Rhoen Klinikum (RHK) Q3 2024 earnings summary

Executive summary

• Revenue increased by 7.5% to €1,171.1 million for the first nine months of 2024 compared to the same period last year, driven by higher patient numbers and increased state base rates.

• EBITDA rose by 2.3% to €75.1 million, while EBIT grew by 21.4% to €29.5 million year-over-year.

• Consolidated profit improved by 27.7% to €30.4 million, with earnings per share rising to €0.44 from €0.35.

• Patient volumes increased, with acute inpatient treatments up 3.6% and outpatient attendances up 3.6% year-over-year.

Financial highlights

• Materials and consumables used rose by 11.8% (€42.4 million) due to higher purchase prices and more material cost-intensive services.

• Employee benefits expense increased by 6.8% to €774.2 million, though the personnel expense ratio declined to 66.1%.

• Other income grew by 7.0% (€13.5 million), mainly from higher funding for training centers and drug sales.

• Finance result improved to €6.5 million, up from €3.6 million, due to positive interest rate developments.

Outlook and guidance

• The company considers itself well-positioned for the upcoming German hospital reform, with sector challenges like underfunding and staff shortages requiring political solutions.

• The Hospital Care Improvement Act and Hospital Transparency Act will introduce new remuneration and reporting systems from 2025, impacting future operations.