-economic and sector-
specific challenges. With its diversified portfolio and expanding footprint across the continuum of care, Mediclinic remains
highly focussed on revenue growth and delivering operational and cost-efficiencies.
FY24 guidance
For the year to date, Mediclinic has seen a marginal improvement in group-wide performance in the second half of the
financial year ending 31 March 2024.
In Switzerland, Hirslanden expects to deliver FY24 revenue broadly in line with FY23 and an EBITDA margin around
13% (FY23: 14.7%).
Mediclinic Southern Africa expects to deliver FY24 revenue growth of around 6% and an EBITDA margin of around 18%
(FY23: 19.4%).
Mediclinic Middle East expects to deliver FY24 revenue growth of around 9% and an EBITDA margin of around 14%
(FY23: 14.4%).
Enquiries:
Remgro Investor Relations investor.relations@remgro.com
The information contained in this voluntary announcement has not been reviewed or reported on by Remgro's independent
external auditors.
Stellenbosch
15 March 2024
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Date: 15-03-2024 05:05:00
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