Mediclinic International Plc (LON:MDC) has reported sales growth but noted continued pressure on profits in the past quarter as high levels of inpatient activity in Southern Africa and the United Arab Emirates in December offset lower patient volumes in Switzerland.
The private hospital operator, which has cared for over 30,000 coronavirus (COVID-19) patients during the pandemic, has faced greater demand on its acute care capacity during the more severe second wave of COVID-19 cases in the three months to end-December, said Dr Ronnie van der Merwe, the group’s chief executive officer.
“We continue to effectively navigate the challenges this presents through the tireless efforts of our medical professionals and staff who deserve our sincere appreciation and thanks'" he said in a statement.
Unlike early in the first wave, van der Merwe noted that there have not been national restrictions on elective procedures and outpatient activity during what was the FTSE 250-listed group’s third quarter.
“Our ability during the period to continue with elective procedures, when and where we have capacity, as well as the unseasonable demand for our inpatient services in Southern Africa and the UAE during December 2020 supported our Q3 financial performance,” van der Merwe added.
Last week, Swiss arm Hirslanden opened two vaccination centres, while in the UAE the government-led vaccination programme is well underway and Mediclinic facilities are supporting the roll-out. In South Africa and Namibia, the group said it is supporting the national vaccine roll-out strategy and is part of the private sector initiative to assist the government where required.
Looking at the group’s finances, revenues were said to be up 2.5% compared to the same quarter last year, while underlying earnings (EBITDA) fell by 8% in part due to higher PPE costs. This compared to first-half results where sales were down 7% and EBITDA slumped 33%.
On the outlook, the company said the uncertainty caused by the pandemic “has reduced visibility on activity levels and therefore the group remains cautious as to the full impact on near-term operating performance” but when capacity becomes available, it feels “well positioned to deliver the services and care required to address patient demand”.