MEDICLINIC International’s headline earnings per share shot up to 8.8 pence in the six months to September 30 compared with the 2.4 pence reported in the same period in 2021 as the hospital group returned to pre-pandemic levels in all its three divisions.
The group, with divisions in Switzerland, southern Africa, and the United Arab Emirates, lifted adjusted earnings before interest, tax and amortisation (Ebitda) by 46 percent, broadly in line with pre-pandemic levels, and up 5 percent in constant currency compared with the first half of 2020.
There had been a strong recovery in patient volumes these exceeded pre-pandemic levels at Hirslanden and Mediclinic Middle East.
The group cared for around 78 000 Covid-19 patients requiring hospitalisation during the period, group chief executive Dr Ronnie van der Merwe said in a presentation.
Ebitda was driven by revenue growth and Ebitda margin improvement to 15.8 percent from 12.1 percent.
Group revenue increased 12 percent due to growth in patient activity – revenue was up 4 percent on pre-pandemic levels.
Adjusted operating profit was up 122 percent to £147m (R3 billion), and was 2 percent higher than the pre-pandemic first half in 2020.
Net incurred debt continues to reduce, down £269m compared with the prior period and £349m compared with pre-pandemic period
Liquidity strengthened to £770m of cash and available facilities compared with £679m at the end of the 2021 financial year supported by recovery in operating performance and strong group cash conversion.
The dividend remained suspended to maintain the liquidity position.
The group expected to deliver revenue growth for the full 2022 financial year, ahead of previous guidance, at all three divisions, said Dr Van der Merwe.
Mediclinic Southern Africa reported first half earnings of R714m versus a R52m loss in the first half of 2021 and R669m profit in the first half of 2020.
Mediclinic Middle East reported earnings of Emirati Durham (AED) 114m (R476m) versus AED63m in the first half of 2021 and AED33m in the same period in 2020.
Hirslanden generated earnings of 24m Swiss franc (R400m) in the first half compared with 8m Swiss franc in the first half of 2020 and 26m Swiss franc in the same period in 2020.
Dr Van der Merwe said the group continued to effectively navigate the Covid-19 pandemic and was continuing with its strategy to expand across the range of care to deliver future growth opportunities. It was also progressing with digital initiatives to enhance patient pathways and deliver seamless integrated care.
The strong first-half performance had positioned the group well for the second half of the year, he added.
edward.west@inl.co.za
BUSINESS REPORT ONLINE