Akdital (AKT) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 84% YoY to MAD 1,907M; EBITDA reached MAD 511M and net income MAD 198M, driven by expansion and higher activity.

• The network reached 21 facilities across 9 cities, with 2,300 beds, 401,533 admissions and 4,155 employees.

Financial highlights

• Revenue rose from MAD 1,035M to MAD 1,907M; 2022 openings contributed MAD 632M, 2023 openings MAD 172M and legacy clinics MAD 73M.

• Gross profit was MAD 1,212M; gross margin improved to 63.5% from 63.0%.

• EBITDA increased 81% to MAD 511M; EBITDA margin was 26.8% versus 27.3% in 2022.

• Net income rose 101% to MAD 198M; net margin was 10.4% versus 9.5%.

• Total assets rose 29% to MAD 3,900M, fixed assets increased 50% to MAD 2,735M and consolidated equity rose 12% to MAD 1,426M.

Outlook and guidance

• The 2024 development plan targets 34 facilities, 3,723 beds, 19 cities and 6,500 employees, versus 21 facilities, 2,300 beds, 9 cities and 4,155 employees.

• National expansion targets Moroccan cities with critical healthcare access needs, including Errachidia, Dakhla, Khouribga and Taroudant; international expansion is planned from 2026.

• Strategic priorities include oncology, geriatrics, functional rehabilitation, addiction treatment and reconstructive surgery, with partnerships to serve sub-Saharan patients.