20 Jan 2014 07:00
MD MEDICAL GROUP REPORTS STRONG OPERATIONAL GROWTH IN 2013
20 January 2014, Moscow, Russia - MD Medical Group Investments Plc (LSE: MDMG) (the "Group"), Russia's leading provider of private women's and children's healthcare, announces operating results for the twelve months ended 31 December 2013[1].
Elena Mladova, Chief Executive Officer of MD Medical Group, said:
"I am very pleased to report a strong set of results for the second half of the year, as we saw significant growth across almost all key operational indicators from the previous half, as well as impressive year-on-year growth for the full year.
"The ramp up at Lapino has continued in line with expectations and still presents substantial potential for further profitable growth for the Group.
"We have made headway with the implementation of our regional development strategy, following the successful opening of a new dedicated in-vitro fertilisation (IVF) clinic in Yaroslavl, Russia. Construction of our third hospital facility, in Ufa, remains on schedule and we look forward to the completion of the project later this year.
"We enter 2014 with strong momentum and optimism, as we continue to execute on our strategy of building new, state-of-the-art medical facilities in Russia's most attractive regions, as well as acquiring and integrating high-quality facilities in target regions."
During the year, the total number of deliveries increased 17% year on year from 3,253 to 3,816 as a result of the successful ramp up at Lapino with 1,220 deliveries in the hospital's first full year of operations. PMC is performing well and the number of deliveries at the hospital increased by 4% in the second half of the year to 1,325, in line with seasonal trends. The strong growth in deliveries was achieved at a time when the birth rate in Moscow and Moscow region declined by 1%.
The Group continued to see growing demand for IVF treatment, with the number of IVF cycles increasing by 42% during the year, reaching a total of 5,477.
The number of outpatient treatments in 2013 increased by 46% to 627,247, benefitting from the ramp up at Lapino and the successful integration of the Samara and Irkutsk clinics. Concurrently, inpatient admissions grew by 30% to 28,956 treatments during 2013, also due to the impact of Lapino.
H2 2013 and FY 2013 Operating Highlights
2013 | 2012 | y-o-y, % | 2H 2013 | 1H 2013 | h-o-h, % | |
Obstetrics and Gynaecology | ||||||
Deliveries | 3,816 | 3,253 | 17% | 2,024 | 1,792 | 13% |
Deliveries at PMC | 2,596 | 3,229 | -20% | 1,325 | 1,271 | 4% |
Deliveries at Lapino | 1,220 | 24 | 699 | 521 | 34% | |
Inpatient treatments (except deliveries) | 18,577 | 14,309 | 30% | 9,933 | 8,644 | 15% |
Out-patient treatments | 350,321 | 239,367 | 46% | 201,309 | 149,012 | 35% |
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IVF | 5,477 | 3,863 | 42% | 3,142 | 2,335 | 35% |
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Paediatrics |
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Inpatient treatments | 8,991 | 8,042 | 12% | 4,203 | 4,788 | -12% |
Out-patient treatments | 225,720 | 166,405 | 36% | 124,297 | 101,423 | 23% |
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Other medical services out-patient | 51,206 | 25,142 | 104% | 27,731 | 23,475 | 18% |
Other medical services inpatient | 1,388 | 828 | 560 | 48% | ||
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Total deliveries | 3,816 | 3,253 | 17% | 2,024 | 1,792 | 13% |
Total Inpatient treatments | 28,956 | 22,351 | 30% | 14,964 | 13,992 | 7% |
Total Out-patient treatments | 627,247 | 430,914 | 46% | 353,337 | 273,910 | 29% |
Total IVF | 5,477 | 3,863 | 42% | 3,142 | 2,335 | 35% |
ENDS
For further information please contact:
Investors
MD Medical Group
Vitaly Ustimenko
Tel: +7 499 744 6656
ir@mospmc.ru
Media
EM - Moscow
Tom Blackwell / Sergii Pershyn
Tel: +7 495 363 2842
MDMG@em-comms.com
Consilium Strategic Communications - London
Emma Thompson / Matthew Neal
Tel: +44 20 7920 2354
MDMG@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 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, a network of women's and children's health clinics located in the Russian region of Samara ("IDK") and acquired Mother&Child clinic in Irkutsk in May 2013, 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.
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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.