Mediclinic sees over 50% profit boost

Johannesburg - Private hospital firm Mediclinic International posted a 58% rise in first-year profit on Tuesday, helped by currency swings and a robust showing at its home market.

Mediclinic, which also operates in the Middle East and Switzerland, said normalised headline earnings per share totalled 152 cents in the six months to end-September compared with 96.1 cents a year earlier.

Sales increased 21% to R14.1bn, with its local business growing by 11% and its Switzerland business growing by 7% in constant foreign exchange rates.

Mediclinic said revenue from Switzerland grew by nearly a third when the proceeds are converted into the rand, which was about 20% weaker against the Swiss franc during the period from a year earlier.

Demand for private healthcare is increasing in South Africa as a fast-growing middle class take up medical insurance but weaker economic growth in Switzerland has weighed on the Cape Town-based firm.

Shares of Mediclinic were down 1.2% at R73.74, underperforming a 0.7% rise in the benchmark Top 40 index.
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