Shares of Romanian medical services group MedLife drop after reporting 60% smaller profit in 2022

The shares of private medical services provider MedLife (BVB: M) fell by approximately 3% on February 24 after the company said its net profit dropped by 60% YoY in 2022 and was negative in the last quarter of the year, Ziarul Financiar reported.

Thus, MedLife, an entrepreneurial company whose shares are part of the BET index, ended 2022 with consolidated revenues of RON 1.82 bln (EUR 360 mln), compared to RON 1.4 bln in 2021. The net result, however, decreased by 60% YoY to RON 44.4 mln (EUR 8.8 mln).

The company has a market capitalisation of nearly RON 2.5 bln (EUR 500 mln).

MedLife recorded RON 11 mln in Q4 last year, compared to a net profit of RON 18 mln in the same quarter of 2021, according to BT Capital Partners analysts.

"In the case of MedLife, we saw how expenses, both operational and financial, grew at a much faster pace than revenues, which is why profitability decreased by 60% compared to last year. The company announced that it would adopt a more cautious strategy this year, and it will be a period of business consolidation", commented Goldring broker Radu Cojoc.

(Photo source: MedLife)