Asklepios Group: Positive development continued in the first half of 2024 - solid basis for further strategic development

Asklepios Kliniken GmbH & Co. KGaA has performed consistently in a challenging environment in the first half of 2024. Asklepio’s measures to recruit specialist staff are having an impact and are leading to an increase in patient flows. Due to the significant increase in revenue compared to the previous year, the Group was able to achieve solid financial results in the months from January to June 2024. On this basis, the Group is pressing ahead with its further development in order to consolidate its position as a top-quality and economically sound healthcare provider in Germany.

The demand for the best possible medical care in the Asklepios Group’s hospitals remains at a high level: In the first six months of the current financial year, a total of 1,818,146 patients (6M.2023: 1,720,843) were treated in the healthcare facilities of Asklepios Kliniken. In the first six months of 2024, the Asklepios Group generated consolidated revenue of EUR 2,902.6 million (6M.2023: EUR 2,708.4 million), an increase of 7.2% compared to the previous year. The consolidated interim income after taxes (EAT) for the period from January to June 2024 amounted to EUR 74.1 million and was above the previous year’s comparable period (6M.2023: EUR 45.6 million). The EAT margin was 2.6% (6M.2023: 1.7%).

Thanks to its solid financial position, Asklepios is able to continue its investment strategy with the aim of aligning its hospitals with the new regulatory requirements. In the first half of 2024, Asklepios invested a total of EUR 150.5 million (6M. 2023: EUR 147.1 million). The net debt ratio (net financial debt/EBITDA LTM) was 3.1x and decreased compared to the previous year (31/12/2023: 3.3x).

Hafid Rifi, CFO: “Despite the effects of coronavirus, inflation and the energy crisis, as well as the high burden of financing the takeover of RHÖN at the beginning of 2020, our net debt ratio of 3.1x is almost at the same level as before.”

Well equipped to seize opportunities presented by hospital reform

The operational and economic development of clinics in Germany is characterised by the planned hospital reform. Asklepios covers the entire spectrum of medical services within the group of companies: From outpatient and inpatient to rehabilitative care after an operation, the Group’s clinics provide basic, standard, specialised and maximum care and through university hospitals, they are accessible far beyond the respective healthcare region.

Joachim Gemmel, CEO of Asklepios Kliniken: “The transformation of the hospital landscape is a challenge for all providers. But it also offers us the opportunity to fully exploit our competitive strength. We are consistently pressing ahead with our further development in order to secure and expand our position as a quality leader. We are constantly investing in future areas such as digitalisation and automation to increase the quality of treatment.”

“Medical quality has always been of great importance and will become even more central with the planned hospital reform. We feel that our previous strategy of establishing uniform quality standards in the Group has been confirmed and we are well positioned for the upcoming changes,” commented CMO PD Dr. med. Sara Sheikhzadeh.

The integrated cooperation with MEDICLIN and RHÖN has enabled Asklepios to establish a platform to exploit economies of scale, create synergies and share expertise. While disadvantages are to be expected for individual hospitals, Asklepios as a group is in a resilient position to further advance the specialisation of clinics required as part of the hospital reform.

Marco Walker, CEO of Asklepios Kliniken: “Our performance in the first half of the year proves that we are working successfully despite difficult market conditions. With more than 160 healthcare facilities in association with MEDICLIN and RHÖN, we can offer the highest level of medical quality with the best possible economic conditions.”

Outlook

Business development in the first half of 2024 was influenced by the general price trend in the energy and raw materials sector, the shortage of skilled workers and the planned hospital reform. Asklepios reacted flexibly to these challenges and responded prudently to changes in medical or regulatory requirements in order to minimise potential effects.
As things currently stand, Asklepios will be able to continue its stable business performance in the second half of the financial year 2024. In view of the uncertainty surrounding economic development, it is difficult to make a definite forecast. Alongside the general cost trend, regulatory decisions in the hospital market will also have an impact. However, it is still Asklepios’ goal for the year as a whole to improve its operating result.