| Fri 22 Nov 2024, 8:05 | | REMGRO LIMITED - Summary of Manta Bidco Limited results for the six months ended 30 September 2024 |
|
Summary of Manta Bidco Limited results for the six months ended 30 September 2024
Remgro Limited
Registration number 1968/006415/06
ISIN ZAE000026480
JSE and A2X Share code REM
("Remgro")
SUMMARY OF MANTA BIDCO LIMITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
INTRODUCTION
Following the acquisition by Manta Bidco Limited ("Manta Bidco" or "Group") (a consortium consisting of Remgro and
MSC Mediterranean Shipping Company SA) and subsequent delisting of Mediclinic Group Limited ("Mediclinic"), there
is no regulatory requirement for Mediclinic to release financial results. However, considering the significant contribution
by Manta Bidco, the holding company of Mediclinic, to Remgro's results and intrinsic net asset value, Remgro is releasing
a voluntary statement containing a summary of Manta Bidco's financial results for the six months ended
30 September 2024. Manta Bidco's financial results, including divisional results and reconciliations ("Manta Bidco
Abridged Results"), can be accessed at the following link on Remgro's website https://www.remgro.com/investor-
centre/mediclinic-results/.
SALIENT FEATURES
- The Group delivered satisfying results for the period in a challenging operating environment
- Group revenue up 6%, driven by good volume growth across all divisions
- Adjusted EBITDA up 13% and EBITDA margin was 13.8% (1H24: 13.0%)
- Adjusted earnings up 25%, reflecting good operating performance
- Leverage ratio reduced to 3.6x (FY24: 3.7x)
GROUP RESULTS
1H25 1H24(1)
$'m $'m % variance(2)
Revenue 2 337 2 199 6
Adjusted EBITDA(3)(4) 323 285 13
Operating profit 163 51 222
Adjusted operating profit(3) 166 132 26
Adjusted earnings(3)(5) 83 66 25
Net incurred debt(6) 1 615 1 534
Cash conversion(7) 102% 63%
1. Unaudited pro forma financial information is presented for Manta Bidco for comparative purposes. This information
has been prepared on the basis that the acquisition took place on 1 April 2023 and therefore includes Manta Bidco
purchase price allocation (PPA) adjustments for a six-month period to 30 September 2023. Refer to page 9 of the Manta
Bidco Abridged Results for a reconciliation between the previously published Mediclinic 1H24 financial information
and the Manta Bidco 1H24 pro forma financial information.
2. The percentage variances are calculated in unrounded US dollar values and not in millions.
3. The Group uses adjusted income statement reporting as non-IFRS measures in evaluating performance and to provide
consistent and comparable reporting. Refer to the policy and 'Reconciliations' section on pages 6 to 8 of the Manta
Bidco Abridged Results.
4. Adjusted earnings before interest, tax, depreciation and amortisation ("EBITDA").
5. Earnings refers to earnings attributable to equity holders.
6. Net incurred debt reflects bank borrowings, net of cash and cash equivalents, and excludes IFRS 16 lease liabilities.
7. Cash conversion, calculated as cash generated from operations as a percentage of adjusted EBITDA, is used by
management to measure cash generation by the Group.
RESULTS COMMENTARY
The Group delivered satisfying results for the six months ended 30 September 2024 against a backdrop of a persistently
challenging operating environment, particularly in Switzerland where simultaneous pressure on tariffs and operating costs
is impacting the performance of healthcare service providers. The Board and management team is responding to these
challenges through a comprehensive plan aimed at reducing costs, improving efficiencies and adapting the business to a
path of sustainability and growth.
The Group's performance for the six months ended 30 September 2024 was driven by strong volume growth across all the
divisions. Group revenue was up 6% at $2 337m (1H24: $2 199m) and up 5% in constant currency terms. Inpatient
admissions and day cases grew by 2.3% and 2.1%, respectively.
Adjusted EBITDA was up 13% at $323m (1H24: $285m) and up 12% in constant currency terms. The Group's adjusted
EBITDA margin was 13.8% (1H24: 13.0%), reflecting good revenue growth and cost efficiencies, partially offset by higher
consumable and supply costs mainly because of ongoing mix changes.
Enquiries:
Remgro Investor Relations investor.relations@remgro.com
The information contained in this voluntary announcement has not been reviewed or reported on by Remgro's independent
external auditors.
Stellenbosch
22 November 2024
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Date: 22-11-2024 08:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
