Earnings watch: Cleopatra Hospitals Group reports 3Q2018 results
EARNINGS WATCH- Cleopatra Hospitals Group reported a 186% y-o-y increase in net profit to EGP 91.6 mn in 3Q2018 from EGP 32 mn in 3Q2017, according to the company’s earnings release (pdf). Revenues for the quarter stood at EGP 388.3 mn, up 32% y-o-y from EGP 293.2 mn in the same period last year. Profit growth was driven by an internal integration program and increased efficiency across its operations. The top-line growth “is an encouraging indication that the Group is heading in the right direction, and is testament to the effectiveness of our comprehensive, long-term rationalization program,” CEO Ahmed Ezzeldin said.
New board members: Former Trade and Industry Minister and longtime PepsiCo executive Tarek Kabil has joined Cleo’s board as an independent director. Also joining the board is our friend Samia El Baroudy, who will represent shareholder Care Healthcare Ltd.
Cleopatra shareholders also moved approved moving ahead with two inorganic growth options, approving management’s plan to take over El Katib Hospital and to take a long-term lease agreement for a 50-bed specialist hospital in East Cairo.
Speaking on the M&A piece, Cleopatra Corporate Strategy and Investor Relations Director Hassan Fikry said, "The news on El Katib and the 50-bed East Cairo hospital are the opening moves of a six-stream inorganic growth strategy we’re rolling out in 2019 and beyond. This will include a mix of greenfields, brownfields and acquisitions, the pillars of which are the launch of our polyclinics franchise in the first quarter of the new year, additional acquisitions of both operating and brownfield hospitals, capacity expansions (including at Shorouk Hospital) and expanding into new services such as home care and home visits. We also plan to make further investments in our centers of excellence initiative.”