EQS-News: MEDICLIN increases Group sales and Group operating result

Offenburg, November 3, 2023

MEDICLIN increases Group sales and Group operating result

• MEDICLIN increases revenues for 9M 2023 by 4.0 % to EUR 547.1 mill.
• Total consolidated result with EUR 24.9 mill. significantly higher than in the previous year (9M 2022: EUR 10.1 mill.)
• High inflation and shortage of skilled staff continue to impact earnings situation
• Capacity utilisation of 84.5 % (9M 2022: 78.5 %) seen positively by the Management Board

In the first nine months of 2023, MEDICLIN Aktiengesellschaft (MEDICLIN) generated consolidated revenues of EUR 547.1 mill., which is EUR 20.8 mill. or 4.0% more than in the first nine months of 2022. The consolidated operating result improved by EUR 19.3 mill. compared to the same period of the previous year, from EUR 10.1 mill to EUR 29.4 mill. An increased capacity utilization of 84.5% (9M 2022: 78.5%) and the development of the post-acute segment allow the Management Board to confirm the guidance and to concretize the expectation of Group operating result for 2023 at EUR 36 to 38 mill.

Sales and earnings performance of the segments

In the segment post-acute, sales increased by 4.2 % to EUR 337.0 mill. (9M 2022: EUR 323.4 mill.). At EUR 35.1 mill., the segment result was EUR 20.8 mill. higher than in the same period of the previous year (9M 2022: EUR 14.3 mill.). The cost of materials ratio rose by 0.5 percentage points to 20.1%, with cost of materials up EUR 4.2 mill. on the prior-year period. The personnel expense ratio decreased minimally to 53.2% (9M 2022: 53.5%). Personnel expenses increased by EUR 6.2 mill. year-on-year.

The segment acute reported an increase in sales of EUR 4.4 mill. or 2.3 %. The segment result was EUR −5.4 mill. (9M 2022: EUR −6.9 mill.). The cost of materials ratio increased from 27.8 % to 29.9 %. The personnel expense ratio was 60.5 %, compared with 59.1 % in the same period of the previous year. In absolute terms, the segment’s cost of materials was EUR 5.1 mill. higher than in the same period of the previous year. Personnel expenses in the segment were EUR 5.3 mill. higher than in the same period of the previous year.

Sales in the segment other activities with EUR 18.3 mill. were EUR 2.8 mill., or 18.3 % higher than in the previous year. The nursing care business area contributed sales of EUR 15.8 mill., 13.2 % more than in the previous year (EUR 13.9 mill.). At EUR −0.3 mill., the segment result was below the previous year’s result of EUR 2.7 mill.

Results impacted by high inflation and shortage of skilled staff

In all segments, the effects of high inflation and the shortage of qualified personnel are being felt through higher expenses, particularly in the cost of materials and personnel expenses. MEDICLIN’s cost of materials increased by a total of EUR 5.2 mill. in the first nine months of 2023 compared to the same period of the previous year. The Group's personnel expenses increased by EUR 19.9 mill. compared to the first nine months of 2022, mainly due to pay increases. Other operating expenses increased by EUR 5.2 mill. compared to 9M 2022. On the other hand, a slight decrease in energy costs had a positive effect, amounting to EUR 11.9 mill. (9M 2022: EUR 14.3 mill.).

Outlook – full-year guidance confirmed – operating results expectations concretized

"Despite the increases achieved in our sales, we are faced with rising expenses in all segments. In particular, MEDICLIN's material and personnel expenses are burdening our results due to high inflation and the shortage of skilled staff," comments Tino Fritz, CFO of MEDICLIN. "However, currently higher capacity utilisation and declining energy costs encourage us to be positive. We expect a consolidated operating result of between EUR 36 mill. and EUR 38 mill. at the end of the year," he adds.

"Still, the expected hospital reform is causing planning uncertainty for MEDICLIN's acute segment, so we are all the more pleased that we can rely on a stable development of the post-acute segment despite additional expenses due to market conditions," says Dr. Joachim Ramming, CEO of MEDICLIN.

The interim report as of September 30, 2023, is available as of today in German and English at www.mediclin.de.

About MEDICLIN Aktiengesellschaft (Ticker: MED; WKN: 659 510)

MEDICLIN includes 32 clinics, six care facilities and ten medical care centers. The Group has around 8,300 beds/care places and employs around 10,000 people. In a strong network, MEDICLIN offers the patient integrative care from the first visit to the doctor through the operation and subsequent rehabilitation to outpatient aftercare. Doctors, therapists and nurses work together in a carefully coordinated manner. MEDICLIN designs the care and support of people in need of care according to their individual needs and personal needs.

MEDICLIN ─ a company of the Asklepios Group