Georgia Healthcare Group PLC GHG hosts Investor Day in Tbilisi (1005W)
10 November 2017 - 4:00AM
UK Regulatory
TIDMGHG
RNS Number : 1005W
Georgia Healthcare Group PLC
09 November 2017
London, 9 November 2017
Georgia Healthcare Group hosts Investor Day in Tbilisi
Georgia Healthcare Group PLC ("GHG" or the "Group") announces
that the Group is today hosting an Investor Day for analysts and
investors in Tbilisi on Friday 10 November 2017.
As part of the presentations, GHG will update investors on its
medium term strategic goals which are summarised below:
-- The Group will continue to focus on building its presence
throughout the Georgian healthcare ecosystem
-- The Group will also focus on enhancing its margins and
achieving higher intergroup synergies through various cross-selling
initiatives between its Hospital, Polyclinic, Pharma and Medical
Insurance businesses
In the hospitals and Polyclinic businesses:
-- Complete the launch of the Sunstone and Deka hospitals, with
a total of c.660 hospital beds, in over the next few months, and
achieve a c.28% market share of hospital beds and a c.25% market
share of hospital revenues by 2018, and a market share in excess of
30% in the medium-to-long term (currently 21% share of revenues and
24% share of hospital beds)
-- The key strategic focus over the next few years, in the
hospitals business, will be to enhance the Group's footprint in
Tbilisi; continue to fill the current medical services gaps in
Georgia and strengthen and expand services in elective care. This
will support the achievement of a c.30% EBITDA margin over the next
few years
-- Continue the roll out of a network of Polyclinics to achieve
a c.5% market share of revenues in 2018, and a c.15% market share
of revenues in the medium-to-long term (currently 2%)
-- In the Polyclinic business, the key focus will be on
accelerating the Polyclinic footprint growth, by launching and/or
acquiring new Polyclinics - up to 20 clusters over next two years.
In addition, we intend to significantly increase the number of
registered customers, from c.37,000 to c.200,000 by the end of
2018. We will also developing and achieving significant sales
growth through a wide variety of distribution channels - including
pharmacies; insurance; corporates and state programs
In the pharmaceuticals business:
-- By increasing the pharmacy footprint to over 300 pharmacies
over the next two years, achieve a 30%+ market share in 2018,
whilst maintaining the EBITDA margin in excess of 8.0%
-- Enhance the retail margin by extracting further synergies
from recent acquisitions, adding more private label medicines and
personal care products
-- Continue to decrease the cost of goods sold/services, by
consolidating GHG's pharma and hospital purchases of
pharmaceuticals and medical disposables
-- Extract revenue synergies with Polyclinics and enhancing
digital channels
In the medical insurance business:
-- Continuing the recent portfolio re-pricing efforts, and seek
further cost efficiencies
-- Reduce the loss ratio to less and 75% and maintain the
combined ratio at less than 97% over the next few years (currently
84.5% and 101.3% respectively)
-- Improve Group synergies by seeking to retain more than 50% of
medical insurance claims costs within the Group (currently
35.4%).
A full set of the presentation slides can be viewed on the GHG
website at ghg.com.ge
Name of authorised official of issuer responsible for making
notification:
Ketevan Kalandarishvili, Head of Investor Relations
About Georgia Healthcare Group PLC
Georgia Healthcare Group PLC is a UK incorporated holding
company of the largest healthcare services provider in the
fast-growing, predominantly privately-owned, Georgian healthcare
services market. GHG's leadership position is underpinned by
offering the most comprehensive range of inpatient and outpatient
services targeting the mass market segment through its vertically
integrated network of 37 hospitals and 11 Polyclinic clusters
(consisting of 14 Polyclinics and 24 express outpatient clinics),
as at 30 September 2017. GHG is the single largest market
participant, accounting for 23.8% of total hospital bed capacity in
the country, as of 30 September 2017. From January 2017, GHG become
the largest pharmaceuticals retailer and wholesaler in Georgia,
with approximately 29% market share by revenue. GHG is the second
largest provider of medical insurance in Georgia with a 29.6%
market share based on net insurance premiums earned and
approximately 110,000 insurance customers as of October 2017. GHG
employed a total of c.15,151 people as at 30 September 2017,
including c.3,505 physicians.
For further information, please visit ghg.com.ge or contact:
Nikoloz Gamkrelidze Irakli Gogia Ketevan Kalandarishvili
CEO CFO Head of Investor
Relations
+995 322 550505 +995 322 550505 +995 322 550505
(5077) (5088) (5079)
ngamkrelidze@ghg.com.ge irakligogia@ghg.com.ge ir@ghg.com.ge
This news report is presented for general informational purposes
only and should not be construed as an offer to sell or the
solicitation of an offer to buy any securities
This information is provided by RNS
The company news service from the London Stock Exchange
END
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