Institut für Notfallmedizin (IfN) - Zentrum für medizinische Simulation
Asklepios Group maintains high organic growth in third quarter
The Asklepios Group posted significant organic growth again in the third quarter of 2014. In the first nine months, Asklepios treated a total of 1,635,943 patients, a 2.8% increase on the same period of the previous year. Revenue increased by 4.2% to EUR 2,263.3 million (9M 2013: EUR 2,173.0 million).
The trend that saw the major cost items increasing at a partly much lower rate than revenue in the first half of 2014 continued in the third quarter, leading to a further improvement in earnings. The revenue growth resulted in an increase of earnings before interest, taxes, depreciation and amortisation (EBITDA) by 22.7% to EUR 235.4 million (9M 2013: EUR 191.8 million). The EBITDA margin improved from 8.8% in the same period of the previous year to 10.4%. The absolute cost of materials was lowered by 0.5% year on year in the third quarter; personnel costs developed at a slightly lower rate of 2.9%. Consolidated interim income (net profit) increased by 49.6% to EUR 109.8 million in the first three quarters of 2014 (9M 2013: EUR 73.4 million), equating to a 4.9% return on sales. “In the past nine months, we have consistently pursued and achieved our goals in the operating business and can now reap the rewards of our work,” emphasises Dr Ulrich Wandschneider, CEO of the Asklepios Group.
Net debt reduced again
Operating cash flow also continued to develop positively, increasing by 41.5% to EUR 261.5 million in the first nine months (9M 2013: EUR 184.9 million). This was particularly due to the improved earnings situation and the further optimisation of working capital management.
Stephan Leonhard, CFO and Vice-Chairman of the Asklepios Group management team, explains: “In the first three quarters of 2014, we made internally financed net investments of EUR 100.1 million, such as in the now complete Asklepios Klinikum Harburg. Asklepios again financed this consistently high capital expenditure and the significant reduction in financial liabilities from operating cash flow without any problem. Our financial and balance sheet structures therefore improved again as of 30 September.”
Net debt (including subordinated capital) fell by 22.6% to EUR 463.6 million as of the end of the reporting period on 30 September 2014 (31 December 2013: EUR 598.7 million); the debt ratio decreased to 1.4 times the operating result (EBITDA of the preceding twelve months; 31 December 2013: 2.1 times). Cash reserves (EUR 289.4 million) and available credit facilities (EUR 462.0 million) amounted to EUR 751.4 million as of 30 September 2014. As of the reporting date, equity increased 6.5% to EUR 986.3 million, which equates to an increased equity ratio of 34.2% (31 December 2013: 33.6%).
Positive outlook
In light of the performance of the first nine months of 2014, the Asklepios Group is very confident of achieving its business goals in the 2014 financial year. In the forecast for the current 2014 financial year, Asklepios expects organic revenue growth in a range of 2% to 4% and a slight but sustainable increase in the operating result compared to the previous year.
The consolidated interim report as at 30 September 2014 will be published in the Investor Relations section of the Asklepios website (www.asklepios.com) during the course of today.
About Asklepios
The Asklepios Kliniken GmbH healthcare group is among the leading private operators of hospitals and healthcare facilities in Germany. The clinic group pursues a responsible, sustainable growth strategy that is geared towards high quality and innovative strength. On this basis, Asklepios has developed dynamically since it was founded nearly 30 years ago. The Group currently has around 150 healthcare facilities nationwide and employs more than 45,000 people. In the last financial year 2013, approximately 2.2 million patients were treated in Asklepios Group facilities.