21 August 2014, Moscow, Russia.- Medsi Group JSC and its subsidiaries ("MEDSI" or the "Group"), a leading national network provider of healthcare and rehabilitation services in Moscow and other Russian regions, today announces its unaudited consolidated US GAAP financial results for the six months ended 30 June 2014.
Revenue up 8.5% year-on-year in roubles and down 3.8% in US dollars to US$141.6 million;
OIBDA up 33.5% year-on-year from US$15.2 million to US$20.3 million;
OIBDA margin up 4.1 p.p. to 14.4%;
SG&A to revenue ratio down 1.5 p.p. year-on-year to 12.5%;
Net profit reached US$19.4 million, compared to US$0.4 million in 1H 2013;
Net cash position as at 30 June 2014 was US$32.0 million.
The total floor area of the Group's healthcare assets was 247.7 thousand sq m;2
The number of visits was 2,841.1 thousand, up 2.4% year-on-year;
The number of services provided increased marginally to 6,566.5 thousand;
The average check grew 6.7% year-on-year in roubles and declined by 5.4% year-on-year in US dollars to US$46.8;
Revenue per square metre grew 9.0% year-on-year in roubles and declined by 3.4% year-on-year in US dollars to US$571.8.
Commenting on the results, MEDSI President Alexey Chupin said:
"In 1H 2014, MEDSI posted a positive performance. In the reporting period, our key growth indicators were notably affected by the rouble's depreciation against the US dollar. E. g. the Group's revenue in roubles was up 8.5%, while our US$ income was 3.8% down. With our new assets now fully integrated, we are focusing on organic business growth and our strategic projects.
Early this year, we launched a new strategy focussing on integrated healthcare services. It implies a higher quality of service and upgrades to our clinics and healthcare equipment to fully meet the needs of our patients. The Clinical and Diagnostic Centre (CDC) on Belorusskaya, one of our key assets, keeps posting a strong growth performance. Over 1H 2014, its revenue was 25% and 10% up in roubles and US dollars, respectively. The CDC continues to be a very effective growth driver, with its OIBDA margin sustained at 48%.
As part of this new strategy, in 1H 2014, we launched the construction of a new CDC on Krasnaya Presnya. The new facility is expected to be commissioned in 2015. In addition, the Group launched an extensive upgrade and conversion project for the polyclinic on Khoroshevskoye shosse. These initiatives drove up the capex for the reporting period to US$28.5 million. With our cash position sufficiently strong, we are now well-positioned to fully finance the development programme.
The Group is, however, placing a stronger emphasis on business efficiency. We were able to tighten our control over our costs. E. g. our production costs grew considerably slower than revenue in rouble terms and even posted a negative performance in US dollars. SG&A went down 14%. All this materially improved the Group's OIBDA that rose almost 34%, while the OIBDA margin grew to 14.4%.
We are optimistic about the second half of the year and will keep actively growing all business segments and improving our business efficiency."