Interim report April–June 2022

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Second quarter

  • Revenue amounted to €362.2m (€348.9m), an increase of 3.8% with an organic reduction of 5.0%.
  • Operating profit (EBIT) was €15.2m (€46.2m), representing an operating margin of 4.2% (13.3%).
  • Net profit amounted to €2.9m (€33.5m), which represents a net profit margin of 0.8% (9.6%).
  • EBITDA was €53.0m (€71.8m), a decrease by 26.1%. EBITDA margin was 14.6% (20.6%).
  • EBITDAaL amounted to €31.5m (€58.2m), corresponding to an EBITDAaL margin of 8.7% (16.7%).
  • Net cash flow from operating activities was €27.8m (€38.1m).
  • Basic/diluted earnings per share were €0.011 (€0.203).

First half

  • Revenue amounted to €743.9m (€666.1m), an increase of 11.7% with an organic growth of 3.9%.
  • Operating profit (EBIT) was €37.7m (€87.8m), representing an operating margin of 5.1% (13.2%).
  • Net profit amounted to €15.2m (€59.8m), which represents a net profit margin of 2.0% (9.0%).
  • EBITDA was €115.6m (€137.3m), a decrease by 15.7%. EBITDA margin was 15.5% (20.6%).
  • EBITDAaL amounted to €74.4m (€111.1m), corresponding to an EBITDAaL margin of 10.0% (16.7%).
  • Net cash flow from operating activities was €73.6m (€95.8m).
  • Basic/diluted earnings per share were €0.093 (€0.377).


€ millions (€m) Q2
Variance 6M
Variance LTM* FY
Revenue 362.2 348.9 4% 743.9 666.1 12% 1,455.2 1,377.4
Operating profit (EBIT) 15.2 46.2 -67% 37.7 87.8 -57% 109.3 159.4
Operating profit margin 4.2% 13.3% 5.1% 13.2% 7.5% 11.6%
Net profit 2.9 33.5 -91% 15.2 59.8 -75% 62.0 106.6
Net profit margin 0.8% 9.6% 2.0% 9.0% 4.3% 7.7%
Basic/diluted earnings per share, € 0.011 0.203 -95% 0.093 0.377 -75% 0.402 0.686
EBITDA 53.0 71.8 -26% 115.6 137.3 -16% 248.7 270.4
EBITDA margin 14.6% 20.6% 15.5% 20.6% 17.1% 19.6%
Adjusted EBITDA 56.2 74.1 -24% 123.7 141.0 -12% 263.2 280.5
Adjusted EBITDA margin 15.5% 21.2% 16.6% 21.2% 18.1% 20.4%
EBITDAaL 31.5 58.2 -46% 74.4 111.1 -33% 174.1 210.8
EBITDAaL margin 8.7% 16.7% 10.0% 16.7% 12.0% 15.3%
Adjusted EBITDAaL 34.7 60.5 -43% 82.5 114.8 -28% 188.6 220.9
Adjusted EBITDAaL margin 9.6% 17.4% 11.1% 17.2% 13.0% 16.0%
EBITA 19.8 48.6 -59% 51.8 92.7 -44% 130.3 171.2
EBITA margin 5.5% 13.9% 7.0% 13.9% 9.0% 12.4%

Definition and reconciliation of alternative performance measures are available at

* LTM: last twelve months (1 July 2021-30 June 2022

CEO Statement

For the second quarter which has been an exceptionally difficult quarter, with multiple negative macro trends as well as specific challenges impacting our geographies, we are reporting a revenue growth of 3.8%. Despite that, our underlying revenue growth, business as usual excluding Covid-19, has shown strong organic growth during the quarter of 13.7%, and excluding Ukraine impact organic revenue growth is 20.6%, evidencing the strength and diversification of our business.

However our operating margin for the quarter has significantly contracted from the prior year comparative quarter, which is largely driven by reduced Covid-19 testing and impact of war in Ukraine however several factors impacting us in parallel.

First, the war in Ukraine and the direct impact this has on our operations in the country, and in addition multiple indirect impacts. As we comment on later in this report, while we are encouraged and surprised by the speed of business recovery in Ukraine outside of the immediate conflict zone, we also recognise the inherent uncertainty impacting the country and its economy from the ongoing Russian Federation aggression.

Second, the accelerating inflation cost impacts on our business, in particular salary inflation. We remain confident that we continue to see market acceptance for our price compensation, however reiterate the inherent 3-9 months time lag between cost and pricing impact in results.

Third, a period of very strong footprint expansion with multiple businesses in maturing stages, particularly across our Indian hospital network and our Polish gym expansion. We equally here remain confident and encouraged by the development during the quarter as these maturing businesses develop according to plan.

Fourth, testing levels from the most recent wave of Covid-19 dropping off significantly across all our markets early in the second quarter. It remains to be seen how future variants of Covid-19 will be impacting the world and our markets. We maintain our capacity and ability to respond to potential future demand increases. Our projected increase in operating margins through the year and 2023, is not dependent on further Covid-19 testing volume.

Despite these multiple negative factors impacting our business in the quarter, I consider it satisfactory, that we are able to report an adjusted EBITDA margin within the target range of our public financial targets, be it at the lower end for the quarter, but the upper end for the first half of the year. We will be able to manage the inflation aspects, as price increases come through, and our expansionary footprint will mature and we can hope for a resolution of some sort for Ukraine in the second half. These actions will be supportive of margin improvement.

Revenue for the quarter grew 3.8% to €362.2m (€348.9m), with an organic reduction of 5.0%. Organic growth for business as usual was 13.7%. Fee-For-Service and other services (FFS) represented 59% of total revenue.

EBITDA was €53.0m (€71.8m), decreased by 26.1%, representing an EBITDA margin of 14.6% (20.6%). Adjusted EBITDA amounted to €56.2m (€74.1m), with a margin of 15.5% (21.2%).

Healthcare Services revenue grew by 18.2% to €219.5m (€185.7m), with an organic growth of 4.3%. Organic growth in business as usual was an impressive 30.4%. The number of members in the Integrated Healthcare Model increased by a strong 13.3% to 1.6 million (1.4 million) members, with 29,000 new members during the quarter. FFS grew 18.1% in the quarter and represented 55% of divisional revenue.

Healthcare Services EBITDA decreased by 11.3% to €29.7m (€33.4m), an EBITDA margin of 13.5% (18.0%). Impacted by the reduction in Covid-19 services, the expansion pace with several large projects in an early/construction stage, and medical demand/cost pressures.

Diagnostic Services revenue decreased by 12.6% to €147.4m (€168.7m), with an organic reduction of 15.5%. Organic growth in business as usual (excluding Covid-19 and Ukraine) was 4.0%. As mentioned Covid-19-testing levels dropped significantly across all our markets early in the second quarter. The number of laboratory tests amounted to 29.0 million (32.5 million), a decrease of 10.7%. The number of blood-drawing points (BDPs) open and operating was 843 (779). FFS decreased by 15.1% in the quarter and represented 66% of divisional revenue.

Diagnostic Services EBITDA amounted to €28.9m (€43.4m), a decrease of 33.2%, an EBITDA margin of 19.6% (25.7%). Ukraine continues to have a negative impact and less contribution from Covid-19 reduced margins.

We have continued to be active with our acquisition agenda and completed several deals in the field of dental, laboratory, mental health, and gyms that will contribute to future growth.

Notwithstanding the unusual high number of uncertain factors we face this year, we are confident that we will be within the financial adjusted EBITDA margin target of 15.5-16.5% for 2022. We are continuously working on the aspects in our control, as we increase pricing and drive our expansion to maturity.

Finally, a big thank you to all our employees and especially to employees in Ukraine who, despite the difficult circumstances, do a fantastic job and show a great fighting spirit and faith in a better future. Thank you!

Fredrik Rågmark

For complete report, see attached pdf.

This report has not been subject to review by the Company’s auditor.

This is information that Medicover AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication through the agency of the contact person set out below at 7.45 (CEST) on 22 July 2022. This interim report and other information about Medicover is available at

Financial calendar
Interim report July-September                                                                    3 November

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Medicover is a leading international healthcare and diagnostic services company and was founded in 1995. Medicover operates a large number of ambulatory clinics, hospitals, specialty-care facilities,laboratories and blood-drawing points and the largest markets are Poland and Germany. In 2021, Medicover had revenue of EUR 1,377 million and more than 38,000 employees. For more information, go to


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