In 9M 2022, MedLife recorded a revenue increase of 23% YoY, an EBITDA increase of 9.9%, and a net profit of RON 3.8m, a decrease of 93.3% YoY.
During the 9M 2023, sales revenue amounted to RON 1.63bn, an increase of 22.9% YoY. The increase was mainly driven by growth in almost all of the Group’s business lines, as well as the impact of acquisitions completed by the Group in 2022. The best-performing segments were the clinics and the hospitals, with a growth of 36% and 28%, respectively. Further, the corporate division noted a 16% increase, while laboratories too noted a double-digit 12% increase in the top line. Overall, the company’s gradual shift in recent years from preventive services to hospital and oncology services has resulted in greater resilience for the Group, regardless of the macroeconomic situation. Q3 was marked by the opening of two new oncology centers under the Neolife umbrella.
Operating expenses amounted to RON 1.56bn, an increase of 26.2% YoY. The largest increase was recorded in the Third-party expenses, which grew by 34.3% YoY to RON 456.5m. Salary and related expenses are to follow with 25% YoY growth to RON 402.9m on the back of a stronger top line.
As top line grew more pronounced compared to OPEX growth, the EBITDA increased by 9.9% YoY and amounted to RON 217.7m. This would mean that the EBITDA margin slightly decreased, by 1.6 p.p. to 13.4%. However, operating profit (EBIT) amounted to RON 76.8m and decreased 19.5%. Moving further down the P&L, the financial result dragger the Group’s profitability. Net financial loss amounted to RON 61.6m – increasing more than 2x to a comparable period last year. Due to the lower op. profitability further dragged by much lower Net financial result, the earnings before taxes (EBT) also decreased sharply, by 77.6% YoY to RON 15.2m. Consequently, the net income amounted to RON 3.8m, noting a decrease of 93.3% YoY.
MedLife key financials (9M 2023 vs. 9M 2023, RONm)
Source: MedLife, InterCapital Research
Moving on to the balance sheet, total assets increased by RON 2.5bn, an increase of 14.5% YoY. This came mainly because of the many acquisitions the Company made during the period, resulting in higher PPE & Goodwill from the transactions. Overall, total non-current assets increased by 14.8%, to RON 1.94bn. Current assets also increased, mainly driven by higher trade receivables (+7.6% YoY), and higher cash and cash equivalents (+33.2% YoY). On the other hand, growth in liabilities was driven by higher long-term interest-bearing loans and borrowings (+26% YoY) amounting to RON 1bn (from RON 803.3m).
Finally, the company commented on its outlook for the upcoming future. Medlife’s focus is on consolidating profitability margins after big investments in organic projects. Regarding acquisitions, MedLife adopts a more cautious approach but acts based on current market circumstances and trends. From an operational perspective, the main objectives include expanding the portfolio of quality doctors and sustained investments in delivering high-quality medical services.