Mediclinic warns of falling margins in Southern Africa
CEO Dr Ronnie van der Merwe says the group’s results for are ‘‘in line with market expectations in a challenging healthcare environment’
Private clinic and hospital group Mediclinic International says margins in Southern Africa and Switzerland fell in the year to end-March and will probably decline again in the year ahead. Mediclinic said in a trading update on Wednesday that group revenue rose by about 2% in the year to end-March, although earnings before interest, tax, depreciation and amortisation (ebitda) fell 3.5%. The group, which warned about possible noncash impairments, said adjusted earnings per share fell by about 10% to 27 pence. In Southern Africa, revenue grew by about 5% although ebitda margins fell to about 21% from 21.5% on low volume growth. In the 2020 financial year, the ebitda margin in the region would probably decline to about 20%, Mediclinic said. Volumes in the region would grow by only about 1%, while the company would invest in staff and information and communications technology (ICT) during the year. Together with the expected lower margin contribution from Intercare, and the ramp-up of th...
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