Romanian medical group MedLife sees growing revenues but lower profit in first half

Romania’s biggest private medical services provider – MedLife (BVB ticker: M) – reported a 27% increase in revenues in the first half of 2022 to RON 865 mln (EUR 176 mln). The strong growth was supported by new acquisitions and the opening of new clinics.

However, the group’s operating expenses surged by 38% to RON 795 mln, leading to a 33% drop in the operating profit (to RON 69 mln). The biggest increase was that of “commodities expenses”, which increased fivefold to RON 99 mln, according to the group’s half-year report.

The overall net result for the first half was RON 45.6 mln (EUR 9.3 mln), down 36% compared with the same period of 2021.

MedLife continued to develop its medical infrastructure in the first half of this year by completing 12 strategic acquisitions aimed at strengthening the services offered at the national level.

The group also pursued the development of business lines that meet the needs of patients with specific, niche solutions, such as the diagnosis and treatment of cancers, through the acquisition of NeoLife or the OncoCard Brașov group, of ophthalmological conditions, through the acquisition of Opticristal, but also the integration of wellness services, by taking over the majority package of the SWEAT Concept gyms.

In the second half of the year, MedLife will pursue a balanced plan of acquisitions and investments for the development of the existing network and infrastructure.

“We will also focus on strengthening prevention services. We firmly believe that, along with the periodic consultations or medical tests, movement and sports are both preventive behaviors that can improve the health of patients, a fact that has once again proven real in the pandemic, based on studies conducted on patients recovering post-covid,” said Mihai Marcu, President & CEO of MedLife Group.

(Photo source: the company)