Medicover: Year-end report January-December 2024

STOCKHOLM, Feb. 12, 2025 /PRNewswire/ -- Fourth quarter

• Revenue amounted to €555.8m (€461.9m), an increase of 20.3% with an organic growth of 18.6%.
• Operating profit (EBIT) was €23.3m (€19.0m), representing an operating margin of 4.2% (4.1%).
• Net profit amounted to €7.4m (€8.6m), which represents a margin of 1.3% (1.9%).
• EBITDA was €73.2m (€66.4m), an increase of 10.2%. EBITDA margin was 13.2% (14.4%).
• EBITDAaL amounted to €44.0m (€40.8m), an increase by 7.8%, corresponding to an EBITDAaL margin of 7.9% (8.8%).
• Net cash flow from operating activities was €64.2m (€42.5m).
• Basic/diluted earnings per share were €0.058 (€0.078).

Full year

• Revenue amounted to €2,091.8m (€1,746.4m), an increase of 19.8% with an organic growth of 16.7%.
• Operating profit (EBIT) was €70.3m (€61.4m), representing an operating margin of 3.4% (3.5%), impacted by an impairment charge of €-16.4m.
• Net profit amounted to €14.6m (€18.4m), which represents a margin of 0.7% (1.1%).
• EBITDA was €284.9m (€243.8m), an increase by 16.9%. EBITDA margin was 13.6% (14.0%).
• EBITDAaL amounted to €173.0m (€144.9m), corresponding to an EBITDAaL margin of 8.3% (8.3%).
• Net cash flow from operating activities was €261.9m (€205.0m).
• Basic/diluted earnings per share were €0.112 (€0.118).
• The board of directors proposes a dividend for 2024 of €0.15 (€0.12) per share.

REVENUE AND EARNINGS

Definition and reconciliation of alternative performance measures are available at www.medicover.com/financial-information.

CEO STATEMENT

"In 2024, we have continued our impressive growth journey and capitalised on the significant growth investments in previous years. We focused on business as usual, meaning filling up capacity in the hospital network, enhancing operational efficiency, broadening our service offering and integrating facilities. We have seen a consistent increase in revenue, membership and service volume across divisions and geographies alongside a strong cash flow and expanding operating margins in both our divisions, which remain a key focus for us.

Both reporting segments significantly strengthened respective margins, which stemmed from increased scale, good cost and price management, with more efficiency and maturity in our network. Further increasing capacity utilisation is the key for continued margin expansion and we expect that to continue going forward.

Revenue for the quarter amounted to €555.8m (€461.9m), an increase of 20.3%, with organic growth at 18.6%. 

EBITDA in the quarter increased by 10.2% to €73.2m (€66.4m), corresponding to a margin of 13.2% (14.4%). Remember that in the comparative fourth quarter 2023, we derecognised contingent consideration for past acquisitions in the income statement, which meant €6.9m lower central administrative costs in Q4 2023. Adjusted for €6.9m, as these costs are non-operational and one-off in nature, we had an EBITDA margin expansion of 27 basis points (bps) in the current quarter compared to last year, while at EBIT level margin expansion was a strong 157 bps, illustrating very well the operational leverage across the business as we grow scale and maturity.

Healthcare Services revenue grew by 21.3% to €393.4m (€324.4m) in the quarter, with an organic growth of 19.2%, whereof price representing approximately 8.5pp of this growth. At the end of the quarter the division had 1.8 million members, growing by 18 thousand new members in the quarter. 

Healthcare Services EBITDA grew by 27.4% in the quarter to €59.0m (€46.2m), an EBITDA margin of 15.0% (14.3%). Operating profit (EBIT) margin increased even stronger, by 211 bps to 6.1% (4.0%), very well illustrating the strong development. The Polish businesses, mainly sports, ambulatory and fertility services as well as the Romanian businesses contributed to margin improvements.

Diagnostic Services revenue amounted to €169.2m (€143.1m) in the quarter, an increase of 18.3%, with an organic growth of 17.3%, with price representing approximately 4.4pp of this growth. The laboratory test volume increased strongly by 13.5% with 33.2 million tests performed in the quarter (29.3 million). 

Diagnostic Services EBITDA amounted to €27.2m (€20.4m), an increase of 33.0%, an EBITDA margin of 16.1% (14.3%). Also here, operating profit (EBIT) margin expanded even stronger with 271 bps to 7.8% (5.1%), a very strong development. Increased test volume, cost management and efficiency contributed to margin expansion. 

We continue to report very strong cash flow, with net cash from operating activities increasing 52% versus the prior year quarter to €64.2m.

In December, we announced that we are evaluating a potential listing in India of our Indian hospital business to further support its growth ambitions. The evaluation is still in an early phase, and we expect the process to take 12-24 months. The evaluation is a testament to our confidence in the Indian market, and in the Indian business which we believe is well placed to grow with its current capacity. As a part of changed capital and management focus, we also announced that we have decided to leave Hungary and dispose of the insurance business in Hungary. It is a small and low margin business and is dilutive to the division's margins.

In 2025, we will continue to prioritise increased utilisation, operational efficiency, and sustainable growth.

We are favourably positioned to successfully achieve and exceed our three-year financial targets for 2025.

Financial targets for 2025:

• organic revenue in excess of €2.2bn
• an adjusted organic EBITDA in excess of €350m
• loans payable net of cash and liquid short-term investments/adjusted EBITDAaL ≤3.5x

Our cornerstone for sustained growth and profitability lies in our dedicated and exceptional workforce, who consistently deliver high-quality healthcare, diagnostic services, and back-office support. A heartfelt thank you to each one of you, with special recognition to our colleagues in Ukraine. Your unwavering commitment to supporting clients and achieving remarkable results in challenging circumstances is truly inspiring — thank you!"

Fredrik Rågmark
CEO

This report has not been subject to review by the Company's auditor.
For full report, see attached pdf.

This is information that Medicover AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication through the agency of the contact person set out below at 7.45 (CET) on 12 February 2025. This year-end report and other information about Medicover is available at medicover.com.

Financial calendar
Annual report                                                                                               week 13 2025
Interim report January-March                                                                      29 April 2025, 7.45 CEST
Annual general meeting                                                                              29 April 2025
Interim report April-June                                                                             24 July 2025, 7.45 CEST
Interim report July-September                                                                   5 November 2025, 7.45 CET

For further information, please contact:
Hanna Bjellquist, Head of Investor Relations
Phone: +46 70 303 32 72
E-mail: hanna.bjellquist@medicover.com 

Conference call: A conference call for analysts and investors will be held today at 09.30 CET. If you wish to participate via webcast please register here. Via the webcast you can ask written questions. If you wish to participate via teleconference, please register here. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

Medicover is a leading international healthcare and diagnostic services company and was founded in 1995. Medicover operates a large number of ambulatory clinics, hospitals, specialty-care facilities, laboratories and blood-drawing points and the largest markets are Poland, Germany, Romania and India. In 2024, Medicover had revenue of €2,092 million and more than 47,000 employees. For more information, go to www.medicover.com

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