Earnings Release • Mar 7, 2025
Earnings Release
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MLP Sağlık Hizmetleri A.Ş. (BIST: MPARK), the leading private healthcare service provider in Türkiye, announces its financial results for the full year ended December 31, 2024. All figures in this release include the impact of IAS 29 unless otherwise stated.
| (TL million) | 2024 | 2023 | Change | Q4 2024 | Q4 2023 | Change |
|---|---|---|---|---|---|---|
| Revenues | 39,690 | 32,412 | 22.5% | 10,392 | 9,161 | 13.4% |
| EBITDA1 | 10,203 | 8,350 | 22.2% | 2,671 | 2,858 | (6.5%) |
| EBITDA margin (%)1 | 25.7% | 25.8% | (6bps) | 25.7% | 31.2% | (549bps) |
| Net Profit/(Loss) Before Tax | 7,744 | 9,128 | (15.2%) | 1,470 | 4,433 | (66.8%) |
| Net Profit/(Loss) | 5,786 | 6,855 | (15.6%) | 1,062 | 3,592 | (70.4%) |
| Net Profit/(Loss) equity holders of the parent | 5,210 | 6,540 | (20.3%) | 915 | 3,414 | (73.2%) |
| Net Profit/(Loss) excluding Monetary Gain/(Loss) | 4,231 | 1,663 | 154.5% | 700 | 370 | 89.1% |
| Net Debt | 5,261 | 4,683 | 12.4% | |||
| Net Debt / EBITDA | 0.5x | 0.6x |
1EBITDA and EBITDA margin calculated by deducting general administrative expenses from gross profit and adding depreciation and amortization expenses
On April 16, 2024, a hospital operating in Ankara was acquired. The hospital, with a capacity of 182 beds, continues its operations as Medical Park İncek Hospital.
On June 24, 2024, two hospitals operating in Kocaeli and Istanbul were incorporated into our company through long-term leasing. The hospital in Kocaeli, with a capacity of 100 beds, continues its operations as VM Medical Park Gebze Hospital, while the hospital in Istanbul, with a capacity of 80 beds, continues as Medical Park Ataşehir Hospital.
"2024 has been a year in which we achieved strong real growth and witnessed the results of our strategic investments. The increase in capacity utilization rates and patient traffic at our large hospitals has enabled us to benefit from economies of scale. By adding a total of six hospitals to our network in 2024, we have accelerated our growth journey.
In terms of our sustainability efforts, we made significant strides in 2024. In November, we signed the United Nations Global Compact, a global initiative that promotes sustainable and responsible business practices. In our first participation in the S&P Global Corporate Sustainability Assessment in 2024, we achieved a score above the healthcare sector average. This success once again highlights the scope and strategic importance of our sustainability initiatives."
| 2024 | 2023 | Change | Q4 2024 | Q4 2023 | Change | |
|---|---|---|---|---|---|---|
| Total Revenues (TL million) | 39,690 | 32,412 | 22.5% | 10,392 | 9,161 | 13.4% |
| Domestic Patient Revenues | 34,425 | 26,790 | 28.5% | 9,158 | 7,594 | 20.6% |
| Inpatient Revenues | 18,161 | 14,527 | 25.0% | 4,730 | 4,055 | 16.7% |
| Outpatient Revenues | 16,264 | 12,263 | 32.6% | 4,427 | 3,540 | 25.1% |
| Foreign Medical Tourism Revenues | 4,326 | 4,803 | (9.9%) | 1,088 | 1,337 | (18.7%) |
| Other Ancillary Business | 939 | 819 | 14.6% | 147 | 229 | (36.0%) |
Domestic Patient Revenues: Revenues from domestic patients increased by 28.5% in 2024 due to increased patient numbers and average prices. Inpatient revenue and outpatient revenue grew by 25.0% and 32.6%, respectively, in 2024.
Foreign Medical Tourism (FMT) Revenues: FMT revenues decreased by 9.9% in 2024 due lower patient flow and relatively stable USD/TL exchange rates compared to domestic unit price increases.
Other Ancillary Business: Revenues from other ancillary business increased by 14.6% in 2024 due to management consultancy revenues from hospitals.
| 2024 | 2023 | Change (bps) | Q4 2024 | Q4 2023 | Change (bps) | |
|---|---|---|---|---|---|---|
| (% of Revenues) | 74.3% | 74.2% | 6 | 74.3% | 68.8% | 549 |
| Material | 12.9% | 13.8% | (92) | 11.9% | 13.1% | (115) |
| Doctor | 25.2% | 23.5% | 168 | 25.8% | 23.4% | 245 |
| Personnel | 20.3% | 19.5% | 78 | 19.8% | 17.0% | 276 |
| Outsourced services purchases | 6.1% | 6.0% | 12 | 6.1% | 5.5% | 68 |
| All other expenses | 9.8% | 11.4% | (159) | 10.6% | 9.9% | 76 |
Material consumption as a percentage of total revenue decreased by 92 bps to 12.9% in 2024 due to effective inventory management.
Doctor costs as a percentage of total revenue increased by 168 bps to 25.2% in 2024 due to salary improvement of the doctors in newly added hospitals to our portfolio.
Personnel expenses as a percentage of total revenue increased by 78 bps to 20.3% in 2024 due to salary adjustments of the personnel in January and July.
Outsourced services purchases that consists of laboratory, imaging, cleaning, catering, security expenses as a percentage of the total revenue increased by 12 bps to 6.1% in 2024.
All other expenses(energy, rent, foreign and domestic marketing expenses, etc.) as a percentage of total revenue decreased by 159 bps to 9.8% in 2024 due to relatively lower utility expense.
The operating cash flow increased by 15.5% to TL 9,479 million in 2024 due to strong EBITDA growth. Therefore, the operating cash flow/EBITDA ratio was at 92.9% in 2024.
Free cash flow increased by 17.4% to TL 5,739 million in 2024 due to strong operational performance. Therefore, free cash flow/EBITDA ratio was at 56.2% in 2024.
Maintenance-related capital expenditures as a percentage of revenues was at 6.6% 2024. Total capital expenditures as a percentage of revenues was at 8.9% in 2024.
| Net debt by currency (TL million) | 2024 | Vertical % | 2023 | Vertical % | Change |
|---|---|---|---|---|---|
| TL | 1,688 | 32% | 2,777 | 59% | (39.2%) |
| USD + Euro (*) | (975) | (19%) | (1,360) | (29%) | (28.3%) |
| Total loan, financial leasing | 714 | 14% | 1,418 | 30% | (49.7%) |
| TL (IFRS 16) | 4,432 | 84% | 3,087 | 66% | 43.6% |
| USD + Euro (IFRS 16) | 115 | 2% | 177 | 4% | (34.8%) |
| Total lease liabilities (IFRS16) | 4,548 | 86% | 3,265 | 70% | 39.3% |
| Total net debt | 5,261 | 100% | 4,683 | 100% | 12.4% |
(*)There is a net long position of USD 26.0 million in foreign currency.
The net debt/EBITDA ratio was decreased to 0.5x in 2024 on the back of strong operating performance from 0.6x in 2023.
In 2024, net debt excluding obligations under operational leases related to TFRS 16 decreased by TL 704 million to TL 714 million.
Total net debt including obligations under operational leases related to TFRS 16 increased by 12% to TL 5,261 million.
| TL million | 2024 | 2023 | Change | Q4 2024 | Q4 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | 39,690 | 32,412 | 22.5% | 10,392 | 9,161 | 13.4% |
| Cost of service (-) | (28,831) | (23,128) | 24.7% | (7,472) | (6,110) | 22.3% |
| Gross profit | 10,859 | 9,284 | 17.0% | 2,920 | 3,050 | (4.3%) |
| General administrative expenses (-) Depreciation and amortization expenses (Cost of |
(3,367) | (3,160) | 6.5% | (926) | (856) | 8.1% |
| service) Depreciation and amortization expenses (General |
2,526 | 2,028 | 24.6% | 632 | 601 | 5.2% |
| administrative expenses) | 185 | 199 | (7.0%) | 45 | 62 | (28.6%) |
| EBITDA1 | 10,203 | 8,350 | 22.2% | 2,671 | 2,858 | (6.5%) |
| EBITDA margin (%)1 | 25.7% | 25.8% | (6bps) | 25.7% | 31.2% | (549bps) |
1EBITDA and EBITDA margin calculated by deducting general administrative expenses from gross profit and adding depreciation and amortization expenses
| TL million | Audited 2024 |
Audited 2023 |
Change (%) | Audited Q4 2024 |
Audited | Q4 2023 Change (%) |
|---|---|---|---|---|---|---|
| Revenue | 39,690 | 32,412 | 22.5% | 10,392 | 9,161 | 13.4% |
| Cost of service (-) | (28,831) | (23,128) | 24.7% | (7,472) | (6,110) | 22.3% |
| Gross profit | 10,859 | 9,284 | 17.0% | 2,920 | 3,050 | (4.3%) |
| General administration expenses (-) | (3,367) | (3,160) | 6.5% | (926) | (856) | 8.1% |
| Other income from operations | 781 | 1,376 | (43.3%) | 112 | 378 | (70.5%) |
| Other expenses from operations (-) | (1,143) | (1,188) | (3.8%) | (296) | (412) | (28.3%) |
| Operating profit/(loss) | 7,130 | 6,312 | 13.0% | 1,810 | 2,160 | (16.2%) |
| Income from investing activities | 1,845 | 113 | 1,535.8% | (1) | 1 | n.m. |
| Expense from investing activities (-) | (6) | (15) | (61.1%) | 0 | 0 | 1563.5% |
| EBIT | 8,969 | 6,409 | 39.9% | 1,810 | 2,162 | (16.3%) |
| EBIT margin | 22.6% | 19.8% | 282bps | 17.4% | 23.6% | (618bps) |
| Interest (expenses) / income, net (-) | (2,757) | (2,344) | 17.7% | (705) | (923) | (23.6%) |
| Net foreign exchange profit / (loss) (including hedging cost) |
(22) | (130) | (82.9%) | 4 | (26) | n.m. |
| Monetary gain / (loss) | 1,554 | 5,192 | (70.1%) | 361 | 3,221 | (88.8%) |
| Net profit / (loss) before tax Tax income / (expense) from |
7,744 | 9,128 | (15.2%) | 1,470 | 4,433 | (66.8%) |
| operations | (1,958) | (2,273) | (13.9%) | (408) | (841) | (51.5%) |
| Net profit / (loss) | 5,786 | 6,855 | (15.6%) | 1,062 | 3,592 | (70.4%) |
| Net profit / (loss) non-controlling interest |
576 | 315 | 82.7% | 147 | 178 | (17.6%) |
| Net profit / (loss) equity holders of the parent |
5,210 | 6,540 | (20.3%) | 915 | 3,414 | (73.2%) |
| TL million | Audited December 31, 2024 |
Audited December 31, 2023 |
|---|---|---|
| Cash and cash equivalents | 2,728 | 4,060 |
| Trade receivables | 6,087 | 5,280 |
| Inventory | 1,004 | 1,554 |
| Short term other assets | 1,370 | 1,319 |
| Current assets | 11,188 | 12,214 |
| Tangible and intangible fixed assets | 16,958 | 12,068 |
| Right of use assets | 12,574 | 10,455 |
| Deferred tax assets | 2,438 | 2,612 |
| Long term other assets | 4,133 | 3,677 |
| Non-current assets | 36,104 | 28,812 |
| Total assets | 47,291 | 41,025 |
| Trade payables | 5,991 | 5,894 |
| Short term other liabilities | 3,115 | 2,516 |
| Short term financial liabilities (incl, financial and operational leases) |
4,073 | 4,422 |
| Current liabilities | 13,179 | 12,831 |
| Long term other liabilities | 1,177 | 605 |
| Deferred tax liabilities | 5,487 | 4,655 |
| Long term financial liabilities (incl, financial and operational leases) |
3,916 | 4,322 |
| Non-current liabilities | 10,579 | 9,581 |
| Shareholders' equity | 22,627 | 18,300 |
| Non-controlling interest | 907 | 314 |
| Equity | 23,534 | 18,614 |
| Total liabilities & equity | 47,291 | 41,025 |
We are the most widespread private healthcare service provider in Türkiye in terms of number of hospitals, beds and geographic scope based on our footprint of 34 hospitals and more than 6,300 beds in Türkiye, Azerbaijan, Hungary, Kosovo and Dubai as of reporting date. We provide a full range of healthcare services from gyneacology, cardiology, oncology, orthopaedics, intensive care to complex treatments such as organ and bone marrow transplants. We have more than 22 thousand personnel, including over 3,200 physicians, managed by a head office team, which integrates field operations, sets strategy and monitors real-time performance across all hospitals.
This document may contain certain forward-looking statements concerning our future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact the Company's actual performance.
For financial reports and further information regarding MLP Care, please visit our website at http://investor.mlpcare.com/en/ or you may contact:
Investor Relations Department T +90 212 227 5555 E [email protected]
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