(Alliance News) - Mediclinic International PLC on Wednesday said "pronounced seasonality" hobbled its top-line growth in a half-year that was also marked by tough macro-economic environment.
The Stellenbosch-based private healthcare provider reported revenue of GBP1.73 billion for six months that ended September 30, up 10% from GBP1.58 billion in the prior year. In the first half of financial 2022, revenue had risen by 12%.
Mediclinic said it experienced a testing first-half due to macro-economic pressures and the effect of "pronounced seasonality" on volumes.
Adjusted earnings before interest, tax, depreciation and amortisation was GBP246 million, down 1.2% from GBP249 million. This reflected the slower increase in revenue but also high employee costs incurred due to Covid-19-related staff absenteeism and general nurse shortages in Switzerland, as well as additional headcount related to capacity expansion in the Middle East.
But pretax profit improved to GBP95 million, up 4.4% from GBP91 million.
Mediclinic decide to not declare an interim dividend, unchanged from a year ago, even though earnings per share rose by 28% to 11.3 pence from 8.8p.
The group said its takeover by a consortium led by the Johannesburg-listed investment firm Remgro Ltd is still awaiting regulatory approvals.
SAS Shipping Agencies Services Sarl is a consortium comprising Remgro and MSC Mediterranean Shipping Co SA. Remgro holds a 45% stake in Mediclinic.
The consortium in August raised its offer to 504 pence in cash for each Mediclinic share held, up 9.5% from 460p offered in May.
Going forward, Mediclinic said increasing macro-economic uncertainty, inflationary pressures, and the risk of further Covid-19 and related disruptions to staffing and scheduling, will likely hurt sequential increase in patient activity in Switzerland and Middle East.
Shares in Mediclinic were up 0.1% at 495.22 pence each in London on Wednesday morning. The shares were 0.2% lower in Johannesburg at ZAR101.31. Remgro shares were down 0.1% at ZAR140.29.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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