Notes to the Consolidated And Separate Annual Financial Statements | Note 4

4. SEGMENT INFORMATION
 

The operating segments identified are examined from a service perspective (total healthcare versus IT) and geographical perspective (South Africa versus Africa). The geographical segments identified include all businesses outside of South Africa which include Botswana, Mauritius and Namibia. Individually, each business outside of South Africa is not material hence management has taken the decision to disclose all businesses outside of South Africa as a separate operating segment. All segments have been disclosed according to what the Chief Operating Decision-Maker reviews.

Nature of business segments

  • Healthcare SA – consists of medical scheme administration and Health risk management services, of which Medscheme is the biggest contributor. These services are rendered in South Africa. Associate earnings are included as the entity that receives the earnings is Medscheme which operates in South Africa.
  • Healthcare Retail – consists of pharmaceutical sales/services by Pharmacy Direct, Scriptpharm Risk Management, Curasana Wholesaler, Activo Health, and Activo Healthcare Assets Group. These services are rendered in South Africa.
  • Healthcare Africa – consists of all Healthcare services outside of South Africa (Namibia and Mauritius).
  • IT – this relates to all IT-related services for the Group predominantly within South Africa.
4.1 Segment revenues
 
   Healthcare 
SA 
R’000 		 Healthcare 
Africa 
R’000 		 Healthcare 
Retail 
R’000 		 Total 
Healthcare 
R’000 		 Information 
Technology 
R’000 		 Intergroup 
eliminations 
R’000 		 Group 
R’000 
YEAR ENDED 30 JUNE 2024                       
Gross revenue   4 715 671   249 355   4 251 575   9 216 601   635 652   (961 547)  8 890 706 
Cost of distribution of pharmaceutical products  –  –  (71 624) (71 624) –  –  (71 624)
Cost of pharmaceutical products and finished goods  (50 044) –  (2 048 289) (2 098 333) (14 456) 82 513  (2 030 276)
Capitation Funds  (376 404) –  (1 268 596) (1 645 000) –  –  (1 645 000)
Employee benefit costs  (2 126 485) (112 935) (315 380) (2 554 800) (196 031) 51 774  (2 699 057)
Other expenses  (1 868 594) (52 223) (352 407) (2 273 224) (206 646) 847 461  (1 632 409)
Amortisation of intangibles  (3 889) (977) (3 887) (8 753) (126 375) (57 562) (192 690)
Depreciation  (28 063) (4 076) (18 671) (50 810) (41 447) (1 885) (94 142)
Other income  5 187  –  –  5 187  –  –  5 187 
Net finance (cost)/income  (17 577) 2 647  (21 022) (35 952) (3 085) –  (39 037)
Finance income  6 780  2 648  –  9 428  38 156  (9 576) 38 008 
Finance cost  (24 357) (1) (21 022) (45 380) (41 241) 9 576  (77 045)
Share-based payment expense  (3 102) (608) 765  (2 945) (188) –  (3 133)
Net fair value (loss)/gain of assets  (13 096) –  7 464  (5 632) (26 611) (240 253) (272 496)
Fair value gain  1 769  –  –  1 769  –  –  1 769 
Impairment of assets  (14 865) –  7 464  (7 401) (26 611) (240 253) (274 265)
Share of losses from associates and joint ventures  (9 045) –  –  (9 045) –  –  (9 045)
PROFIT BEFORE TAXATION   224 559  81 183  159 928  465 670  20 813  (279 499) 206 984 
Income tax expense  (84 643) (24 924) (42 233) (151 800) 3 529  15 542  (132 729)
PROFIT FOR THE YEAR   139 916  56 259  117 695  313 870  24 342  (263 957) 74 255 
Net segments assets  2 155 868  192 638  1 768 058  4 116 564  1 389 280  (96 289) 5 409 555 
Segments assets  2 141 696  192 638  1 768 058  4 102 392  1 389 280  (90 849) 5 400 823 
Investments in associates and joint ventures  14 172  –  –  14 172  –  (5 440) 8 732 
Segment liabilities  1 824 011  47 129  1 060 508  2 931 648  849 334  (1 772 612) 2 008 370 
Additions to intangible assets  2 724  –  8 788  11 512  174 085  –  185 597 
Additions to property and equipment  43 081  3 156  6 344  52 581  21 328  –  73 909 
   Healthcare 
SA 
R’000 		 Healthcare 
Africa 
R’000 		 Healthcare 
Retail 
R’000 		 Total 
Healthcare 
R’000 		 Information 
Technology 
R’000 		 Intergroup 
eliminations 
R’000 		 Group 
R’000 
YEAR ENDED                
30 JUNE 2023 RESTATED*                
Gross revenue  4 445 898  234 835  4 464 637  9 145 370  651 877  (954 606) 8 842 641 
Cost of distribution of pharmaceutical products  –  –  (78 376) (78 376) –  –  (78 376)
Cost of pharmaceutical products and finished goods  (49 620) –  (2 152 392) (2 202 012) (14 984) 91 922  (2 125 074)
Capitation Funds  (385 582) –  (1 387 400) (1 772 982) –  –  (1 772 982)
Employee benefit costs  (1 937 880) (95 072) (305 564) (2 338 516) (148 954) 42 383  (2 445 087)
Other expenses  (1 738 748) (46 936) (344 013) (2 129 697) (312 570) 818 954  (1 623 313)
Amortisation of intangibles  (4 366) (911) (5 584) (10 861) (142 481) (55 481) (208 823)
Depreciation  (24 785) (4 312) (15 198) (44 295) (37 079) (1 602) (82 976)
Net finance (cost)/income  (16 108) 2 731  (33 491) (46 868) (4 524) –  (51 392)
Finance income  5 714  2 752  –  8 466  30 789  (13 418) 25 837 
Finance cost  (21 822) (21) (33 491) (55 334) (35 313) 13 418  (77 229)
Share-based payment expense  (14 935) (228) (2 264) (17 427) (678) 268  (17 837)
Net fair value impairment of assets  (59 159) –  (4 961) (64 120) (25 000) 65 674  (23 446)
Fair value (losses)/gains  (57 855) –  5 176  (52 679) –  56 348  3 669 
Impairment of assets  (1 304) –  (10 137) (11 441) (25 000) 9 326  (27 115)
Share of profit of associates and joint ventures  14 051  –  –  14 051  –  –  14 051 
PROFIT/(LOSS) BEFORE TAXATION   228 766  90 107  135 394  454 267  (34 393) 7 512  427 386 
Income tax (expense)/income  (77 140) (25 282) (43 894) (146 316) 215  14 447  (131 654)
PROFIT/(LOSS) FOR THE YEAR   151 626  64 825  91 500  307 951  (34 178) 21 959  295 732 
Net segments assets  1 739 388  191 515  1 759 636  3 690 539  1 605 207  264 484  5 560 230 
Segments assets  1 735 309  146 446  1 759 636  3 641 391  1 605 207  264 484  5 511 082 
Investments in associates and joint ventures  4 079  45 069  –  49 148  –  –  49 148 
Segment liabilities  1 356 072  39 740  1 194 217  2 590 029  1 032 774  (1 561 825) 2 060 978 
Additions to intangible assets  5 380  1 125  18 624  25 129  158 562  –  183 691 
Additions to property and equipment  27 130  31 933  15 549  74 612  117  –  74 729 
* Refer to Note 34 for details on the restatements and Note 35 for transitioning to IFRS 17.