Overview of Medicover's Q1 Performance#
Medicover AB, a Swedish healthcare company, announced its first-quarter earnings, which exceeded analyst expectations by approximately 6%. The company reported an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of €104.6 million, resulting in a margin of 16.8%.
Sales and Growth Figures#
For the quarter, Medicover's total sales reached €624.2 million, marking an 8% increase compared to the same period last year. This figure slightly surpassed the consensus estimate of €623 million. The company achieved an organic growth rate of 10.3%, although this was partially offset by a 3.3% decline due to currency fluctuations. Additionally, Medicover gained €19.8 million in revenue from acquisitions.
Profit and Financial Ratios#
Net profit for the quarter was €20.6 million, reflecting a 9.9% increase from the previous year and exceeding the expected €18.5 million by 11.3%. Medicover's leverage ratio, which measures the company's debt compared to its EBITDA, improved to 2.9 times, down from 3.1 times at the end of fiscal 2025.
Performance in Healthcare and Diagnostics#
In the Healthcare Services division, revenue grew by 7.2% to €431.7 million, with organic growth driven by a 6.8% increase in prices. This division benefited from the expansion of sports and wellness services in Poland, better hospital performance in India and Romania, and a shift towards fee-for-service revenue, which accounted for 54% of sales and grew by 14.8%.
In India, revenue increased by 14.3%, aided by the opening of a new 550-bed hospital in Hyderabad. The EBITDA for Healthcare Services rose by 18.1% to €74.3 million, with a margin of 17.2%. Meanwhile, the Diagnostics Services segment saw revenue growth of 9.9% to €200.3 million, with organic growth of 7.2% and a 3.4% price increase. Despite facing challenges from power supply issues in Ukraine and weather disruptions, EBITDA for this segment increased by 16.2% to €41.7 million, resulting in a margin of 20.8%.