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Med Life S.A. - M

Q3 2017 financial results

Release Date: 11/6/2017 8:40:36 AM

IRIS Code: F823B

No. 16/06.11.2017

CURRENT REPORT

Current report drafted according to the stipulations of Rule no. 1/2006 and Law no. 24/2017

 

Date : 6 November 2017

Name of the issuing company: Med Life S.A.

Registered Office: Bucharest, Calea Grivitei, no. 365, district 1, Romania

Fax no.: 0374 180 470

Unique Registration Code at the National Office of Trade Registry: 8422035

Order number on the Trade Registry: J40/3709/1996

Subscribed and paid-in share capital: 5,023,000 RON

Regulated market on which the issued securities are traded: Bucharest Stock Exchange

 

 

Significant events to report :

Availability of 2017 Third Quarter Report

for MEDLIFE GROUP and MED LIFE S.A.

 

 

Med Life S.A. informs the shareholders and investors that, starting 6th of November 2017, 9:00 AM, on the company’s website (www.medlifeinternational.com), at section Investor Relations / Investor Reports and Presentations / Periodic reports, the 2017 Third Quarter Report is available.

 

Website Link : http://medlifeinternational.com/investors-reports/periodic .

 

The 2017 Third Quarter Report can also be consulted by accessing the link from below.

 

For additional information, please contact us at investors@medlife.ro.

 


 

THIRD QUARTER OF 2017 FINANCIAL RESULTS

A.                    MED LIFE GROUP

·      UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2017

   

9 month ended September 30,

 

Variation

   

2017

 

2016

 

2017/2016

             

Sales

 

459,182,988

 

361,489,209

 

27%

Other operating revenues

 

4,454,435

 

628,470

 

609%

Operating Income

 

463,637,423

 

362,117,679

 

28%

             

Operating expenses

 

(434,536,793)

 

(350,679,676)

 

24%

             

Operating Profit

 

29,100,630

 

11,438,003

 

154%

             

Finance cost

 

(10,645,670)

 

(10,567,686)

 

1%

Other financial expenses

 

(3,892,282)

 

555,767

 

-800%

             

Financial result

 

(14,537,952)

 

(10,011,919)

 

45%

             

Result Before Taxes

 

14,562,678

 

1,426,084

 

921%

Income tax expense

 

(5,002,865)

 

(1,382,946)

 

262%

Net Result

 

9,559,813

 

43,138

 

22061%

             

Owners of the Group

 

5,711,029

 

(2,001,084)

 

-385%

Non-controlling interests

 

3,848,784

 

2,044,222

 

88%

 

·      UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS AS AT SEPTEMBER 30, 2017

   

September 30,

 

December 31,

 

Variation

   

2017

 

2016

 

2017/2016

   

428,121,614

 

375,364,713

 

14%

NON-CURRENT ASSETS

 
             

CURRENT ASSETS

 

110,770,485

 

90,754,747

 

22%

             

TOTAL ASSETS

 

538,892,099

 

466,119,460

 

16%

   

158,439,303

 

145,300,339

 

9%

CURRENT LIABILITIES

   
   

265,129,607

 

213,144,255

 

24%

LONG-TERM LIABILITIES

   

DEFERRED TAX LIABILITY

 

15,178,504

 

14,655,982

 

4%

TOTAL LIABILITIES

 

438,747,414

 

373,100,576

 

18%

ISSUED CAPITAL

 

13,932,034

 

13,932,034

 

0%

RESERVES

 

91,961,463

 

91,961,424

 

0%

RETAINED EARNINGS

 

(20,092,036)

 

(24,346,985)

 

-17%

             

Equity attributable to owners of the Group

 

85,801,461

 

81,546,473

 

5%

             

Non-controlling interests

 

14,343,224

 

11,472,411

 

25%

             

TOTAL EQUITY

 

100,144,685

 

93,018,884

 

8%

             

TOTAL LIABILITIES AND EQUITY

 

538,892,099

 

466,119,460

 

16%

 

ANALYSIS OF THE UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

Sales for the 9 month period ended 30 September 2017 amounted to RON 459,182,988, higher by 27% compared to sales recorded in the 9 month period ended 30 September 2016. This increase was mainly the result of significant growth in all of the Group’s business lines, led on a percentage basis by Stomatology, Clinics and Hospitals as well as the impact of the acquisitions completed by the Group in 2016 and 2017.


 

Business Line

9 Months 2017

% of Total Sales

9 Months 2016

% of Total Sales

Variation

Sales

Sales

2017/2016

Clinics

 123,033,421

27%

 91,197,849

25%

35%

Stomatology

28,062,823

2%

 9,645,716

3%

191%

Hospitals

 88,249,720

19%

78,395,460

22%

13%

Laboratory

 85,912,393

19%

 69,087,896

19%

24%

Corporate

 105,590,728

23%

93,766,469

26%

13%

Farmacies

 21,176,009

5%

16,958,285

5%

25%

Other

 7,157,894

2%

2,437,534

1%

194%

 TOTAL

459,182,988

100%

361,489,209

100%

27%

 

Other operating revenues recorded a significant increase in the 9 month period ended 30 September 2017 as compared to the corresponding period of 2016, amounting to RON 7,157,894 as at 30 September 2017.

 

Operating expenses include variable and fixed costs, as well as the cost of goods and materials used to provide the Group's services. The Group recorded operating expenses of RON   434,536,793 in the first nine months ended 30 September 2017, representing an increase of 23.9%, or RON 83,857,117 as compared to the nine month period ended September 30, 2016. The Group's operating expenses as a percentage of total operating income reached 94.6% in the 9 month period ended 30 September 2017 compared to 97% in the corresponding period of 2016.

 

Operating expenses evolution

 

9 month period ended

Evolution

 

2017

2016

2017/2016

Consumable materials and repair materials

 73,407,079

 60,878,765

20.6%

Commodities

 17,199,602

 13,587,212

26.6%

Utilities

 4,607,136

 3,538,043

30.2%

Repairs maintenance

 4,671,966

 3,507,447

33.2%

Rent

 28,697,973

 19,598,060

46.4%

Insurance premiums

 1,527,901

 1,370,825

11.5%

Promotion expense

 7,347,015

 7,800,010

-5.8%

Communications

 2,432,293

 2,354,850

3.3%

Third party expenses (including doctor’s agreements)

 120,705,606

 91,391,189

32.1%

Salary and related expenses

 111,789,716

 81,479,174

37.2%

Social contributions

 25,144,892

 18,427,485

36.5%

Depreciation

 29,196,756

 27,420,605

6.5%

Impairment of fixed assets

 -  

 -  

 -  

Other administration and operating expenses

 7,808,858

 19,326,011

-59.6%

TOTAL

434,536,793

350,679,676

23.9%

 

Operating profit recorded a 154.4% increase in the 9 month period ended 30 September 2017 as compared to the 9 month period ended 30 September 2016, from RON 11,438,003 at 30 September 2016 to RON 29,100,630 as at 30 September 2017.

 

Financial loss increased in the 9 month period ended 30 September 2017 by RON 4,526,033 from a loss of RON 10,011,919 in the nine month period ended 30 September 2016 to a loss of RON 14,537,952 in the analysed period of 2017, mainly due to net foreign exchange losses recorded in the first 9 months of 2017 in amount of RON 4,490,022 compared to net foreign exchange gains of RON 2,384,314 recorded in 2016.

 

The net result for the 9 month period ended 30 September 2017 increased by RON 9,516,675 as compared to the corresponding period of 2016, from a profit of RON 43,138 in the 9 month period ended 30 September 2016 to a profit of RON  9,559,813  in 9 months ending 2017. The increase was mainly due to the translation of the Operating Profit increase in the net result.

 

On a pro-forma basis, sales for 9 month period ended 30 September 2017 amount to RON 471,975,695 and Adjusted EBITDA to RON 60,439,464. Please refer to the Q3 2017 Report - Chapter VI – UNAUDITED CONSOLIDATED PRO-FORMA FINANCIAL INFORMATION for more information regarding pro-forma financial information.

 

ANALYSIS OF THE UNAUDITED UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

Non-current assets amount to RON 428,121,614 as of 30 September 2017, recording an increase of RON  52,756,901 or 14.1% as compared to 31 December 2016. The increase is mainly linked to Almina Trading and Anima acquisitions.

 

Current assets increased by 18,932,219 RON or 22.6% from RON 83,637,054 in as at 31 December 2016 to RON 102,569,273 as of 30 September 2017.

 

Prepayments recorded as at 30 September 2017 amount to RON 7,819,547. As compared to 31 December 2016, an increase of 1,083,519 RON was recorded. The increase is linked to accrued expenses and prepaid local tax liabilities.

 

Current liabilities (excluding interest bearing debt items) decreased by RON 156,043, or 0.13%, from RON 117,874,182 as at 31 December 2016, to RON 117,718,139 as at 30 September 2017.

 

Interest bearing debt increased by RON 65,280,359, from RON 240,570,412 as of 31 December 2016 to RON 305,850,771 as of 30 September 2017. The increase is mainly due to financing of the Banu Manta building, Almina Trading & Anima acquisitions and refinancing of leasing contracts through a new loan agreement.

 

OPERATIONAL KEY PERFORMANCE INDICATORS MEDLIFE GROUP

 

Business line

Info

 12 Month ended
31 December,
2016

 9 month ended
30 September,
2017

Clinics

Revenue

                    130,109,363

     123,033,421

Clinics

Visits

                        909,132

            853,854

Clinics

Avg fee

                            143.1

                   144

Stomatology

Revenue

                      18,504,217

       28,062,823

Stomatology

Visits

                          69,111

              76,259

Stomatology

Avg fee

                            267.7

                   368

Hospitals

Revenue

                    104,977,229

       88,249,720

Hospitals

Patients

                          56,283

              45,273

Hospitals

Avg fee

                         1,865.2

                1,949

Laboratories

Revenue*

                      93,161,917

       85,912,393

Laboratories

Analyses

                     4,223,840

         3,976,394

Laboratories

Avg fee

                              22.1

                     22

Corporate

Revenue

                    127,988,835

     105,590,728

Corporate

Subscriptions

                        420,933

            570,226

Corporate

Avg fee

                            304.1

                   185

Pharmacies

Revenue

                      23,597,580

       21,176,009

Pharmacies

Clients

                        264,604

            200,080

Pharmacies

Sales per client

                              89.2

                   106

Others

Revenue*

                        4,647,649

         7,157,892

 

* Sales obtained for stem cells bank services are classified for the 9 month period ended 30 September 2017 on Other Sales business line. Stem cells bank services sales were previously classified in Laboratories business line. In order to ensure comparison between periods, we have reclassified stem cell banks services sales for the twelve month period ended 31 December 2016 from Laboratories business line to Other Sales business line.

 

B.                 MED LIFE S.A.

·      UNAUDITED STANDALONE STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2017

   

 9 month ended September 30,

 

Variation
2017/2016

   

2017

 

2016

 
             

Sales

 

      283,229,916

 

251,127,487

 

12.8%

Other operating revenues

 

          3,475,967

 

478,796

 

626.0%

Operating Income

 

    286,705,883

 

  251,606,283

 

14.0%

Operating expenses

 

  (272,343,197)

 

(247,811,084)

 

9.9%

Operating Profit

 

      14,362,686

 

       3,795,199

 

278.4%

Finance cost

 

        (7,537,629)

 

(7,211,718)

 

4.5%

Other financial expenses

 

        (3,041,031)

 

(1,534,409)

 

98.2%

Financial result

 

    (10,578,660)

 

     (8,746,127)

 

21.0%

Result Before Taxes

 

        3,784,026

 

     (4,950,928)

 

-176.4%

Income tax expense

 

        (1,400,392)

 

(1,509,325)

 

-7.2%

Net Result

 

        2,383,634

 

     (6,460,253)

 

-136.9%

 

·      UNAUDITED STANDALONE STATEMENT OF FINANCIAL POSITION FOR THE PERIOD ENDED SEPTEMBER 30, 2017

   

 September 30,

 

December 31,

 

Variation

   

2017

 

2016

 

2017/2016

   

312,709,729

 

264,918,255

 

18%

NON-CURRENT ASSETS

 

CURRENT ASSETS

 

84,271,085

 

78,786,958

 

7%

TOTAL ASSETS

 

                396,980,814

 

343,705,213

 

15,5%

   

94,843,533

 

95,597,950

 

-0.8%

CURRENT LIABILITIES

   
   

200,067,265

 

148,420,881

 

34.8%

LONG-TERM LIABILITIES

   

DEFERRED TAX LIABILITY

 

10,785,523

 

10,785,523

 

0%

TOTAL LIABILITIES

 

305,696,321

 

254,804,354

 

20%

ISSUED CAPITAL

 

13,932,034

 

13,932,034

 

0%

RESERVES

 

72,708,768

 

72,708,768

 

0%

RETAINED EARNINGS

 

4,643,691

 

2,260,057

 

105.5%

TOTAL EQUITY

 

91,284,493

 

88,900,859

 

2.7%

TOTAL LIABILITIES AND EQUITY

 

396,980,814

 

343,705,213

 

15.5%

 

ANALYSIS OF THE UNAUDITED STANDALONE STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

 

Sales for the 9 month period ended September 30, 2017 amounted to RON 283,229,916, higher by 12.8% compared to sales recorded in the 9 month period ended September 30, 2016. This increase was mainly the result of a growth in all of the business lines determined by a mixture of increase in prices and volume.

 

Other operating revenues recorded a significant increase in 2017 as compared to 2016, amounting to RON  2,997,171 as at September 2017. The increase is linked to the capitalized costs of intangible assets as a result of the Group's investment of its own resources in the further development of its IT platform.

 

Operating expenses include variable and fixed costs, as well as the cost of goods and materials used to provide services. Medlife SA recorded operating expenses of RON 272,343,197 in the nine month period ended 30 September 2017, representing an increase of 9.9%, or RON 24,532,113, as compared the nine month period ended 30 September 2016.

 

Operating profit recorded a 278.4% increase in nine month period ended 30 September 2017 as compared to the coreponding period of 2016, from RON 3,795,199 in the period ende 30 September 2016 to RON  14,362,686 in the first nine months of 2017.

 

Financial loss increased in the first nine months of 2017 by RON 1,832,533 from a loss of RON 8,746,127 in the coresponding period of 2016 to a loss of RON 10,578,660 in the first nine months of 2017, mainly due to net foreign exchange losses recorded in the first 9 months of 2017 in amount of RON 3,377,045 compared to net foreign exchange gains of RON 478,576 recorded in the corresponding period of 2016.

 

ANALYSIS OF THE UNAUDITED STANDALONE STATEMENT OF FINANCIAL POSITION

 

Non-current assets amount to RON 312,709,729 as of 30 September 2017, recording an increase of 18% as compared to 31 December 2016. The increase is mainly linked to financial assets recorded as at 30 September 2017 in relation to Almina Trading and Anima acquisitions.

Current assets increased by RON 4,570,856 or 6% from RON 76,062,900 in 31 December 2016 to RON 80,633,756 in 30 September 2017.

 

Prepayments recorded as at 30 september 2017 amount to RON 3,637,329. As compared to 31 December 2016, an increase of RON 913,271 was recorded. The increase is linked to accrued expenses and prepaid local tax liabilities.

 

Current liabilities (excluding interest bearing debt items), decreased by RON  10,237,740, or 14.7%, from RON 80,008,647 as at 31 December 2016, to RON 69,770,909 as at 30 september 2017.

 

Interest bearing debt increased by RON 61,129,707, from RON 164,010,182 as of 31 December 2016 to RON 225,139,889 as of 30 September 2017. The increase is mainly due to financing of the Banu Manta building, Almina Trading & Anima acquisitions, refinancing of leasing contracts through a new loan agreement.

 



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