Group EBITDA decreased by 5.6% to €621.4m, impacted by lower subsidies, high salary and procurement inflation and staff shortage challenges.
Group share of net result after tax of €49.4m or 1.1% of revenue more than halved compared to the prior year of €118.4m from lower operating result and increased cost of debt.
Cost control measures reinforced to address current economic headwinds impacting the sector, to pursue our “Yes We Care 2025” strategy implementing global patient pathways, and to maintain our leadership as a European integrated care provider.
Slight reduction of the net debt to €3,670m including IFRS16 liabilities, from working capital improvement linked to collection of past subsidies.
The company became a mission-driven company at the Annual General Meeting of December 8, 2022, and the appointments of the members of its mission committee were approved by the Board of Directors on June 20, 2023.
• Ramsay Santé has maintained its actions to participate in the support of the French and Nordic countries healthcare systems and to complement public hospital capacity to cope with demand pressures.
• Continued commitment to enhancing care accessibility through out-of-hospital services (primary care, imaging, specialised care consultations, home care) supported a return to activity growth overall with a 4.4% increase in patient admissions in our hospital facilities and 1.6 million additional patient consultations in our Nordic primary care centres over the previous year.
• Activity levels in France and the Nordics have been solid. Annual revenue amounted to €4,701.5m, up 9.3% on a reported basis, and +7.0% on a like-for-like basis. France revenue has grown by 6.8% supported by a 4.0% increase in admissions volumes, higher tariffs applicable since 1st March 2023 and additional medical purchases rechargeable revenue. This is despite 3 fewer business days this financial year compared to the previous one. Nordic countries revenue grew by 15.2% (+7.8% on a like-for-like basis) supported by an additional €202m contribution from recent acquisitions including GHP and was mainly realised in the proximity care and specialist care activities in both Sweden and Denmark.
• The group consolidated EBITDA decreased by 5.6% or €37m to €621.4m (last year €658.4m) with a margin of 13.2% (last year 15.3%), mainly due to the €89m decrease of Covid-related government subsidies and of the French revenue guarantee, partly offset by further cost control actions.
• Cost of net financial debt increased by €23.6m or 19.1% reflecting higher funding costs and including a €3.0m increase in IFRS16 lease debt interest expense.
• Net profit for the Group share dropped to €49.4m or 1.1% of revenue (last year €118.4m or 2.8% of revenue), impacted by lower operational margins and reflecting increased funding costs. It includes a non-recurring €31.0m (€24.2m net of tax) capital gain for the sale of land adjacent to one of our facilities in Norway as part of transactions restructuring the real estate of this site.
• Ramsay Santé has continued to invest in initiatives enabling its “Yes We Care 2025” strategy in addition to recurring investment on maintenance, optimisation and facilities portfolio improvement, resulting in total capital expenditure for the year of €165.1m net of proceeds from disposals and of lease financing, slightly below last year.
• Net cash flow from operating activities of €598.9m versus €262.5m last year reflects the effort on working capital management and the collection during the period of Covid-related subsidies recognised in the prior year.
• Net financial debt as at 30 June 2023 amounted to €3,670.0m, including €2,141.5m of IFRS16 lease liabilities. During the first semester of this fiscal year, Ramsay Santé successfully issued a new Fiducie tranche for €150m.
• Ramsay Santé has become a mission-driven company, making access to care for all patients a central part of its business model. This decision reflects its firm resolve to place the public interest at the heart of all its day-to-day actions.
• The Group aims to make this mission a lever for action in the face of the accelerating pace of all the challenges currently affecting healthcare. Alongside its purpose added to the Group's by-laws ("Improve health through constant innovation"), four social and environmental objectives will guide the implementation of its policies and innovation, objectives whose implementation will be followed by the Mission Committee that has been set up.
As a mission-driven company since December 2022, Ramsay Santé demonstrates and reaffirms the core identity of the organisation to cater for the healthcare needs of the general population as a whole. This mission seals the company’s commitment to orchestrate safer and simpler care pathways, from prevention to follow-up.
The group has continued its development in accordance with this goal by caring for nearly 12 million patients in 2022-23 in our various countries and activities. We are now more than ever caring for all patients with any pathology, offering physical and digital solutions, and operating in full complementarity with all the other care professionals. The transfer of best practices and innovation in healthcare between countries enables the continuous implementation of our differentiating strategy as a global healthcare operator and healthcare pathways coordinator, which is positive for our patients, our payors, and the organisation.
With respect to financial results, revenue growth of 9.3% was primarily driven organically, the operating margin - EBITDA - was down to 13.2% vs 15.3% last year, in a context of high inflation, lower subsidies, and despite the initiation of cost control measures.
These provisional accounts were presented to the Board of Directors at its meeting on
23rd August 2023. The audit process is in progress. The final consolidated financial statements for the year ended June 30, 2023 will be approved by the Board of Directors at a meeting scheduled for October 2023.
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