Life Healthcare delivered a strong performance in the second half of 2024, particularly in its acute and complementary healthcare businesses in southern Africa. Acute hospital patient volumes showed positive growth, with paid patient days (PPDs) increasing by 1.6%. Occupancy rates for the year averaged 68.7%, while the second half saw a notable rise to 70.7%. This momentum led to a 7.7% overall revenue increase, with a more impressive 9.3% revenue growth in the second half. Strategic partnerships with funder networks further cemented Life Healthcare’s position as the preferred hospital network for top medical schemes.
Internationally, Life Healthcare’s operations under LMI experienced substantial growth, with a remarkable 181.3% increase in revenue. A key driver was the 91.9% surge in doses sold of Neuraceq©, a PET diagnostic imaging tracer used in Alzheimer’s diagnosis. Additionally, LMI secured a significant $36 million (R665 million) upfront payment for a sub-licensing agreement related to its RM2 product, an early-stage diagnostic and therapeutic isotope. This agreement contributed to LMI’s normalised EBITDA rising to R637 million.
Peter Wharton-Hood, CEO of Life Healthcare, highlighted the Group’s solid financial standing, including a strong balance sheet and low gearing, which allows for strategic investments in expansion. He expressed optimism about the Group’s performance in southern Africa and the ongoing success of its international operations. “We are encouraged by our second-half results and the performance of LMI, along with the significant shareholder returns over the year,” said Wharton-Hood. “Our focus remains on enhancing patient care and expanding access to essential healthcare services.”
For the year, the Group’s total revenue from continuing operations reached R25.5 billion (2023: R22.6 billion), with southern African operations contributing R23.7 billion (2023: R22.0 billion), and international operations accounting for R1.8 billion (2023: R656 million). The Group’s net debt to normalised EBITDA ratio remains healthy at 0.45 times. Cash generated from continuing operations was R4.3 billion, with R2.3 billion in undrawn bank facilities available.
Life Healthcare’s earnings per share (EPS) saw a dramatic increase of more than 1,000% to 328.8 cents, boosted by a R2.8 billion profit from the disposal of Alliance Medical Group (AMG). Excluding this gain and some impairments, the Group’s headline EPS (HEPS) grew by 73.4% to 152.9 cents (2023: 88.2 cents). Normalised EPS, excluding the benefit from the RM2 transaction, showed a 14.5% increase to 132.3 cents per share, reflecting the Group’s strong financial performance.
The Group received R10.2 billion in net cash proceeds from the AMG disposal, following the settlement of offshore debt and transaction costs. A special dividend of R6 per share (R8.8 billion) was paid on 8 April 2024 from these proceeds. Additionally, the Life Healthcare board declared a final cash dividend of 31 cents per share, up 14.8% from the prior year, along with a special dividend of 70 cents per share. Total distributions for the year, including special dividends, amounted to R10.6 billion.
Wharton-Hood expressed satisfaction with the Group’s progress in the acute, complementary, and pharmaceutical sectors. “Our strategic partnerships with funder networks have positioned us as the preferred choice among leading medical schemes,” he said. “With our robust financial position and careful cost management, we are well-positioned for further expansion across all our business areas.”
