In 9M 2022, MedLife recorded a revenue increase of 27% YoY, an EBITDA decrease of 12%, and a net profit of RON 56.8m, a decrease of 42% YoY.
During the 9M 2022, sales revenue amounted to RON 1.32bn, an increase of 27% YoY. The increase was mainly a result of 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 50% and 15%, respectively.
Operating expenses amounted to RON 1.24bn, an increase of 38% YoY. The largest increase was recorded in the commodities expenses, which grew by 175.6% YoY to RON 153.5m. This came as a result of the Pharmachem consolidation, the pharmaceutical distributor company. Consumable materials and repair materials also grew, increasing by 26.3% YoY to RON 224.7m. Salary and related expenses also increased, growing by 32% YoY to RON 322.3m.
Due to strong OPEX growth, which outweighed the growth on the top line, the EBITDA decreased by 12% YoY and amounted to RON 198.1m. This would mean that the EBITDA margin also decreased, by 6.6 p.p. to 15%. Moving further down the P&L, the financial result amounted to RON 27.9m, a decrease of 0.5% YoY. Due to the lower op. profitability, the earnings before taxes (EBT) also decreased, by 43% YoY to RON 67.5m. As a result, the income tax declined by 44.7% YoY to RON 10.7m, implying an effective tax rate of 215.9%, a decrease of 0.5 p.p. YoY. Finally, the net income amounted to RON 56.8m, a decrease of 42.4% YoY.
MedLife key financials (9M 2022 vs. 9M 2021, RONm)
Source: MedLife, InterCapital Research
Moving on to the balance sheet, total assets increased by RON 1.88bn, an increase of 32.8% YoY. This came mainly because of the many acquisitions the Company made during the period. Breaking this down further, total non-current assets increased by 36.5%, to RON 1.41bn, driven by higher goodwill (+69% YoY), higher property, plant, and equipment (+25% YoY), and higher other financial assets (+230% YoY). Current assets also increased, mainly driven by higher trade receivables (+39% YoY), and higher other assets (+158% YoY).
On the other hand, growth in liabilities was driven by higher non-current liabilities (+46.3% YoY to RON 909.3m), driven by higher interest-bearing loans and borrowings (+59.1% YoY), and current assets (+27.6% YoY to RON 528.9m). This, in turn, was driven by higher trade and other payables (+26.6% YoY to RON 283.8m), and higher current interest-bearing loans and borrowing (+44.5% YoY).
