Netcare (NTC) FY23 – Results Snapshot

Diluted HEPS increased to 99.9cps (+36.1% y-y).
Turnover growth +9.5% y-y to R23.7bn, driven by Hospital and Pharmacy with growth +8.8% y-y and Non-acute services by +22.2% y-y.
Group GPM increased by 80bps to 49.6%.
Expense growth of +9.9%, with expenses-to-sales increasing to 39.5% (FY22: 39.4%).
OPM increased by 100bps to 11.5%.
Dividend of 65cps.
Overall occupancy increased to 64.4% (FY22: 60.1%) – with acute hospitals’ occupancy at 63.5% (FY22: 59.3%) and mental health facilities’ at 72.7% (FY22: 68.1%).
Diesel cost for the year amounted to R124m (FY22: R37m) as a result of average load shedding stages of 3.6 across group facilities during the year.
Higher complexity of cases reflected in the increased length of stay of 4.4 days (FY22: 4.3 days).