Romania’s biggest private medical services provider, MedLife, reported a consolidated net profit of RON 10.5 million (EUR 2.2 mln) in the first half of the year, 72.4% more than in the same period last year. The company’s shares rose 3.2% on the news, on August 13.
The revenues increased by 25.7% year-on-year to RON 472.2 mln (EUR 99.4 mln). The expansion of the revenue base is a result of the significant organic increase in all the group's business lines, mainly hospitals, clinics and dentistry, as well as a result of the acquisitions completed by MedLife in 2018 and 2019. The operating expenses amounted to RON 444.1 mln (EUR 93.5 mln), 23.9% more than last year.
Under these circumstances, MedLife boasted 65% higher consolidated operating profit in the first half of 2019 compared to the previous year, namely RON 28.1 mln (EUR 5.9 mln). But the operational results were eroded by 92% larger financial costs this year: the loss from the financial operations was RON 14.4 mln or EUR 3.0 mln.
The market capitalisation of the company is about RON 708.6 mln (EUR 149 mln). The total liabilities rose by 21% year-to-date to RON 697.2 mln on June 30, 2019 (out of which RON 382.2 mln are long-term debts), compared to total assets worth RON 883.7 mln.
(Photo source: the company)
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