In 2019, MedLife recorded an increase in sales of 21.7% YoY, increase in ajusted EBITDA of 74.7% and an increase in net profit of 24.1%.
Medlife published their preliminary 2019 results. According to it, the company recorded sales of RON 967.4m, representing a solid increase of 21.7% YoY. According to company’s representatives, such an increase could be attributed to the solid organic growth at the level of each business line, a result of the strategy followed by the Group, which focused mainly on diversifying services and increasing presence at national level.
The largest increases were recorded at the level of Stomatology (+34%), respectively Hospitals (+32%), followed by Clinics (+27%) and Laboratories (+14%). Besides the mentioned organic growth, the company has concluded a couple of acquisitions which further increased the company’s sales.
The company’s which entered the portfolio of the Group and further boosted the sales were namely Micromedica Medical Center, Badea Medical Center of Excellence, Lotus Ploiești Hospital, Rózsakert Medical Center, and OncoTeam Laboratory. MedLife also announced last year the acquisition of OncoCard hospital, the transaction being currently analyzed by the Competition Council.
Operating expenses amounted to RON 918.6m, representing an increase of 19.9% YoY. Such an increase could be attributed to higher third-party expenses (including doctor’s agreements) by RON 58.3m (+28.3%) and salary and related expenses by RON 46.27m (+18.9%).
As a result of all the above mentioned, adjusted EBITDA observed a strong increase of 74.7%, amounting to RON 166.6m. This puts the adjusted EBITDA margin at 16.8% (+4.8 p.p. YoY). Meanwhile, note that the reported EBITDA amounted to RON 149.7m (+56.9%).
Going further down the P&L, operating profit amounted to RON 56.4m, representing an increase of 46.7% YoY. In 2019, MedLife recorded a further increase in net financial loss, which stood at RON 27.35m (+87.9% YoY).
MedLife recorded a net profit of RON 20.82m in 2019, representing an increase of 24.1% YoY.
As a reminder, the company recently announced its intention to develop the largest medical project in Romania, MedLife Park. The new unit is expected to be put into operation gradually in the next 3 to 5 years, with MedLife already carrying out a feasibility study for the project development. To read more about it, click here.
