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Med Life S.A. - M

Half-year financial results H1 2019

Release Date: 8/13/2019 8:00:10 AM

IRIS Code: 14091

To: BUCHAREST STOCK EXCHANGE

       FINANCIAL SUPERVISORY AUTHORITY

 

 

REPORT

Report drafted according to the stipulations of ASF Rule no. 5/2018 on issuers of financial instruments and market operations and Law no. 24/2017 on issuers of financial instruments and market operations

 

Report Date: 13 August 2019

Name of the issuing company: MED LIFE S.A. ("MedLife" or "The Company")

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

Fax number: 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: 5,536,270.5 RON

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

 

Significant events to report:

 

Availability of 2019 First Semester Report

(period 1 January- 30 June 2019) for MEDLIFE GROUP and MED LIFE S.A.

 

 

Med Life S.A. informs the shareholders and investors that, starting 13 of August 2019, 9:00 AM, on the Company’s website (www.medlifeinternational.com), at section Investor Relations / Investor Reports and Presentations / Periodic reports, the 2019 First Semester Report is available.

The 2019 First Semester Report can also be consulted by accessing the link from below.

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

For additional information, please contact us at investors@medlife.ro, Alina Irinoiu - IR Manager.

 

 

Mihail Marcu

Chief Executive Officer

 

I.UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS AS AT JUNE 30, 2019 (“CONSOLIDATED FS”)

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (“CONSOLIDATED BS”)

   

June 30,

 

January 1,

 

Variation

   

2019

 

2019

 

2019/2018

ASSETS

           

NON-CURRENT ASSETS

 

699,438,147

 

590,174,447

 

18.5%

CURRENT ASSETS

 

184,253,799

 

163,919,759

 

12.4%

TOTAL ASSETS

 

883,691,946

 

754,094,206

 

17.2%

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDER’S EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES

 

298,267,996

 

245,246,366

 

21.6%

LONG-TERM LIABILITIES

 

382,149,031

 

313,538,596

 

21.9%

Deferred tax liability

 

16,766,020

 

16,436,342

 

2.0%

TOTAL LIABILITIES

 

697,183,047

 

575,221,304

 

21.2%

 

 

 

 

 

 

 

SHAREHOLDER’S EQUITY

 

 

 

 

 

 

Equity attributable to owners of the Group

 

164,049,961

 

159,350,814

 

3.4%

Non-controlling interests

 

22,458,937

 

19,522,088

 

15.0%

TOTAL EQUITY

 

186,508,899

 

178,872,902

 

4.3%

TOTAL LIABILITIES AND EQUITY

 

883,691,946

 

754,094,206

 

17.2%

 

 

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED JUNE 30, 2019 (“CONSOLIDATED PL”)

   

6 months ended

 

Variation

   

June 30, 2019

 

June 30, 2018

 

2019/2018

             

Sales

 

468,294,294

 

      373,549,456

 

25.4%

Other operating revenues

 

3,893,238

 

         1,975,206

 

97.1%

Operating Income

 

472,187,532

 

375,524,662

 

25.7%

   

 

     

 

Operating expenses

 

(444,066,541)

 

 (358,464,646)

 

23.9%

   

 

     

 

Operating Profit

 

28,120,991

 

17,060,016

 

64.8%

   

 

     

 

Finance cost

 

(9,969,253)

 

(7,784,416)

 

28.1%

Other financial (expenses) / income

 

(4,389,235)

 

    315,636

 

-1490.6%

   

 

     

 

Financial result

 

(14,358,488)

 

  (7,468,780)

 

92.2%

   

 

     

 

Result Before Taxes

 

13,762,503

 

    9,591,236

 

43.5%

Income tax expense

 

(3,288,590)

 

(3,517,089)

 

-6.5%

Net Result attributable to:

 

10,473,913

 

         6,074,147

 

72.4%

 

 

 

 

 

 

 

Owners of the Group

 

6,976,191

 

  4,013,497

 

73.8%

Non-controlling interests

 

3,497,722

 

  2,060,650

 

69.7%

   

 

     

 

Other comprehensive income items that will not be reclassified to profit or loss

 

 

     

 

   

 

     

 

Gain / Loss on revaluation of properties

 

-

 

                      -  

 

0.0%

Corrections related to prior years

 

-

 

                     -  

 

0.0%

Deferred tax on other comprehensive income components

 

-

 

                      -  

 

0.0%

TOTAL OTHER COMPREHENSIVE INCOME

 

-

 

                     -  

 

0.0%

   

 

 

 

 

 

Total other comprehensive income attributable to:

 

 

     

 

Owners of the Group

 

-

 

                      -  

 

0.0%

Non-controlling interests

 

-

 

                     -  

 

0.0%

TOTAL COMPREHENSIVE INCOME

 

10,473,913

 

    6,074,147

 

72.4%

   

 

 

 

 

 

Total comprehensive income attributable to:

 

 

     

 

Owners of the Group

 

6,976,191

 

  4,013,497

 

73.8%

Non-controlling interests

 

3,497,722

 

  2,060,650

 

69.7%

 

II.FINANCIAL ANALYSIS

 

ANALYSIS OF THE CONSOLIDATED PL

Sales for the 6 month period ended 30 June 2019 (“H1 2019”) amounted to RON 468,294,294, higher by 25.4% compared to sales recorded in the first half of 2018 (“H1 2018”). This increase was mainly the result of significant growth in almost all of the Group’s business lines, led on a percentage basis by Hospitals, Clinics and Stomatology, as well as the impact of the acquisitions completed by the Group in 2018 and 2019.

 

Business Line

H1 2019

% of Total Sales

H1 2018

% of Total Sales

Variation

Sales

Sales

2019/2018

Clinics

139,893,313

30%

107,489,756

29%

30.1%

Stomatology

28,815,355

6%

21,432,948

6%

34.4%

Hospitals

107,025,708

23%

74,386,210

20%

43.9%

Laboratories

75,561,558

16%

66,939,058

18%

12.9%

Corporate

91,004,382

19%

82,077,433

22%

10.9%

Pharmacies

19,586,689

4%

17,346,771

5%

12.9%

Others

6,407,290

1%

3,877,280

1%

65.3%

Total Sales

468,294,294

100%

373,549,456

100%

25.4%

 

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 444.066.541 in H1 2019, representing an increase of 23.9% as compared to H1 2018. The increase is mainly linked to overall business increase. The Group's operating expenses as a percentage of total operating income reached 94.04% in H1 2019 compared to 95.46% in H1 2018.

Operating expenses evolution

 

6 Month ended 30 June,

Variation

Description

2019

2018

2019/2018

Consumable materials and repair materials

76,031,056

58,076,149

30.9%

Commodities

15,366,400

14,382,449

6.8%

Utilities

5,958,792

4,460,621

33.6%

Repairs maintenance

5,688,967

3,876,102

46.8%

Rent

3,826,647

21,217,514

-82.0%

Insurance premiums

1,530,405

1,212,528

26.2%

Promotion expense

6,148,989

7,184,824

-14.4%

Communications

2,016,807

1,842,591

9.5%

Third party expenses (including doctor’s agreements)

125,927,709

98,284,039

28.1%

Salary and related expenses

141,973,483

111,437,123

27.4%

Social contributions

5,084,011

3,779,565

34.5%

Depreciation

45,837,992

26,306,410

74.2%

Other administration and operating expenses

8,675,283

6,404,731

35.5%

Total

444,066,541

358,464,646

23.9%

 

Operating profit recorded a 64.8% increase in H1 2019 as compared to H1 2018, from RON 17,060,016 in H1 2018 to RON 28,120,991 in H1 2019.

Financial result increased in H1 2019 with RON 6,889,708 from a negative RON 7,468,780 in H1 2018 to a negative RON 14,358,488 in H1 2019.

The net result for the 6-month period ended 30 June 2019 increased with RON 4,399,766, or by 72.4%, as compared to the corresponding period of 2018, from RON 6,074,147 in H1 2018 to RON 10,473,913 in H1 2019.

 

ANALYSIS OF THE CONSOLIDATED BS

Non-current assets amount to RON 699,438,147 as of 30 June 2019, recording an increase of 18.5% as compared to 31 December 2018. The increase is mainly the result of the registration of the right of use with the adoption of the IFRS 16 Standard.

Current assets increased with RON 20,334,040 or by 12.4% from RON 163,919,759 as at 31 December 2018 to RON 184,253,799 as at 30 June 2019.

Current liabilities (excluding interest bearing debt items) increased with RON 10,628,125, or by 5.8%, from RON 182,223,386 as at 31 December 2018, to RON 192,851,511 as at 30 June 2019.

Interest bearing debt increased with RON 111,003,940, from RON 376,561,576 as of 31 December 2018 to RON 487,565,516 as of 30 June 2019. The increase is mainly due to financing the current activity of the group and the acquisitions finalised in the current period, as well as due to the first-time adoption of IFRS 16 Standard.

 

III. MAIN FINANCIAL RATIOS AS AT 30 JUNE 2019

 

 

Period ended at

Current ratio

June 30, 2019

       

Current assets

184,253,799

=

       0.62

Current liabilities

298,267,996

       
       
       
 

Period ended at

Debt to equity ratio

June 30, 2019

       

Long Term Debt

382,149,031

=

2.05

Equity

186,508,899

       

Long Term Debt

382,149,031

=

0.67

Capital Assets

568,657,929

       
       
       
 

Period ended at

Trade receivables turnover (days)

June 30, 2019

       

Average receivables

84,412,445

=

     32.45

Sales

468,294,294

       
       
       
 

Period ended at

Fixed assets turnover

June 30, 2019

       

Sales

468,294,294       

=

       0.67

Net Fixed Assets

699,438,147

 

IV.OPERATIONAL KEY PERFORMANCE INDICATORS

 

Business line

Info

 6 month ended
June 30,
2019

 6 month ended
June 30,
2018

Clinics

Revenue

 139,893,313

          107,489,756

Clinics

Visits

 899,257

              702,745

Clinics

Avg fee

 155.6

                  153.0

Stomatology

Revenue

 28,815,355

            21,432,948

Stomatology

Visits

 59,871

                52,334

Stomatology

Avg fee

 481.3

                  409.5

Hospitals

Revenue

 107,025,708

            74,386,210

Hospitals

Patients

 41,638

                33,998

Hospitals

Avg fee

 2,570.4

               2,188.0

Laboratories

Revenue

 75,561,558

            66,939,058

Laboratories

Analyses

 2,969,079

           2,898,322

Laboratories

Avg fee

 25.4

                    23.1

Corporate

Revenue

 91,004,382

            82,077,433

Corporate

Subscriptions

 676,276

              614,756

Corporate

Avg fee

 134.6

                  133.5

Pharmacies

Revenue

 19,586,689

            17,346,771

Pharmacies

Clients

 132,080

              138,632

Pharmacies

Sales per client

 148.3

                  125.1

Others

Revenue

 6,407,290

              3,877,280

 

 

 



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