Mediclinic International

  • 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.

Mediclinic International