Quality through specialisation


Interim Report January-September 2019: Strong growth and improved results

  • Improved results in all three of GHP’s segments
  • Continued strong organic growth
  • Positive start for the management contract in Kuwait
  • Acquisition of two skin clinics in Stockholm

Third quarter 2019

  • Sales revenues increased to SEK 274.2 million (218.2)
  • Organic growth increased to 20.4 percent (12.3)
  • EBITDA increased to SEK 28.9 million (1.7)
  • EBITDA margin increased to 10.5 percent (0.8)
  • EBIT increased to SEK 6.6 million (-5.4)
  • EBIT margin increased to 2.4 percent (-2.5)
  • Result after tax increased to SEK 2.8 million (-4.6)
  • Result per share increased to SEK 0.02 (-0.08)
  • Result excluding IFRS 16 effect to be found on page 3 in attached pdf

First three quarters 2019

  • Sales revenues increased to SEK 940.3 million (784.4)
  • Organic growth increased to 17.4 percent (13.3)
  • EBITDA increased to SEK 109.1 million (48.7)
  • EBITDA margin increased to 11.6 percent (6.2)
  • EBIT increased to SEK 45.1 million (28.2)
  • EBIT margin increased to 4.8 percent (3.6)
  • Result after tax increased to SEK 30.6 million (23.1)
  • Result per share increased to SEK 0.37 (0.27)

CEO’s comments
There are many positive things to be taken from the third quarter. We are growing at a fast pace, we are improving our results and we are setting up in new markets.

We can see that our way of working is appreciated by patients and customers and this contributes to our continuing to have high organic growth: over 20 % for the quarter. At the same time the results for the period are our strongest third quarter so far and all three of our segments improved their results. Moreover, we started our new contract in Kuwait and in addition we acquired two skin clinics in Stockholm.

Our Nordic Region segment continued to grow in the quarter, primarily through organic growth. During the summer months many of our clinics reduce their clinical activities. This is a cost effective way of meeting the lower need for care during the summer. It is important, however, that we have thorough plans for both before and after the holidays so that we can use our capacity as effectively as possible when the businesses are open. This is something that we have become better at, but there are still lessons to be learnt from this summer that we will take with us to next year.

We made two exciting acquisitions during the quarter, the Hudcentrum Hagastaden skin clinic and the Hudcentrum skin clinic at Sophiahemmet. Both clinics fit in well with GHP’s motto “Quality through specialisation”. By placing these two clinics under the same management we have now gained a strong position within skin care in Stockholm.

During the year we have continued to invest in expanding our capacity in our core areas, amongst other things by starting up a new surgical outpatient orthopaedic clinic in Stockholm. The clinic gives us an important platform for continued growth but means that costs are charged against our results during the start-up phase we are now in. During the third quarter we also decided to continue our expansion of Gildhöj in Copenhagen. During the fourth quarter we will gain access to more premises space, which allows us to continue to grow in Denmark.

In our International segment the new management contract in Kuwait, which started in July, was the centre of attention during the quarter. Even through it involves certain challenges to set up business in a new market, we are delighted that the first quarter of the contract has gone according to plan. We have a management organisation in place, we have carried out a situation analysis and we are well equipped to take over operational responsibility for the hospital during the fourth quarter.

In the United Arab Emirates the four hospitals continued to develop well in the third quarter. It is clear that GHP’s presence has made a large positive difference at the hospitals. At the same time our experience from the United Arab Emirates has been valuable to GHP in our work at the new hospital in Kuwait. Our presence and experience from our two contracts in the region have strengthened our view that there are further opportunities for expansion in the International segment. Our business development focus continues to be the United Arab Emirates, Kuwait and Saudi Arabia.

We achieved positive results for Vårdsamverkan in the quarter. This is due to the fact that less care is purchased during the summer, but also because we continuously analyse and optimise the care chains. This is possible thanks to the unique data on patients’ health care patterns that we have built up. When we can map patients’ route through health care we can implement concrete changes that benefit both our customers and the patients. One example of this is our knowledge that certain patient groups are to a very large extent referred to an MRI scan after their first doctor’s appointment. With the information we now have access to we can instead offer these patients an MRI scan before their first doctor’s appointment. This saves the patient a doctor’s appointment and reduces the cost for those paying for the care. This is an example of a social benefit that GHP wishes to contribute to.

We now have three interesting segments with great development potential. There is great demand for high-quality specialist care and in our organisations there is both the knowledge and the will to meet this need. We look forward to an exciting final three months of the year.

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