Shares in Mediclinic (LON:MDC) fell on Wednesday, after the company issued a trading update on its interim results.
The firm, which specialises in providing private healthcare, warned of weaker-than-expeceted performance in Switzerland.
The South African company said it expects to report a 2% increase in sales for the first half the year to September-end, alongside a 4% decline in adjusted profits.
Commenting today, Dr Ronnie van der Merwe, CEO, said:
“Trading in the first half of the year experienced the customary seasonality in Switzerland and the Middle East. In the Middle East, we delivered a gradual improvement in revenue and margin expansion ahead of the anticipated stronger growth in the second half of the year. In Switzerland, the business continues to adapt to recent regulatory changes in the outpatient environment, which in the period had a greater than expected impact on admissions and the insurance mix.”
“In Southern Africa, margins were maintained on lower volumes due to weakness in the second quarter from fewer pneumonia and bronchitis related cases during the winter.
He added: “For the full year, our performance in Southern Africa remains in line with guidance. In the Middle East, full year EBITDA delivery remains on track with revenue growth lower than previously expected. In Switzerland, we now expect to deliver modest revenue growth in the full year including contribution from Clinique des Grangettes, with an adjusted EBITDA margin of around 16%.”
Alongside locations in Switzerland, the firm operates in South Africa, Namibia, and the United Arab Emirates.
As well as the South African Securities Exchange (JSE), Mediclinic is also listed on the London Stock Exchange and is a constituent of the FTSE-250 Index.
As of currently, the company also holds a 29.9% stake in Spire Healthcare, a UK-based private healthcare provider.
Shares in Mediclinic are currently trading -17.53% as of 12.52AM (GMT).
Elsewhere across the markets, online clothing retailer Asos shares (LON:ASC) rallied on Wednesday on boosted profits.
Conversely, shares in low-cost airline Flybe fell during early morning trading, after the company warned on profits.