Yahoo Finance

• Revenue: Just short of EUR510 million, with 20% top-line growth, including 16% organic growth.

• Cash Generation: Increased by 23% compared to the same period last year.

• CapEx: Reduced to 5% of revenue for the second quarter.

• Poland Revenue Growth: Increased to 50% of group revenue, growing 24% for the quarter.

• Germany Revenue Growth: 18% growth, primarily from diagnostics revenue.

• Operating Profit: Increased by more than 60%, with over a full percentage point of margin expansion.

• Adjusted EBITDAaL: Up 28% with solid margin expansion.

• Healthcare Services Revenue: Over EUR350 million for the quarter, up more than 20%, with 16% organic growth.

• Diagnostic Services Revenue: Up just short of 18% to EUR163 million, with 16% organic growth.

• EBITDA Margin for Diagnostic Services: Expanded to 12%.

• Net Debt: Increased by EUR70.51 million since the beginning of the year.

• Operating Cash Flow: EUR47.4 million for the quarter and EUR125 million for the half year.

• Free Recurring Cash Flow: EUR11.5 million for the quarter and EUR54 million for the half year.

• 2025 Financial Targets: On track for EUR2.21 billion in organic revenue and EUR350 million in adjusted EBITDA.

• Warning! GuruFocus has detected 9 Warning Signs with FRA:5M0B.

Release Date: July 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Medicover AB (FRA:5M0B) reported a strong 20% top-line growth, with 16% being organic, showcasing robust performance across both divisions.

• The company achieved a 23% increase in cash generation, highlighting effective cash conversion and financial health.

• Operating profit increased by more than 60%, with a full percentage point of margin expansion, indicating strong operational leverage.

• Healthcare Services division saw over 20% growth, with a significant portion being organic, demonstrating successful strategic execution.

• Diagnostic Services reported an 18% revenue increase, with 16% organic growth, marking the strongest organic volume growth since before the pandemic.

Negative Points

• The company experienced a drag on margins due to new unit start-ups, particularly in the Bucharest hospital, contributing negatively to EBITDA.

• In India, revenue growth was softer at 6%, impacted by the sale and closure of smaller hospital units and IVF facilities.

• The German diagnostics sector faced challenges with no price adjustments, and the proposed price reform is expected to have a negligible impact.

• Integration costs from a recent acquisition in Berlin are currently dilutive, affecting the profitability of the diagnostics division.

• Inflationary pressures, particularly wage growth in Poland, continue to impact costs, necessitating ongoing price adjustments in private pay services.