Tuesday, february 27, 2018 tagFinancial results

Half-year results at the end of December 2017

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Declining results in a still very negative pricing environment

Ramsay Générale de Santé
  • Published half-year turnover down 1.1% to €1,066.4 million, stable on a like for like basis (+ 0.1%) with one fewer business day;
  • Net loss attributable to the group of €22.1 million (versus a profit of €24.7 million at the end of December 2016) mainly due to exceptional restructuring charges;
  • Decline in reported EBITDA by 11.7% to €103.7 million (down 9.2% on a like-for-like basis) and decrease in the margin rate from 10.9% to 9.7%;
  • Deployment of the 2020 strategic plan in line with the objectives to transform, digitalize and restructure the company;
  • Net financial debt decreased to €965.2 million at the end of December 2017 (compared with €977.9 million at the end of December 2016).
Despite a more difficult global environment in terms of volumes and ever-increasing pricing constraints, we have managed to maintain our turnover thanks to the diversity of our businesses (Medicine-Surgery-Obstetrics, Post-operative care and Rehabilitation and Mental Health) and by our presence in the heart of heavily populated areas. In addition, we continued to invest heavily in order to strengthen the efficiency of our organizations and to support the digitalization and transformation of our group; this explains the decline in the published EBITDA. These investments are essential if we are to continue to differentiate our business significantly in the sector in the long term.

Pascal Roché, Group Chief Executive Officer


The Board of Directors, meeting on 22 February, approved the consolidated financial statements for the year ended December 2017. The accounts were subject to a limited review by the Statutory Auditors.

In € millions from 1 July 2017 
to 31 December 2017
 Change from 1 July 2016
to 31 December 2016
 Turnover 1 066.4 -1.1% 1 077.8
Gross (Operating Surplus) EBITDA103.7-11.7%117.4
 Current operating profit 37.2 N/A 50.2
 As a % of turnover 3.5% -1.2 points 4.7%
 Operating profit -6.5 N/A 61.0
 Net income - Group share
 -22.1 N/A 24.7
 Net earnings per share (in €) -0.29 N/A 0.32

In € millions -  from 1 July 2017
to 31 December 2017
from 1 July 2016
to 31 December 2016 
Change 
 Ile de France438.1439.5 -0.3%
 Auvergne Rhône Alpes175.1159.1+10.1%
 Nord – Pas de Calais - Picardie170.6172.2 -0.9%
 Provence Alpes Côte d’Azur78.378.7 -0.5%
 Bourgogne Franche Comté49.551.6 -4.1%
 Other regions153.0149.8 N/A
 Other business1.826.9 -57.0%
 Published turnover1 066.41 077.8 -1.1%
 Of which: - Organic1 053.81 052.3 0.1%
      Of which organic within France1 042.61 041.4 0.1%
      Of which organic within Italy 11.210.9 2.8%
 - Changes in scope of consolidation12.625.5-50.6%

Operations and turnover:

The Group's consolidated turnover for the six-month period ended December 2017 amounted to €1,066.4 million, compared with €1,077.8 million from 1 July 2016 to 31 December 2016. The fall of 1.1% was due to the exit from consolidation scope of the Etang de Berre and Sévigné clinics in 2016, the Herbert clinic in 2017, and despite the entry of the Private Hospital of East Lyonnais in 2017.

On a like-for-like basis, turnover nevertheless increased by 0.1%, despite one fewer business day.

At the end of December 2017, total activity (excluding emergencies) increased by 1.2% in volume. The breakdown by business segment is as follows:

  • +1.0% in Medicine-Surgery-Obstetrics
  • +1.0% sub-acute care and rehabilitation
  • +3.8% in mental health

With regard to the public service tasks managed by the group, the number of emergencies increased strongly, up 6.5% over the past year with 280,000 cases registered by the emergency services of our facilities.


Results:

EBITDA for the half-year was €103.7 million, down 11.7% on a reported basis. At constant scope and accounting methods, EBITDA was down 9.2% over the period. The EBITDA margin, as a percentage of turnover, decreased from 10.9% to 9.7%.

Current operating profit for the period 1 July 2017 to 31 December 2017 was €37.2 million (or 3.5% of turnover), down 25.9% from the €50.2 million recorded for the period 1 July 2016 to 31 December 2016.

The other non-current income and expenses resulted in a net expense of €43.7 million for the year ended, consisting almost entirely of restructuring costs. From 1 July 2016 to 31 December 2016, other non-current income and expenses represented a net income of €10.8 million.

The cost of net financial debt amounted to €20.2 million for the six months ended 31 December 2017, compared with €20.5 million the previous year. This consists primarily of interest on senior debt.

In total, the Ramsay Générale de Santé Group recorded a net loss of €22.1 million at the end of December 2017, compared with a profit of €24.7 million for the period from 1 July 2016 to 31 December 2016.


Debts:

Net financial debt at 31 December 2017 decreased to €965.2 million compared to €977.9 million at 31 December 2016. This debt includes, in particular, €1,099.7 million in non-current borrowings and financial debt, €91.3 million in current financial debt and €180.3 million in cash.


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

A CONFERENCE CALL IN ENGLISH WILL BE HELD TODAY
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 UK

After the acquisition of Capio AB Group in 2018, Ramsay Santé has become one of the leaders of the private hospitalisation and primary care in Europe with 36 000 employees and 8 600 practitioners serving 7 millions patients in our 350 facilities in five countries : France, Sweden, Norway, Denmark, Italy.
Ramsay Santé offers almost all medical and surgical specialities in three business areas : general hospitals (medicine – surgery – obstetric), follow-up care and rehabilitation clinics, mental health. In all its territories, the group contributes to missions of public service and to the territorial sanitory disposal, as for example in Sweden with more than 100 proximity care units.
The quality and security of care is the group’s priority. As such our group is today a reference in terms of modern medicine, especially in outpatient care and enhanced recovery.
Every year, the group invests more than €200M in innovation whether it is in new surgical or imaging technologies, in building or modernising its facilities… The group also innovates in its organization and digitalization in order to deliver care in a more efficient way to the benefit of the patient.

Tuesday, february 27, 2018 tagFinancial results
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