Mediclinic trading update. Nice to be in Switzerland.

Mediclinic released a trading update on Friday afternoon. It is an investment theme that we like a lot, healthcare. The thinking is pretty simple, the richer people get, the longer they are inclined to live and spend on their health. The Americans on a per capita basis still spend the most on healthcare, the benefactors being big pharma, medical professionals and perhaps the "wrong" quarters. Mediclinic has a business in Switzerland, where on a per capita basis the country ranks third globally, at around 5200 USD per person. For perspective, we spend about the same amount as Turkey, Mexico and Brazil on healthcare. The further down the global list you go, unfortunately you see the familiar "faces", with Eritrea at the bottom, spending a mere 18 Dollars per annum per person. Population there is around 6.1 million folks. In Switzerland, there are roughly 8 million people living there. Yet in Switzerland, the average spend on healthcare is 290 times above that in Eritrea, on a per capita basis. Unfair I guess you could say, but that is the truth. Divergent histories and wealth creation over time I guess, using the resources available.


That is one of the reasons why healthcare is such an emotive issue, people will argue that one life is not worth more than another. It turns out that the truth is much uglier than that. What was not ugly however was the trading statement from the hospital group, that operates locally, in Dubai and in Switzerland. A few in Namibia too, three is a few, not so? The share price has gone bananas (which are good for you, full of potassium), over the last year the stock is up nearly 27 percent. Very good! Five years, a more modest 95 percent growth, which is also awesome. The earnings are expected (without the once offs which include currency translations) to be between 40 to 50 percent higher than the corresponding period. This is for the half year to end September. Excellent, well done chaps! We still have concerns about the hospital groups in South Africa, government is still very combative towards these businesses, which have done remarkably well. Results are expected late Tuesday or early Wednesday next week.