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Med Life S.A. - M

2017 H1 Financial Results

Release Date: 8/9/2017 9:00:04 AM

IRIS Code: 08391

No. 7/9 August 2017

CURRENT REPORT

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

 

Date : 9 August 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 First Semester Report (for the period 1st of January – 30th of June period)

for MEDLIFE GROUP and MED LIFE S.A.

 

 

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

 

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

 

The 2017 First Semester Report can also be consulted by accessing the link from below.

 

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

 

Mihail Marcu

CEO

HALF YEAR FINANCIAL RESULTS AT JUNE 30, 2017

A.                    MED LIFE GROUP

·      UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2017

   

6 Month ended 30 June,

 

Variation

2017

 

2016

 

2017/2016

             

Sales

 

301,087,792

 

233,838,443

 

28.8%

Other operating revenues

 

9,324,821

 

431,793

 

2059.6%

   

310,412,613

 

234,270,236

 

32.5%

   
             

Operating expenses

 

(292,544,346)

 

(223,212,372)

 

31.1%

   

 

 

 

   

Operating Profit

 

17,868,267

 

11,057,864

 

61.6%

             

Finance cost

 

(7,715,892)

 

(7,298,884)

 

5.7%

Other financial expenses

 

(730,982)

 

(671,607)

 

8.8%

             

Financial result

 

(8,446,874)

 

(7,970,491)

 

6.0%

             

Result Before Taxes

 

9,421,393

 

3,087,373

 

205.2%

Income tax expense

 

(3,020,245)

 

(1,165,394)

 

159.2%

   

6,401,148

 

1,921,979

 

233.0%

Net Result

 
             

Owners of the Group

 

3,865,494

 

923,506

 

318.6%

Non-controlling interests

 

2,535,654

 

998,472

 

154.0%

             

 

·      UNAUDITED CONSOLIDATED FINANCIAL POSITION AS AT JUNE 30, 2017

 

   

 June 30,

 

December 31,

 

Variation

 

   

2017

 

2016

 

2017/2016

   

425,881,734

 

375,364,713

 

13.5%

 

NON-CURRENT ASSETS

 

 

             

 

CURRENT ASSETS

 

97,659,938

 

90,754,747

 

7.6%

 

             

 

TOTAL ASSETS

 

523,541,672

 

466,119,460

 

12.3%

 

   

 

 

 

 

 

 

CURRENT LIABILITIES

 

171,800,645

 

145,300,339

 

18.2%

 

   

 

 

 

 

 

 

LONG-TERM LIABILITIES

 

239,378,035

 

213,144,255

 

12.3%

 

DEFERRED TAX LIABILITY

 

15,178,504

 

14,655,982

 

3.6%

 

TOTAL LIABILITIES

 

426,357,184

 

373,100,576

 

14.3%

 

ISSUED CAPITAL

 

 13,932,034

 

 13,932,034

 

0.0%

 

RESERVES

 

 91,961,463

 

 91,961,424

 

0.0%

 

RETAINED EARNINGS

 

 (21,937,530)

 

 (24,346,985)

 

-9.9%

 

   

 

 

 

 

 

 

Equity attributable to owners of the Group

 

 83,955,967

 

 81,546,473

 

3.0%

 

   

 

 

 

 

 

 

Non-controlling interests

 

 13,228,521

 

 11,472,411

 

15.3%

 

   

 

 

 

 

 

 

TOTAL EQUITY

 

 97,184,488

 

 93,018,884

 

4.5%

 

   

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

 523,541,672

 

 466,119,460

 

12.3%

 

                             

 

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

Sales for the 6 month period ended 30 June 2017 (“H1 2017”) amounted to RON  301,087,792, higher by 28.8% compared to sales recorded in the first half of 2016 (“H1 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

H1 2017

% of Total Sales

H1 2016

% of Total Sales

Variation

Sales

Sales

2017/2016

Clinics

 80,825,178

27%

 60,242,715

26%

34%

Stomatology

 18,503,131

6%

 1,755,333

1%

954%

Hospitals

 59,697,348

20%

 51,673,804

22%

16%

Laboratories

 54,929,531

18%

 46,526,941

20%

18%

Corporate

 68,344,498

23%

 61,587,522

26%

11%

Pharmacies

 13,878,256

5%

 11,425,228

5%

21%

Others

 4,909,851

2%

 626,900

0%

683%

SALES

301,087,792

100%

233,838,443

100%

29%

 

Other operating revenues recorded a significant increase in H1 2017 as compared to H1 2016, amounting to RON 9,324,821 as at 30 June 2017. The increase is linked to the sale and leaseback transaction recorded in relation to building located in Banu Manta street.

 

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   292,544,346 in H1 2017, representing an increase of 31.1%, or RON 69,331,974 as compared to H1 2016. The increase is mainly linked to overall business increase and to Banu Manta sales and leaseback transaction. The Group's operating expenses as a percentage of total operating income reached 94.2% in H1 2017 compared to 95.3% in H1 2016.

 

 

Operating expenses evolution

 

 

6 Month ended 30 June,

Variation

Description

2017

2016

2017/2016

Consumable materials and repair materials

48,788,758

 39,504,120

23.5%

Commodities

11,136,690

 9,040,752

23.2%

Utilities

3,149,021

 2,297,929

37.0%

Repairs maintenance

2,852,920

 2,191,949

30.2%

Rent

19,615,967

 12,443,334

57.6%

Insurance premiums

993,989

 925,767

7.4%

Promotion expense

5,184,694

 4,010,243

29.3%

Communications

1,569,352

 1,791,336

-12.4%

Third party expenses (including doctor’s agreements)

79,605,050

 61,788,797

28.8%

Salary and related expenses

71,927,946

 51,311,561

40.2%

Social contributions

16,136,570

 11,618,926

38.9%

Depreciation

18,527,337

 19,024,208

-2.6%

Impairment of fixed assets

-

 -  

 -

Other administration and operating expenses

13,056,052

 7,263,450

79.8%

Total

292,544,346

 223,212,372

31.1%

 

 

Operating profit recorded a 61.6% increase in H1 2017 as compared to H1 2016, from RON  11,057,864 in H1 2016 to RON 17,868,267 in H1 2017.

Financial result (loss) increased in H1 2017 by RON 476,383 from a loss of RON 7,970,491 in H1 2016 to a loss of RON 8,446,874 in H1 2017, mainly due to net foreign exchange losses recorded in H1 2017 in amount of RON 1,172,021 compared to net foreign exchange gains of RON 679,757 recorded in H1 2016.

The net result for the 6 month period ended 30 June 2017 increased by RON 4,479,169, or 233%, as compared to the corresponding period of 2016, from RON 1,921,979 in H1 2016 to RON  6,401,148 in H1 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 H1 2017 amount to RON 313,880,499 and Adjusted EBITDA to RON 38,339,186. Please refer to H1 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 425,881,734 as of 30 June 2017, recording an increase of RON 50,517,021 or 13.5% as compared to 31 December 2016. The increase is mainly linked to Almina Trading and Anima acquisitions.

 

Current assets increased by 3,708,716 RON or 4.4% from RON 83,637,054 in as at 31 December 2016 to RON 87,345,770 as of 30 June 2017.

 

Prepayments recorded as at 30 June 2017 amount to RON 9,932,503. As compared to 31 December 2016, an increase of 3,196,475 RON was recorded. The increase is linked to accrued expenses and prepaid local tax liabilities.

 

Current liabilities (excluding interest bearing debt items) increased by RON 16,955,241, or 14.4%, from RON 117,874,182 as at 31 December 2016, to RON 134,829,423 as at 30 June 2017.

 

Interest bearing debt increased by RON 35,778,845, from RON 240,570,412 as of 31 December 2016 to RON 276,349,257 as of 30 June 2017. The increase is mainly due to financing of the Banu Manta building, Almina Trading and Anima acquisitions.

 

OPERATIONAL KEY PERFORMANCE INDICATORS MEDLIFE GROUP

 

Business line

Info

 12 Month ended
31 December,
2016

 6 month ended
30 June,
2017

Clinics

Revenue

                    130,109,363

80,825,178

Clinics

Visits

                        909,132

555,616

Clinics

Avg fee

                            143.1

145.5

Stomatology

Revenue

                      18,504,217

18,503,131

Stomatology

Visits

                          69,111

52,049

Stomatology

Avg fee

                            267.7

355.5

Hospitals

Revenue

                    104,977,229

59,697,348

Hospitals

Patients

                          56,283

30,854

Hospitals

Avg fee

                         1,865.2

1,934.9

Laboratories

Revenue*

                      93,161,917

54,929,531

Laboratories

Analyses

                     4,223,840

2,558,139

Laboratories

Avg fee

                              22.1

21.5

Corporate

Revenue

                    127,988,835

68,344,498

Corporate

Subscriptions

                        420,933

560,094

Corporate

Avg fee

                            304.1

122.0

Pharmacies

Revenue

                      23,597,580

13,878,256

Pharmacies

Clients

                        264,604

136,218

Pharmacies

Sales per client

                              89.2

101.9

Others

Revenue*

                        4,647,649

4,909,850

 

* Sales obtained for stem cells bank services are classified for the six month period ended 30 June 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 JUNE 30, 2017

           

Variation

 6 Month ended 30 June,

 

2017/2016

2017

 

2016

             

Sales

 

         189,017,051

 

167,216,192

 

13.0%

Other operating revenues

 

             8,404,645

 

305,522

 

2650.9%

   

        197,421,696

 

   167,521,714

 

17.8%

Operating Income

 
             

Operating expenses

 

     (188,786,582)

 

(160,564,632)

 

17.6%

             

Operating Profit

 

            8,635,114

 

        6,957,082

 

24.1%

             

Finance cost

 

            (5,745,446)

 

(5,376,268)

 

6.9%

Other financial expenses

 

               (360,166)

 

(718,980)

 

-49.9%

             

Financial result

 

          (6,105,612)

 

      (6,095,248)

 

0.2%

             

Result Before Taxes

 

            2,529,502

 

           861,834

 

193.5%

Income tax expense

 

               (702,020)

 

(767,444)

 

-8.5%

   

            1,827,482

 

             94,390

 

1836.1%

Net Result

 

 

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

   

June 30,

 

December 31,

 

Variation

   

2017

 

2016

 

2017/2016

   

 

 

 

 

 

NON-CURRENT ASSETS

307,897,011

264,918,255

 

16.2%

   

 

 

 

 

 

CURRENT ASSETS

 

73,529,283

 

78,786,958

 

-6.7%

   

 

 

 

 

 

TOTAL ASSETS

 

381,426,294

 

343,705,213

 

11.0%

   

 

 

 

 

 

   

 

 

 

 

 

CURRENT LIABILITIES

 

105,150,513

95,597,950

 

10.0%

   

 

 

 

 

 

   

 

 

 

 

 

LONG-TERM LIABILITIES

 

174,761,916

148,420,881

 

17.7%

   

 

 

 

 

 

DEFERRED TAX LIABILITY

 

10,785,523

 

10,785,523

 

0.0%

   

 

 

 

 

 

TOTAL LIABILITIES

 

290,697,952

 

254,804,354

 

14.1%

   

 

 

 

 

 

ISSUED CAPITAL

 

13,932,034

 

13,932,034

 

0.0%

RESERVES

 

72,708,768

 

72,708,768

 

0.0%

RETAINED EARNINGS

 

4,087,540

 

2,260,057

 

80.9%

   

 

 

 

 

 

TOTAL EQUITY

 

90,728,342

 

88,900,859

 

2.1%

   

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

381,426,294

 

343,705,213

 

11.0%

 

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

 

Sales for the 6 month period ended 30 june 2017 (“H1 2017”) amounted to RON  189,017,051, higher by 13 % compared to sales recorded in the first semester of 2016 (“H1 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 H1 2017 as compared to H1 2016, amounting to RON 8,404,645 as at 30 june 2017. The increase is linked to the sale and leaseback transaction recorded in relation to building located in Banu Manta street.

 

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  188,786,582 in H1 2017, representing an increase of 17.6%, or RON  28,221,950, as compared to H1 2016. The increase is mainly linked to overall business increase and to Banu Manta sales and leaseback transaction.

 

Operating profit recorded a 24.1% increase in H1 2017 as compared to H1 2016, from RON  6,957,082 in H1 2016 to RON  8,635,114 in H1 2017.

 

Financial loss increased in H1 2017 by RON 10,364 from a loss of RON 6,095,248 in H1 2016 to a loss of RON 6,105,612 in H1 2017, mainly due to net foreign exchange losses recorded in H1 2017 in amount of RON 726,273 compared to net foreign exchange gains of RON 679,956 recorded in H1 2016.

 

 

ANALYSIS OF THE UNAUDITED STANDALONE STATEMENT OF FINANCIAL POSITION

 

Non-current assets amount to RON 307,897,011 as of 30 June 2017, recording an increase of 16.2% as compared to 31 December 2016. The increase is mainly linked to financial assets recorded as at 30 June 2017 in relation to Almina Trading and Anima acquisitions.

 

Current assets decreased by RON 7,207,715 or 9.5% from RON 76,062,900 in 31 December 2016 to RON 68,855,185 in 30 June 2017.

 

Prepayments recorded as at 30 June 2017 amount to RON 4,674,098. As compared to 31 December 2016, an increase of RON  1,950,040 was recorded. The increase is linked to accrued expenses and prepaid local tax liabilities.

 

Current liabilities (excluding interest bearing debt items), decreased by RON  2,983,187, or 3.7%, from RON 80,008,647 as at 31 December 2016, to RON 82,991,836 as at 30 June 2017.

 

Interest bearing debt increased by RON 32,910,411, from RON 164,010,182 as of 31 December 2016 to RON 196,920,593 as of 30 June 2017. The increase is mainly due to financing of the Banu Manta building, Almina Trading and Anima acquisitions.

 

 



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