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Annual Results

GHG net profits jump

15 February 2017 07:21

Georgia Healthcare Group's net profit rose to GEL61.3m in 2016 - up 159.7% on last time.

Normalised net profit was GEL39.6m - up 117.8%.

Revenue roe by 73.4% to GEL426.4m and EBITDA increased by 39.0% to GEL78.0m.

Chief executive Nikoloz Gamkrelidze said: "2016 was another extremely strong year for Georgia Healthcare Group, as the group continued to build strongly in all areas of the wider Georgian healthcare ecosystem including, for the first time, in the pharmaceutical retail and wholesale sector.

"During the year, the Group continued to grow its operations, both organically and via acquisition.

"We have made significant further progress in the implementation of our strategy to develop a nationwide chain of ambulatory clinics, subsequently growing our capacity to provide quality outpatient services to a much larger part of Georgia's population.

"We increased the number of district ambulatory clinics from 7 to 13 during 2016, as well as now having 28 express ambulatory clinics in operation. In May 2016, we completed the acquisition of JSC GPC, one of the largest retail and wholesale pharmacy chains in Georgia.

"GPC operates a countrywide network of 118 pharmacies in major cities, and the acquisition has created a number of substantial purchase synergy opportunities, and significant potential for increased customer acquisition in our outpatient business.

"In addition, in January 2017, the Group completed the acquisition of the Pharma-depot chain of pharmacies - the fourth largest pharma retailer in Georgia (operating with 125 pharmacies by YE 2016) - which has made GHG the market leader in the pharma segment with c.29% market share by revenue.

"The 2016 results clearly reflect these significant developments, and I am pleased to report a net profit of GEL61.3m, a 159.7% increase year-on-year from GEL 23.6 million in 2015.

"These results were, however, affected by the impact of a number of one-off items and business changes which increased profits by GEL24.0m, the largest of which was the release during the year of deferred tax releases due to a corporate tax legislation change.

"On an operational basis, the Group still made extremely good progress during the year with net revenues up 74.8% to GEL423.8m; EBITDA up 39.0% to GEL78.0m; and profit before income tax expense up 70.2% to GEL40.2m.

"Within this strong year-on-year performance, the Group has continued to build strongly on a sequential basis, with record high revenue in both the healthcare services business and the pharma business.

"Profit before income tax expense in the fourth quarter of 2016 was GEL13.0m, up 156.9% on the fourth quarter of 2015, and up 25.6% on the third quarter of the year."

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