ANNUAL REPORT
2022
M1 Kliniken AG Key Figures
2 M1 KLINIKEN AG KEY FIGURES
Statement of comprehensive income according to IFRS (in kEUR)
fiscal year 2022 | fiscal year 2021 | |||
Sales | 285,291 | 314,610 | ||
EBT | 10,233 | 14,424 | ||
Net profit | 7,070 | 10,880 |
Balance sheet according to IFRS (in kEUR)
31.12.2022 | 31.12.2021 | ||||||
Short-term assets | 107,307 | 110,195 | |||||
Long-term assets | 89,718 | 87,916 | |||||
Total assets | 197,025 | 198,111 | |||||
Short-term liabilities | 37,466 | 43,418 | |||||
Long-term liabilities | 16,508 | 14,791 | |||||
Equity | 143,051 | 139,902 | |||||
Total liabilities and equity | 197,025 | 198,111 | |||||
Shares | |||||||
Share class | Bearer shares | ||||||
Number of shares | 19,643,403 | ||||||
WKN / ISIN | A0STSQ / DE000A0STSQ8 | ||||||
Ticker symbol | M12 | ||||||
Frankfurt, Xetra, Dusseldorf, Stuttgart, Berlin, | |||||||
Trading places | Hanover, Hamburg, Munich, Tradegate, gettix, | ||||||
Quotrix | |||||||
Market segment | Entry Standard (Open Market) | ||||||
Designated Sponsor, Listing Partner | mwb fairtrade | ||||||
Coverage | Bankhaus Metzler, M.M. Warburg & Co., | ||||||
First Berlin | |||||||
Market capitalization | EUR 178.0 mn (as of 31.12.2022 - Xetra) | ||||||
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M1 Kliniken AG Content
CONTENT
1. | LETTER TO THE SHAREHOLDERS | 4 | |
2. | SUPERVISORY BOARD REPORT | 6 | |
3. | GROUP MANAGEMENT REPORT | 11 | |
3.1 | Company Profile | 12 | |
3.2 | Organisation and Business Segments | 13 | |
3.3 | Economic Report | 14 | |
3.4 | Results after the Balance Sheet Date | 20 | |
3.5 | Forecast Report | 21 | |
3.6 | Opportunity and Risk Report | 22 |
3.7 Risk Reporting on the Use of Financial
Instruments | 29 |
3.8 Report on Branches | 29 |
3.9 Final Declaration According to
§ 312 (3) sec. 3 AktG | 29 | ||
4. | GROUP FINANCIAL STATEMENT | 30 | |
4.1 | Group - Profit and Loss Statement | 31 | |
4.2 | Group - Balance Sheet - Assets | 32 | |
4.3 | Group - Balance Sheet - Liabilities/Equity | 33 | |
4.4 | Group - Cash Flow Statement | 34 | |
4.5 | Group - Statement of Changes in Equity | 35 | |
5. | GROUP ANNEX/ NOTES | 36 | |
5.1 | General Information | 39 |
5.2 Discretionary Decisions, Estimates and
Assumptions | 40 |
5.3 Scope of Consolidation and
Consolidation Principles | 41 |
5.4 Remarks on Accounting and Valuation
Methods | 47 |
5.5 Notes to the Consolidated Profit and Loss
Statement | 54 | |
5.6 | Notes to the Consolidated Balance Sheet | 58 |
5.7 | Notes to the Consolidated Cash Flow Statement | 69 |
5.8 | Segment Reporting | 69 |
5.9 | Further Disclosures on Financial Instruments | 70 |
5.10 | Other Disclosures | 73 |
5.11 Approval by the Management Board for the Publication of the 2022 Consolidated Financial
Statements in Accordance with IAS 10.17 | 76 |
5.12 Independent Auditor's Report | 77 |
6. FURTHER INFORMATION | 80 |
Glossary | 80 |
Sources | 81 |
Imprint | 83 |
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M1 Kliniken AG Letter to the Shareholders
Dear Shareholders,
Ladies and Gentlemen,
In the past financial year 2022, M1 Kliniken AG was able to increase its sales in the "Beauty" segment by more than 14% compared to the previous year and continue to grow profitably. The EBIT margin in this segment increased from 9.8% to around 12%, which confirms the sustainability of this business model. Overall, a net profit for the year of 7.1 million euros (previous year 10.9 million euros) was generated and Group equity increased by 3.2 million euros to 143.1 million euros.
After two years of partial closures and restrictions due to the pandemic, normality returned in 2022. Despite the decline in sales, the sales performance of the two business segments "Beauty" and "Trade" was successful, even though overall sales fell as expected to 285.3 mn euros in 2022 (previous year 314.6 mn euros). The decrease in total sales compared to the previous year is mainly due to the declining demand for medical products from the Covid Diagnostics business in the "Trade" segment. This resulted in a significant one-time effect in the fiscal year 2021. At the same time, further streamlining of the product range took place in the HAEMATO subgroup, which also led to an expected decline in sales.
The fiscal year 2022 was characterized by restructuring measures aimed at reducing costs in all major areas of the Group. The focus was on optimizing operational processes. This work already led to initial successes in the past year and will be continued in 2023.
The expansion of the medical centers in Germany and abroad was continued with the opening of eight locations in four countries, so that we were represented in eight countries with a total of 54 M1 locations at the end of 2022. The foreign Beauty country organizations, some of which were still affected by the after-effects of the Corona pandemic, generated an operating loss of
2.4 mn euros (prev. year 1.0 mn euros). New store openings, particularly abroad, are initially characterized by the gradual development of the brand and the acquisition of regular customers. They generally take around 24 months to reach break-even. At the new location in Budapest (Hungary), break-even was achieved after just six months following the opening in September 2022. Sales at the foreign locations increased from EUR 5.8 mn in the previous year to EUR 8.6 mn in the financial year 2022.
Sales in the Beauty segment rose by a total of 14.1% to over EUR 60.2 mn (prev. year EUR 52.8). The EBIT margin in this segment increased from 9.8% (EUR 5.15 mn) in the previous year to 11.7% (EUR 7.03 mn). The domestic Beauty locations were able to increase their EBIT margin even more significantly from 12.2% to 18.3% and raised their operating result from 6.2 mn euros to 9.4 mn euros. In the coming weeks, expansion in Eastern Europe will continue with the opening of specialist centers in Sofia (Bulgaria) and Bucharest (Romania).
In Eastern Europe, M1 benefits from lower material and personnel costs combined with high price levels for high-quality medical beauty treatments. The plan is to operate between 75-100 sites by 2025. The Beauty segment is expected to generate an EBIT margin of at least 20%.
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M1 Kliniken AG Letter to the Shareholders
The ratio of cost of materials to sales decreased to 81.5% in the financial year 2022 (prev. year 82.4%). This is due to the optimized, higher-margin product mix in the Trade segment.
The operating profit 2022 (EBIT) of the M1 Group amounts to EUR 9.3 mn (prev. year EUR 12.1 mn). Earnings before taxes (EBT) amount to EUR 10.2 mn in the fiscal year 2022 (prev. year EUR 14.4 mn). After taxes, a net profit of EUR 7.1 mn was generated (prev. year EUR 10.9 mn).
Equity increased by EUR 3.2 mn to EUR 143.1 mn as of 31 December 2022 (prev. year EUR 139.9 mn). The equity ratio increased to 72.6% (prev. year 70.6%).
In the financial year 2022, a high operating cash flow of EUR 20.8 mn was again generated (prev. year EUR 15.7 mn). Free cash flow, taking into account payments for investments, amounted to EUR 19.0 mn (prev. year EUR 14.3 mn) and impressively demonstrated the financial strength of the M1-Group.
In 2023, the process optimization and digitalization as well as further profitable sales growth in the domestic locations will be driven forward. The number of M1 sites is to increase by six to 60 sites in a total of 10 countries.
Wholesaling and the development of high-margin private labels in the field of "Aesthetic Medicine" will also be driven forward. With the signing of a licensing and supply agreement with the South Korean cooperation partner Huons BioPharma in October 2021, a milestone was reached in the private label strategy with the aim of obtaining approval for and marketing a botulinum toxin product under its own name in the European Economic Area (EEA). The application to conduct a clinical trial was submitted to the relevant authorities at the end of January 2023. Assuming a normal course of the clinical trial, we expect approval to be granted as early as 2025.
The geopolitical conditions caused by the ongoing war in Ukraine, the associated Russia sanctions and the significant rise in energy prices, which are driving a general high level of inflation, may have a negative impact on consumer spending.
However, thanks to our attractively priced range of treatments for cosmetic medicine, the unbroken global trend towards a steady increase in these treatments, and the long-term contractual security of our business activities, we are confident that we will continue to be able to master these challenges well. We are well positioned for further development.
Finally, we would like to thank our employees for their outstanding performance in the past fiscal year. The entire workforce has shown that it is capable of dealing with special challenges and achieving our common goals as a team. We would therefore like to thank them for their outstanding commitment in these special times.
Berlin, April 2023
Kilian Brenske | Attila Strauss |
(Management Board) | (Management Board) |
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M1 Kliniken AG published this content on 13 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 June 2023 10:22:11 UTC.