Mediclinic International flags narrower margins in Southern Africa
HOSPITALS operator Mediclinic International, which recently warned that revenue would be lower than expected at the Abu Dhabi operation it bought just under a year ago, says margins in Southern Africa in the first half will be slightly lower than a year ago, while it expects stable margins in the Swiss operations.But this was in line with that it expected, the group said in a Sens statement on Tuesday, and its guidance for the full year remained unchanged for all three regions, Southern Africa, Switzerland and the Middle East.In the fist half of 2016, the underlying margin on earnings before interest, tax, depreciation and amortisation (ebitda) in the Southern African operation was 21.6%. Mediclinic said in Tuesday’s update that the fall expected this year was because of rising drug prices and higher staff costs as it invested in more clinical personnel and increased salaries for certain clinical staff.Underlying ebitda margins at Hirslanden in Switzerland were stable, while in the ...
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