MedLife, the leader of the Romanian private medical services market, announces the financial results for the year 2017, reporting a pro-forma consolidated turnover of RON 638 million, namely a 27% increase compared to 2016, and a pro-forma operational profit (EBITDA) of RON 82.3 million.
The corporate subscription clinics and division have the largest share in the announced turnover, RON 173 million, respectively RON 148 million, being followed by hospitals and laboratories, RON 121 million, respectively RON 118 million. According to the company’s representatives, the obtained results are in line with the initial estimates and significantly above the growth rate of the market.
“2017 was a year of great challenges in terms of projects related to development through procurements. We have completed the takeover of Almina Trading, Anima and Humanitas Hospital, the three important operators in the south and northwest of the country. In addition, we acquired the Polisano clinics and hospital, an operator included in the first 10 largest private medical services companies in Romania, and if the transaction will be approved by the Competition Council, we will reach a total of 35 companies within the group and 6300 employees and collaborators throughout the country” stated Mihai Marcu, CEO MedLife (photo).
In parallel with the projects for development through procurements, MedLife continued to invest in greenfield projects as well. The company strengthened its position as a leader in Transylvania, opening last year a new hyper-clinic and a new laboratory in Brasov, as well as a large clinic in Braila, in the southeast of the country. Also, MedLife has started a number of investments in the expansion of the operational capacity of four hospital in its portfolio, two of them in Bucharest and other two in Brasov and Cluj, and they will be completed this year and next year.
For 2018, the MedLife representatives are planning to keep the company’s accelerated growth, the expected increase being of more than 20% compared to 2017.
“As we accustomed our shareholders, we will continue to increase sales significantly above the competition, both by organic increase and procurements. In the coming months, we hope we will have the approval of the Competition Council for the procurement of the Polisano clinics and hospitals. This transaction will bring a significant value to the group, both in terms of strategy and profitability. We estimate that in the first quarter we will complete other 2 or 3 smaller transactions, whose Due Diligence activity is nearing the end” Mihai Marcu also said.
Besides the greenfield and procurement projects, the company has two more important objectives for 2018: to become a national leader in the magnetic resonance area by acquiring 6 new MRIs, thus reaching a total of 12 such equipment in its network, and to extend to the proximity areas outside the country.
“We have taken steps to see to what extent we can be present with our own units in neighboring countries such as Bulgaria, Hungary or Serbia. In a first step, we want to test the market, so we will not have large projects, and depending on the evolution, we will have later a strategy dedicated to such projects. Maybe it’s time for MedLife to cross Romania’s borders” Mihai Marcu added.