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 |
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|
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 |
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|
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.
