22 Apr 2014 09:15
MD MEDICAL GROUP
REPORTS STRONG GROWTH ACROSS ALL SERVICE LINES IN 1Q'14
22 April 2014, Moscow, Russia - MD Medical Group Investments Plc ("MD Medical Group", "MDMG" or the "Company" - LSE: MDMG), Russia's leading provider of private women's and children's healthcare, announces operating results for the first quarter of 2014.
Elena Mladova, Chief Executive Officer of MD Medical Group, said:
"I am pleased to report that we have maintained strong operational momentum in 2014, with continued growth across all key performance indicators. We are feeling the increasing benefit from the continued ramp up at Lapino, as well as growing contributions from our newly acquired clinics in the regions.
"We continue to outperform the market in terms of deliveries, with total deliveries during the quarter up 16% year-on-year, despite a decline of just over 2% in the total number of deliveries in Moscow during the same period. As before, IVF continues to represent a significant driver of growth, with IVF cycles during the quarter demonstrating strong growth of 67%.
"In-patient treatments were up by 26% during the period, and we showed an increase of 75% in out-patient treatments, on the back of a strong performance at Lapino and the consolidation of other new regional clinics.
"We expect to be able to maintain strong operating performance across our operations throughout 2014, particularly with the continued ramp up at Lapino still representing a strong source of future growth."
1Q 2014 Operating Highlights
Like-for-like [1] | ||||||
1Q'14 | 1Q'13 | Y-o-Y | 1Q'14 | 1Q'13 | Y-o-Y | |
Obstetrics and Gynaecology | ||||||
Deliveries | 1,003 | 864 | 16% | 1,003 | 864 | 16% |
In-patient treatments(except deliveries) | 4,894 | 3,847 | 27% | 4,368 | 3,847 | 14% |
Out-patient treatments | 92,257 | 56,701 | 63% | 70,736 | 56,701 | 25% |
IVF | 1,603 | 958 | 67% | 1,211 | 958 | 26% |
Paediatrics | ||||||
In-patient treatments | 2,798 | 2,326 | 20% | 2,798 | 2,326 | 20% |
Out-patient treatments | 65,713 | 42,439 | 55% | 52,423 | 42,439 | 24% |
Other medical services | ||||||
In-patient treatments | 415 | 277 | 50% | 367 | 277 | 32% |
Out-patient treatments | 34,372 | 10,738 | 220% | 18,752 | 10,738 | 75% |
Total deliveries | 1,003 | 864 | 16% | 1,003 | 864 | 16% |
Total IVF | 1,603 | 958 | 67% | 1,211 | 958 | 26% |
Total in-patient treatments | 8,107 | 6,450 | 26% | 7,533 | 6,450 | 17% |
Total out-patient treatments | 192,342 | 109,878 | 75% | 141,911 | 109,878 | 29% |
Deliveries
· The total number of deliveries increased by 16% year-on-year (y-o-y) to 1,003 (despite a 2.4% y-o-y decrease in number of deliveries in Moscow during the period). Lapino hospital was the key driver of our growth in deliveries.
IVF
· The total number of IVF cycles increased by 67% y-o-y, reaching 1,603.
· The like-for-like 1 (LFL) number of IVF cycles was up 26% y-o-y, with the largest contribution coming from our clinics in St. Petersburg and Moscow.
In-patient treatments
· The total number of in-patient treatments in 1Q'14 grew by 26% y-o-y to 8,107 on the back of:
o 27% growth of obstetrics and gynaecology ("OBGYN") in-patient treatments
o 20% increase in paediatrics in-patient days
o 50% boost on in-patient other medical services line.
· On a LFL basis, the number of in-patient treatments grew by 17% y-o-y and amounted to 7,533, owing to:
o 14% growth of OBGYN in-patient days
o 20% increase in paediatrics in-patient treatments
o 32% up in in-patient days in other medical services.
· Lapino was the largest contributor to the total growth of our 'other medical services' line, as it posted strong y-o-y growth for the period, with a further contribution from the consolidation of operating results of our Samara clinics.
Out-patient treatments
· The total number of out-patient treatments increased by 75% y-o-y and amounted to 192,342, on the back of:
o 63% boost in out-patient admissions on OBGYN line
o 55% growth in paediatrics out-patient treatments
o 220% increase in other medical services, primarily due to a growing contribution from the consolidation of operating results of our Samara clinics.
· On a LFL basis, out-patient admissions grew by 29% to 141,911, due primarily to:
o 25% increase of OBGYN out-patient treatments
o 24% growth on line for paediatrics out-patient visits
o 75% increase in other medical services, driven primarily by Lapino's departments for surgery & traumatology, rehabilitation and noticeable growth in visits to our diagnostic centres at both Lapino and PMC.
· The total increase in out-patient treatments was driven by the consolidation of newly acquired clinics and the successful ramp up at Lapino.
For further information please contact:
Investors | Media |
Elena Romanova MD Medical Group Investments PlcTel: +7 495 331 4120e.romanova@mcclinics.ru | EMMoscowTom Blackwell / Sergii Pershyn Tel: +7 495 363 2849MDMG@em-comms.com |
Consilium Strategic CommunicationsLondonEmma Thompson / Matthew Neal Tel: +44 20 7309 5700MDMG@em-comms.com |
About MD Medical Group
MD Medical Group operates in the highly attractive Russian private healthcare service market and has a leading position in high-quality women's health and paediatrics. The company manages 17 modern healthcare facilities, including 2 hospitals and 15 outpatient clinics in Moscow, St. Petersburg, Ufa, Perm, Samara and Samara region, Irkutsk and Yaroslavl. In addition, 3 franchised outpatient clinics operate in Kyiv, Ukraine.
The Company's main medical facilities are the Perinatal Medical Center (PMC), a 250-bed medical centre, which opened its doors in 2006, and Lapino hospital, a 182-bed medical centre, which opened at the end of 2012. In 2013, there were 3,816 deliveries in PMC and Lapino. The number of outpatient treatments for 2013 in PMC and the Company's outpatient clinics totalled 627,247. In March 2013, the Company began construction of its third hospital in Ufa. In April 2013 MD Medical Group completed the acquisition of the IDK Medical Company ("IDK"), a network of women's and children's health clinics located in the Russian region of Samara. In May 2013, the Company acquired Mother & Child clinic in Irkutsk, which had previously operated through a franchise agreement with MD Medical Group. The same month the Company completed a large-scale modernisation project of its Mother & Child Health Clinic in Moscow. In December 2013, a new outpatient clinic was opened in Yaroslavl which became the first healthcare facility in the region to provide IVF services.
The Company's shares have been listed on the London Stock Exchange (LSE ticker "MDMG") in the form of Global Depositary Receipts (GDRs) since 12 October 2012.
Forward-Looking Statements:
This press release contains forward looking statements, which are based on the Company's current expectations and assumptions and may involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The forward looking statements contained in this press release are based on past trends or activities and should not be taken that such trends or activities will continue in the future. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially, including, but not limited to: conditions in the market, market position of the Company, earnings, financial position, cash flows, return on capital and operating margins, anticipated investments and economic conditions; the Company's ability to obtain capital/additional finance; a reduction in demand by customers; an increase in competition; an unexpected decline in revenue or profitability; legislative, fiscal and regulatory developments, including, but not limited to, changes in environmental and health and safety regulations; exchange rate fluctuations; retention of senior management; the maintenance of labour relations; fluctuations in the cost of input costs; and operating and financial restrictions as a result of financing arrangements.
No statement in this press release is intended to constitute a profit forecast, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for the Company. Each forward looking statement relates only as of the date of the particular statement.
[1] LFL data does not include figures for new clinics in Samara, Irkutsk and Yaroslavl and IVF department at Lapino, since they were consolidated from April 2013; May, 2013 and December, 2013 correspondingly. Lapino's IVF department was opened on January 21, 2014.