Q3 2024 Medicover AB Earnings Call Transcript
Key Points
- Medicover AB (FRA:5M0B) reported a strong third quarter with organic revenue growth of 17.4%, driven by both divisions.
- Operating cash flow reached EUR 240.2 million, marking an 18% increase compared to the same period last year and the strongest quarter ever on a rolling 12-month basis.
- Healthcare services division showed impressive organic growth of 18.3%, with a balanced contribution from price and volume increases.
- Diagnostic services experienced solid growth with a 15.5% increase, driven by a strong test mix and volume growth.
- The company is on track to meet its financial targets for 2025, with a current revenue run rate of EUR 2.1 billion, indicating strong future performance.
- Medicover AB recorded an impairment charge of EUR 16.4 million related to its Nordic fertility businesses and German dental activities, impacting net profit.
- The company faces challenges in Germany due to stable pricing amidst cost inflation, although efforts are being made to mitigate these impacts.
- New hospital units in India contributed a negative EUR 5 million to EBITDAaL, affecting overall group margins.
- The competitive landscape in India remains challenging, with significant local competition for resources and capacity.
- Despite strong growth, the employment market in Poland presents a mixed picture, with high minimum wage growth impacting employers' hiring decisions.
So good morning, everyone. Nice of you to join us for our third quarter results presentation. Before I start going into the presentation, I would just like to mention that this is then the last quarter when we have Joe Ryan, our CFO, who will be taking us through the results today. I will be coming back to Joe at the end of the presentation today. And also, we have in the room with us here, Anand Patel, who you have seen, we have recruited in as successor to Joe who sits in on the presentation today, although he will not be speaking, but just so you're all aware that both of them are in the room.
So the third quarter, overall message, a very good quarter, actually very strong and robust delivery. We continue the very strong invisible trend we have reported throughout the first half of the year with strong and even increasing organic revenue growth coupled with expanding margins in both divisions as we will go through in detail. And in addition to that, very strong operating cash flow. So I think those are the sort of three
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