26 March 2015, Moscow, Russia. – Medsi Group JSC and its subsidiaries (“MEDSI” or the “Group”), a leading federal medical network providing healthcare and rehabilitation services in Moscow and other Russian regions, today announces its audited consolidated US GAAP financial results for the 12 months ended 31 December 2014.
2014 FINANCIAL HIGHLIGHTS
Revenue increased by 4.3% to RUB 9,766.5 million;
Revenue per square metre grew by 13.6% in 2014;
OIBDA decreased by 28.9% to RUB 844.4 million, with an OIBDA margin of 9.1%;
Capital expenditures rose considerably, reaching RUB 2,981.1 million, as the Group continued to implement its ambitious programme of building new and renovating existing medical assets;
Net profit amounted to RUB 787.5 million versus RUB 1,348.5 million in 2013;
Net cash position as at 31 December 2014 was RUB 841.3 million.
2014 OPERATING HIGHLIGHTS
The total area of the Group’s healthcare assets reduced by 8.1% to 228.7 thousand sq. m due to closure of non-performing assets in the regions. As at 31 December 2014, MEDSI's assets comprised 17 clinics in Moscow (including children clinics and large clinical and diagnostic centre), 7 clinics and 77 medical posts in the Russian regions, three clinical hospitals, ambulance and home care services, wellness clubs, and three healthcare resorts;
The number of visits grew by 0.7% to 6,035.3 thousand, the growth was partially offset by closure of non-performing clinics in the regions and started reconstruction of several assets in Moscow and the Moscow Region.
The average cheque grew by 3.6% in roubles to RUB 1,618.2, mainly as a result of increased share of complex expensive services.
The number of services provided rose by 3.9% to 13,239.3 thousand, due to the product line optimisation and aggressive promotion of services and offers.
Commenting on the results, MEDSI President Elena Brusilova said:
“MEDSI reported a good set of results for 2014, driven by efforts to improve the quality and range of our services, and enhance operational efficiency. In addition, we launched projects to upgrade our clinics and healthcare equipment. The key initiative for the Group's business efficiency improvement in 2014 was restructuring of the management system, granting additional powers and responsibilities to key assets and at the same time optimising the motivation system. The proportion of the variable compensation pools was increased and is now linked to the financial performance of assets.
In 2014, the Group consistently developed partnerships with leading foreign healthcare providers and equipment manufacturers to supply state-of-the-art equipment to its clinics, adopt best international practices, introduce technology and quality standards into MEDSI's operations, and provide training to its clinical staff. In the reporting period, we launched a major strategic investment project – the construction of a new clinical and diagnostic centre (CDC) on Krasnaya Presnya, which will comprise polyclinics with in-patient facilities for children and adults, equipped with state-of-the-art medical equipment. The new centre is expected to be opened in Q2 2015.
In addition, the Group launched a project to convert the polyclinic on Khoroshevskoye shosse, into the specialised clinical and diagnostic centre for children. At the same time, we are upgrading the clinical hospital in Otradnoye. Additionally, a number of new investment projects will be launched in Moscow in 2015. We expect that the implementation of these strategic initiatives will enable the Group to boost its business in the mid-term.
Despite of economic slowdown in Russia, MEDSI, which focused on providing affordable and accessible medical services, reaffirmed its leadership in the commercial healthcare services market and increased the flow of patients and the number of services provided .
We are confident that our well-balanced policy, strong financial position and investment programme will drive our growth and support our offering of affordable high-quality healthcare services to the population.”
Additional information:
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Medsi Group JSC
Nataliya Skaredina
Head of PR
+7 916 507 2418
Skaredina.ny(at)medsigroup.ru
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