Asklepios: Steady business performance in first half of 2017
• Revenue of EUR 1,619.9 million generates consolidated net income of EUR 79.7 million
• Number of patients treated totals around 1.14 million
• Net capital expenditure increases to EUR 71.4 million
The Asklepios Group expanded its excellence strategy further in the first half of 2017. However, revenue increased only slightly to EUR 1,619.9 million. The number of patients treated came to around 1.14 million, which was 0.9% lower than in the same period of the previous year. Compared to the first half of 2016, Asklepios increased its net capital expenditure on hospital operations by 15.1% and also invested in company acquisitions along the value chain.
The first half of 2017 developed stably overall, with a slight increase in revenue of 0.6% to EUR 1,619.9 million. Earnings were negatively impacted in the amount of a mid-eight-figure sum by extraordinary effects on risk provisions in relation to the changed regulatory environment, resulting in a decline in EBITDA to EUR 169.4 million (6M 2016: EUR 179.6 million). The EBITDA margin was 10.5% (6M 2016: 11.1%).
Due to an increase in the number of employees, the staff costs ratio rose to 65.1% (6M 2016: 64.1%). The cost of materials ratio was up slightly year on year at 21.6% (6M 2016: 21.4%). The other expenses ratio (not including rental expenditure) came to 7.7% (6M 2016: 8.0%). Consolidated net income fell by 4.8% to EUR 79.7 million (6M 2016: EUR 83.7 million), resulting in a return on sales of 4.9% (6M 2016: 5.2%). “We are increasingly offering innovative, individualised treatment solutions at our hospitals, which represents an important part of Asklepios’ excellence strategy,” says Kai Hankeln, CEO. “Over the next half of the year, we will press ahead with the expansion of our service range and build on the revenue and earnings performance of the past financial year.”
Gross capital expenditure amounted to EUR 101.4 million in the period under review (6M 2016: EUR 99.0 million). After deducting subsidies, capital expenditure was up 15.1% at EUR 71.4 million. The own funds ratio came to 70.4% (6M 2016: 62.7%). Asklepios also invested in strategic company acquisitions. “With our high investments and our clear focus on medical specialisms, we are on the right path. We make the majority of these investments with our own funds,” says Dr Thomas Wolfram, CEO. “We expect to see continued positive demand for the treatments we offer.”
The balance sheet and financing structures were sound as at 30 June 2017. Total assets increased by 4.8% to around EUR 3,626.7 million (31 December 2016: EUR 3,460.8 million). Equity amounted to EUR 1,327.5 million (31 December 2016: EUR 1,273.4 million). The equity ratio of 36.6% was slightly lower than at the end of the year (31 December 2016: 36.8%). Net debt amounted to EUR 650.7 million as at the end of the reporting period (31 December 2016: EUR 524.3 million) and the debt ratio was equivalent to 1.7 times EBITDA (31 December 2016: 1.3x). The Group’s cash and cash equivalents amounted to EUR 419.2 million (31 December 2016: EUR 456.6 million). “Our stable financial foundation is a cornerstone of our financial strategy, alongside adequate profitability and sustainable growth,” comments Hafid Rifi, CFO. “We are ready to make strategically expedient acquisitions along the value chain in the second half of the year, too.”
Forecast
Based on its future-oriented overall strategic concept and its sound financial foundation, the company is confirming its outlook for the financial year 2017. The Asklepios Group’s growth prospects are positive thanks to non-cyclical demand. For the year as a whole, the Group management anticipates a moderate improvement in the main key figures and slight growth in revenue of between 1.5% and 2.5%. The forecast of a slight increase in the EBITDA margin and in the equity ratio also remains in place.
Group key figures in comparison to previous year
|
EUR million |
6 months |
6 months |
Change |
12 months |
12 months |
|
|
Revenue |
1,619.9 |
1,610.8 |
0.6% |
3,211.2 |
3,082.0 |
|
|
EBITDA |
169.4 |
179.6 |
-5.7% |
390.4 |
374.0 |
|
|
EBITDA margin (in %) |
10.5 |
11.1 |
-0.6 pp |
12.2 |
12.1 |
|
|
Consolidated net income |
79.7 |
83.7 |
-4.8% |
192.1 |
176.8 |
|
|
Net debt/EBITDA |
1.7 |
1.4 |
|
1.3 |
1.6 |
|
|
Patients |
1,141,821 |
1,152,425 |
-0.9% |
2,279,477 |
2,217,987 |
|
|
Valuation ratio |
298,977 |
303,600 |
-1.5% |
595,210 |
583,517 |
|
|
Employees (FTEs) |
34,894 |
34,709 |
0.5% |
34,887 |
34,670 |
The consolidated interim report for the first half of 2017 is available at www.asklepios.com/ir.
About Asklepios
The healthcare group Asklepios Kliniken is among the leading private operators of hospitals and healthcare facilities in Germany. The hospital group stands for highly professional care of its patients with a clear commitment to medical quality, innovation and social responsibility. On this basis, Asklepios has been developing dynamically ever since it was founded more than 30 years ago. The group currently has 150 healthcare facilities across Germany. Its facilities include acute hospitals providing all levels of care, specialist clinics, psychiatric and forensic facilities, rehabilitation clinics, nursing homes and medical centres. In the 2016 financial year, 2.3 million patients were treated in the Asklepios Group’s facilities. The company has more than 46,000 employees.
Visit Asklepios on its website, Facebook, or YouTube:
www.asklepios.com
www.asklepios.com/ir
www.facebook.com/asklepioskliniken
www.youtube.com/asklepioskliniken
