GAROFALO HEALTH CARE S.P.A. Press Release
GAROFALO HEALTH CARE S.P.A.: BOARD OF DIRECTORS APPROVES H1 2021 CONSOLIDATED RESULTS
EXCELLENT HALF-YEAR RESULTS, WITH REVENUES UP 48.5%, OP. EBITDA ADJUSTED MORE THAN DOUBLING AND NET PROFIT UP NEARLY EIGHT-FOLD ON H1 2020
- Revenues of €133.5M, increasing 48.5% vs. €89.9M in H1 2020(1), of which €12.7M from the contribution of the new facilities acquired progressively over 2020 and 2021. At like-for-like consolidation perimeter, revenues totalled €120.8M, up 34.3% vs. H1 2020:
- Q2 2021 revenues of €73.1M (+83.1% vs Q2 2020), of which €10.9M from XRay One and Clinica S. Francesco. At like-for-like consolidation perimeter, revenues were €62.2M, growing 55.9% vs. Q2 2020;
- Operating EBITDA Adjusted(2) of €24.7M (more than doubling on €11.2M in H1 2020), with a margin of 18.5% (vs. 12.5% in H1 2020). Contribution of XRay One and Clinica S. Francesco in the period equal to €2.7M, with a margin of 21.9% higher than the Group average:
- Op. EBITDA Adjusted in Q2 2021 of €14.1M (vs. €3.2M in Q2 2020), with a margin of 19.4%. At like- for-like consolidation perimeter, Op. EBITDA Adjusted was €11.9M, up nearly four-fold on Q2 2020;
- Group Net Profit of €9.8M, increasing nearly eight-fold over €1.2M in H1 2020;
- Net Financial Position of €108.1M (debt of €153.4M and cash of €45.3M):
- Excluding non-recurring cash outflows, the NFP would amount to €83.4M, corresponding to a cash generation of €14.3M in the six months.
Rome, September 13, 2021- The Board of Directors of Garofalo Health Care S.p.A. ("GHC" or the "Company"), listed on the STAR segment of the Italian Stock Exchange, today approved the Consolidated Half-Year Report at June 30, 2021, drawn up as per IAS/IFRS international accounting principles.
Maria Laura Garofalo, Chief Executive Officer of GHC, stated: "The results of the half year reward the significant efforts made by all our managers in the territory. A commitment that has led our facilities, albeit in a still not ordinary context, to generate extraordinary results and in many cases even higher than those of 2019. GHC thus confirms itself as a healthy and dynamic Group with the necessary resources to invest both in organic growth - through the purchase of cutting-edgetechnology and the expansion of its facilities - and in M&A growth, which remains the fundamental part of its growth strategy as evidenced in this semester by the acquisition of 3 facilities of absolute excellence such as the S. Francesco Clinic in Verona, and the accredited private hospitals Domus Nova and S. Francesco di Ravenna."
- The H1 2020 figures did not include Xray One (acquired in July 2020) and Clinica S. Francesco (acquired in April 2021)
- Operating EBITDA Adjusted defined as EBIT + amortisation and depreciation + provisions and write-downs + non-core costs (these latter in H1 2021 of approx. €2.5M, of which approx. €1.7M due to "extra-Covid costs" and approx. €0.8M due to M&A costs. Non-core costs in H1 2020 of €1.7M concern for €1.6M "extra-Covid costs" and for €0.1M M&A costs)
Garofalo Health Care S.p.A. - Share Capital: Euro 31,570,000 fully paid-in Economic & Administrative Register No.: Rome No. 947074 - VAT NO.
03831150366 - TAX NO. 06103021009
Registered office: Piazzale delle Belle Arti, 6 - 00196 Rome - Switchboard: 06 684891
1
Highlights of GHC Group H1 2021 key economic results
Consolidated Half-Year Revenues
At June 30, 2021, GHC consolidated revenues totalled €133.5M, increasing 48.5% on €89.9M in H1 2020, with this latter impacted, from March, by the national and local rules imposed to tackle the Covid-19 pandemic. These results include €12.7M concerning the contribution of XRay One (for 6 months) and Clinica S. Francesco (for 3 months), facilities respectively acquired in July 2020 and April 2021.
In addition, these results include, in comparison with the first half of the previous year, €0.9M related to the repayment of the "extra-Covid costs"(3) incurred by the Group in the period and not recognized in the first semester of the previous year and €1.0M related to contribution of the Regional Healthcare System defined within the renewal of the National Collective Labour Contract ("NCLC")(4) in October 2020.
Revenues | H1 2021 | H1 2020 | vs. H1 20 (€M) | vs. H1 20 (%) | ||||||||||
in Euro millions | ||||||||||||||
Total | 133.5 | 89.9 | +43.6 | +48.5% | ||||||||||
o/w at LFL perimeter | 120.8 | 89.9 | +30.9 | +34.3% | ||||||||||
o/w M&A 2020 and 2021 | 12.7 | - | +12.7 | - | ||||||||||
In comparison with the Pro-Forma H1 2019 results(5), a period not impacted by the Covid-19 healthcare emergency, consolidated H1 2021 revenues would increase by a total of €17.8M (+15.4%) or €5.1M at like- for-like consolidation perimeter (+4.4%).
Revenues | H1 2021 | H1 2019 | vs. H1 19PF (€M) | vs. H1 19PF (%) | ||||||||||
in Euro millions | Pro-Forma | |||||||||||||
Total | 133.5 | 115.7 | +17.8 | +15.4% | ||||||||||
o/w at LFL perimeter | 120.8 | 115.7 | +5.1 | +4.4% | ||||||||||
o/w M&A 2020 and 2021 | 12.7 | - | +12.7 | - | ||||||||||
Q2 Consolidated Revenues
In order to highlight the excellent Group Q2 performances, featuring a gradual improvement of the Covid-19 emergency situation, the Group's revenues for Q2 2021 (compared with Q2 2020) are presented below. These results, which include the full contribution both of XRay One and Clinica S. Francesco for the three months, indicate growth of €33.2M (+83.1%) or of €22.3M at like-for-like consolidation perimeter (+55.9%).
These results include, in comparison with the same quarter of the previous year, €0.3M for the repayment of "extra-Covid costs", incurred by the Group in the period and not recognized in Q2 2020 and €0.5M related to the contribution of the Regional Healthcare System, as established within the renewal of the NCLC indicated above.
Revenues | Q2 2021 | Q2 2020 | vs. Q2 20 (€M) | vs. Q2 20 (%) | ||||||||||
in Euro millions | ||||||||||||||
Total | 73.1 | 39.9 | +33.2 | +83.1% | ||||||||||
o/w at LFL perimeter | 62.2 | 39.9 | +22.3 | +55.9% | ||||||||||
o/w M&A 2020 and 2021 | 10.9 | - | +10.9 | - | ||||||||||
- One-offcosts incurred by the Group to tackle the Covid-19 emergency and concerning expenses for Personnel Protective Equipment ("PPE"), swabs / tests, the preparation and management of triage areas and the dedicated distancing pathways
- This renewal of the "NCLC" concerned non-medical employees of private healthcare clinics
- The 2019 Pro-Forma figures include the full contribution of all acquisitions made in 2019. The contribution of XRay One and Clinica S. Francesco, acquired in 2020 and 2021, is however not included
Garofalo Health Care S.p.A. - Share Capital: Euro 31,570,000 fully paid-in Economic & Administrative Register No.: Rome No. 947074 - VAT NO.
03831150366 - TAX NO. 06103021009
Registered office: Piazzale delle Belle Arti, 6 - 00196 Rome - Switchboard: 06 684891
2
Compared with the Q2 2019 Pro-Forma figures, Q2 Revenues would indicate an increase of €15.3M (+26.6%) or of €4.5M at like-for-like consolidation perimeter (+7.8%), highlighting the gradual return to "normal" production levels.
Revenues | Q2 2021 | Q2 2019 | vs. Q2 19PF (€M) | vs. Q2 19PF (%) | ||||||||||
in Euro millions | Pro-Forma | |||||||||||||
Total | 73.1 | 57.7 | +15.3 | +26.6% | ||||||||||
o/w at LFL perimeter | 62.2 | 57.7 | +4.5 | +7.8% | ||||||||||
o/w M&A 2020 and 2021 | 10.9 | - | +10.9 | - | ||||||||||
Consolidated Half-Year Operating EBITDA Adjusted
Consolidated Operating EBITDA Adjusted in the period was €24.7M, up 120.4% on €11.2M in the previous year, a period impacted by the suspension of the activities imposed from March, which did not allow for the full absorption of fixed costs. This result includes the contribution of XRay One (for 6 months) and of Clinica S. Francesco (for 3 months), acquired subsequent to H1 2020, of €2.7M.
Operating EBITDA Adjusted in the period, in comparison with the preceding year, includes €0.6M of additional costs for the renewal of the previously stated NCLC(6).
Op. EBITDA Adj. | H1 2021 | H1 2020 | vs. H1 20 (€M) | vs. H1 20 (%) | ||||||||||
in Euro millions | ||||||||||||||
Total | 24.7 | 11.2 | +13.5 | +120.4% | ||||||||||
o/w at LFL perimeter | 22.0 | 11.2 | +10.7 | +95.7% | ||||||||||
o/w M&A 2020 and 2021 | 2.7 | - | +2.7 | - | ||||||||||
In H1 2021, the Group Operating EBITDA Adjusted margin was 18.5% (18.2% at like-for-like consolidation perimeter), increasing on 12.5% in the previous period. The contribution of XRay One and of Clinica S. Francesco was higher than the Group average, with a margin of 21.9%.
In comparison with the H1 2019 Pro-Forma figures, Operating EBITDA Adjusted rose €0.3M (+1.5%). At like- for-like consolidation perimeter, Operating EBITDA Adjusted decreases €2.4M (-9.9%), due to the fact that the Group facilities were partly impacted - particularly in the first quarter of the year - by the activities in support of the Public Healthcare System - which affected the full use of the production capacity and a completely ordered and efficient operating schedule - in addition to higher personnel costs due to the renewal from July 2020 of the NCLC.
Op. EBITDA Adj. | H1 2021 | H1 2019 | vs. H1 19PF (€M) | vs. H1 19PF (%) | ||||||||||
in Euro millions | Pro-Forma | |||||||||||||
Total | 24.7 | 24.4 | +0.3 | +1.5% | ||||||||||
o/w at LFL perimeter | 22.0 | 24.4 | -2.4 | -9.9% | ||||||||||
o/w M&A 2020 and 2021 | 2.7 | - | +2.7 | - | ||||||||||
- Figures derived from increased costs incurred in H1 2021, totaling €1.6M, net of the recognised Regional Health System contribution at the same date (€1.0M)
Garofalo Health Care S.p.A. - Share Capital: Euro 31,570,000 fully paid-in Economic & Administrative Register No.: Rome No. 947074 - VAT NO.
03831150366 - TAX NO. 06103021009
Registered office: Piazzale delle Belle Arti, 6 - 00196 Rome - Switchboard: 06 684891
3
Q2 Consolidated Operating EBITDA Adjusted
The Group Q2 2021 Operating EBITDA Adjusted figures (compared with Q2 2020) are presented below. These results, which include the full contribution both of XRay One and of Clinica S. Francesco for the three months, report an increase of €10.9M (over four-fold improvement on 2020) or of €8.7M at like-for-like consolidation perimeter (over three-times the 2020 results).
Operating EBITDA Adjusted in the second quarter, in comparison with Q2 2020, includes €0.3M of additional costs for the renewal of the previously stated NCLC(7).
Op. EBITDA Adj. | Q2 2021 | Q2 2020 | vs. Q2 20 (€M) | vs. Q2 20 (%) | ||||||||||
in Euro millions | ||||||||||||||
Total | 14.1 | 3.2 | +10.9 | +341.6% | ||||||||||
o/w at LFL perimeter | 11.9 | 3.2 | +8.7 | +271.4% | ||||||||||
o/w M&A 2020 and 2021 | 2.2 | - | +2.2 | - | ||||||||||
In comparison with Q2 2019 Pro-Forma, Operating EBITDA Adjusted in the second quarter would show an increase of €1.9M (+15.6%), slightly contracting at like-for-like consolidation perimeter (-2.8%) due to the still to be fully-optimised use of production capacity and the increased costs for the renewal of the previously stated NCLC.
Op. EBITDA Adj. | Q2 2021 | Q2 2019 | vs. Q2 19PF (€M) | vs. Q2 19PF (%) | ||||||||||
in Euro millions | Pro-Forma | |||||||||||||
Total | 14.1 | 12.2 | +1.9 | +15.6% | ||||||||||
o/w at LFL perimeter | 11.9 | 12.2 | -0.3 | -2.8% | ||||||||||
o/w M&A 2020 and 2021 | 2.2 | - | +2.2 | - | ||||||||||
Consolidated Operating Results Overview
EBIT Adjusted(8) of €16.5M was up €11.5M on €5.0M in H1 2020. This amount reflects: (i) amortisation, depreciation and write-downs of €6.9M, increasing €1.4M on H1 2020, mainly due to the change in the perimeter; (ii) value adjustments and provisions of €1.3M, increasing €0.5M on H1 2020. H1 2019 Pro- Forma EBIT Adjusted would have been €17.6M.
Net financial charges of €1.5M are reported in H1 2021 (€1.3M in H1 2020).
The Adjusted Profit before taxes(9) was €15.1M, increasing €11.4M on €3.7M in H1 2020.
The Pro-Forma Adjusted Net Profit however amounts to €16.5M.
Consolidated Net Profit overview
The Group Net Profit in H1 2021 was €9.8M (increasing nearly eight-fold on €1.2M in H1 2020) and was impacted by €2.5M of non-core costs related to the above-mentioned"extra-Covid costs" and M&A costs.
The Pro-Forma H1 2019 Group Net Profit amounts to €11.3M.
- Deriving from increased costs incurred in Q2 2021, totaling €0.8M, net of the recognised Regional Healthcare System contribution in the period (equal to €0.5M)
- EBIT Adjusted defined as EBIT + non-core costs as defined above
- Defined as the Pre-tax profit + non-core costs as defined above
Garofalo Health Care S.p.A. - Share Capital: Euro 31,570,000 fully paid-in Economic & Administrative Register No.: Rome No. 947074 - VAT NO.
03831150366 - TAX NO. 06103021009
Registered office: Piazzale delle Belle Arti, 6 - 00196 Rome - Switchboard: 06 684891
4
Highlights of GHC Group H1 2021 key balance sheet results
Consolidated Net Financial Position Overview
At June 30, 2021, the Net Financial Position (NFP) of GHC was €108.1M, increasing €10.4M vs. €97.7M in FY 2020, and comprising financial debt for €153.4M and liquidity for €45.3M.
Net Financial Position | H1 2021 | FY 2020 | Change vs. FY 2020 | ||||||||
in Euro millions | |||||||||||
Total | 108.1 | 97.7 | +10.4 | ||||||||
Financial leverage (x) | 2.2x(10) | 2.9x | -0.7x | ||||||||
Excluding non-recurring items, the NFP would be €83.4M, improving €14.3M on December 31, 2020. These non-recurring items, totalling €24.6M, principally concern: (i) the Accelerated Book Building transaction executed in January 2021 (€41.1M), (ii) the acquisition of Clinica S. Francesco of Verona completed in April 2021 (€60.3M, including taxes), (iii) capex for extension and development (€3.4M) and (iv) non-recurring items totalling €2.0M, mainly for extra-Covid costs, M&A costs and the purchase of treasury shares. The NFP at June 30, 2021 includes the benefit from the advances disbursed by the main regions in which the Group operates(11), totalling approx. €8.0M.
Subsequent events to June 30, 2021
On July 28, 2021, GHC completed the acquisition of Domus Nova S.p.A., owner of the Domus Nova and San Francesco multi-specialist private acute hospitals, both located in Ravenna and National Healthcare Service accredited. The total interest acquired by GHC constitutes 99.5% of the share capital of Domus Nova. The acquisition was based on an Enterprise Value of €41.9M.
On July 30, 2021, GHC announced that as of Monday, August 2, 2021, its ordinary shares would be included in the FTSE Italia Mid Cap Index, which comprises the top 60 Italian companies by market capitalisation not included in the FTSE MIB Index.
Outlook
In a context still affected by the national spread of Covid-19, the ongoing vaccination campaign and the measures approved at institutional level to support a rapid recovery are gradually restoring confidence that the situation will continue to improve, though some uncertainty remains regarding the variants of the virus. Assuming that the pandemic would not worsen, in 2021 the Group, that successfully continued its acquisition- led growth strategy completing two M&A transactions in April and July, considers that over the coming quarters production levels and margins will gradually return to those seen in 2019 in all segments in which it operates. In line with the development path announced on IPO and formalised with the acquisitions of recent years, the Group will continue with its acquisition-led growth process, as the sector in which the GHC Group operates offers significant merger opportunities in a market that is still more fragmented than other European countries.
* * *
The Executive Officer for Financial Reporting, Danilo Barletta, states in accordance with paragraph 2, Article 154-bis of the Consolidated Finance Act that the accounting information in this press release corresponds to the underlying accounting documents, records and entries. The figures in this press release have been subject to limited audit.
- Calculated as the ratio between NFP and Operating EBITDA Adj. in the last 12 months based on the Pro-Forma figures, i.e. including in H2 2020 and in H1 2021 the full effect of the acquisitions
- In view of the Covid-19 emergency, as previously announced to the market, the Regions granted GHC's clinics a monthly advance of between 80% and 100%, according to each individual case, of the agreed regional and extra-regional production for the previous year or that of the budget agreement
Garofalo Health Care S.p.A. - Share Capital: Euro 31,570,000 fully paid-in Economic & Administrative Register No.: Rome No. 947074 - VAT NO.
03831150366 - TAX NO. 06103021009
Registered office: Piazzale delle Belle Arti, 6 - 00196 Rome - Switchboard: 06 684891
5
Questo è un estratto del contenuto originale. Per continuare a leggere, accedi al documento originale.
Attachments
- Original document
- Permalink
Disclaimer
Garofalo Health Care S.p.A. published this content on 13 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 September 2021 12:11:03 UTC.
