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Monday, 21 March 2022

Cleopatra Hospitals, Ibn Sina report 2021 results

Cleopatra Hospitals (CHG) reports record 4Q2021 results: Cleopatra Hospitals Group’s (CHG) net income grew 6% y-o-y in 4Q2021 to EGP 122.6 mn, according to the company’s earnings release (pdf). The company’s bottom line was underpinned by its highest-ever quarterly revenues, rising 6% y-o-y to EGP 648.7 mn. On a full-year basis, CHG’s net income rose 38% y-o-y to EGP 410.7 mn, with revenues growing 28% to EGP 2.54 bn.

Growth was “balanced” across CHG’s facilities, with its polyclinics delivering 70% top line growth and fertility-specialist Bedaya Hospital recording a “steady increase in patient volumes,” boosted by a growing demand in medical tourism. The group served 1 mn cases across its facilities throughout the year, which allowed it to deliver on its long-term targets. The group’s covid-related revenues grew 49% to EGP 274.6 mn, contributing to 11% of its total revenues for the year.

“2021 was a transformational year for CHG which saw us deliver robust financial and operational results while taking important strides forward on our longer-term growth and development strategy,” CEO Ahmed Ezzeldin said.

Looking ahead: The group launched a new multi-specialty surgical model in its El Katib Hospital, the results of which it expects to see reflected on revenues later this year. “Our overarching goals for 2022 remain unchanged as we look to drive new organic and inorganic growth, further optimize all aspects of our operations, and, most importantly, continue serving our patients and their families to the best of our abilities,” said Ezzeldin.

Ibnsina Pharma’s net income more than tripled y-o-y in 4Q2021 to EGP 74.4 mn, according to the company’s earnings release (pdf). The company booked revenues of almost EGP 6 bn, rising 20% y-o-y. On a full-year basis, the company’s bottom line rose 40% y-o-y to EGP 315.7 mn, on the back of a 16% y-o-y increase in revenues to EGP 21.7 bn.

Price hikes, OPEX cuts drive growth: Ibnsina reported sales growth of more than 7% during the year, which it said was “mainly driven by increases in the average selling price.” The company also said it had managed OPEX growth, cutting OPEX to sales to 3.8% from 4.4% in 2020.

Looking ahead: Ibnsina is forecasting double-digit retail sales growth in 2022 as strong economic growth and a rising population supports consumer demand. It also expects non-retail sales to grow this year in anticipation that public procurement processes will become more efficient.

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