Our business model
Inputs
Financial capital
The pool of funds (equity) the Group relies on:
- Funds reinvested in the Group
- Return on investments
- Revenue generated from services
Key inputs
- R3.4 billion net asset value (2021: R3.2 billion)
- R286 million reinvested funds (2021: R274 million)
Intellectual capital
The knowledge-based intangible assets:
- Systems and processes
- Customised IT systems
- Licences
- Business and industry knowledge
Key inputs
- IT systems and relevant licences
- Fraud management software
- Medical administration
Manufactured capital
Our service platform:
- Nexus IT system
- Transactional switching
- Specialised disease management
- Back, neck and shoulder treatment
- Pharmaceutical wholesaling
- Pharmaceutical courier distribution services
Human capital
Our employees' and contractors' skills, wellness and motivation
Key inputs
- 5 812 employees (2021: 5 957)
Social and relationship capital
The quality of AfroCentric's relationships with our material stakeholders
Key inputs
- Managing stakeholder relations
- Social licence to operate
See our stakeholders for our in-depth discussion on stakeholder relationships
Natural capital
We consume energy, water and paper to provide services
- Water consumption 2022: 20 486kl (2021: 27 326kl)
- Electricity consumption 2022: 7 946 MWh (2021: 8 746 MWh).
- Diesel consumption: Diesel (used in generators) 2022: 49 512 litres (2021: 31 359 litres).
Activities
AfroCentric's activities focus on broadening healthcare access by expanding our presence, integrating our operations and optimising costs across the value chain to measurably improve access to quality care.
Our primary activities at Group level focus on acquiring, developing and integrating businesses that enable us to optimise the healthcare value chain to increase the value of the healthcare spend.
The healthcare value chain comprises primary care, medicine, specialist care and hospitalisation solutions.
To optimise costs and the delivery of healthcare to our stakeholders, the Group is organised into three clusters that incorporate businesses across the value chain:
Outputs
Our products and services
Enhanced access to healthcare through:
Health administration and risk management services
We provide efficient, client-centric administration services to leading medical schemes in Southern Africa.
We provide health risk management by identifying and managing clinical and financial risks for our client schemes in a coordinated manner to improve the consumer's clinical outcomes.
Complementary services
- Coordinated day-to-day healthcare provision
- Medicine delivery
Products
- Medicine and vitamins
Outcomes
Financial capital
- Normalised headline earnings per share 55.53 cents (2021: 61.56 cents)
- R138 million in cash reserves (2021: 198 million)
- The dividend yield remained flat at 7.7% (2021: 7.7%)
- 0.7% decrease in share price (2021: 20% increase)
- Operating profit increased by 1.2% (2021: 15.5% increase)
- Total revenue increased by 8.0% (2021: 25.8% increase)
Intellectual capital
- Cost savings based on fraud management software – R804 million (2021: R848 million)
Impacted SDGs
Manufactured capital
- 3.8 million lives under administration (2021: 3.8 million)
- 15 client medical schemes in Southern Africa (2021: 18)
Impacted SDGs
Human capital
Key inputs
- 10% employee turnover (2021: 11.3%)
- R5.6 million invested in training employees (2021: R10.7 million)
- R1.4 million invested in bursaries (2021: R458 000)
Impacted SDGs
Social and relationship capital
- R9.3 million invested in enterprise development (ED) (2021: R6.6 million)
- R10.1 million invested in supplier development (SD) (2021: R13.6 million)
- R3.8 million invested in socioeconomic development (SED) (2021: R9.6 million)
Impacted SDGs
Natural capital
- Environmental impact monitoring and management
- Optimised energy, water and paper use
- Enhanced awareness communication Group-wide
- Direct emissions increased by 30% from FY2021 to FY2022
- Indirect emissions decreased by 9%
Impacted SDGs
- Increase
- No change
- Decrease