Interim report April–June 2024

Second quarter

• Revenue amounted to €509.4m (€424.7m), an increase of 20.0% with an organic growth of 16.5%.
• Operating profit (EBIT) was €21.3m (€13.2m), an increase of 61.4%, representing an operating margin of 4.2% (3.1%).
• Net profit amounted to €5.9m (€7.2m), which represents a margin of 1.2% (1.7%).
• EBITDA was €70.6m (€58.3m), an increase of 21.1%. EBITDA margin was 13.8% (13.7%).
• EBITDAaL amounted to €43.3m (€33.9m), an increase by 27.9%, corresponding to an EBITDAaL margin of 8.5% (8.0%).
• Net cash flow from operating activities was €47.4m (€43.6m).
• Basic/diluted earnings per share were €0.042 (€0.037).

First half

• Revenue amounted to €1,008.2m (€844.0m), an increase of 19.5% with an organic growth of 15.5%.
• Operating profit (EBIT) was €40.3m (€23.9m), representing an operating margin of 4.0% (2.8%).
• Net profit amounted to €12.4m (€9.3m), which represents a margin of 1.2% (1.1%).
• EBITDA was €137.8m (€112.6m), an increase by 22.4%. EBITDA margin was 13.7% (13.3%).
• EBITDAaL amounted to €83.9m (€64.5m), corresponding to an EBITDAaL margin of 8.3% (7.6%).
• Net cash flow from operating activities was €125.4m (€105.0m).
• Basic/diluted earnings per share were €0.084 (€0.047).

REVENUE AND EARNINGS

€ millions (€m)	Q2 2024	Q2 2023	Variance	6M 2024	6M 2023	Variance	LTM1)	FY 2023
Revenue	509.4	424.7	20%	1,008.2	844.0	19%	1,910.6	1,746.4
Operating profit (EBIT)	21.3	13.2	61%	40.3	23.9	69%	77.8	61.4
Operating profit margin	4.2%	3.1%		4.0%	2.8%		4.1%	3.5%
Net profit	5.9	7.2	-16%	12.4	9.3	34%	21.5	18.4
Net profit margin	1.2%	1.7%		1.2%	1.1%		1.1%	1.1%
Basic/diluted earnings per share, €	0.042	0.037	14%	0.084	0.047	79%	0.155	0.118
EBITDA	70.6	58.3	21%	137.8	112.6	22%	269.0	243.8
EBITDA margin	13.8%	13.7%		13.7%	13.3%		14.1%	14.0%
Adjusted EBITDA	74.4	61.1	22%	144.5	118.5	22%	279.9	253.9
Adjusted EBITDA margin	14.6%	14.4%		14.3%	14.0%		14.6%	14.5%
EBITDAaL	43.3	33.9	28%	83.9	64.5	30%	164.3	144.9
EBITDAaL margin	8.5%	8.0%		8.3%	7.6%		8.6%	8.3%
Adjusted EBITDAaL	47.1	36.7	28%	90.6	70.4	29%	175.2	155.0
Adjusted EBITDAaL margin	9.2%	8.6%		9.0%	8.3%		9.2%	8.9%
EBITA	26.2	18.6	41%	50.0	34.6	45%	98.0	82.6
EBITA margin	5.1%	4.4%		5.0%	4.1%		5.1%	4.7%

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

¹⁾ LTM: last twelve months (1 July 2023-30 June 2024)

CEO Statement

We continue to deliver strong organic revenue growth and see continued strong momentum in our core markets, with high demand across divisions and geographies, especially in Poland.

The margin expansion and strong operating cash generation we saw in the first quarter have continued in the second quarter, which is tangible proof of the operational leverage as we scale volume in our medical infrastructure. 

Revenue for the quarter was up 20.0% to €509.4m (€424.7m), with an organic growth of 16.5%. Fee-For-Service and other services (FFS) increased by 16.1% in the quarter, now representing 56% of total revenue.

EBITDA in the quarter increased by 21.1% to €70.6m (€58.3m), representing an EBITDA margin of 13.8% (13.7%).

Healthcare Services revenue grew by a very strong 20.6% to €352.6m (€292.5m), with an organic growth of 16.4%, whereof price representing around half.

At the end of the quarter, the division had 1.8 million members, growing by 35 thousand new members in the quarter. FFS increased by 18.6% in the quarter and represented 52% of divisional revenue.

EBITDA grew by 22.0% in the quarter to €54.6m (€44.8m), an EBITDA margin of 15.5% (15.3%), driven by most businesses but especially apparent in our Polish platform. We continue to see improving profit impact from our India facilities becoming more mature. However, this was slightly offset by the hospital in Romania opened in late Q2 2023 and new immature units in India. These are, on the other hand, important initiatives for long-term growth and profitability, and after the end of the quarter, we have opened two new greenfield hospitals in India. In the near term, our primary focus in India is to mature our hospitals to keep driving margin improvement.

Diagnostic Services revenue amounted to €162.9m (€138.1m), an increase of 17.9%, with an organic growth of 16.0%, with price representing approximately 2.3pp of this growth.

This quarter, too, we saw strong volume growth in the laboratory business. The laboratory test volume increased by 19.4%, and 34.7 million tests were performed in the quarter (29.1 million). Germany continues to drive large volumes, while we continue to grow in our important FFS markets. FFS increased by 11.2% in the quarter, now representing 66% of divisional revenue.

EBITDA amounted to €26.4m (€20.3m), an increase of 29.8%, and an EBITDA margin of 16.2% (14.7%) – primarily an effect of our growing FFS revenue. These are comforting signs as we still have additional margin-accretive initiatives to implement across the Division.

We are continuing to demonstrate that we can grow well organically and improve margins, and this makes me confident that we are on a good path to achieving the medium-term financial targets for the period 2023-2025.

Financial targets by year-end 2025:

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

Fredrik Rågmark
CEO

This report has not been subject to review by the Company’s auditor.

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 (CEST) on 25 July 2024. This interim report and other information about Medicover is available at medicover.com.

Financial calendar
Interim report July-September                                                                    30 October 2024, 7.45 CET

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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 2023, Medicover had revenue of €1,746 million and more than 45,000 employees. For more information, go to www.medicover.com