Georgia Healthcare Group PLC GHG hosts Investor Day in Tbilisi (8608P)
November 23 2016 - 1:00AM
UK Regulatory
TIDMGHG
RNS Number : 8608P
Georgia Healthcare Group PLC
23 November 2016
London, 23 November 2016
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.
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
In the hospitals and ambulatory clinics business:
-- At least double 2015 hospital and ambulatory revenues in
2018, with an EBITDA margin of 30%
-- Launch two hospitals with a total of c650 hospital beds in
2017, and achieve a 25%+ market share of hospital revenues by 2018,
and a market share in excess of 30% in the medium-to-long term
(currently 20% share of revenues and 23% share of hospital
beds)
-- Roll out a network of ambulatory clinics to achieve a 5%
market share of revenues in 2018, and a 15%+ market share of
revenues in the medium-to-long term (currently 1.5%)
-- 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
-- In the ambulatory business, the key focus will be on
developing and achieving significant sales growth through a wide
variety of distribution channels - including pharmacies; insurance;
corporates and state programs
In the pharmaceuticals business:
-- Complete the planned integration of GPC and ABC businesses,
and capture the significant synergy potential
-- Achieve a 30%+ market share in 2018, whilst increasing the
EBITDA margin to 8.0%+
-- Continue to decrease the cost of goods sold/services, by
consolidating GHG's pharma and hospital purchases of
pharmaceuticals and medical disposables.
-- Enhance the retail margin by launching a private label and
contract manufacturing initiatives, increasing the number of
loyalty program users and expanding sales to hospitals.
-- Extract revenue synergies with ambulatory clinics by
increasingly redirecting patients from pharmacies to ambulatory
clinics through various cross-selling initiatives.
In the medical insurance business:
-- Reduce the combined ratio to less than 97% over the next few
years (currently 104.4%).
-- Improve Group synergies by seeking to retain more than 50% of
medical insurance claims costs within the Group (currently
23%).
A full set of the presentation slides can be viewed on the GHG
website at www.ghg.com.ge
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 35 hospitals and eight ambulatory clusters
(consisting of 11 district ambulatory clinics and 28 express
ambulatory clinics), as at 30 September 2016. GHG is the single
largest market participant, accounting for 23.0% of total hospital
bed capacity in the country, as of 30 September 2016. GHG is the
third largest pharmaceuticals retailer and wholesaler in Georgia,
approximately 15% market share by revenue, as of 31 December 2015.
GHG is also the largest provider of medical insurance in Georgia
with a 35% market share based on net insurance premiums earned and
approximately 208,000 insurance customers as at 30 September 2016.
GHG employed a total of c.12,500 people as at 30 September 2016,
including 3,140 physicians and 730 pharmacists.
For further information, please visit www.ghg.com.ge or
contact:
Nikoloz Gamkrelidze David Vakhtangishvili Ekaterina (Eka)
Shavgulidze
CEO CFO Head of Investor
Relations
+995 322 550505 +995 322 550505 +995 322 444
(5077) (4810) 205
ngamkrelidze@ghg.com.ge dvakhtangishvili@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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