Full Year 2024 Netcare Ltd Earnings Call Transcript
Key Points
- Netcare Ltd (NWKHY) reported a strong financial performance despite challenging macroeconomic conditions, with revenue increasing by 6.3% to ZAR25.2 billion.
- The company achieved a 10.1% increase in EBITDA to ZAR4.53 billion, with an EBITDA margin improvement of 60 basis points to 18%.
- Netcare Ltd (NWKHY) successfully completed the rollout of electronic medical records across its ecosystem, enhancing digital efficiencies and operational leverage.
- The company returned ZAR1.6 billion to shareholders through dividends and share buybacks, maintaining a strong balance sheet with a net debt to EBITDA ratio of 1.2 times.
- Netcare Ltd (NWKHY) won the Digital Innovation Award at the International Quality Awards, recognizing its efforts in using digital solutions to improve business processes and outcomes.
- Medical and dental patient visits in the primary care division declined by 3.1% year-on-year, attributed to financially constrained consumers opting to self-medicate.
- The EBITDA margin for the primary care division declined to 23% from 25% in the prior year, impacted by an increased contribution from lower-margin occupational health contracts.
- Netcare Ltd (NWKHY) faced increased electricity costs due to higher tariffs, which offset the benefits from reduced generator diesel costs.
- Interest expenses increased by 20.9% due to high prevailing interest rates and higher average net debt balances, impacting financial expenses.
- The company incurred strategic costs related to the rollout of its pathology network, which diluted the overall segment margin.
Good morning, everyone, and a very warm welcome to Netcare Limited's presentation of the audited group results for the year ended September 30, 2024. A warm welcome to our lead Independent Director, Alex Maditse, members of the Netcare Board, our exco and our senior management teams.
Allow me to express our sincere gratitude and pay tribute to our former Chairman, Mark Bauer who retired in September at the end of the financial year. Mark gave tirelessly of his time and expertise and made a very significant contribution to Netcare over his many years as a Non-Executive Director and Chairman.
Let me also express my sincere thanks to our management teams and our Netcare staff across all of our divisions for their incredibly hard work, collective efforts and commitment over the past year. And also thanks to all the Board members for their support and guidance.
I will begin with an overview of the group performance as well as that of our operating divisions before handing over to our Chief Financial
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