Announcements

GHG PLC announces 2Q and 1H17 Results

Georgia Healthcare Group PLC (“GHG” or the “Group” – LSE: GHG LN), announces the Group’s second quarter and half year 2017 consolidated financial results. Unless otherwise mentioned, comparatives are for the second quarter of 2017. The results are based on International Financial Reporting Standards (“IFRS”) as adopted in the European Union (“EU”), are unaudited and extracted from management accounts.

 

PERFORMANCE HIGHLIGHTS

GHG announces today the Group’s 2Q17 and 1H17 consolidated results, reporting a half year profit of GEL 24.2 million (US$10.1 million/GBP 7.8 million) and earnings per share (“EPS”) of GEL 0.12 (US$0.05 per share/GBP 0.04 per share).

 

GEL million; unless otherwise noted

2Q17

  Change,

Y-o-Y

Change,

 Q-o-Q

1H17

Change,

Y-o-Y

 

GHG the leading integrated player in the Georgian healthcare ecosystem

Revenue

 184.6

81.6%

-1.0%

 371.0

112.9%

EBITDA

 26.1

54.6%

4.1%

 51.2

50.4%

Profit before tax

 11.3

79.8%

-13.5%

 24.3

44.9%

EPS, GEL

0.05

-2.7%1

-2.1%

0.12

-3.6%1

ROAE normalised2

9.7%

-3.2%3

-1.5%

11.4%

-2.8%3

           
           

Healthcare services business

Revenue

 66.6

13.3%

0.4%

 132.9

11.5%

Gross profit

 28.3

6.1%

1.2%

 56.2

4.7%

EBITDA

 18.3

6.6%

8.8%

 35.1

0.4%

EBITDA margin (%)

27.5%

-1.7 ppts

2.1 ppts

26.4%

-2.9 ppts

Profit before tax

 7.9

-8.8%

10.7%

 15.1

-21.9%

           
           

Pharma business4

Revenue

 110.9

261.5%

-0.4%

 222.3

624.5%

Revenue from retail sales

 82.5

257.5%

-3.2%

 167.7

627.1%

Gross profit

 26.1

363.8%

-3.2%

 53.1

NMF

Gross profit margin (%)

23.5%

5.2 ppts

-0.7 ppts

23.9%

5.5 ppts

EBITDA

 8.9

NMF

2.7%

 17.6

NMF

EBITDA margin (%)

8.0%

6.2 ppts

0.2 ppts

7.9%

6.1 ppts

Profit before tax

 4.5

NMF

-35.0%

 11.5

NMF

           
 

Medical insurance business

Net insurance premiums earned

 13.4

-12.3%

-4.0%

 27.4

-6.0%

Loss ratio (%)

89.0%

4.0 ppts

4.4 ppts

86.8%

1.1 ppts

Expense ratio (%)

18.6%

-3.1 ppts

-1.6 ppts

19.4%

-1.6 ppts

Combined ratio (%)

107.6%

0.9 ppts

2.9 ppts

106.2%

-0.5 ppts

EBITDA

 (0.8)

-6.1%

75.9%

 (1.2)

-20.0%

Loss before tax

 (1.2)

-41.9%

8.4%

 (2.3)

4.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




1 Comparison on a normalised basis – 2Q16 and 1H16 Earnings per share (EPS) is calculated as adjusted net profit - 2Q16 and 1H16 net profit was normalised and adjusted for one-off non-recurring gain due to deferred tax adjustments (in the amount of GEL 29.3 million for GHG, which fully resulted from the Group’s healthcare services business) and adjusted for one-off currency translation loss in June (“translation loss”) (in the amount of GEL 2.1 million), which resulted from settlement of the US Dollar denominated payable for the acquisition of GPC, the Group’s pharma business - divided by weighted average number of shares outstanding during the same period

2 Normalised ROAE is calculated as net profit for the period attributable to shareholders, net of non-recurring items,divided by average equity attributable to shareholders for the same period net of unutilised portion of IPO proceeds

3 Comparison on a normalised basis - 2Q16 and 1H16 Return on equity (ROAE) is calculated on adjusted net profit (explained in footnote 1)

4 We entered into the pharma business and started consolidating GPC’s results from May 2016 and Pharmadepot’s results from January 2017. Thus 2Q16 and 1H16 pharma business results only includes GPC’s figures for May-June period only