Business
Life Healthcare Declares R10.6 Billion Dividend Return to Shareholders
Life Healthcare Declares R10.6 Billion Return to Shareholders
Life Healthcare, one of South Africa’s leading private healthcare providers, has declared a massive R10.6 billion return to its shareholders in its financial results for the year ending 30 September 2024. This includes a special dividend and robust performance across its operations in southern Africa.
The group announced a special dividend of R6.00 per share, totaling R8.8 billion, which was paid in April 2024. This is in addition to a final dividend of 31 cents per share and a special dividend of 70 cents per share, both declared from income reserves.
Strong Financial Performance
Life Healthcare achieved a 12.7% growth in group revenue, driven by increased activity in its southern African operations. Highlights from its financial report include:
| Financial Metric | FY23 | FY24 | % Change |
|---|---|---|---|
| Group Revenue (R’m) | 22,641 | 25,519 | +12.7% |
| Earnings Per Share (EPS) (cents) | 18.3 | 328.8 | >+1000% |
| Headline Earnings Per Share (HEPS) | 88.2 | 152.9 | +73.4% |
| Final Dividend Per Share (cents) | 27.0 | 31.0 | +14.8% |
| Special Dividend Per Share (cents) | – | 70.0 | – |
The group’s paid patient days (PPD) in acute hospitals grew by 1.6%, reflecting strong operational performance.
Strategic Achievements
Life Healthcare made significant strides in its imaging and nuclear medicine businesses:
- Life Molecular Imaging (LMI) sold 91.9% more doses of NeuraCeq, a medication used in brain scans.
- The group concluded a transaction to sub-license LMI’s RM2 product for USD 36 million (R664 million).
- The disposal of Alliance Medical Group (AMG) brought in R10.2 billion in net cash proceeds, enabling the special dividend payout.
Future Outlook
Life Healthcare is poised for growth in FY2025, with plans to:
- Add 55 acute hospital beds and 24 acute rehabilitation beds.
- Begin construction of a 140-bed acute hospital in the Western Cape.
- Expand its imaging and nuclear medicine businesses, including completing new transactions.
- Drive occupancy rates to 70%, with PPD growth of 1%-1.5%.
- Complete renal transactions in Namibia and Eswatini with Fresenius Medical Care.
Capex for the upcoming financial year is projected at R2.6 billion.
CEO Commentary
Life Healthcare’s management expressed optimism about the group’s trajectory, citing continued growth in southern Africa and strong demand for its advanced medical products globally.
“We are focused on optimising our portfolio, driving operational efficiencies, and sustaining growth in our imaging and nuclear medicine businesses,” said the group in its financial outlook statement.
With these initiatives, Life Healthcare aims to solidify its position as a leader in healthcare innovation while delivering consistent value to its shareholders.
