Latest news with #Netcare
Yahoo
20-05-2025
- Business
- Yahoo
Netcare Ltd (STU:NH7) (H1 2025) Earnings Call Highlights: Strong Financial Performance Amidst ...
Revenue: Increased by 5.3% to ZAR12.7 billion. EBITDA: Grew by 8.3% to ZAR2.3 billion. EBITDA Margin: Improved by 50 basis points to 18.5%. Adjusted Headline Earnings Per Share (HEPS): Rose by 20% to ZAR58.08. Net Debt to EBITDA Ratio: Strengthened from 1.3 times to 1.2 times. Interim Dividend: Declared at ZAR0.36 per share, representing 61.2% of adjusted HEPS. Operating Profit: Increased by 10.7% to almost ZAR1.7 billion. Profit Before Tax: Increased by 15.4% to ZAR1,154 million. Profit After Tax: Improved by 15.4% to ZAR826 million. Total Patient Days: Grew by 1.1%. Hospital Revenue: Grew by 5.5% to ZAR12.3 billion. Primary Care Division Revenue: Remained flat at ZAR337 million. CapEx Spend: ZAR434 million, with ZAR54 million on expansionary projects. Share Buyback Program: Invested over ZAR1.6 billion to repurchase 130.7 million shares. Cash Balances: ZAR1.3 billion with committed but undrawn debt facilities of ZAR1.1 billion. Warning! GuruFocus has detected 7 Warning Signs with STU:NH7. Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Netcare Ltd (STU:NH7) reported a 5.3% increase in revenue to ZAR12.7 billion, demonstrating strong financial performance. EBITDA grew by 8.3% to ZAR2.3 billion, with an improved EBITDA margin of 18.5%, indicating effective cost management and operational efficiency. The company returned ZAR984 million to shareholders through dividends and share buybacks, a significant increase from the previous year. Netcare Ltd (STU:NH7) has made substantial progress in its strategic initiatives, particularly in digitization and data-driven healthcare, enhancing clinical efficiency and patient outcomes. The company maintained a strong financial position with a net debt to EBITDA ratio of 1.2 times, reflecting conservative financial management. The primary care division experienced flat revenue growth, with a decline in same-store medical and dental patient visits by 0.9%. Mental health occupancies declined slightly due to temporary unavailability of beds for refurbishment, impacting capacity. The company faces challenges from a stagnant medical scheme population and rising healthcare costs driven by aging and disease burden. Load shedding and increased electricity tariffs have offset some operational cost savings, impacting overall expenses. Legal challenges and uncertainties surrounding the National Health Insurance (NHI) Act in South Africa present potential risks to the healthcare sector. Q: Can you provide an overview of Netcare's financial performance for the first half of 2025? A: Richard Friedland, Group CEO, highlighted that despite challenging conditions, Netcare achieved strong operational and financial performance. Revenue rose by 5.3% to ZAR12.7 billion, and EBITDA increased by 8.3% to ZAR2.3 billion. The EBITDA margin improved by 50 basis points to 18.5%, and adjusted headline earnings per share rose by 20% to ZAR58.08. The company returned ZAR984 million to shareholders through dividends and share buybacks. Q: How has Netcare's hospital and emergency services segment performed? A: Richard Friedland noted steady growth in acute patient days, with a 1.1% increase for the first half of 2025. Acute hospital occupancies improved to 63.1%, while mental health occupancies slightly declined to 68.2%. Revenue for this division grew by 5.5% to ZAR12.3 billion, with EBITDA growth of 8.1% to ZAR2.3 billion. Q: What strategic initiatives is Netcare focusing on? A: Richard Friedland explained that Netcare's strategy is a 10-year journey focusing on customer centricity, digitization, and data. The first phase, "digitally enabled," is complete, and the company is now in the second phase, "data-driven," focusing on clinical efficiency. The third phase, "person-centered health and care," aims to enhance patient engagement and retention. Q: How is Netcare addressing environmental sustainability? A: Richard Friedland stated that Netcare is on track to achieve its 2030 sustainability goals, including reducing Scope 2 emissions to zero and achieving 100% renewable energy utilization. The company is piloting innovative projects like an aerobic digestion plant to convert food waste into energy. Q: What is Netcare's guidance for the remainder of the 2025 financial year? A: Richard Friedland confirmed that guidance remains unchanged, with expected total patient day growth of 0.8% to 1.3% and group revenue growth of 5% to 6%. The company plans to spend ZAR1.5 billion on CapEx and expects EBITDA margin improvements from operational efficiencies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
eNCA
19-05-2025
- Business
- eNCA
Netcare reports rise in revenue
JOHANNESBURG - The Netcare Group has delivered a solid set of interim results despite a constrained and competitive healthcare operating environment. READ: City of Joburg squares up with Milpark Hospital over disputed R35m debt The company also scored healthy profits in 2024 despite a decline in patient days and high inflation related to wages and medical consumables. The CEO of Netcare Dr Richard Friedland discussed the results with eNCA.
The Herald
19-05-2025
- Business
- The Herald
Netcare invests in expanding mental health facilities
Private hospital group Netcare will build a new mental health care facility in Pretoria as the demand for the service continues to grow. 'In response to the increasing need for mental health support in the broader Tshwane region, the group will be commissioning the new Netcare Akeso Montana facility (88 beds) in October 2026. Furthermore, the Netcare Akeso Alberlito facility (80 beds) is scheduled to open its doors in March 2027, strengthening the group's national footprint and reinforcing its dedication to meeting the mental health-care needs of communities across South Africa,' it said. It is also building a new Akeso hospital in Polokwane, which will have 87 beds. Netcare said demand for quality mental health-care services 'continues to grow and the group remains committed to expanding access and pursuing new opportunities in this vital space'. On Monday the company reported adjusted headline earnings per share increased by 20% to 58.8c for the six months to March and a 5.3% increase in total revenue to R12.6bn. The company declared an interim dividend of 36c per share. Total capital expenditure, including strategic projects, was R434m. Total capital expenditure for the 2025 full financial year is estimated at R1.5bn. The company has embarked on a digital strategy aimed at improving efficiencies and reshaping the way it delivers health and care. The current rollout phase will see the group developing capabilities in predictive analytics and have made significant progress, with the South African Health Products Regulatory Authority approving algorithm for the early detection of sepsis (blood stream infections) in ICU patients. 'This innovation enables earlier clinical interventions and meaningfully enhances patient care and outcomes. In addition, an advanced analytics platform has been deployed, equipping clinical teams with real-time, actionable insights. Beyond the substantial clinical and patient benefits, this capability positions the group to reduce the cost per clinical event, reduce morbidity and mortality rates and improve overall efficiency,' said CEO Dr Richard Friedman. The next phase of the digital transformation focuses on 'person-centred health and care' and is being rolled out over the next three to four years. 'This initiative will empower patients with direct access to their health records, enabling more meaningful engagement in their care journey and ensuring care delivery is deeply aligned with their individual needs and preferences,' he said. TimesLIVE
TimesLIVE
19-05-2025
- Business
- TimesLIVE
Netcare invests in expanding mental health facilities
Private hospital group Netcare will build a new mental health care facility in Pretoria as the demand for the service continues to grow. 'In response to the increasing need for mental health support in the broader Tshwane region, the group will be commissioning the new Netcare Akeso Montana facility (88 beds) in October 2026. Furthermore, the Netcare Akeso Alberlito facility (80 beds) is scheduled to open its doors in March 2027, strengthening the group's national footprint and reinforcing its dedication to meeting the mental healthcare needs of communities across South Africa,' it said. It is also building a new Akeso hospital in Polokwane, which will have 87 beds. Netcare said demand for quality mental healthcare services 'continues to grow and the group remains committed to expanding access and pursuing new opportunities in this vital space'. On Monday, the company reported adjusted headline earnings per share increased by 20% to 58.8c for the six months to March and a 5.3% increase in total revenue to R12.6bn. The company declared an interim dividend of 36c per share. Total capital expenditure, including strategic projects, was R434m. Total capital expenditure for the 2025 full financial year is estimated at R1.5bn. The company has embarked on a digital strategy aimed at improving efficiencies and reshaping the way it delivers health and care. The current rollout phase will see the group developing capabilities in predictive analytics and have made significant progress, with the South African Health Products Regulatory Authority approving algorithm for the early detection of sepsis (blood stream infections) in ICU patients. 'This innovation enables earlier clinical interventions and meaningfully enhances patient care and outcomes. In addition, an advanced analytics platform has been deployed, equipping clinical teams with real-time, actionable insights. Beyond the substantial clinical and patient benefits, this capability positions the group to reduce the cost per clinical event, reduce morbidity and mortality rates and improve overall efficiency,' said CEO Dr Richard Friedman. The next phase of the digital transformation focuses on 'person-centred health and care' and is being rolled out over the next three to four years. 'This initiative will empower patients with direct access to their health records, enabling more meaningful engagement in their care journey and ensuring care delivery is deeply aligned with their individual needs and preferences,' he said.
The Herald
12-05-2025
- Health
- The Herald
‘I feel like I gave birth to him twice': Teen thrives after mom donates kidney
The kidney Rosemary donated to DK began to function immediately in her son's body, and within days he began to feel more energetic and was soon 'running around the hospital', eager to be discharged. 'I told him 'it feels like I gave birth to you twice, but I wouldn't have it any other way'. I appreciate my scar as it reminds me of the gift I gave and the love I have for my son. 'We are both back to our normal lives. My health is not negatively impacted by donating one kidney and I don't have to take medication,' Rosemary said. Now aged 18, DR enjoys creative arts, including a love for music, singing and acting, and dreams of becoming a music producer. 'I want to thank my family for all their love and everything they've done to support me over the years, and specially to my mom for giving me the kidney that saved my life,' DK said. 'I would not be where I am today without the doctors and nurses who cared for me at NRC Montana, Netcare Montana and Netcare Jakaranda hospitals, and we thank God for them. I would specially like to wish a happy International Nurses Day to all the health-care professionals who are a lifeline every day for people living with kidney failure, as I was before my transplant.' His mother said: 'For us as a family, it's important to share our experience to show good outcomes are possible for people with kidney failure. Our journey highlights that organ transplants save lives, and what it means to our family to have our prayers for DK answered.'
