Growth in patient numbers drives profit
On the back of a successful capital raising exercise, the impact of positive currency movements, the commissioning of MediClinic Midstream in South Africa and a strong growth in patient numbers, MediClinic International reported profit of N$7.1 billion, 11% higher then the previous figure reported in 2014 while revenue grew 16% to N$35 billion.
Danie Meintjes, CEO of Mediclinic International commented: “The Group has shown continued strong growth in patient numbers at all our operating platforms. We continue to invest to support further growth across our businesses as well as in systems to enhance quality and long-term efficiency.”
The Group’s cash flow continued to be strong, converting 109% (2014: 98%) of normalised EBITDA into cash generated from operations. Cash and cash equivalents increased from N$3.5 billion as at 31 March 2014 to N$4.7 billion as at 31 March 2015. MediClinic Southern Africa’s revenue increased by 10% to N$12 billion for the period under review. Normalised EBITDA was 9% higher at N$2.6 billion. The Southern African operations contributed N$1.1 billion to the normalised headline earnings of the Group.
The 10% revenue growth in MediClinic Southern Africa was driven by a 4.4% increase in bed-days sold and a 5.8% increase in the average income per bed-day. The number of patients admitted increased by 2.3%, while the average length of stay increased by 2.1%. During the period under review a number of building projects were completed at various hospitals that created 271 additional beds as well as new consulting rooms, of which the most significant was the commissioning of MediClinic Midstream (176 beds) during March 2015. Furthermore, at Mediclinic Durbanville, a da Vinci robot was commissioned.
The number of beds increased from 7614 to 7885 during the period under review. The number of beds is expected to increase from 7885 to 8044 during the next 12 months adding 159 beds.
“We are confident in our future outlook. We acknowledge that affordability remains a challenge in the current international economic environment and for that reason need to ensure that we focus on offering value to our patients at all times. Our diversified international footprint, pooled experience, knowledge and skills will be used to improve our service offering to our patients” concluded Meintjes.