Latest news with #PieterVanDerWesthuizen
Yahoo
23-05-2025
- Business
- Yahoo
Life Healthcare Group Holdings Ltd (LTGHY) (H1 2025) Earnings Call Highlights: Strong Revenue ...
Revenue Growth: 8.1% increase during the period. Hospitals EBITDA: Up 10.2%. Normalized Earnings Per Share: Increased by 9.1%. Interim Dividend: Up 10.5% to ZAR0.21 per share. Occupancy Rate: Improved to 68.6%, targeting 70%. PPD Growth: 2% increase. ICU Beds Added: 20 new beds, with 62 more expected in the second half. Net Profit on Disposal: Estimated at approximately ZAR2.8 billion. Return on Capital Employed: 17.5%. Free Cash Flow: ZAR560 million. Net Debt to EBITDA: 0.65. Complementary Services Revenue Growth: Like-for-like increase of 7.3%. Head Office Cost Growth: 1.9%, including IT costs. Doctor Recruitment: 71 new doctors recruited during the period. Warning! GuruFocus has detected 7 Warning Signs with LTGHY. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Life Healthcare Group Holdings Ltd (LTGHY) reported an overall revenue growth of 8.1% during a challenging period. The company's hospitals EBITDA increased by 10.2%, indicating strong operational performance. Normalized earnings per share rose by 9.1%, reflecting improved profitability. An interim dividend was declared, up 10.5% to ZAR0.21 per share, continuing positive cash returns to shareholders. The company successfully added 20 ICU beds and plans to add another 62 beds in the second half, demonstrating expansion efforts. Life Nkanyisa faced contractual challenges, resulting in the loss of some contracts. The company had to recognize liabilities of ZAR2.9 billion related to the Life Molecular Imaging transaction before realizing profits. The incentive charge increased from ZAR128 million to ZAR182 million, impacting comparability with the previous year. Despite improvements, the occupancy rate of 68.3% is still short of the targeted 70%. The healthcare services segment experienced a loss of contracts, affecting revenue growth in that area. Q: What is the estimation for the incentive charge in the second half of the year? A: Pieter Van Der Westhuizen, CFO, stated that the incentive charge for the second half will be similar to the charge in the first half. The charge in the second half of last year was also similar to this half. Q: Are there any further questions from the webcast? A: Adam Pyle, Chief Strategy & Growth Officer, mentioned that the remaining questions refer back to the ones already answered, and no new questions have been received. Q: Are there any questions from the telephone lines? A: The Operator confirmed that there were no questions from the telephone lines. Q: What are the closing remarks from the management? A: Peter Wharton-Hood, CEO, thanked everyone for their questions and attendance. He mentioned that the Investor Relations team, along with Adam Pyle and Pieter van der Westhuizen, are available for direct questions on a one-to-one basis in future meetings. 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
Zawya
23-05-2025
- Business
- Zawya
South Africa: Life Healthcare 2025, expansion and innovation pay off with strong interim performance
Life Healthcare Group Holdings Limited has announced its interim results for the six months ended 31 March 2025, highlighting robust operational growth, strategic capacity expansion, and continued investment in key healthcare initiatives across Southern Africa. 'We are pleased with the solid financial results from our core operations, particularly the growth in normalised earnings per share. Our balance sheet remains strong, with net debt to normalised EBITDA at 0.65 times, well within our covenant requirement of 3.5 times. "Cash generated from continuing operations was R2bn, representing 105.3% of normalised EBITDA, enabling us to confidently invest in strategic growth projects across both our acute hospitals and complementary services,' said Pieter van der Westhuizen, chief financial officer. This strong financial foundation underpins Life Healthcare's operational progress and its continued investment in meeting rising demand for high-quality healthcare across the region. Operational performance highlights During the first half of the financial year, Life Healthcare's Southern African operations delivered solid growth, driven by increased patient activity and improved occupancy rates. Paid patient days (PPDs) rose by 2.0% compared to the prior period, with overall occupancies advancing to 68.6%. Revenue from continuing operations increased by 8.1% to R12.1bn, supported by a favourable case mix and an annual tariff adjustment of 5.1%. Hospital normalised EBITDA grew by 8.3%, underscoring the resilience and relevance of the Group's core healthcare services in a dynamic healthcare environment. Strong core earnings From a financial perspective, normalised earnings per share (NEPS) from continuing operations increased by 9.1% to 49.0 cents reflecting the strength and stability of the underlying business. Reported earnings per share (EPS) and headline earnings per share (HEPS) are negative for the period, primarily due to a R2.9bn fair-value loss on contingent consideration related to the pending LMI disposal and the absence of the R2.8bn once-off gain from the prior year disposal of Alliance Medical Group. These are non-cash, once-off accounting items that do not impact cash flow or the operational trajectory of the core business. Pro-forma adjustments confirm the Group's underlying performance remains robust. The Board has declared an interim gross cash dividend of 21.0 cents per ordinary share, an increase of 10.5% compared to the prior period. The last date to trade cum dividend is Tuesday, 10 June 2025, with the record date on Friday, 13 June 2025, and payment on Tuesday, 17 June 2025. Strategic development and outlook Peter Wharton-Hood, chief executive officer, commented, 'Our strong performance in the first half of the year underscores the ongoing demand for high-quality healthcare services across our markets and validates our growth strategy. "The new hospital build project in Paarl marks a significant milestone in meeting future regional healthcare needs and exemplifies our commitment to expanding access and improving care delivery.' For FY2025, the Group plans to grow its underlying asset base by adding 58 acute hospital beds, 24 acute rehabilitation beds, one cathlab, one vascular lab, alongside further expansion of the diagnostics business with two new PET-CT sites expected to be completed in H2-2025, as well as the completion of two imaging transactions. Capital expenditure for the year is expected to reach R2.3bn. The Group continues to drive occupancy improvements, as well as focusing on operational efficiencies and asset optimisation. The business remains firmly on track to meet its 2025 outlook guidance. The pending sale of LMI is progressing well and is expected to close in the second half of 2025, representing a key milestone in the Group's portfolio optimisation strategy. Looking ahead to the second half of the year, Life Healthcare will continue prioritising capital allocation, executing its growth initiatives, and delivering long-term value to stakeholders through a pipeline of expansion projects and innovative services. Wharton-Hood expressed gratitude to the team members for their contribution to the Group's strong results. 'We sincerely thank our dedicated Life Healthcare employees, doctors, healthcare professionals, and the LMI team for their resilience, commitment, and unwavering support in exceptional care and advancing our strategic initiatives,' he said. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
