Romania’s MedLife Group H1 net profit down 36% y/y

The net result decreased due to the translation of the increase of the operating profit into the net result, MedLife said in an interim financial report filed to the Bucharest Stock Exchange.

MedLife's operating profit fell 32.9% on the year to 69.1 million lei in the first half, while operating income totalled 864.6 million lei during January-June, up 27.2% year-on-year.

"The war in Ukraine accentuated the volatility of the regional economy, implicitly the economic dynamics at the national level, so we see a development aligned with the market context for the second half of the year. In this regard, we will pay attention to macroeconomic projections and continue our acquisition and investment plans in a balanced manner," MedLife Group President & CEO Mihai Marcu said.

The group's turnover rose by an annual 28% to 865 million lei in the first six months of 2022, reflecting efforts to strengthen the network at national level by opening and acquiring new clinics and medical centers of excellence in key cities in the country. However, the turnover does not include recent acquisitions of Spitalul Muntenia, Medici's Group and SWEAT Concept fitness chain, which are either in the process of being approved by the Competition Council or in the process of being finalized.

Established in 1996, MedLife is one of Romania’s largest private healthcare providers. It currently runs 32 hyperclinics, 11 hospitals, 34 individual laboratories, 23 pharmacies and 17 detal clinics. The chain also collaborates with 170 medical clinics across Romania.

MedLife booked a net profit of 123 million lei in 2021, almost double compared to the previous year.

MedLife shares traded 1.33% lower at 19.36 lei on the Bucharest Stock Exchange as of 1318 CET on Friday.

(1 euro = 4.9458 Romanian lei)