MPH Health Care Faces Mounting Challenges: Net Equity Collapse Signals Deeper Portfolio Headwinds

MPH Health Care AG (93M1.DE) disclosed troubling financial metrics for the first three quarters of 2025, with net equity experiencing a steep 30 percent contraction that underscores significant portfolio revaluation pressures. The company’s net equity position deteriorated to 0.194 billion euros as of late September from 0.278 billion euros at year-end 2024, reflecting broader market volatility and asset impairment challenges.

The deterioration in net equity and balance sheet strength was compounded by a substantial net loss of 78.5 million euros during the nine-month period, a sharp reversal from the 54.5 million euros profit recorded in the corresponding period of 2024. The primary culprit: the insolvency proceedings of CR Energy AG, whose collapsing equity valuation created cascading losses across the portfolio.

Despite headwinds on the bottom line, operational performance showed modest resilience. Revenue climbed to 274 million euros from 257 million euros year-over-year, while EBIT expanded 11 percent to reach 24.5 million euros, suggesting underlying business momentum despite portfolio challenges.

Looking ahead, MPH Health Care’s management remains committed to aggressive expansion in its beauty segment, targeting annual revenue of 0.2 to 0.3 billion euros by 2029—a strategic pivot that could reshape the company’s revenue composition over the medium term.

Stock performance has reflected investor concerns, with 93M1.DE trading at 18.00 euros on XETRA, down 0.35 euros or 1.91 percent, as market participants digest the mounting net equity pressures and portfolio risks.