Asklepios finishes FY2010 on a high note, reporting a strong period of growth
Sharp increase in the number of patients, revenues and earnings
Asklepios finished FY2010 on a high note, reporting strong growth in all its key performance indicators (KPIs). The dynamic development of one of the largest privately managed clinic operators in Germany continued despite a challenging overall economic climate. The clinic group’s revenues increased 6.6% to EUR 2,305 million (2009: EUR 2,163 million) on the back of a 6.5% rise in the number of patients treated. EBITDA soared over 15%, driven by efficiency improvements and other process optimization measures.
Dr. Tobias Kaltenbach, Chairman of the Asklepios Group management board, said “The excellent developments in fiscal 2010 follow on the heels of a very successful 2009. The increased number of patients clearly confirmed our broad strategy. New and attractive high-quality medical offers and state-of-the-art processes for in-patient treatment enabled us once again to generate strong growth.” Group CFO Stephan Leonhard added: “We succeeded in beating our ambitious growth and income targets in almost every area. In doing so, the performance of our Hamburg clinics in fiscal 2010 was particularly prominent, standing out as one of the most successful business years in our corporate history.”
The group’s cashflow also improved, despite adverse market fundamentals. The increase in revenues helped drive an impressive 15.9% rise in earnings before interest, taxes, depreciation and amortization (EBITDA) at EUR 229 million (EUR 199 million). Operating margin also rose from 9.1% to 9.9%. At the same time, a disproportionate 21.3% rise in EBIT to EUR 161 million (EUR 133 million) translated to a 7.0% EBIT margin.
Asklepios Kliniken Hamburg made a significant contribution to the dynamic success of fiscal 2010 with an 8.4% growth in revenues and 35.6% rise in EBITDA. Despite a EUR 23 million extraordinary negative bookkeeping item consisting of the revaluation of a Greek holding and the cessation of defunct transaction obligations, an improvement in net interest results nevertheless permitted a slight increase in consolidated net income to EUR 90 million (EUR 88 million). The underlying net profit margin was 3.9%; adjusted for the extraordinary items the net profit margin was 4.9%.
In FY2010, Asklepios generated a strong net cashflow of EUR 222 million which was used primarily for investments in the existing portfolio and for repaying financial liabilities. Net debt at the fiscal 2010 balance sheet cutoff date was EUR 448 million, of which EUR 284 million was attributable to subordinated capital. Net debt declined sharply by EUR 120 million compared to a year earlier. Excluding the subordinated capital, group indebtedness fell to 0.9 times EBITDA. “With the placement of our debut EUR 150 million bond and associated opening to the capital markets, Asklepios now has access to a new strategic source of financing. The bond which carries a 4% coupon and runs until September 2017 considerably improves our maturity profile,” Mr. Leonhard explains.
The concern had a very sound financial structure at year end 2010, reflected in its 30.4% equity ratio. The Asklepios Group had EUR 263 million of liquid funds and over EUR 470 million of untapped credit lines at its disposal for supporting further growth.
About Asklepios
With a 20%-plus market share, the Asklepios Kliniken GmbH healthcare group is one of the Top 3 operators of private hospitals and healthcare facilities in Germany. The clinic group pursues a responsible, sustainable, quality- and innovation-centric growth strategy. Since its formation over a quarter of a century ago, Asklepios has remained faithful to these principles which have rewarded it with dynamic growth. The group currently has 68 clinics with around 18,000 beds and ca. 35,000 employees across Germany. In FY 2010, over 1.6 million patients were treated at Asklepios establishments.