MedLife Group Reports Q1 2024 Results

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Q1 2024 Results Conference Call Transcript
MedLife Representatives: Mr. Mihai Marcu, Chairman of the Board & CEO, Ms. Alina Irinoiu, CFO, Mr. Dorin Preda, Board Member & Director of Finance and Treasury, and Ms. Ioana Birsu, Investor Relations Manager

Mr. Mihai Marcu: Good day everybody and thank you for joining the conference today. I'm here with my colleagues, Mr. Dorin Preda, Board Member and Executive Director, Alina Irinoiu, our CFO, and the IR Manager, Ioana Birsu. So, thank you, the presentation will be made by Alina and afterwards, of course, we will go the Q&A session, together. Thank you. Please, Alina.

Alina Irinoiu: Hello everyone and thank you Mihai for the introduction. We thank you for your participation today to the 1st quarter 2024 financial results presentation. As usual, I will start with the key messages for this 3-month period and a more detailed outlook for the remaining of this year. MedLife Group finalized Q1 2024 with a pro-forma total turnover of RON 647 million, an increase of 22% compared to the same period last year, out of which 15% was organic growth. This strong growth shows that we have continued to experience sustained demand for medical services in our units, creating also good growth premises for the rest of the year. In terms of profitability, we had a robust increase in the EBITDA margin YoY, as an effect of the integration of the acquired companies into the Group, and of the sustained organic development investments which started to contribute to the overall profitability of the Group. As a consequence, during this period there was a 33% increase in pro-forma EBITDA, to RON 99 million and a 65% increase in the pro-forma net result, to RON 14 million. However, please keep in mind that, though the market is looking good and we have a strong demand for our services, there is an industry seasonality linked to the number of working days per quarter and usually Q1 is the one with the highest number of working days. After the robust improvement in margins during this quarter, we expect to have the same growth YoY, but not necessarily compared to the previous quarter. In terms of projects and M&A, we have completed the acquisition of Personal Genetics (a genetics laboratory), thus becoming the provider with the greatest expertise in the area of genetics and molecular biology in Romania. On the side of outlook for the period to come, we will continue to optimize the operational flows and procedures within the Group, in order to further leverage the economies of scale and cumulated expertise of each unit. We will also focus on consolidating profitability margins YoY after important investments, as well as gradual reduction of leverage levels in 2024 and onwards. We are confident that we have set the foundation for a solid platform for growth in the coming years, above the market, especially in Bucharest where, together with the new Nord hospital, we believe that we will be able to take over the position of main private provider of hospital services in the coming years.

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