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Headline Earnings: Decreased by 20% from ZAR7 billion to ZAR5.6 billion.
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Headline Earnings Per Share: Decreased by 18.8% from ZAR12.54 to ZAR10.18.
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Final Dividend: Increased by 15%, resulting in a total annual increase of 10%.
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Mediclinic Valuation: Decreased by 13.8% to ZAR40.8 billion.
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HeinBev Valuation: Decreased by 43.2% to ZAR7.1 billion.
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OUTsurance Group Market Value: Increased by 37%.
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RCL Foods Market Value: Increased by 47%.
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Cash at Center: Decreased by ZAR2.2 billion to ZAR6.8 billion.
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Net Cash at Center: Increased by ZAR3.2 billion.
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Dividends Received: ZAR3.1 billion.
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Revenue: Mediclinic Group revenue up 5% to $4.6 billion.
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Adjusted EBITDA: Mediclinic Group down 2% to $673 million.
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Cash Conversion: Mediclinic Group at 92%.
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Mediclinic Leverage Ratio: Including lease liabilities at 3.8 times.
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Southern Africa Revenue: Increased by 7% to ZAR20.8 billion.
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Middle East Revenue: Increased by 10% to AED4.9 billion.
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Vumatel Revenue: Up 3.2%.
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Vumatel CapEx: Reduced from ZAR3.5 billion to ZAR2.6 billion.
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CIVH Valuation: ZAR51 billion with ZAR19.5 billion debt, resulting in equity value of ZAR31.5 billion.
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RCL Foods EBITDA: Increased by 36.8% (statutory) and 15% (underlying).
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RCL Foods Return on Invested Capital: 10.4% (adjusted for underlying performance).
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you comment on the share price of Capevin that's used in the valuation in these results? And also maybe on the acquisition that's been recently announced by Campari? A: Our share price or our valuation translates into something around ZAR24 and ZAR42. The transaction that was announced was around ZAR51 or just north of ZAR50, so roughly double the price that we carried at in our INAV at least. That was a bilateral deal between two third-parties. So it's not an offer that was available to us. We've always been consistent to say that we'd like to think our valuations are conservative. It's certainly not a price list, INAV, it's not the price at which we would sell our investments. So it's pleasing that there are reference points out there that are meaningfully higher than the INAV, but yes, it's also not for us to mark off our valuations to third-party deals. So we're comfortable with that price now.
Q: Can you give a sense of what the plans would be if the Vodacom deal doesn't go through? A: If the Vodacom transaction is not approved, then this is not a crisis for us. The business will carry on as is. We have got plans in place with the banks, where we have extended the decline in covenant measurements, where they measure debt-to-EBITDA. So there's no immediate crisis. The biggest impact probably is that we will have to slow our ambitions to roll out Vuma Key into many parts of South Africa. The company will continue to use -- it will continue to be cash flow generative, continuing to invest in both DFA and Vumatel, but unfortunately, KEY will be slower than planned. We will get there, but it will probably take 5 to 10 years, whereas we can do it in a much shorter period of time.
Q: With this being 30% of INAV, how would Remgro frame the investment case? And what excites Remgro about the investment, given the tough environment in Switzerland? A: I think it's the bottom of the market for us to a certain extent in Switzerland. I've got a lot of confidence in the management team that they can turn things around in Switzerland. The plans are starting to bear fruit. We're relooking at the operating model. And then loan build, we've got some good growth opportunities in the UAE. And South Africa actually is now with the new momentum behind the business with the new momentum in terms of the Government of National Unity, some good engagements with the President in terms of the NHI. I think even on the South African side, we're seeing some good pockets of growth in that respect. So we're comfortable with the investment case at the moment.
Q: Can you comment on the share price of Capevin that's used in the valuation in these results? And also maybe on the acquisition that's been recently announced by Campari? A: Our share price or our valuation translates into something around ZAR24 and ZAR42. The transaction that was announced was around ZAR51 or just north of ZAR50, so roughly double the price that we carried at in our INAV at least. That was a bilateral deal between two third-parties. So it's not an offer that was available to us. We've always been consistent to say that we'd like to think our valuations are conservative. It's certainly not a price list, INAV, it's not the price at which we would sell our investments. So it's pleasing that there are reference points out there that are meaningfully higher than the INAV, but yes, it's also not for us to mark off our valuations to third-party deals. So we're comfortable with that price now.
Q: Can you give a sense of what the plans would be if the deal doesn't go through? A: If the Vodacom transaction is not approved, then this is not a crisis for us. The business will carry on as is. We have got plans in place with the banks, where we have extended the decline in covenant measurements, where they measure debt-to-EBITDA. So there's no immediate crisis. The biggest impact probably is that we will have to slow our ambitions to roll out Vuma Key into many parts of South Africa. The company will continue to use -- it will continue to be cash flow generative, continuing to invest in both DFA and Vumatel, but unfortunately, KEY will be slower than planned. We will get there, but it will probably take 5 to 10 years, whereas we can do it in a much shorter period of time.
Q: Can you comment on the share price of Capevin that's used in the valuation in these results? And also maybe on the acquisition that's been recently announced by Campari? A: Our share price or our valuation translates into something around ZAR24 and ZAR42. The transaction that was announced was around ZAR51 or just north of ZAR50, so roughly double the price that we carried at in our INAV at least. That was a bilateral deal between two third-parties. So it's not an offer that was available to us. We've always been consistent to say that we'd like to think our valuations are conservative. It's certainly not a price list, INAV, it's not the price at which we would sell our investments. So it's pleasing that there are reference points out there that are meaningfully higher than the INAV, but yes, it's also not for us to mark off our valuations to third-party deals. So we're comfortable with that price now.
Q: Can you give a sense of what the plans would be if the deal doesn't go through? A: If the Vodacom transaction is not approved, then this is not a crisis for us. The business will carry on as is. We have got plans in place with the banks, where we have extended the decline in covenant measurements, where they measure debt-to-EBITDA. So there's no immediate crisis. The biggest impact probably is that we will have to slow our ambitions to roll out Vuma Key into many parts of South Africa. The company will continue to use -- it will continue to be cash flow generative, continuing to invest in both DFA and Vumatel, but unfortunately, KEY will be slower than planned. We will get there, but it will probably take 5 to 10 years, whereas we can do it in a much shorter period of time.
Q: Can you comment on the share price of Capevin that's used in the valuation in these results? And also maybe on the acquisition that's been recently announced by Campari? A: Our share price or our valuation translates into something around ZAR24 and ZAR42. The transaction that was announced was around ZAR51 or just north of ZAR50, so roughly double the price that we carried at in our IN
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
