Russia’s MD Medical to ramp up investments after profit jump | Reuters


MOSCOW, March 20 Russia’s MD Medical Group
said on Monday it plans to more than double
investments this year to ramp up its network of clinics and
hospitals after 2016 net profit jumped 29 percent.

The company, which listed its shares on the London Stock
Exchange in 2012, has benefited from rising demand for private
healthcare services among middle class consumer seeking better

In a sign of confidence that demand will stay strong, MD
Medical, which specialises in women’s health, said earlier its
strategy envisaged the opening a nine new hospitals and a number
of clinics by 2021, and expansion to new Russian regions.

In certain regions, the company is becoming first to offer
services such as In Vitro Fertilization (IVF), providing
patients with an alternative to travelling to other cities.

In 2017, its capital expenditures will rise to around 5.3
billion roubles ($92.3 million), Deputy Chief Executive Andrey
Khoperskiy told reporters on a conference call, compared to 2.2
billion roubles last year.

The biggest single investment project, worth 2.6 billion
roubles, is the construction of a hospital in Samara, in central
Russia, where the group already has a network of women’s health
clinics, he said.

Investments will also go into the opening of hospitals and
clinics in other regions, including Tyumen and Irkutsk, in
Siberia, while the company is also considering two acquisitions,
Chief Executive Officer Mark Kurtser said.

It will finance the investment programme with its own funds
and debt and does not currently plan to raise capital on the
equity market by selling additional shares, Kurtser added.

The company’s net profit grew 29 percent in 2016 to 2.3
billion roubles on the back of a 37 percent jump in EBITDA to
3.7 billion roubles and a 28 percent increase in revenue to 12.2
billion roubles.

That growth was driven by improved results of existing
clinics and the acquisition and opening of new ones. It said
earlier there were 20 percent more babies delivered in its
hospitals in 2016 than in 2015, while the number of IVF cycles
rose 51 percent.

The company also recommended a final dividend for the year
of 338 million roubles, or 4.5 roubles per share, compared with
500 million, or 6.66 roubles per share, for 2015.
($1 = 57.4459 roubles)

(Reporting by Maria Kiselyova and Olga Popova; Editing by
Christian Lowe)