Announcements

GHG 3Q and 9M17 Results

Georgia Healthcare Group PLC (“GHG” or the “Group” – LSE: GHG LN), announces the Group’s third quarter and 9 month 2017 consolidated financial results. Unless otherwise mentioned, comparatives are for the third quarter of 2016. 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 3Q17 and 9M17 consolidated results, reporting a nine month profit of GEL 34.0 million (US$13.7 million/GBP 10.2 million) and earnings per share (“EPS”) of GEL 0.17 (US$0.07 per share/GBP 0.05 per share).

 

GEL million; unless otherwise noted

3Q17

  Change,

Y-o-Y

Change,

 Q-o-Q

9M17

Change,

Y-o-Y

 

GHG the leading integrated player in the Georgian healthcare ecosystem

Revenue

 179.1

54.2%

-3.0%

 550.1

89.4%

EBITDA

 26.1

32.4%

0.1%

 77.3

43.8%

Profit before tax

 9.8

-5.1%

-13.0%

34.2

25.8%

EPS, GEL

0.05

-1.1%1

0.1%

0.17

-1.4%1

ROAE normalised2

10.0%

-2.0%3

0.3%

11.5%

-0.9%3

           
           

Healthcare services business

Revenue

64.0

7.9%

-3.9%

 197.0

10.3%

Gross profit

26.7

-2.5%

-5.7%

 82.9

2.3%

EBITDA

 16.6

-6.6%

-9.2%

 51.7

-2.0%

EBITDA margin (%)

26.0%

-4.0 ppts

-1.5 ppts

26.3%

-3.3 ppts

Profit before tax

 5.9

-41.3%

-26.3%

21.0

-28.5%

           
           

Pharma business4

Revenue

106.6

133.1%

-3.9%

 328.9

330.5%

Revenue from retail sales

 78.0

130.5%

-5.4%

245.7

331.8%

Gross profit

 26.4

168.8%

1.0%

 79.5

414.7%

Gross profit margin (%)

24.7%

+3.3 ppts

+1.2 ppts

24.2%

+4.0 ppts

EBITDA

 8.8

393.1%

-1.2%

 26.4

1028.3%

EBITDA margin (%)

8.3%

+4.4 ppts

+0.3 ppts

0%

+5.0 ppts

Profit before tax

 3.7

499.5%

-17.6%

 15.2

6846.6%

           
 

Medical insurance business

Net insurance premiums earned

 14.0

-13.0%

4.1%

41.3

-8.5%

Loss ratio (%)

80.0%

0.0 ppts

-9.0 ppts

84.5%

0.8 ppts

Expense ratio (%)

16.7%

-3.7 ppts

-1.9 ppts

18.5%

-2.3 ppts

Combined ratio (%)

96.7%

-3.7 ppts

-10.9 ppts

103.0%

-1.5 ppts

EBITDA

 0.7

369.7%

NMF

 (0.5)

-60.8%

Loss before tax

0.2

NMF

NMF

 (2.0)

-16.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




1 Comparison on a normalised basis – 9M16 (EPS) is calculated on adjusted net profit, with 9M16 net profit normalised for the one-off non-recurring gain due to deferred tax adjustments (in the amount of GEL 29.3 million for GHG, which was fully attributable to the Group’s healthcare services business) and adjusted for a one-off currency translation loss in June (“translation loss”) (in the amount of GEL 2.1 million), which resulted from the 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 – 9M16 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 3Q16 and 9M16 pharma business results only includes GPC’s figures for May-September period only