Akdital (AKT) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 51% YoY to 1,249 M MAD and net income increased 70% to 127 M MAD.

• At 09/30/2024: 25 hospitals in 13 cities, 2,763 beds, 5,671 employees and 447,709 admissions; reported revenues of 2,018 M MAD.

• Three clinics opened in H1, adding 383 beds; the network reached 24 clinics, 2,698 beds and 12 cities by H1 end.

Financial highlights

• Revenue rose to 1,249 M MAD from 828 M MAD; legacy hospitals contributed 344 M MAD and new openings 74 M MAD.

• EBITDA increased 56% YoY to 334 M MAD from 214 M MAD; EBITDA margin rose to 26.8% from 25.9%.

• Net income increased to 127 M MAD from 75 M MAD; attributable net income was 113 M MAD.

• Gross margin rose to 783 M MAD from 526 M MAD, while its rate declined to 62.7% from 63.6% amid a mix shift toward oncology.

Outlook and guidance

• Expansion plan targets 51 hospitals, more than 5,700 beds and 31 cities by 2026.

• 2024 expansion schedule targets 34 hospitals and 3,723 beds; the post-SPO plan targets 40 hospitals and 4,455 beds.

• Twelve new facilities are scheduled to open in 2024; three were operational by H1 end.

• Pre-money 2024e–2029p plan projects revenue and EBITDA CAGRs of 16% and net income CAGR of 24%; 2029 net income is projected at 1,020 M MAD.

• Expansion beyond 2024 is expected to focus on regions with high healthcare infrastructure demand and support universal health insurance rollout.