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| May 25, 2022 |
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Med Life S.A. - M

H1 2021 Report

Release Date: 8/27/2021 8:30:17 AM

IRIS Code: B97B1

MedLife announces 58% increase in pro-forma sales for the first half of this year. "We intend to access a new syndicated loan worth 50 million euros, funds that will be invested especially in acquisitions that will strengthen our leading position at national level and increase our regional presence"


  • To the 50 million euros, other unused credit facilities in amount of 40 million euros will be added, the total value of the funds for acquisitions at national and regional level being of 90 million euros
  • MedLife is in advanced discussions for two large acquisitions, and with their completion the company will consolidate its position of absolute leader at national level
  • In addition, the group has its own resources and liquidities that allow it to support the organic development
  • In addition to national and regional development and expansion projects, MedLife will continue to play an important role in pandemic monitoring through investments in research
  • After rising to a quarter of a billion euros last year, MedLife is the first private medical company in Romania that has premises to reach a third of a billion euros this year

Bucharest, August 27, 2021: For MedLife Medical System, the care for the patient, his safety and the permanent coming to meet his needs with solutions remained priority objectives for 2021 as well.

The leader of the private medical services market in Romania registered in the first six months of the current year a consolidated pro-forma turnover amounting to 741 million lei, increasing by 58% compared to the first half of 2020. The reported figures reflect the investments that have been made, such as the development of new products for the outpatient area, the increase in the number of laboratories by setting up the covid laboratories, but also the extension of the number of surgeries on the hospital segment.

“It was a good semester, we are glad that the results confirm our strategic investment and development efforts. We focused on the development of new products in outatient units, from pre and post covid screening packages to prevention packages for patients with chronic pathology. Laboratories were another segment in which we invested and which we grew considerably. We are continuously supporting the authorities and the general public, especially in this context with the increase in the number of new infections. We aim to invest even more in the medical infrastructure so as to increase access to these analyzes. At the same time, we consider launching new mobile testing centers, which are essential to have a better national coverage.

Hospitals have also increased their activity, more and more Romanians have taken care of their health and benefited from investigations and surgeries, most likely postponed during the lock down period. In fact, we are in the process of developing the MedPark project, the largest medical hub in the country, which we want to accelerate, and if things go according to plan, we will replicate this model in the coming years in other major cities: Brasov, Sibiu, Cluj, Arad. The pharmacy segment has also expanded, with the integration of the two companies, CED Pharma and Pharmachem, and the expansion of the product portfolio. We continue to expand and refurbish, we aim full speed development, but are equally careful to the evolution of the pandemic", said Mihai Marcu, CEO and President of MedLife Group.

Regarding pro-forma EBITDA, it registered an increase of 96%, compared to the same period last year, the figure reported for the first semester being 157.3 million lei, compared to 80.2 million registered in the first semester of 2020. “Over the years, we have been consistent in our position on the market, we have presented our financial results transparently and we have enjoyed a steady and healthy growth. It is important that other companies also engage in this exercise of transparency of financial reporting, keeping a consistency of reporting principles" added Mihai Marcu.

According to company representatives, the first six months of 2021 also reflect the confident note that the Romanian economy is gaining, in the context in which companies have accelerated their activity and Romanians have gradually returned to normal activities. "Things may look good when we talk about a majority population immunized against COVID, at least this explains the decrease in the number of cases this summer, which allowed the resumption of a large number of activities. However, the outlook for the fourth wave caused by the Delta strain seems increasingly worrying. The estimates of the specialists show, unequivocally, that in the next period we will witness a new increase in the number of cases, a situation that will put pressure on hospitals and ATI departments again. As we also drew attention in our study, the high rate of immunization in Romania is influenced especially by those who have got the disease, the percentage of those who have been vaccinated being still small. I would like again to make an appeal to companies and the general public to get vaccinated. Only through vaccination can we resume our normal lives. Only in this way we all manage, together, to get the economy back on track, to increase job opportunities, production and exports” said Mihai Marcu.


Accessing a new syndicated loan

At the same time, MedLife announces today the intention to contract a new syndicated loan worth 50 million euros to strengthen its market position, funds that will be used to accelerate the M&A program.

“We intend to access a new syndicated loan, amounting to 50 million euros, amount that is added to the loan signed in May this year, amounting to 40 million euros. So we are talking about a total of 90 million euros, funds that we intend to invest in expanding the M&A program in the country, but also in the region. In fact, we are in advanced discussions for 2-3 important acquisitions which, in the event that they materialize, will bring added value to our portfolio of services.

In addition, other important liquidities of the company will be added to this loan, as the case may be, which will allow us to make investments for the organic development of the business segments from own resources.

We have proven over the years that we are a company that has a consistent strategy and a sustained growth rate, and the results are commensurate with our efforts. After last year we climbed to a quarter of a billion euros, this year we have great chances to be the first private medical company in Romania to reach a third of a billion euros", said Mihai Marcu.


Perspectives H2, 2021: Investments in research and digitization, expansion of the M&A  program

As targets for the second half of 2021, MedLife representatives say the research division will continue to play an important role in monitoring the pandemic in Romania, while the M&A and digitization programs will also be a priority in the strategy plan for the next 6 months.

“We have played an important role in monitoring the pandemic and we will continue our investments in research, being the first private medical services operator to make research a strategic objective. In this respect, we are working on the development of the new biosafety laboratory, grade III, a first in the region, and, in parallel, we have several ongoing studies, including cell immunization (T cells). So far, investments in research have exceeded 1 million euros, exclusively own funds.

Also, the M&A program is also active, as we mentioned, we have completed the acquisition of CED Pharma and Pharmachem Distribution and we are in advanced discussions for other acquisitions. We believe that by the end of this year we will announce at least 2 important transactions that will help us consolidate our position of absolute leader at national level.

Additionally, because digitalization is the focus for this period and the years to come, we continue to invest, developing new applications that facilitate rapid and efficient patient access to our services. As we were the first to introduce access to online test results, as well as those who implemented the online consultation service, we will continue to offer easy solutions to the patient in 2022. We have our own resources to start new projects" declared Mihai Marcu.


H1 2021 Report is available at the link below.



Sales for the 6 months period ended June 30, 2021, amounted to RON 677.290.415, higher by 44,2% compared to sales recorded in the 6 months period ended June 2020. This increase was mainly the result of growth in almost all of the Group’s business lines, as well as the impact of the acquisitions completed by the Group in 2020 and 2021.

 Business Line  6 months 2021 % of Total Sales 6 months 2020 % of Total Sales Variation
Sales Sales 2021/2020
Clinics 194,244,223 28.7% 142,177,693 30.3% 36.6%
Stomatology 46,261,681 6.8% 25,486,852 5.4% 81.5%
Hospitals 157,738,345 23.3% 104,535,623 22.3% 50.9%
Laboratories 142,421,658 21.0% 74,421,693 15.9% 91.4%
Corporate 103,467,517 15.3% 93,717,326 20.0% 10.4%
Pharmacies 23,423,761 3.5% 22,635,468 4.8% 3.5%
Others 9,733,230 1.4% 6,556,164 1.4% 48.5%
TOTAL SALES 677,290,415 100.0% 469,530,819 100% 44.2%


Other operating revenues have increased by 38,6% in 2021 compared to previous year, reaching RON 2.361.661 in S1 2021.

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 576.526.627 in S1 2021, representing an increase of 30,9%, or RON 136.178.771 as compared to S1 2020. The Group's operating expenses as a percentage of total operating income reached 93,8% in the 6 months period ended 30 June 2020 and 85,1% in the 6 months period ended 30 June 2021.

Operating expenses evolution

  6 months 2021 6 months 2020 Variation 2021/2020
Consumable materials and repair materials 121,848,288 75,468,411 61.5%
Commodities 18,515,597 18,299,256 1.2%
Utilities 6,712,868 6,455,252 4.0%
Repairs maintenance 6,819,498 5,032,545 35.5%
Rent 4,579,968 3,254,906 40.7%
Insurance premiums 1,750,038 1,523,664 14.9%
Promotion expense 4,782,999 5,711,775 -16.3%
Communications 2,383,800 2,111,219 12.9%
Third party expenses (including doctor’s agreements) 183,825,118 128,399,941 43.2%
Salary and related expenses 159,297,440 135,151,395 17.9%
Social contributions 5,629,077 5,236,880 7.5%
Depreciation 52,755,571 49,308,137 7.0%
Impairment losses and gains (including reversals of impairment losses)        1,888,200                  -   100.0%
Other administration and operating expenses 5,738,165 4,394,476 30.6%
TOTAL 576,526,627 440,347,856 30.9%


Operating profit recorded an increase of 233,9% in S1 2021 as compared to S1 2020, from RON 30.886.956 in S1 2020 to RON 103.125.449 in S1 2021.

Financial loss increased in S1 2021 with RON 2.798.596 from a negative RON 15.076.107 in S1 2020 to a negative RON 17.874.703 in S1 2021.

The net result for the 6 months period ended 30 June 2021 increased with RON 60,615,419  as compared to the corresponding period of 2020, from RON 10.935.937 in S1 2020 to RON 71.551.356 in S1 2021. The increase represents the translation of the increase of the operating profit into the net result.

On a pro-forma basis, sales for S1 2021 amount to RON 741,062,004 and Adjusted EBITDA to RON 157.306.461.


Non-current assets amount to RON 919.089.613 as of 30 June 2021, recording an increase of RON 14.463.407 or 1,6% as compared to 31 December 2020.

Current assets increased with RON 68.734.531 or by 24,6% from RON 279.047.657 as at 31 December 2020 to RON 347.782.188 as at 30 June 2021.

Current liabilities (excluding interest-bearing debt items) increased with RON 16.651.447, or by 8,3%, from RON 199.597.812 as at 31 December 2020, to RON 216.249.259 as at 30 June 2021.

Interest bearing debt decreased with RON 3.187.790 or by 0,5%, from RON 694.643.708 as of 31 December 2020 to RON 691.455.918 as of 30 June 2021.



    Period ended at
1 Current ratio  June 30, 2021
  Current assets          347,782,188 =        0.98
  Current liabilities          355,165,430
2 Debt to equity ratio  
  Long Term Debt          552,539,747 = 163%
  Equity          338,598,612
  Long Term Debt          552,539,747 = 62%
  Capital Assets          891,138,359
3 Trade receivables turnover (days)  
  Average receivables          132,253,727 =      35.15
  Sales          677,290,415
4 Fixed assets turnover  
  Sales          677,290,415 =        0.74
  Net Fixed Assets          919,089,613


Business line Info 6 months ended 6 months ended
June 30, June 30,
2021 2020
Clinics Revenue  194,244,223  142,177,693
Clinics Visits  1,118,174  862,759
Clinics Avg fee  173.7  164.8
Stomatology Revenue  46,261,681  25,486,852
Stomatology Visits  74,097  42,778
Stomatology Avg fee  624.3  595.8
Hospitals Revenue  157,738,345  104,535,623
Hospitals Patients  50,331  35,680
Hospitals Avg fee  3,134.1  2,929.8
Laboratories Revenue  142,421,658  74,421,693
Laboratories Analyses  4,220,816  2,484,730
Laboratories Avg fee  33.7  30.0
Corporate Revenue  103,467,517  93,717,326
Corporate Subscriptions  731,736  678,174
Corporate Avg fee  141.4  138.2
Pharmacies Revenue  23,423,761  22,635,468
Pharmacies Clients  99,925  106,451
Pharmacies Sales per client  234.4  212.6
Others Revenue  9,733,230  6,556,164



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