FY 2022
- Mediclinic International, the global hospital operator in the Remgro stable, announced a stellar set of results for the full-year to March 2022. The business recovered from the Covid pandemic as inpatient cases drove group revenue higher by 8% (surpassing pre-pandemic levels by 5%). Day visits were up by 7%, and day out-patients increased 10% in the period.
- This resulted in operating profit escalating by 34%, and EPS growth of 122%, from 9.2 pence to 20.50 pence. Debt was reduced by 14% resulting in a substantial increase in bottom line growth, and a reinstatement of the dividend of 3 pence. The group, by virtue of its global footprint, with operations in the UAE, Switzerland, and South Africa, is a Rand hedge beneficiary as it reports in Pound Sterling.
- Growth in all three operating jurisdictions is expected to continue in the year ahead, with strong cash conversion of between 90%- 100%. This enables the group to continue to deleverage the balance sheet from the current level of 3.9x. Capex is expected to increase, with opportunities in all jurisdictions, as economies reopen and tailwinds in the UAE (in the form of buoyant energy prices and increased tourism) provide optimism for the counter.
- Management sees opportunities in integrated care operations, such as digital care, with a major growth in tele-consultations, and new day care clinics. Mediclinic gave a positive outlook for 2023, with further revenue growth, margin expansion, and improved earnings. The business model appears to be more resilient than that of its SA peers, having finally and successfully bedded down its offshore operations. The share price has responded positively on the results, breaking to the upside, and the share offers prospects of long-term capital appreciation to patient investors
- Mediclinic gave a positive outlook for 2023, with further revenue growth, margin expansion, and improved earnings. The business model appears to be more resilient than that of its SA peers, having finally and successfully bedded down its offshore operations. The share price has responded positively on the results, breaking to the upside, and the share offers prospects of long-term capital appreciation to patient investors.