Tuesday, august 29, 2017 tagFinancial results

Annual results at the end of June 2017

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Strong performance despite a year of further price cuts. 

Ramsay Générale de Santé
  • Annual turnover up 0.3% to EUR 2,234.4 million (down 1.4% on a like-for-like basis) with three fewer business days;
  • Group net profit of EUR 57.0 million (compared with a profit of EUR 36.9 million at end June 2016);
  • Marginal decrease of EBITDA by 1.4% to EUR 265.9 million (down 3.5% on a like-for-like basis) with the margin rate remaining broadly stable;
  • Successful integration of HPM, disposal of a number of non-strategic assets and a high level of investment maintained as part of the Group's strategic plan to 2020;
  • Significant reduction in net financial debt, amounting to EUR 964.0 million at the end of June 2017 (compared with EUR 1,047.0 million at end June 2016).

Against a backdrop of sharp price cuts, we managed to maintain our profit margin, reduce our debt and invest for the future. We are reaping the benefits of the implementation of our strategic plan: a slight increase in the number of patients (despite an unfavourable calendar), ongoing reorganisations, opening of new hospitals and digitisation of the treatment pathway. However, it is time for the new government to adopt a pricing policy that supports the role of private hospitals in France – a major role that complements that of public hospitals, both for the provision of quality care and investment, and for their social role.

Pascal Roché, Group Chief Executive Officer

The Board of Directors, meeting on 28 August, approved the consolidated financial statements for the year ended June 2017. The audit procedures have been completed and the audit report and its annexes are being issued.
The accounts and reports will be made available to the public upon publication of the Company's activity report at the end of October 2017.

 In millions of euros from 1 July 2016
to 30 June 2017
 Change from 1 July 2015
to 30 June 2016
 Turnover 2 234.4 +0.3% 2 226.9
 EBITDA 265.9 -1.4% 269.8
 Current operating profit 132.5 -4.7% 139.0
 As a % of turnover 5.9% -0.3 points 6.2%
 Operating profit 138.6 +21.2% 114.4
 Net profit attributable to the Group
 57.0 +54.5% 36.9
 Net earnings per share (in euros) 0.75 +53.1% 0.49

 In millions of euros - from 1 July 2016
to 30 June 2017
from 1 July 2015
to 30 June 2016 
 Ile de France927.9934.4 -0.7%
 Auvergne Rhône Alpes340.3342.5 -0.6%
 Nord – Pas de Calais - Picardie358.9299.1 +20.0%
 Provence Alpes Côte d’Azur165.0169.1 -2.4%
 Bourgogne Franche Comté106.5110.0 -3.2%
 Other regions311.0314.1 -1.0%
 Other activities24.857.7 -57.0%
 Published turnover 2 234.42 226.9 +0.3%
 Of which: - Organic 2 161.32 192.3 -1.4%
      Of which organic within France 2 137.82 169.0 -1.4%
      Of which organic within Italy 23.523.3 0.9%
 - Changes in scope of consolidation 73.134.6 +111.3

Operations and turnover :

The Group’s consolidated turnover for the period ending 30 June 2017 was EUR 2,234.4 million, compared with EUR 2,226.9 million for the period 1 July 2015 to 30 June 2016. The increase of 0.3% was due to the inclusion in scope of the entities of the former HPM Group as of 1 January 2016, but it was also impacted by disposals of non-strategic assets made during the year.
On a like-for-like basis, turnover decreased by 1.4%.

At the end of June 2017, total activity (excluding emergencies) increased by 0.9% in volume terms. The breakdown by business segment is as follows:
  • +0.3% in Medicine-Surgery-Obstetrics
  • +1.8% sub-acute care and rehabilitation
  • +5.0% in mental health
  • Medicine-Surgery-Obstetrics (MSO) activity by hospitals within the same scope was down by 0.7% compared with the same period in 2015-2016 (with three fewer working days).

With regard to the public service tasks managed by the group, the number of emergencies increased strongly, up 7.1% over the past year with 551,000 cases registered by the emergency services of our facilities.

Results :

Gross operating surplus for the year was EUR 265.9 million, down 1.4% on a reported basis. At constant scope and accounting methods, EBITDA was down 3.5% over the period. The EBITDA margin, relative to turnover, remained stable at around 12%.

Operating profit for the period 1 July 2016 to 30 June 2017 reached EUR 132.5 million (or 5.9% of sales), down 4.7% from EUR 139.0 million recorded for the period 1 July 2015 to 30 June 2016.

Other non-current income and expenses represents a net income of EUR 6.1 million for the period, mainly comprising costs of EUR 1.7 million related to mergers and restructuring, and income of EUR 7.8 million related to the management of the Group’s property and financial assets. From 1 July 2015 to 30 June 2016, the amount of other non-current income and expenses represented a net expense of EUR 24.6 million.

At 30 June 2017, the net cost of borrowing amounted to EUR 39.8 million, compared with EUR 42.9 million the previous year. This consists mainly of interest on senior debt.

In total, Ramsay Générale de Santé recorded a net profit of EUR 57.0 million at end June 2017, compared with EUR 36.9 million for the period from 1 July 2015 to 30 June 2016.

Debt : 

Net financial debt at 30 June 2017 fell sharply to EUR 964.0 million compared with EUR 1,047.0 million at 30 June 2016, mainly due to the disposal of non-strategic assets and the assignment without recourse of its CICE for 2016.
As at 30 June 2017, the debt included in particular EUR 1,099.8 million in non-current borrowings and financial debt, EUR 53.4 million in current financial debt, and EUR 180.8 million in cash.

The detail of total exposure
to interest rate risk of the financial debt (excluding interest rate hedging instruments) is as follows:

  • 17.3% of the financial debt is tied to fixed rates;
  • 82.7% of the financial debt is tied to floating rates;

Taking the interest rate hedging using swaps, the position with regard to interest rate risk is completely reversed, with:

  • 91.5% of financial debt at a fixed rate and,
  • 8.5% at a floating rate.

ISIN and Euronext Paris code: FR0000044471
Website: www.ramsaygds.com

at 7.30 p.m. (Paris time) - Dial-in at the following numbers

In France: +33 (0)1 76 77 22 61
In the UK: +44 (0)330 336 6025
In Australia: +61 (0)2 8524 5352

Access code: 465602


About Ramsay Santé

After the acquisition of the Capio Group in 2018, Ramsay Santé has become the leading European provider of comprehensive healthcare services. The group now has 36,000 employees and works with nearly 8,600 private practitioners.

Present in 5 countries, France, Sweden, Norway, Denmark and Italy, the group treats more than 7 million patients per year in its 350 facilities.

In hospitalization, Ramsay Santé offers almost all medical and surgical treatments in three business lines: Medicine-Surgery-Obstetrics (MCO), Follow-up and Rehabilitation Care (SSR) and Mental Health. Wherever it is present, the group participates in public health service missions and in the health network of the country, as in Sweden where the group has more than a hundred local health centres.

The quality and safety of care is the group's priority in all the countries where it operates. This is why the group is today one of the references in modern medicine, especially in ambulatory surgery and enhanced recovery after surgery (ARS).

The group also invests more than €200 million every year in its establishments, whether in new surgical and imaging technologies, or in the construction and modernisation of establishments. It also innovates at the service of patients with new digital tools and by developing its organisations to improve the efficiency of care.

Tuesday, august 29, 2017 tagFinancial results
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  • Brigitte Cachon
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