NETCARE REPORTS STEADY FINANCIAL IMPROVEMENT IN ITS 6 MONTHS INTERIM PERIOD

NETCARE lifted revenue by 2 to 2.5 percent in the six months to March 31 after steady improvement in non-Covid-19 activity in the first two months slowed during December 2021 and January 2022 due to the adverse impact of the Omicron variant. The private healthcare provider said in a trading update on Tuesday, however, that there had been a “robust improvement in activity” as the business transitioned out of the fourth wave, with average occupancy in February and March 2022 of 62.4 percent. Normalised Ebitda (earnings before interest, tax, depreciation and amortisation) grew by between 8.5 to 9 percent. Ebitda margins excluding strategic costs improved to around 16.8 percent from 15.8 percent. Half-year results are expected to be released on May 23, 2022. “While the Omicron variant was more contagious, there was a decoupling in the correlation between community transmission and hospitalisation, reflected in a 70.3 percent decline in Covid-19 patient days in the first half of2022 against the six months ended March 31, 2021,” the group said. “There has been a steady improvement in financial performance in the first half of 2022 when measured against the same period in 2021,” the group said. Cash generation remained strong and debt fell to R5.4 billion from R6.1bn. At March 31, cash resources and undrawn facilities stood at R3.4bn. Full week occupancy within acute hospitals increased to 55.5 percent from 53.8 percent, with average occupancy across February and March 2022 of

62.4 percent. The 427-bed Netcare Alberton hospital opened on April 11, 2022, and construction of the 36-bed Akeso Richards Bay facility was complete and was expected to open shortly. Strategic and digitisation initiatives remained on schedule. In the Hospital Division, the CareOn electronic medical record project was on track to have 20 hospitals completed by the end of 2022. |