Asklepios Group: Sound growth despite challenging environment in first quarter of 2022

In a first quarter dominated by the war in Ukraine and the continuing effects of the coronavirus pandemic, Asklepios made a robust start to a challenging 2022 financial year. The number of inpatients and outpatients cared for increased by 15.6% year-on-year to a total of 836,025 in the first quarter of 2022 (3M 2021: 723,019). In the first three months of the year, the Asklepios Group generated revenue totalling EUR 1,276.3 million (3M 2021: EUR 1,221.0 million). 

Despite a challenging environment with rising costs for staff and materials, operating EBITDA was increased to EUR 100.3 million (3M 2021: EUR 89.9 million). The EBITDA margin was 7.9% (3M 2021: 7.4%). Asklepios generated consolidated net income (EAT) of EUR 6.4 million (3M 2021: EUR 0.0 million).
The most important driving factor for the positive development in the first quarter was growth in patient numbers. The number of inpatients increased by 5.5% to 178,463 (3M 2021: 169,190). Outpatient numbers posted significant growth of 18.7% to 657,562 (3M 2022: 553,829).
Kai Hankeln, CEO of Asklepios Kliniken, comments: “Asklepios has broken new ground with expertise and innovation in many areas over the past years. The steadily growing number of patients who place their trust in us every day and feel well cared for in our hospitals backs up this strategy. At the same time, it shows that excellent quality of treatment and healthy business management go hand in hand. In this context, we emphatically welcome the German government’s goal of achieving more efficiency in the healthcare sector with creative new solutions. We are prepared to support the government commission now appointed with professional expertise and personal commitment.”
Asklepios employed an average of 49,814 full-time equivalents in the first quarter of 2022. The staff costs ratio was down slightly on the previous year at 68.0% (3M 2021: 69.4%), while absolute staff costs amounted to EUR 867.7 million (3M 2021: EUR 847.8 million). In the first quarter of 2022, the cost of materials ratio rose to 25.2% (3M 2021: 24.6%) due to increased costs for measures relating to the COVID-19 pandemic. 
The Asklepios Group had a stable financial position in the first quarter of 2022: As at 31 March 2022, cash and cash equivalents amounted to EUR 661.8 million (31 December 2021: EUR 647.2 million). The ratio of net debt to EBITDA for the past 12 months, adjusted for IFRS 16, was 3.0x (31 December 2021: 3.1x). 
Despite the challenging environment, Asklepios made substantial investments in its roughly 170 healthcare facilities. Investments including subsidies amounted to EUR 51.0 million. At EUR 36.1 million, the share of own funds was 70.8% in the first quarter of 2022 (3M 2021: 77.4%).
Hafid Rifi, Deputy Chairman of the Group management and CFO, says: “Our healthcare system is still facing major challenges: As the pandemic gradually comes to an end, there are now also uncertainties due to the Ukraine war. With our solid economic performance in the first three months of 2022, we are in a position to face these challenges. The current quarterly figures back up our long-term strategy and our strong internal financing capability.”
Asklepios Kliniken is optimistic about the current 2022 financial year. The fourth and five waves of the coronavirus pandemic entailed high incidence rates, but these had no material effect on the utilisation of hospital capacity. At the same time, uncertainty factors such as rising energy and material costs and supply bottlenecks grew as a result of the Ukraine war. In addition to the ongoing shortage of qualified staff, the healthcare market will continue to be influenced by a demanding regulatory environment. Nevertheless, Asklepios anticipates organic revenue growth and a sustainable increase in EBITDA and EAT.