Netcare (NTC) 1H24 – Results Snapshot

Diluted HEPS increased to 48.9cps (+9.4% y-y). Adjusted HEPS increased to 49.0cps (+5.8% y-y).
Revenue growth +4.3% y-y to R12.0bn.
Group GPM declined by 30bps to 49.5%.
Expenses increased by 2.8% y-y, with expenses-to-sales decreasing to 39.2% (1H23: 39.7%).
OPM expanded by 40bps to 12.4%.
Dividend of 30.0cps (1H23: 30.0cps).
Total full week occupancies were down to 62.8% in 1H24 from 63.2% in 1H23.
Total PPD decreased by 0.8% y-y in 1H24, driven by a 1.7% y-y decrease in acute PPD.
The decline in acute hospital PPD is due to sector seasonality, a decrease in respiratory, maternity and private cases, the intentional cessation of poor credit risk activity and changes in low-cost networks.
Total surgical cases comprised 51.7% of PPD (1H23: 51.9%), and medical cases 48.3% (1H23: 48.1%).