ЕМС announces H1 2021 IFRS financial results

MC consistently returns some of the highest margins among public healthcare companies globally

Nicosia, Cyprus, 30 August 2021. United Medical Group CY PLC (hereafter the “company”, and together with its subsidiaries the “group” or “EMC”; Moscow Exchange ticker GEMC), a leading multidisciplinary provider of premium healthcare services in Russia operating under the European Medical Center brand, has announced its IFRS financial results for the six months to 30 June 2021 (H1 2021).

KEY H1 2021 FINANCIALS RESULTS

• Adjusted revenues rose by 18.3% YoY to EUR 134.3 mln, driven by increases in both the number of visits and the average bill.
• Operating profit climbed by 63.7% YoY to EUR 47.3 mln on the back of higher revenues and ongoing SG&A optimisation.
• Adjusted EBITDA increased by 52% YoY to EUR 56.1 mln. The adjusted EBITDA margin was 41.8%, one of the highest among public healthcare companies globally.
• Net profit rose by more than 100% YoY to EUR 39.37 mln.
• Capex fell by 37.6% YoY to EUR 11.6 mln as the company passed the peak of its investment cycle.
• Net debt was down to EUR 100.9 mln as of 30 June 2021 from EUR 137.7 mln at the end of 2020. The debt load fell below 1.0x, its lowest level for three and a half years.

KEY H1 2021 OPERATING RESULTS 

• Outpatient visits rose by 22.2% YoY to 296,010. This was primarily for general treatment, physiotherapy, cardiology, neurology, and ophthalmology.
• The average bill for outpatient services rose by 4.4% YoY to EUR 259, a stable increase as compared to the H1 2020.
• Inpatient admissions were down by 2.7% to 8,275 due to a change in the structure of services provided under compulsory health insurance schemes. The focus moved from day-patient chemotherapy to outpatient radiotherapy.
• The average bill for inpatient services rose by 14.8% to EUR 6,266 due to a larger share of integrated and high-tech medical services.

EMC CEO Andrey Yanovsky commented:

“The key event of H1 2021 was the company's IPO on the Moscow Exchange. The listing was significant for the whole of Russia’s private healthcare market, being as it was the sector’s first IPO for almost 10 years. We were happy that investors showed such a keen interest in the EMC's investment story, and that both internationally renowned institutional investors and a broad range of retail investors became shareholders.

Despite the significance and scale of this step, we have not let the success of the IPO distract us from what we do best: running our business in the most efficient manner and offering our customers the highest standard of healthcare from highly qualified specialists employing advanced equipment and technology. I am happy to report that the company delivered strong operating and financial performances in H1 2021, in line with our planned growth trajectory. Revenues rose by 18% to EUR 134 mln, driven by increases in the number of visits and the average bill. Adjusted EBITDA rose by 52% YoY, while the adjusted EBITDA margin expanded by 10.3 ppt YoY to 41.8%, one of the highest levels among public healthcare companies globally. This was possible thanks to our successful business development and ongoing focus on operating efficiency. We also doubled net profit in the reporting period.

The company has been undergoing a period of active investment, which peaked in 2019 as capex decreased YoY in H1 2021. Meanwhile, EMC's future development strategy will be built around its existing base of modern, high-tech clinics, which alongside the company’s comfortable debt load and consistently high cashflows, creates the necessary prerequisites for generous dividends. To confirm our intentions, the board of directors has recommended a dividend payout of EUR 76 mln for 2020, which is fully in line with the plans that we announced during the IPO.

We remain focused on achieving our key goals, increasing our operating efficiency, and offering our customers a consistently high standard of healthcare. EMC's results were fully in line with management's expectations, and I look forward enthusiastically to announcing our first annual financial results as a public company.”

KEY FINANCIALS 

About the company

EMC is a leading multidisciplinary provider of premium healthcare services in Russia with the longest track record of any major private healthcare business in this market. EMC is a fully integrated healthcare services provider offering a comprehensive range of diversified medical services, and has advanced capabilities in more than 57 specialisations, differentiating it from the competition in Russia. The company utilises a patient-centric approach to its healthcare services offering, which allows it to provide patients with a full range of diagnostics and treatment services as well as offer tailor-made medical care.

EMC also is a leading Russian provider of cancer treatment with extensive expertise in a full range of modern oncology treatment methods, state-of-the-art facilities and equipment as well as renowned experts with international experience.

EMC’s network comprises seven multidisciplinary medical centres, one maternity centre and one rehabilitation centre (with a total built-up area of approximately 87 thousand square metres), as well as three geriatric centres (with a total built-up area of approximately 14 thousand square metres). As at 30 June 2021, the Group had 2,593 employees, comprising 752 physicians, 1,472 nurses and other medical staff and 369 administrative and support staff.

Company’s depository receipts have traded on Moscow Exchange since July 15, 2021, under the ticker “GEMC”.  

 Contacts

Investor relations                                 

EMC

Dmitriy Ivanov
Head of Investor Relations
ir@emc-investors.com pr@emcmos.ru
https://emc-investor.com/ https://t.me/emcinvestor

Media relations

EM

UMG PR

Dmitriy Zhadan
zhadan@em-comms.com 

Ekaterina Shatalova
shatalova@em-comms.com

Important Note

NEITHER THIS ANNOUNCEMENT NOR THE INFORMATION CONTAINED HEREIN IS FOR PUBLICATION, DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR TO ANY PERSON IN ANY OF THOSE JURISDICTIONS OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE LAWS OF SUCH JURISDICTION.

These materials are not intended to and do not constitute investment advice. These materials do not constitute or form any part of and should not be constructed as an offer or commitment to sell or issue, a solicitation, recommendation, commitment or invitation to subscribe for, underwrite or otherwise acquire, and should not be construed as an advertisement for, any securities of United Medical Group CY PLC or any member of its group in any jurisdiction or an inducement to enter into investment activity in any jurisdiction.