Netcare Limited, a leading healthcare provider in South Africa, has announced robust financial results for the year ending September 30, 2023. The Group’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by 14.5% to R4.0 billion, showcasing a resilient performance in a challenging economic environment.
Revenue and Profit Growth
The Group reported a revenue of R23.7 billion, marking a 9.5% increase compared to the previous year. Operating profit climbed to R2.716 billion, reflecting a notable 19.0% rise. The profit for the year saw a substantial uptick of 27.2%, reaching R1.336 billion.
Earnings and Dividends
Earnings per share (EPS) exhibited strong growth, with basic EPS at 94.5 cents, a remarkable increase of 30.7%. Adjusted Headline Earnings Per Share (HEPS) saw a significant rise of 27.0% to 105.7 cents. Shareholders will be pleased with a total dividend of 65.0 cents per share, reflecting a 30.0% increase from the previous year.
Netcare’s total assets increased to R27.803 billion, demonstrating a growth of 5.8%. The balance sheet remained robust, with total liabilities at R16.762 billion and total shareholders’ equity at R11.041 billion.
The company declared a gross final dividend of 35.0 cents per ordinary share for the year ended September 30, 2023. The dividend, payable to shareholders recorded on January 26, 2024, will be subject to a local dividend withholding tax of 20%.
In an announcement that will shape the company’s future, Netcare revealed changes in its executive leadership and board sub-committees.
CEO Succession Plan
After an extensive search, a preferred CEO candidate has been identified. However, due to the candidate’s unavailability for an extended period, details remain confidential at this stage. Dr. Richard Friedland, the current CEO, has agreed to continue in this role beyond September 2024 for an additional six months at the Board’s request.
Board Committee Appointments
Effective January 1, 2024, Mr. I Kirk assumes the role of Chairperson for the Risk Committee and joins the Remuneration Committee as a member. Mr. A Maditse also joins the Nominations Committee as a member. Furthermore, as of February 5, 2024, Ms. L Stephens will become the Chairperson of the Remuneration Committee.
Dividend Details and Key Dates
The final dividend of 35.0 cents per ordinary share is payable to shareholders on January 29, 2024. Shareholders not exempt from dividend withholding tax will receive a net final dividend of 28.0 cents per ordinary share.
- Last day to trade cum dividend: January 23, 2024
- Trading ex-dividend commences: January 24, 2024
- Record date: January 26, 2024
- Payment date: January 29, 2024
Share certificates may not be dematerialized nor rematerialized between January 24 and January 26, 2024, inclusive.
Netcare Limited’s robust financial performance and strategic leadership changes position the company for continued success. Shareholders, stakeholders, and the South African healthcare sector will closely watch the unfolding developments at Netcare as the company navigates its next chapter.