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Highlights

  • Medibank provides health insurance, life, pet, and travel insurance and is committed to reducing carbon emissions and achieving Net Zero.
  • 64% of electricity of MPL came from renewable sources as of June 2024; it targets 100% renewable energy by 2025.
  • The company targets 100% reduction in carbon emissions by 2025.
  • MPL plans to invest AUD 150–250 million in M&A to drive inorganic growth.

Medibank Private Limited (ASX:MPL) is a private health insurance and health solutions company that also offers other types of insurance, including life, pet, and travel insurance, to provide ease to its customers. The company is committed to reducing carbon emissions across its operations and accelerating its Net Zero Pathway.

Sustainability Initiatives of MPL

  • Introduction of hybrid vehicles: The Mobile Amplar Health team at MPL has begun replacing petrol vehicles with hybrid vehicles.
  • Renewable energy: As of June 2024, 64% of the MPL’s electricity came from renewable sources. The company targets 100% renewable energy usage by 2025.
  • Energy-efficient infrastructure: A 6-star Green Star office was opened in Melbourne, with the office design aligning with the Net Zero goal.
  • Environmentally friendly healthcare models: The company offers virtual healthcare, significantly reducing environmental impact. Additionally, homecare services cut down the environmental burden of hospital stays, such as water and electricity usage.

By 2025, the company targets a 100% reduction in carbon emissions.

Financial Performance of MPL in FY24

In the financial year 2024 (FY24), MPL’s revenue increased by nearly 4.7% to AUD 8,175.8 million, and NPAT attributable to shareholders jumped 59.6% year-on-year (YoY) to AUD 492.5 million. Meanwhile, the operating profit of MPL grew by 7.9% YoY to AUD 699.8 million, with the health insurance segment recording a 6.3% YoY rise in operating profit and Medibank Health reporting a surge of 36.7% YoY.

Outlook

In FY25, moderate industry growth is anticipated compared to FY24, and the company intends to grow in line with market trends while increasing its market share. During the reported period, the company expects policy unit growth to continue, with expected claims per policy unit increasing by nearly 2.7%. Productivity savings of AUD 10 million are targeted for FY25.

Between FY24 and FY26, the company aims to achieve an average annual organic profit growth of 15% or more, including a 12-month contribution from Myhealth in FY25. Furthermore, MPL plans to invest AUD 150–250 million in mergers and acquisitions during the period to achieve inorganic growth.

Share Performance of MPL

MPL shares closed 1.069% lower at AUD 3.70 apiece, with a market cap of AUD 10.29 billion, on 22 November 2024. Over the last year, MPL’s share price increased by 5.11%, but in the last three months, it has dropped by around 6.09%.

52-week high for MPL is AUD 4.01, recorded on 3 September 2024, and 52-week low is AUD 3.40, recorded on 30 November 2023.

 

MPL Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 22 November 2024. The reference data in this report has been partly sourced from REFINITIV.