MedLife announces a 27% increase in consolidated pro forma turnover in the first semester of this year. Organic growth of 12% also remains robust, in line with the same period of last year
- MedLife continues to be on an upward trend, recording a revenue of EUR 222.1 million in the first semester of this year, a 27% increase compared to the same period of the previous year;
- The group achieved significant growth across all business lines, the best results being recorded by clinics and hospitals, with increases of 41% and 36% respectively in turnover;
- The strong performance of the Group is mainly attributed to the good doctors with high expertise and the fact that innovation, technology and digitization remain, in the future, key elements for a sustainable and healthy development of the business;
- The corporate department also demonstrates an excellent evolution based on the leverage effect of the largest nationwide network of clinics;
- In the coming period, MedLife focuses on consolidating the largest network of private medical services in Romania by continuing organic projects, with an emphasis on the expansion of hospital units in several areas of the country.
MedLife, the largest private medical services network in Romania and the industry leader, announces its financial results achieved in the first semester of this year and reports a consolidated proforma turnover of EUR 222.1 million, a 27% increase compared to the same period of last year, out of which 12% represents organic growth. This robust performance demonstrates MedLife Group’s ability to remain at the top of the industry despite market signals indicating a potential slowdown in the medical market growth.
„The pandemic generated significant changes in Romanians’ behavior towards health and MedLife has responded to the new needs by offering complete and integrated medical solutions. The great doctors of MedLife dedicate themselves with high professionalism to the mission of covering all aspects of the health of those who come to us, from prevention, to diagnosis and treatment. Thus, beyond the highly complex services, we manage to bring confidence in a healthy future, and this keeps us among Romanians’ top choices„, stated Dorin Preda, Executive Director within MedLife.
With a strategic approach to operational development, all business lines of MedLife Group recorded robust growth between January and June 2023, the best performers being clinics (+41%), hospitals (+36%) and the corporate division (+13 %), followed by dental clinics and laboratories with growth rates of 11% and 9% respectively.
In terms of profitability, the Group records a slight decrease in the EBITDA margin, from 15.8% in the first semester of the previous year to 15.2% in the same period of 2023. However, a less pronounced seasonal decrease is noted in the second quarter compared to the first quarter of the year, in comparison to 2022. At the same time, there is also an increase in profitability compared to the second semester of the previous year, thus underlining the stability and positive direction of the Group.
”In the first six months of this year, MedLife Group continued to strengthen its position as a leader in the private medical services market, maintaining the positive growth and the expansion trend. The Group’s strong performance is attributed especially to skilled and highly expertise doctors and to the fact that innovation, technology and digitization remain key elements for a sustainable and healthy development of the business. With regard to the short-term evolution of margins, no major changes are anticipated, but we are taking measures for positive adjustments in the upcoming period, thus confirming our commitment to a sustainable development”, emphasized Dorin Preda.
Perspectives on H2: consolidation of the largest network of private medical services in Romania
Looking ahead, MedLife is focused on consolidating its leadership position by continuing organic projects with a focus on expanding the hospital network in Bucharest, through ongoing work on the MedLife Park project and by opening new units in the Oltenia and Western regions. Although acquisitions are not a priority for the Group at this time, MedLife representatives do not exclude the possibility depending on market opportunities and development needs.
” In our nearly three-decade evolution, we have grown from a company with 30 employees to the largest private healthcare network in the country with more than 10,000 people dedicated to our commitment to provide innovative and effective medical solutions to our patients. Next, as we mentioned at the beginning of the year, we are focusing on optimizing the operational flows and procedures within the group, in order to leverage economies of scale and the accumulated expertise of each unit. With the determination that characterizes us, in the coming months, we emphasize efficiency and the development of several ambitious organic projects, which will strengthen the largest network of clinics, laboratories and hospitals available at national level”, said Mihai Marcu, CEO of MedLife.
Currently, MedLife Group owns the largest network of private medical services in Romania with approximately 700 locations, both owned and partnered nationwide. Over 6 million unique patients have so far accessed prevention, wellness, treatment and hospitalization services in MedLife units, and over 800,000 employees benefit from medical services through MedLife subscriptions.
About the MedLife Medical System
MedLife Medical System started nearly three decades ago, growing healthily and becoming the largest provider of private medical services in Romania. The Romanian entrepreneurs, alongside elite doctors who founded the company, invested and got involved in bringing change to the Romanian healthcare system by beliving in innovation and daring to aim as high as possible to offer Romanian patients quality, professionalism, care and respect for their needs.
The company operates the most extensive network of clinics, one of the largest networks of medical laboratories, as well as the largest network of general and specialized hospitals in the country, these being governed by extraordinary doctors who have performed hundreds of thousands of surgical interventions and evaluated millions of patients using the latest medical technologies.
As a Romanian company with tradition, MedLife decided to list on the Romanian Stock Exchange, becoming a model for local capital market listings. It has expanded horizons, and through the corporate governance it has implemented, it inspired other local companies to start on this path and help the development of Romanian capital and the economy. The shares
issued by MedLife SA are traded on the regulated market administered by the Bucharest Stock Exchange, Premium Category, with the trading symbol „M”.
During the pandemic, MedLife managed to play an essential role in society and gained a leadership status in monitoring the pandemic through active involvement in the research area. The company continues to invest in projects with impact on the local community in technology and infrastructure. It creates jobs and develops an ecosystem that contributes to the development and maintenance of a healthy Romania.