Contribution to headline earnings 30 June
2021
R million
30 June
2020
R million
Mediclinic 674 1 655

Profile:

Mediclinic’s business consists of the provision of comprehensive, high-quality hospital services on a cost effective basis in Southern Africa, the United Arab Emirates, Switzerland and the United Kingdom.

Corporate information

Market cap at 30 June 2021 £2 191 million
Primary listing: London Stock Exchange
Secondary listing: JSE Limited
Chief Executive Officer R van der Merwe
Remgro nominated directors J J Durand, P J Uys (alternate)

Sustainability measures

CSI/Training spend R71 million
Number of employees 33 136
BBBEE status Level 4
Environmental aspect Scope 1 and 2 emissions of 226 048 tonnes CO2e
Financial highlights Year ended 31 March 2021 
£ million 
Revenue 2 995 (2.9)
Operating profit 209 213.6
Adjusted earnings 101 (42.9)

Mediclinic International plc (Mediclinic)

Mediclinic has a March year-end and the results for the 12 months to 31 March 2021 have been equity accounted in Remgro’s results for the year under review. Mediclinic’s contribution to Remgro’s headline earnings for the year under review amounted to R674 million (2020: R1 655 million).

Mediclinic uses adjusted income statement reporting as non-IFRS measures in evaluating performance and as a method to provide clear and consistent reporting.

Performance in the first half of the year was significantly impacted in April 2020 by Covid-19-related lockdown measures and non-urgent elective procedure restrictions. In April 2020, group revenue decreased by 33% and adjusted EBITDA by approximately £60 million compared with the prior period. From May 2020 onwards, the moderation of restrictions resulted in a strong rebound in operating performance in Switzerland and the UAE. Southern Africa experienced a more gradual recovery during the second quarter of the financial year as it exited the first wave of the pandemic.

The group’s revenue decreased by 3% to £2 995 million (2020: £3 083 million). Stronger demand in the second half of the year delivered revenue growth of 1%. Adjusted EBITDA decreased by 21% to £426 million (2020: £541 million) due to the revenue decline that was exacerbated by the largely fixed employee cost base, an escalation in personal protective equipment usage, consumables pricing and staffing requirements due to isolation and quarantine regulations. Across the group, incremental Covid-19-related expenses amounted to approximately £32 million.

Revenue from Switzerland decreased by 1% to CHF1 784 million (2020: CHF1 804 million), broadly recovering from the significant impact of the pandemic experienced during April 2020. Inpatient revenue was flat at CHF1 329 million (2020: CHF1 331 million).

Mediclinic Southern Africa’s revenue decreased by 9% to R15 573 million (2020: R17 031 million), reflecting the significant impact experienced in April 2020 due to the pandemic.

Mediclinic Middle East adjusted EBITDA decreased by 6% to AED492 million (2020: AED521 million) due to the sustained impact of Covid-19 on outpatient volumes in particular, lower contribution margin of Covid-19-related revenues exacerbated by Covid-19-related expenses that totalled around AED28 million. Adjusted earnings decreased by 6% to AED170 million (2020: AED181 million).