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Med Life S.A. - M

2020 Preliminary financial results

Release Date: 2/26/2021 8:15:17 AM

IRIS Code: A6885

MedLife Group ends FY 2020 with an increase of 25.5% compared to prior year. "We will continue to be receptive and proactive to all that this pandemic brings, prioritizing the health of our patients and the support of society as a whole through medical research activities"


  • Rapid adaptation to the new social and economic context, but also the calibration of the operational structure helped the company to keep up with the needs of the patients in a pandemic context.
  • Despite revenue declines in March and April, MedLife managed to reach a pro-forma turnover of over a quarter of a billion euros last year
  • In addition, the company has seen a gradual improvement in profitability, in line with the strategy of recent years
  • Beyond financial performance, MedLife has managed to play a key role in society and gain detached leadership in pandemic monitoring through active involvement in the research area. These efforts will intensify
  • MedLife will continue to strengthen its position nationwide through acquisition projects and, as opportunities arise, the company plans to test the market in the region as well.
  • Development plans for this year will also include the gradual development of MedPark project


February 26, 2021, Bucharest: MedLife Medical System, the leader of the private medical services market in Romania, announces the end of 2020 with a consolidated pro-forma turnover of RON 1.214 million (251 million euros), thus registering an increase of 25.5% compared to 2019.

Despite the pandemic context and the health crisis, MedLife continued to operate intensively. The rapid adaptation to the new social context and the proper calibration of the operational structure, helped the company to achieve a good performance in 2020 and to gradually improve its profitability in line with the strategy of recent years.

The development of COVID-19 laboratory network, in a timely manner, was one of the important achievements of the group last year. Through them, MedLife was able to periodically test the medical and support staff, to keep the employees and, implicitly, the patients safe and to keep the network of clinics and hospitals functional, ensuring a quality medical act. Moreover, MedLife group focused on helping patients and state institutions by conducting COVID-19 tests and relieving public hospitals by taking in chronic patients. At the same time, the company has run numerous support programs for various disadvantaged groups in a pandemic context.

A very important segment of investment and development in 2020 was the group's research division. The company has conducted numerous research studies on the evolution of the new virus in Romania, managing to play an important role at the societal level in monitoring the pandemic. For this year, MedLife representatives want to intensify the work of the group's research division and, in this regard, expressed their intention to expand the SARS CoV 2 virus sequencing program, but also to launch new studies to further support authorities in fighting against the pandemic.

"It was a difficult year, full of challenges and tense for most of us. From the first signals at local level, we realized that it will not be something transient, so we mobilized, worked on several scenarios and adapted to the new conditions. We have launched new screening programs for patients with chronic diseases, but also for those who had SARS CoV2 infection, we have invested in research conducting national premier studies on natural immunization for COVID 19, virus sequencing or antibody dynamics after infection and post vaccine and, last but not least, we have constantly run testing programs to keep colleagues, doctors and nurses in all our units safe. All these measures helped us not only to adapt to the new economic reality, but also to optimize the business dynamics for the next period. We are ready to capture the revenues that will come from the post-pandemic recovery period", said Mihai Marcu, President and CEO of MedLife Group.

MedLife Group also registered a dynamic activity in the area of ​​corporate clients. Thus, since the beginning of the COVID-19 pandemic, the company has developed new products to meet the needs in this epidemiological context: from online consultations and digitization of occupational medicine services, to programs on safe restarting of businesses , consultancy regarding epidemiological triage or COVID testing campaigns at the company's headquarters. Moreover, starting from the pandemic context and having a solid basis of historical results, MedLife has launched a new program focusing on anticipating certain trends in health in an industry / company and customizing medical services so as to reduce the risks of various pathologies among employees. In essence, the new program will help companies to protect their employees and customers and thus reduce costs and increase productivity.

“It is a unique approach in Romania based on the principles of personalized medicine. Thus, based on an extensive analysis of medical history and information on the particularities of each industry and company, we will be able to offer customized medical programs to help reduce the risk of various pathologies among employees. Basically, we can act very targeted on each team, and based on the assessment of risk factors, diseases, adverse effects on business, we can adapt medical programs so as to improve the health of employees and help companies to propel. In this way, the partner companies will be able not only to take care of the employees' health, but also to decrease expenses and increase productivity levels” declared Mihai Marcu.

For 2021, the company's representatives announce that they will continue to be receptive and proactive to everything that this pandemic brings, but, at the same time, they will continue the post-COVID development and expansion plans.

"We are connected to everything that means the current economic dynamics, we have development and expansion plans and we are ready to move forward, but we are looking carefully at the market, to take action when needed. We will continue to have as a priority the health and safety of our patients, we will constantly adapt to their current needs, burdened by the pandemic context. From an operational point of view, we want to consolidate our position on the Romanian market, which we consider very important and with great potential for development, and, insofar as there will be opportunities, we want to test the market in the region as well.

We have credit lines that are dedicated both to M&A program and the development of projects aimed at recovering the post-COVID patient, having at our disposal the new increase, amounting to 20 million euros, to which are added important cash generated by our business divisions. At the same time, we will continue, gradually, the development of MedLife Medical Park project, which has the potential to become in the next period the most complex medical project in Romania and will be easily compared with other large medical entities in Europe. The new investments and acquisitions will be carefully calibrated according to the evolution of the pandemic ", specified Mihai Marcu, President and CEO of MedLife Group.


Sales for the 12 month period ended December 31, 2020 amounted to RON  1,078,273,545 , higherby 11.5%compared to sales recorded in the 12 month period ended December 31, 2019. 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 2019 and 2020.

 Business Line  12 months 2020 % of Total Sales 12 months 2019 % of Total Sales Variation
Sales Sales 2020/2019
Clinics 307,919,487 28.6% 295,465,223 30.5% 4.2%
Stomatology 57,177,077 5.3% 59,817,358 6.2% -4.4%
Hospitals 251,943,388 23.4% 221,198,932 22.9% 13.9%
Laboratories 203,814,880 18.9% 154,135,274 15.9% 32.2%
Corporate 198,530,858 18.4% 183,514,802 19.0% 8.2%
Pharmacies 44,405,803 4.1% 39,341,136 4.1% 12.9%
Others 14,482,051 1.3% 13,907,472 1.4% 4.1%
TOTAL SALES 1,078,273,544 100.0% 967,380,197 100% 11.5%


Other operating revenues have increasedby 21.3%in 2020 compared to previous year, reaching RON 9,274,762 in Q4 2020.

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  978,035,183  in Q4 2020, representing an increase of 6.5%, or RON 59,930,900 as compared to Q4 2019. The Group's operating expenses as a percentage of total operating income reached 94.9%in the 12 months period ended December 31, 2019 and 90.7%in the 12 months period ended December 31, 2020.

Operating expenses evolution

  12 months 2020 12 months 2019
Variation 2020/2019
Consumable materials and repair materials 189,974,607 158,167,211 20.1%
Commodities 35,655,721 30,649,995 16.3%
Utilities 12,634,324 11,854,596 6.6%
Repairs maintenance 11,549,395 11,895,850 -2.9%
Rent 6,421,973 10,540,615 -39.1%
Insurance premiums 3,006,908 3,122,303 -3.7%
Promotion expense 13,415,385 14,207,313 -5.6%
Communications 4,236,791 3,962,770 6.9%
Third party expenses (including doctor’s agreements) 282,652,226 264,544,662 6.8%
Salary and related expenses 277,055,200 291,414,807 -4.9%
Social contributions 10,768,180 10,526,204 2.3%
Depreciation 103,059,554 90,928,328 13.3%
Other administration and operating expenses 27,604,920 16,289,629 69.5%
TOTAL 978,035,183 918,104,283 6.5%


Operating profit recorded an increasedon 92.4%in Q4 2020 as compared to Q4 2019, from RON  56,924,973 in Q4 2019 to RON  109,513,124 in Q4 2020.

Financial loss increased in Q4 2020 with RON  919,955  from a negative RON  29,780,069  in Q4 2019 to a negative RON  30,700,024  in Q4 2020.

The net result for the 12 months period ended 31 December 2020 increasedwith RON  44,203,142 as compared to the corresponding period of 2019, from RON  17,980,227 in Q4 2019 to RON  62,183,369  in Q4 2020. The increase represents the translation of the increase of the operating profit into the net result.

On a pro-forma basis, operating income for FY 2020 amount to RON 1,181,886,837 and Adjusted EBITDA to RON 224,611,401.


Non-current assets amount to RON 899,234,070 as of 31 December 2020, recording an increase of RON 53,255,780 or 6.3% as compared to 31 December 2019.

Current assets increased with RON 73,376,175 or by 34.8% from RON 210,976,471 as at 31 December 2019 to RON 284,352,646 as at 31 December 2020.

Current liabilities (excluding interest-bearing debt items) decreased with RON 25,828,119, or by 10.7%, from RON 240,385,368 as at 31 December 2019, to RON 214,557,249 as at 31 December 2020.

Interest bearing debt increased with RON 90,204,609, or by 15.3%, from RON 588,485,729 as of 31 December 2019 to RON 678,690,338 as of 31 December 2020.



Year 2020 came with a unique epidemiological context, the declaration of the COVID-19 pandemic by the World Health Organization. The development of four COVID-19 laboratories was one of the important achievements of the group in 2020. Through them, the company was able to keep MedLife employees safe, periodically test medical and support staff, patients and keep functional units and ensure patients a qualitative and safe medical act by performing weekly thousands of RT-PCR tests.

MedLife Group also registered a dynamic activity in the area of ​​corporate clients. Thus, since the beginning of the COVID-19 pandemic, the company has developed new products to meet the needs in this epidemiological context, has thought of special projects adapted to support employees of partner companies and has increased the segments of medical services and priority investigations.

Increasing the participation in the Genesys Arad group

MedLife Group has increased its stake by 7% in the Genesys Arad group of companies, one of the largest private medical service provider in western Romania. As a result of this increase, MedLife holds a 68% stake.

Acquisition of Labor Maricor

MedLife Group acquired 100% stake in Labor Maricor SRL from Bacau in April 2020.

MedLife Medical System announces 10% increase in the package of shares held in Ghencea Medical Center company

MedLife Medical System takes over the entire shareholding of the Ghencea Medical Center company in Bucharest, completing the package of shares held by another 10%, now reaching 100%.

Acquisition of Matei Basarab Medical Center

MedLife Medical System announces the acquisition of the 100% stake in the Veridia Medical Center in Bucharest, known as the Matei Basarab Medical Center.

Acquisition of Pharmachem Distributie

MedLife Medical system announces the signing of the acquisition for the 75% majority stake of Pharmachem Distributie SRL. It is the group’s largest acquisition this year, being, also, the first acquisition in the pharma sector.

Acquisition of CED Pharma

MedLife Medical System announces the signing of the transaction for the acquisition of the full package of shares of CED Pharma group of companies. It is the second acquisition of MedLife Group in the pharma segment, announced within two weeks.

Acquisition of KronDent (indirect)

DENT ESTET group of clinics, market leader in the field of dentistry services in Romania, announces the signing of the SPA for the majority stake of 60% of the shares of KronDent S.R.L, a periodontology-implantology and dentistry clinic, based in Brasov.


    Period ended at
1 Current ratio  December 31, 2020
  Current assets          284,352,646 =        0.84
  Current liabilities          339,030,068
    Period ended at
2 Debt to equity ratio December 31, 2020
  Long Term Debt          554,217,519 = 207%
  Equity          268,260,333
  Long Term Debt          554,217,519 = 67%
  Capital Assets          822,477,852
    Period ended at
3 Trade receivables turnover (days) December 31, 2020
  Average receivables          111,124,364 =      37.10
  Sales       1,078,273,545
    Period ended at
4 Fixed assets turnover December 31, 2020
  Sales       1,078,273,545 =        1.20
  Net Fixed Assets          899,234,070


Business line Info 12 months ended 12 months ended
December 31, December 31,
2020 2019
Clinics Revenue                                  307,919,487                              295,465,223
Clinics Visits                                 1,815,055                             1,861,491
Clinics Avg fee                                      169.6                                   158.7
Stomatology Revenue                                    57,177,077                                59,817,358
Stomatology Visits                                     89,172                                123,349
Stomatology Avg fee                                      641.2                                   484.9
Hospitals Revenue                                  251,943,388                              221,198,932
Hospitals Patients                                     82,209                                  82,683
Hospitals Avg fee                                    3,064.7                                 2,675.3
Laboratories Revenue                                  203,814,880                              154,135,274
Laboratories Analyses                                 5,211,645                             5,905,490
Laboratories Avg fee                                        39.1                                     26.1
Corporate Revenue                                  198,530,858                              183,514,802
Corporate Subscriptions                                   738,582                                705,380
Corporate Avg fee                                      268.8                                   260.2
Pharmacies Revenue                                    44,405,803                                39,341,136
Pharmacies Clients                                   194,838                                250,717
Pharmacies Sales per client                                      230.4                                   156.9
Others Revenue                                    14,482,051                                13,907,472



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