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Sunday, 6 June 2021

CHG’s bottom line shoots 23% y-o-y in 1Q2021 as group plans expansions

EARNINGS WATCH- Cleopatra Hospital Group (CHG) reported a bottom line of EGP 108 mn in 1Q2021, up 23% y-o-y over the same period last year, in an earnings release out today (pdf). The company’s topline rose 26% y-o-y EGP 633.2 mn on the back of continued recovery in patient volumes, improving utilization rates, an increasingly optimised service mix, and favorable pricing, the company said. Patient volumes have been growing in both covid-19 facilities and regular hospitals. CHG also witnessed growing volumes and revenues at its polyclinics, as well as growing contributions from its recent expansions and new specialties. That, coupled with management’s cost cutting and optimization strategy, helped drive bottom line growth.

Looking ahead, the company plans to continue building on the momentum of patient volume growth through its “newly added centres of excellence and recently completed renovations,” the company said. :In the longer-term, the Group will continue to drive progress on all its long-term strategic priorities of diversified revenue growth, quality enhancement, digitalisation, capacity and geographical expansion and optimisation, and integration.”

We’re reading expansion into this, which CHG acknowledged by referring to its mandatory tender offer to acquire 100% of Alexandria Medical Services. “The acquisition would see CHG expand its geographic footprint into Egypt’s second-largest city while meeting the rising demand for high-quality healthcare in Alexandria,” the statement reads.

Amer Group’s jumped to EGP 209.9 mn in 1Q2021, up from EGP 10.7 mn in 1Q2020, the company said in its quarterly financials (pdf). Revenues also jumped to EGP 1.02 bn during the quarter, compared to EGP 303.49 mn in the same period in 2020.


The EGX30 rose 0.7% at today’s close on turnover of EGP 1.27 bn (2.2% below the 90-day average). Local investors were net buyers. The index is down 6.7% YTD.

In the green: Pioneers Holding (+7.1%), MM Group (+4.9%) and Cleopatra Hospital (+4.7%).

In the red: Fawry (-2.9%), Abu Qir Fertilizers (-1.4%) and Telecom Egypt (-1.0%).

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