Netcare (NTC) H1 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance for H1 2025, with continued delivery on strategic projects, digital transformation, and environmental sustainability initiatives.

• Returned ZAR 984 million to shareholders via dividends and share buybacks, a 60% increase over the prior year.

• ROIC improved to 11.9%, reflecting enhanced capital efficiency.

• Strategic focus on digitisation, data-driven care, and sustainability, with measurable clinical and financial benefits.

• Maintained a robust financial position and advanced all three strategic phases.

Financial highlights

• Revenue increased 5.3% year-over-year to ZAR 12.68 billion for H1 2025.

• EBITDA rose 8.3% to ZAR 2.35 billion, with margin improving 50 bps to 18.5%.

• Adjusted HEPS grew 20% to 58.8 cents; interim dividend of 36.0 cents per share declared.

• Net debt to EBITDA improved to 1.2x from 1.3x, with net debt at ZAR 5.6 billion.

• Profit after tax up 15.4% to ZAR 826 million; operating profit up 10.7% to ZAR 1.66 billion.

Outlook and guidance

• FY 2025 revenue growth expected between 5.0% and 6.0%; patient-day growth of 0.8%–1.3%.

• Normalized EBITDA margin expected to benefit from operational efficiencies, targeting above 18%.

• CapEx for FY2025 projected at ZAR 1.5 billion; R60 million opex allocated to strategic projects.

• Focus remains on cost control, technology investment, and improved earnings.