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Med Life S.A. - M

Preliminary financial results 2017

Release Date: 2/12/2018 8:55:09 AM

IRIS Code: 7D86C

 

Date : 12 February 2018

Name of the issuing company: Med Life S.A.

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

Fax no.: 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: 5,536,270.50 RON

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

 

 

Preliminary financial results 2017

for MEDLIFE GROUP and MED LIFE S.A.

 

 

Med Life S.A. informs shareholders and investors that, starting 12th of February 2017, 9:00 AM, on the company’s website (www.medlifeinternational.com), at section Investor Relations / Investor Reports and Presentations / Annual reports, the 2017 preliminary unaudited annual financial results report is available.

 

Website link : http://medlifeinternational.com/investors-reports/annual .

 

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

 

For additional information, please contact us at investors@medlife.ro.

 

 

 

____________

Mihail Marcu

CEO

 

2017 PRELIMINARY FINANCIAL RESULTS

A.                    MED LIFE GROUP

·      UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 DECEMBER 2017

   

Year ended December 31,

 

Variation

   

2017

 

2016

 

2017/2016

             

Sales

 

623,219,949

 

502,986,790

 

23.9%

Other operating revenues

 

7,496,681

 

5,468,590

 

37.1%

Operating Income

 

630,716,630

 

508,455,380

 

24.0%

Operating expenses

 

(595,589,780)

 

(488,901,027)

 

21.8%

Operating Profit

 

35,126,850

 

19,554,353

 

79.6%

Financial result

 

(20,582,228)

 

(18,385,241)

 

11.9%

Result Before Taxes

 

14,544,622

 

1,169,112

 

1144.1%

Income tax expense

 

(5,699,385)

 

(2,411,102)

 

136.4%

Net Result

 

8,845,237

 

(1,241,990)

 

-812.2%

Owners of the Group

 

4,412,724

 

(5,109,958)

 

-186.4%

Non-controlling interests

 

4,432,513

 

3,867,968

 

14.6%

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

           

Gain / Loss on revaluation of properties

 

-

 

3,398,211

 

-100%

Corrections related to prior years

 

-

 

-

   

Deferred tax on other comprehensive income components

 

-

 

(543,714)

 

-100%

TOTAL OTHER COMPREHENSIVE INCOME

 

-

 

2,854,497

 

-100%

             

Total other comprehensive income attributable to:

           

Owners of the Group

 

-

 

5,439,256

 

-100%

Non-controlling interests

 

-

 

(2,584,759)

 

-100%

TOTAL COMPREHENSIVE INCOME

 

8,845,237

 

1,612,507

 

449%

             

Total comprehensive income attributable to:

           

Owners of the Group

 

4,412,724

 

329,298

 

1240%

Non-controlling interests

 

4,432,513

 

1,283,209

 

245%

 

·      UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS AS AT DECEMBER 31, 2017

   

December 31,

 

December 31,

 

Variation

   

2017

 

2016

 

2017/2016

NON-CURRENT ASSETS

 

425,814,934

 

375,364,713

 

13.4%

CURRENT ASSETS

 

178,037,182

 

90,754,747

 

96.2%

TOTAL ASSETS

 

603,852,116

 

466,119,460

 

29.5%

CURRENT LIABILITIES

 

167,970,761

 

145,300,339

 

15.6%

LONG-TERM LIABILITIES

 

252,909,151

 

213,144,255

 

18.7%

DEFERRED TAX LIABILITY

 

15,196,634

 

14,655,982

 

3.7%

TOTAL LIABILITIES

 

436,076,546

 

373,100,576

 

16.9%

EQUITY

 

167,775,570

 

93,018,884

 

80.4%

TOTAL LIABILITIES AND EQUITY

 

603,852,116

 

466,119,460

 

29.5%

 

ANALYSIS OF THE UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

Sales for the 12 month period ended 31 December 2017 amounted to RON 623,219,949, higher by 24% compared to sales recorded in the 12 month period ended 31 December 2016. This increase was mainly the result of significant growth in all of the Group’s business lines, led on a percentage basis by Stomatology, Clinics and Laboratories as well as the impact of the acquisitions completed by the Group in 2016 and 2017.


 

Business Line

12 months 2017

% of Total Sales

12 months 2016

% of Total Sales

Variation

Sales

Sales

2017/2016

Clinics

166,650,648

26.7%

130,109,363

25.9%

28.1%

Stomatology

37,565,681

6.0%

18,504,217

3.7%

103.0%

Hospitals

119,106,274

19.1%

104,977,229

20.9%

13.5%

Laboratories

115,259,329

18.5%

93,161,917

18.5%

23.7%

Corporate

144,621,716

23.2%

127,988,835

25.4%

13.0%

Pharmacies

29,526,655

4.7%

23,597,580

4.7%

25.1%

Other revenue

10,489,645

1.7%

4,647,649

0.9%

125.7%

 TOTAL

623,219,949

100%

502,986,790

100%

24%

 

Other operating revenues recorded a significant increase in the 12 month period ended 31 December 2017 as compared to the corresponding period of 2016, amounting to RON 7,496,681 as at 31 December 2017.

 

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  595,589,780 in the first twelve months ended 31 December 2017, representing an increase of 22%, or RON 106,688,753 as compared to the twelve month period ended December 31, 2016. The Group's operating expenses as a percentage of total operating income dropped to 94.4% in the 12 month period ended 31 December 2017 compared to 96.2% in the corresponding period of 2016.

 

 

12 month period ended

 

2017

2016

Consumable materials and repair materials

97,906,188

83,701,521

Commodities

24,111,526

18,908,567

Utilities

6,573,637

5,074,199

Repairs maintenance

6,435,809

5,133,520

Rent

38,281,750

28,055,943

Insurance premiums

2,103,123

1,868,261

Promotion expense

10,414,662

10,371,665

Communications

3,326,050

3,249,114

Third party expenses (including doctor’s agreements)

165,638,063

133,552,240

Salary and related expenses

152,403,119

113,810,954

Social contributions

34,608,368

25,748,024

Depreciation

43,444,329

36,093,805

Impairment of fixed assets

              -  

     (970,918)

Other administration and operating expenses

10,343,156

24,304,132

TOTAL

595,589,780

488,901,027

 

Operating profit recorded an 80% increase in the 12 month period ended 31 December 2017 as compared to the 12 month period ended 31 December 2016, from RON 19,554,353 at 31 December 2016 to RON 35,126,850 as at 31 December 2017.

 

Financial loss increased in the 12 month period ended 31 December 2017 by RON 2,196,987 from a loss of RON 18,385,241 in the twelve month period ended 31 December 2016 to a loss of RON 20,582,228 in the analysed period of 2017, mainly due to net foreign exchange losses recorded in the first 12 months of 2017 in amount of RON 7,109,598 compared to net foreign exchange loss of RON 2,608,878 recorded in 2016.

 

The net result for the 12 month period ended 31 December 2017 increased by RON 10,087,227 as compared to the corresponding period of 2016, from a loss of RON 1,241,990 in the 12 month period ended 31 December 2016 to a profit of RON 8,845,237 in the year 2017. The increase was mainly due to the translation of the Operating Profit increase in the net result.

 

On a pro-forma basis, sales for 12 month period ended 31 December 2017 amount to RON 638,060,929 and Adjusted EBITDA to RON 82,336,019. Please refer to chapter VI – UNAUDITED CONSOLIDATED PRO-FORMA FINANCIAL INFORMATION for more information regarding pro-forma financial information from the 2017 preliminary unaudited annual financial results report.

 

ANALYSIS OF THE UNAUDITED UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

Non-current assets amount to RON 425,814,934 as of 31 December 2017, recording an increase of RON 50,450,221 or 13% as compared to 31 December 2016. The increase is mainly linked to Almina Trading, Anima and Valdi Medica acquisitions.

 

Current assets increased by 86,388,944 RON or 103% from RON 83,637,054as at 31 December 2016 to RON 170,025,998 as of 31 December 2017. The increase is linked to the funds attracted through the share capital increase process.

 

Prepayments recorded as at 31 December 2017 amount to RON 7,629,519. As compared to 31 December 2016, an increase of RON 893,491 was recorded. The increase is linked to accrued expenses and prepaid local tax liabilities.

 

Current liabilities (excluding interest bearing debt items) increased by RON 8,262,409, or 7%, from RON 117,874,182 as at 31 December 2016, to RON 126,136,591 as at 31 December 2017.

 

Interest bearing debt increased by RON 54,172,909, from RON 240,570,412 as of 31 December 2016 to RON 294,743,321 as of 31 December 2017. The increase is mainly due to financing of the Banu Manta building, Almina Trading, Anima and Valdi acquisitions and refinancing of leasing contracts through a new loan agreement.

 

OPERATIONAL KEY PERFORMANCE INDICATORS MEDLIFE GROUP

 

Business line

Info

 12 Month ended
31 December,
2017

 12 month ended
31 December,
2016

Clinics

Revenue

166,650,648

130,109,363

Clinics

Visits

1,153,218

909,132

Clinics

Avg fee

144.5

143.1

Stomatology

Revenue

37,565,681

18,504,217

Stomatology

Visits

99,682

69,111

Stomatology

Avg fee

376.9

267.7

Hospitals

Revenue

119,106,274

104,977,229

Hospitals

Patients

58,610

56,283

Hospitals

Avg fee

2,032.2

1,865.2

Laboratories

Revenue*

115,259,329

93,161,917

Laboratories

Analyses

5,320,695

4,223,840

Laboratories

Avg fee

21.7

22.1

Corporate

Revenue

144,621,716

127,988,835

Corporate

Subscriptions

568,593

420,933

Corporate

Avg fee

254.4

304.1

Pharmacies

Revenue

29,526,655

23,597,580

Pharmacies

Clients

269,104

264,604

Pharmacies

Sales per client

109.7

89.2

Other Sales

Revenue*

10,489,645

4,647,649

 

* Sales obtained for stem cells bank services are classified for the twelve month period ended 31 December 2017 on Other Sales business line. Stem cells bank services sales were previously classified in Laboratories business line. In order to ensure comparison between periods, we have reclassified stem cell banks services sales for the twelve month period ended 31 December 2016 from Laboratories business line to Other Sales business line.

 

B.                 MED LIFE S.A.

·      UNAUDITED STANDALONE STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED DECEMBER 31, 2017

   

December 31,

 

December 31,

 

Variation

   

2017

 

2016

 

2017/2016

TOTAL NON-CURRENT ASSETS

 

309,337,942

 

264,918,255

 

16.8%

             

TOTAL CURRENT ASSETS

 

148,983,451

 

78,786,958

 

89.1%

TOTAL ASSETS

 

458,321,393

 

343,705,213

 

33.3%

             

TOTAL CURRENT LIABILITIES

 

102,596,431

 

95,597,950

 

7.3%

TOTAL LONG-TERM LIABILITIES

 

190,374,211

 

148,420,881

 

28.3%

Deferred tax liability

 

10,785,523

 

10,785,523

 

0.0%

TOTAL LIABILITIES

 

303,756,165

 

254,804,354

 

19.2%

             

SHAREHOLDER’S EQUITY

           

Issued capital

 

81,495,470

 

13,932,034

 

485.0%

Reserves

 

72,708,768

 

72,708,768

 

0.0%

Retained earnings

 

360,990

 

2,260,057

 

-84.0%

TOTAL EQUITY

 

154,565,228

 

88,900,859

 

73.9%

TOTAL LIABILITIES AND EQUITY

 

458,321,393

 

343,705,213

 

33.3%

·      UNAUDITED STANDALONE STATEMENT OF FINANCIAL POSITION FOR THE PERIOD ENDED DECEMBER 31, 2017

   

Year ended December 31,

 

Variation
2017/2016

   

2017

 

2016

 

Sales

 

          379,664,697

 

341,731,549

 

11.1%

Other operating revenues

 

             4,418,145

 

3,924,743

 

12.6%

Operating Income

 

          384,082,842

 

          345,656,292

 

11.1%

             

Operating expenses

 

       (371,094,638)

 

       (338,693,007)

 

9.6%

             

Operating Profit

 

            12,988,204

 

              6,963,285

 

86.5%

             

Finance cost

 

            (9,933,594)

 

            (9,403,108)

 

5.6%

Other financial expenses

 

            (4,139,341)

 

            (4,504,633)

 

-8.1%

             

Financial result

 

          (14,072,935)

 

          (13,907,741)

 

1.2%

             

Result Before Taxes

 

            (1,084,731)

 

            (6,944,456)

 

-84.4%

Income tax expense

 

              (814,336)

 

(808,397)

 

0.7%

Net Result

 

        (1,899,067)

 

       (7,752,853)

 

-75.5%

             

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

           
           

Gain / Loss on revaluation of properties

 

                       -  

 

             7,156,888

 

-100%

Deferred tax on other comprehensive income components

 

                       -  

 

            (1,145,102)

 

-100%

TOTAL OTHER COMPREHENSIVE INCOME

 

                             -  

 

              6,011,786

 

-100%

   

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME

 

           (1,899,067)

 

           (1,741,067)

 

9%

 

ANALYSIS OF THE UNAUDITED STANDALONE STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

 

Sales for the 12 month period ended December 31, 2017 amounted to RON 379,664,697, higher by 11.1% compared to sales recorded in the 12 month period ended December 31, 2016. This increase was mainly the result of a growth in all of the business lines determined by a mixture of increase in prices and volume.

 

Other operating revenues recorded an increase of RON 493,402 in 2017 as compared to 2016, amounting to RON 4,418,145 as at December 2017. The increase is linked to the capitalized costs of intangible assets as a result of the Group's investment of its own resources in the further development of its IT platform.

Operating expenses include variable and fixed costs, as well as the cost of goods and materials used to provide services. Medlife SA recorded operating expenses of RON 371,094,638 in 2017, representing an increase of 9.6%, or RON 32,401,631, as to 2016 financial year.

 

Operating profit recorded a 86.5% increase in 2017 as compared to 2016, from RON 6,963,285 in 2016 to RON 12,988,204 in 2017.

 

Financial loss increased in the in 2017 by RON 165,194 from a loss of RON 13,907,741 in the corresponding period of 2016 to a loss of RON 14,072,935 in 2017.

 

 

ANALYSIS OF THE UNAUDITED STANDALONE STATEMENT OF FINANCIAL POSITION

 

Non-current assets amount to RON 309,337,942 as of December 31, 2017, recording an increase of 16.8% as compared to December 31, 2016. The increase is mainly linked to financial assets recorded as at December 31, 2017 in relation to Almina Trading, Anima and Valdi Medica acquisitions.

 

Current assets increased by RON 69,799,707, or 91.8%, from RON 76,062,900 in December 31, 2016 to RON 145,124,187 in December 31, 2017.

 

Prepayments recorded as at December 31, 2017 amount to RON 3,120,844. As compared to December 31, 2016, an increase of RON 396,786 was recorded. The increase is linked to accrued expenses and prepaid local tax liabilities.

 

Current liabilities (excluding interest bearing debt items), decreased by RON 3,710,383 or 4.6%, from RON 80,008,649 as at December 31, 2016, to RON 76,298,266 as at December 31, 2017.

 

Interest bearing debt increased by RON 52,662,194, from RON 164,010,182 as of 31 December 2016 to RON 216,672,376 as of 31 December 2017. The increase is mainly due to financing of the Banu Manta building, Almina Trading & Anima acquisitions, refinancing of leasing contracts through a new loan agreement.

 



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