Mediclinic Int. says growth pattern remains consistent - CNBC Africa

Mediclinic Int. says growth pattern remains consistent

Earnings

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Mediclinic Southern Africa’s cash flow continues to be strong. PHOTO: UNOmaha

“We are pleased to report the continued increase in patient numbers at all three platforms,” said chief executive, Danie Meintjes.

“Our results have benefited from this diverse geographic presence and we continue to invest to extend and further improve our service offering.”

Group revenue grew 19 per cent to 16.8 billion rand for the six months ending 30 September 2014 from 14.1 billion rand for the same period in 2013.

(READ MORE: S.Africa’s Mediclinic raises $300 mln for Swiss acquisitions)

The group, which has operations in South Africa, Namibia, Switzerland and the United Arab Emirates, also saw a revenue increase of 10 per cent in its Southern African operations.

“Mediclinic Southern Africa’s cash flow continued to be strong as it converted 88 per cent of normalised EBITDA into cash generated from operations,” it said.

The group further stated that a number of building projects were completed at various hospitals in the region during the past six months.

“Building projects in progress, which should be completed during the next six months, will add 206 additional beds. The establishment of the new Mediclinic Midstream is the most significant development,” Mediclinic said.

“Several building projects in progress should be completed during the 2016 financial year, which will create 101 additional beds.”

[DATA MDC:Mediclinic] also believes that government maintains its commitment to achieve universal coverage through the National Health Insurance (NHI) system.

“Mediclinic Southern Africa continues to support the underlying principle of universal coverage. A White Paper on the NHI is still awaited. Mediclinic Southern Africa will continue to engage with both government and other relevant stakeholders,” it said.

“The Competition Commission’s market inquiry into private healthcare has commenced. Mediclinic Southern Africa has a dedicated team working on the matter and comprehensive submissions dealing with the nature and challenges of private healthcare were addressed therein.”

(READ MORE: Mediclinic’s revenue boosted by its international divisions)

The hospital group saw its overall operating profit grow to 2.7 billion rand in the 2014 period from 2.4 billion rand in 2013 and its profit before tax increase to 2.2 billion rand from 1.8 billion rand.

Mediclinic’s basic headline earnings per ordinary share rose 10 per cent to 189 cents in 2014 from 172 cents in 2013.

“We continue to invest in growth and development across our platforms in the delivery of cost-effective quality healthcare,” it said.

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