Asklepios maintains healthy growth in first half of FY2010
Sharp rise in number of patients, revenues and earnings
The Asklepios Group reported significant increases in the number of patients treated (+12.3 percent at over 814,000) and turnover +7.2 percent at 1,139.3 million Euros (H1/2009: 1,063.2 million Euros) in the first half of FY2010. The hospital group which, with over 20 percent market share is one of the three largest operators of private hospitals in Germany, also reported a 22.5 percent jump in earnings realised through revenue growth and process optimisation.
Stephan Leonhard, Asklepios Group Managing Director and CFO said: 'Our excellent performance in 2010 follows on the heels of the company's record results in 2009. The surge in new patients confirms our strategic fit, focusing clearly on high medical quality and modern processes for treating in-patients, which were enabled by heavy investment in our hospitals. We remain optimistic about the remainder of the year and stand by our 2010 targets of ca. 2.3 billion Euros revenues, a 10-percent-plus increase in the operating result, and a gearing of net debt to EBITDA of less than 2.5x'.
Attractive and high quality medical services were the main drivers of the Group's entirely organic growth. The positive revenue trend combined with accompanying efficiency measures and process improvements also led to a sharp rise in earnings before interest, taxes and depreciation (EBITDA) of 22.5 percent to 106.2 million Euros (H1/2009: 86.7 million Euros). Furthermore, significant improvements in capital costs and a much stronger financial result drove a 52 percent increase in consolidated net income of
53.7 million Euros (H1/2009: 35.4 million Euros). The current net profit margin is 4.7 percent.
Significant portion of net cash flow invested in medical care
In the first half of 2010 Asklepios generated a net cash flow from operations of 107.6 million Euros, which was used primarily for investments and the repayment of financial liabilities. As expected group net debt as of 30th June 2010 reduced to 518.4 million Euros, of which 283.3 million Euros was attributable to subordinated capital. Without taking the subordinated capital in account, net debt declined to 1.1 times the EBITDA (as of 31st December 2009: 1.4 times).
Asklepios Group thus continues to enjoy a sound financial structure with an equity ratio of 30.0 percent. When subordinated capital is included, the ratio rises to 44.5 percent. Cash and cash equivalents and untapped lines of credit of over 470 million Euros provide the Group with sufficient financial headroom for growth and investments.