Interim report January–March 2024

• Revenue amounted to €498.8m (€419.3m), an increase of 18.9% with an organic growth of 14.2%.
• Operating profit (EBIT) was €19.0m (€10.7m), an increase of 78.0%, representing an operating margin of 3.8% (2.6%).
• Net profit amounted to €6.5m (€2.1m), which represents a margin of 1.3% (0.5%).
• EBITDA was €67.2m (€54.3m), an increase of 23.9%. EBITDA margin was 13.5% (12.9%).
• EBITDAaL amounted to €40.6m (€30.6m), an increase by 32.8%, corresponding to an EBITDAaL margin of 8.1% (7.3%).
• Net cash flow from operating activities was €78.5m (€61.4m).
• Basic/diluted earnings per share were €0.041 (€0.010).

REVENUE AND EARNINGS

€ millions (€m)	Q1 2024	Q1 2023	Variance	LTM1)	FY 2023
Revenue	498.8	419.3	19%	1,825.9	1,746.4
Operating profit (EBIT)	19.0	10.7	78%	69.7	61.4
Operating profit margin	3.8%	2.6%		3.8%	3.5%
Net profit	6.5	2.1	199%	22.8	18.4
Net profit margin	1.3%	0.5%		1.2%	1.1%
Basic/diluted earnings per share, €	0.041	0.010	310%	0.149	0.118
EBITDA	67.2	54.3	24%	256.7	243.8
EBITDA margin	13.5%	12.9%		14.1%	14.0%
Adjusted EBITDA	70.1	57.4	22%	266.6	253.9
Adjusted EBITDA margin	14.1%	13.7%		14.6%	14.5%
EBITDAaL	40.6	30.6	33%	154.9	144.9
EBITDAaL margin	8.1%	7.3%		8.5%	8.3%
Adjusted EBITDAaL	43.5	33.7	29%	164.8	155.0
Adjusted EBITDAaL margin	8.7%	8.0%		9.0%	8.9%
EBITA	23.8	16.0	49%	90.4	82.6
EBITA margin	4.8%	3.8%		5.0%	4.7%

Definition and reconciliation of alternative performance measures are available at www.medicover.com/financial-information.
¹⁾ LTM: last twelve months (1 April 2023-31 March 2024)

CEO Statement

I am pleased to be able to report a strong start to the year with good demand levels across the businesses as well as robust margin expansion and strong cash generation.

Annual run rate revenue for the quarter is just short of €2bn. Putting a historic perspective on our growth rate, it took us 25 years to reach our first quarter with €1bn revenue run rate in the third quarter 2020 from our start in the summer of 1995, and it took us then 3.5 years to reach where we are now.

Both divisions have performed well. In the Healthcare Services division, members have increased by a historic strong 54 thousand, the second strongest member growth quarter since the IPO, illustrating the strong demand for our services, on the back of strong labour markets. Meanwhile, in the Diagnostic Services division we see strong volume growth, the number of laboratory tests have increased by 13.7%, and excluding the prior year remaining Covid-19 volume and the disposal of the business in Belarus, test volume is up a healthy 17.4%.

In the quarter we also see a robust margin expansion in both divisions, illustrating improving capacity utilisation and efficiency enhancements.

Revenue for the quarter continued to grow strongly and was up 18.9% to €498.8m (€419.3m), with an organic growth of 14.2%. Fee-For-Service and other services (FFS) increased by 12.3% in the quarter, now representing 57% of total revenue.

EBITDA in the quarter increased by 23.9% to €67.2m (€54.3m), representing an EBITDA margin of 13.5% (12.9%).

Healthcare Services revenue grew by a very strong 23.8% to €341.8m (€276.1m), with an organic growth of 17.4%, whereof price representing approximately 5.0pp of this growth.

At the end of the quarter the division had 1.8 million members, growing with 54 thousand new members over the quarter. FFS increased by 16.6% in the quarter and represented 52% of divisional revenue.

EBITDA grew by 34.5% in the quarter to €46.0m (€34.2m), an EBITDA margin of 13.5% (12.4%). As new hospital capacity gradually matures and capacity fills up, it is expected and positive to see that margins gradually improve.  

Diagnostic Services revenue amounted to €163.1m (€149.1m), an increase by 9.4%, with an organic growth of 7.9%, with price representing approximately 3.0pp of this growth.

The laboratory test volume increased by 13.7% and 35.7 million tests were performed in the quarter (31.4 million). FFS increased by 5.6% in the quarter, now representing 67% of divisional revenue.

EBITDA amounted to €30.2m (€26.5m), an increase of 14.4%, an EBITDA margin of 18.5% (17.7%). Good volume growth across all activities and countries have increased profitability.

Medicover Poland has once again been awarded the Service Quality Star in the category of private medical facilities. This is something that we are very proud of as it is proof of high customer satisfaction.

We continue to be confident for the rest of the year and are on a good path to achieve 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.
For full report, see attached pdf.

This is information that Medicover AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out below at 7.45 (CEST) on 26 April 2024. This interim report and other information about Medicover is available at medicover.com.

Financial calendar
Annual general meeting                                                                                                 26 April 2024, 13.00 CEST
Interim report April-June                                                                                                 25 July 2024, 7.45 CEST
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