MEDICLINIC’S EARNINGS DOWN BY ALMOST A THIRD

MEDICLINIC International said yesterday its interim earnings declined by almost a third, hurt by the impact of Covid- 19, particularly in April, as lockdown measures were tightened and nonurgent elective surgical procedures were suspended. The international healthcare services provider said in a trading update that it expected its underlying earnings before interest, tax, depreciation and amortisation ( Ebitda) to decline by 33 percent for the six months to the end of September, compared with last year’s Ebitda of £ 252 million ( R5.4 billion), with an Ebitda margin of 12 percent compared with last year’s 16.6 percent. However, the group said business improved from May and restrictions across its markets eased. “Given the underlying demand, this resulted in a strong rebound in operating performance in Switzerland and the United Arab Emirates ( UAE) as the initial peak of the pandemic passed, tempered by a slower recovery in southern Africa with the initial peak of the pandemic passing more recently,” the group said. Revenue is expected to decline by 7 percent, down from last year’s £ 1.52bn. It delivered a robust performance, underpinned by demand for its healthcare services, supplemented by an expanded offering aimed at meeting patients’ needs and changing behaviours despite the Covid- 19 outbreak. Chief executive Dr Ronnie van der Merwe said: “The group delivered a robust first- half operating performance, maintaining operational agility and financial strength while continuing to execute on our strategy. We have seen a good rebound in trading since May, particularly in Switzerland and the UAE, as the initial peak of the pandemic passed.” |