Summary annual financial results

RESULTS AT A GLANCE

for the year ended 30 June 2024

		Year ended 30 June
Key features		2024	2024  excluding  impairments	Restated  2023	Restated  2022	2021	2020
Healthcare service revenue	(R'000)	4 639 131		4 378 300	4 290 086	3 834 256	3 282 853
Healthcare service operating profit	(R'000)	679 697		686 571	787 983	812 062	629 584
Healthcare retail revenue	(R'000)	4 251 575		4 464 341	4 403 131	4 240 162	3 136 059
Healthcare retail operating profit	(R'000)	210 646		196 323	333 317	306 564	253 772
Headline earnings	(R'000)	334 808		217 258	315 667	329 068	306 750
Normalised headline earnings	(R'000)	348 655		193 494	324 956	353 786	321 822
Cash generated from operations	(R'000)	1 027 896		796 143	1 101 850	1 013 012	939 745
Statutory earnings per shares
– Basic	(cents)	6.67	34.47	30.70	54.32	52.56	52.87
Statutory headline earnings per shares
– Basic	(cents)	40.32		36.34	54.81	57.26	53.42
Normalised headline earnings per share
– Basic	(cents)	41.99		45.77	56.43	61.56	56.04
Dividends paid per ordinary share	(cents)	11		0	34,00	34.00	34.00
Share price as at 30 June	(rands)	2.88		4,15	4.39	4.42	3.69
Return on assets		1.20%	5.24%	5.47%	8.83%	9.31%	10.08%
Return on assets (excl. Goodwill)		1.59%	7.24%	7.60%	12.38%	12.84%	14.44%
Return on equity		1.91%	8.14%	8.69%	14.02%	14.69%	14.69%
Current ratio		1.52		1.27	1.30	1.63	1.40
Net cash generated from operating activities	(R'000)	695 368		381 694	527 018	385 264	501 708
Capital expenditure	(R'000)	262 152		257 103	295 386	439 019	369 533
Number of lives managed	(000)	4 010		3 901	3 790	3 781	3 754
Group membership		1 705 738		1 653 477	1 652 035	1 768 251	1 738 527
Open schemes		486 261		481 127	492 283	510 185	498 105
Closed and Corporate schemes		249 940		251 516	259 103	308 952	225 309
GEMS		859 660		818 953	784 431	759 685	735 584
SADC and other		109 877		101 881	116 218	189 429	279 529
Number of scripts		17 097 640		14 847 876	13 911 074	13 315 918	10 063 229
NDoH		15 268 885		13 045 738	12 196 969	11 287 656	8 320 838
Pharmacy Direct		1 828 755		1 802 138	1 714 105	2 028 262	1 742 391

	% change
Key features	2024/23	2023/22	2022/21	2021/20	2020/19
Healthcare service revenue	6.0%	2.1%	11.9%	16.8%	0.7%
Healthcare service operating profit	(1.0%)	(12.9%)	(3.0%)	29.0%	14.8%
Healthcare retail revenue	(4.8%)	1.4%	3.8%	35.2%	53.9%
Healthcare retail operating profit	7.3%	(41.1%)	8.7%	20.8%	96.4%
Headline earnings	54.1%	(31.2%)	(4.1%)	7.3%	15.4%
Normalised headline earnings	80.2%	(40.5%)	(8.1%)	9.9%	16.8%
Cash generated from operations	29.1%	(27.7%)	8.8%	7.8%	41.6%
Statutory earnings per shares
– Basic	(78.3%)	(43.5%)	3.3%	(0.6%)	9.9%
Statutory headline earnings per shares
– Basic	11.0%	(33.7%)	(4.3%)	7.2%	13.0%
Normalised headline earnings per share
– Basic	(8.3%)	(19.0%)	(8.3%)	9.9%	14.1%
Dividends paid per ordinary share
Share price as at 30 June
Return on assets
Return on assets (excl. Goodwill)
Return on equity
Current ratio
Net cash generated from operating activities
Capital expenditure
Number of lives managed
Group membership
Open schemes
Closed and Corporate schemes
GEMS
SADC and other
Number of scripts
NDoH
Pharmacy Direct

SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Audited  year ended  30 June 2024  R'000	Restated  Audited  year ended  30 June 2023  R'000	Restated  Audited  year ended  30 June 2022  R'000	Restated  Audited  year ended  30 June 2021  R'000	Audited  year ended  30 June 2020  R'000
ASSETS
Non-current assets	3 790 706	4 141 570	4 115 232	3 808 789	3 539 167
Property and equipment	290 230	340 819	381 057	369 065	210 583
Right of use Assets	142 572	191 065	147 964	176 924	234 980
Land and buildings	301 422	307 052	316 561	321 504	261 374
Investment property	12 500	10 731	7 631	7 765	15 418
Intangible assets	2 804 199	3 045 541	3 076 336	2 782 866	2 695 187
Other financial assets	27 719	39 928	19 117	29 661	3 711
Investment in associates and joint ventures	8 732	49 148	33 340	31 541	33 307
Insurance contract assets	67 644	69 978	56 154	–	–
Deferred tax assets	132 015	82 881	77 072	89 463	84 607
Deferred payment asset	3 673	4 427	–	–	–
Current assets	1 618 849	1 418 660	1 321 909	1 305 577	1 007 999
Trade and other receivables	786 276	740 695	724 321	503 270	504 335
Inventory	449 079	444 562	431 764	421 563	297 851
Current tax assets	53 235	43 640	27 235	32 560	28 133
Other financial assets	–	–	–	149 244	–
Cash, managed funds and deposits	330 259	189 763	138 589	198 940	177 680
Total assets	5 409 555	5 560 230	5 437 141	5 114 366	4 547 166
EQUITY AND LIABILITIES
Capital and reserves	3 369 996	3 443 302	2 438 244	2 318 759	2 216 604
Issued ordinary share capital	21 324	21 294	18 909	18 892	18 885
Share premium	2 537 411	2 525 687	1 094 876	1 084 696	1 080 301
Share-based payment reserve	24 468	34 115	30 465	26 802	20 417
Treasury shares	(1 162)	(1 162)	(2 324)	(2 324)	(2 324)
Foreign currency translation reserve	(5 650)	2 201	(5 056)	(6 139)	(14 632)
Capital contribution by Non controlling interest	–	–	55 874	55 874	55 874
Cash flow hedge reserve	–	1 530	–	–	–
Distributable reserve	793 605	859 637	1 245 500	1 140 958	1 058 083
Non-controlling interest	31 189	55 950	987 772	920 511	902 491
Total equity	3 401 185	3 499 252	3 426 016	3 239 270	3 119 095
Non-current liabilities	942 911	946 614	995 923	1 072 665	705 492
Deferred tax liabilities	259 628	223 131	242 367	250 040	246 809
Non-current borrowings	569 853	528 005	531 082	655 785	266 311
Non-current provisions	–	16 970	16 970	8 350	8 350
Post-employment medical obligations	1 680	1 825	1 916	2 137	2 595
Lease liabilities	111 750	176 683	127 790	156 353	181 427
Contingent consideration	–	–	75 798	–	–
Deferred payment	–	–	–	–	–
Current liabilities	1 065 459	1 114 364	1 015 202	802 431	722 579
Provisions	16 792	16 695	15 216	11 269	8 374
Borrowings	58 553	120 000	120 000	120 000	120 000
Lease liabilities	65 336	67 644	68 610	63 764	96 855
Trade and other payables	733 057	610 588	632 604	452 974	361 488
Current tax liabilities	9 374	9 031	19 161	23 808	33 086
Employment benefit provisions	182 347	106 276	143 122	130 616	102 776
Deferred payment liability	–	–	14 139	–	–
Bank overdraft	–	104 007	2 350	–	–
Contingent consideration	–	80 123	–	–	–
Total liabilities	2 008 370	2 060 978	2 011 125	1 875 096	1 428 071
Total equity and liabilities	5 409 555	5 560 230	5 437 141	5 114 366	4 547 166

SUPPLEMENTARY OPERATING PERFORMANCE (NON-IFRS) MEASURE

	Year  ended  30 June 2024  R'000	Restated  year  ended  30 June 2023  R'000	Restated  year  ended  30 June 2022  R'000	Year  ended  30 June 2021  R'000	Year  ended  30 June 2020  R'000
Healthcare service revenue	4 639 131	4 378 300	4 290 086	3 834 256	3 282 853
Healthcare service operating costs	(4 038 306)	(3 766 970)	(3 577 908)	(3 108 650)	(2 653 269)
IFRS 16: Lease reversals	78 872	75 241	75 805	86 456	85 460
Healthcare service operating profit	679 697	686 571	787 983	812 062	629 584
Healthcare retail revenue	4 251 575	4 464 341	4 403 131	4 240 162	3 136 059
Healthcare retail cost of sales	(3 370 496)	(3 590 850)	(3 592 571)	(3 438 009)	(2 477 796)
Healthcare retail operating costs	(670 433)	(677 168)	(477 243)	(495 589)	(404 491)
Healthcare retail operating profit	210 646	196 323	333 317	306 564	253 772
Total healthcare operating profit	890 343	882 894	1 121 300	1 118 626	883 356
Other income	5 186	2 570	563	1 747	–
(Loss)/Profit on sale of investments	(5)	–	–	1 314	–
Loss on disposal of intangible assets	(6 060)	(5 415)	(635)	(26 793)	–
Fair value gains/(losses)	1 769	3 669	6 369	(6 307)	183
Impairment of assets and loans	(274 265)	(27 115)	(3 203)	(10 378)	(2 919)
Net finance and investment income	(58 227)	(68 252)	(60 834)	(36 498)	(45 224)
– Finance and investment income	38 008	25 941	14 996	20 595	26 503
– Finance cost: Lease liabilities	(19 190)	(16 964)	(18 781)	(21 420)	(27 839)
– Finance cost	(77 045)	(77 229)	(57 049)	(35 673)	(43 888)
Share-based payment expense	(3 133)	(17 837)	(13 848)	(10 694)	(8 876)
Share of associate (losses)/profits	(9 045)	14 051	6 991	8 294	7 990
Profit before depreciation and amortisation	546 563	784 565	1 056 703	1 039 311	834 510
Right of use assets depreciation	(52 747)	(65 380)	(61 606)	(66 564)	(71 026)
Depreciation	(94 142)	(82 976)	(87 138)	(78 202)	(62 179)
Amortisation of intangible assets	(192 690)	(208 823)	(231 269)	(195 027)	(164 091)
Profit before income taxation	206 984	427 386	676 690	699 518	537 214

	% change
	2024/23	2023/22	2022/21	2021/20	2020/19	2019/18	CAGR
Healthcare service revenue	6.0%	2.1%	11.9%	16.8%	0.7%	12.0%	7.2%
Healthcare service operating costs
IFRS 16: Lease reversals
Healthcare service operating profit	(1.0%)	(12.9%)	(3.0%)	29.0%	14.8%	(1.2%)	1.5%
Healthcare retail revenue	(4.8%)	1.4%	3.8%	35.2%	53.9%	56.5%	6.3%
Healthcare retail cost of sales
Healthcare retail operating costs
Healthcare retail operating profit	7.3%	(41.1%)	8.7%	20.8%	96.4%	90.6%	(3.7%)
Total healthcare operating profit	0.8%	(21.3%)	0.2%	26.6%	30.4%	8.8%	0.2%
Other income
(Loss)/Profit on sale of investments
Loss on disposal of intangible assets
Fair value gains/(losses)
Impairment of assets and loans
Net finance and investment income
– Finance and investment income
– Finance cost: Lease liabilities
– Finance cost
Share-based payment expense
Share of associate (losses)/profits
Profit before depreciation and amortisation	(30.3%)	(25.8%)	1.7%	24.5%	7.3%	14.6%	(8.1%)
Right of use assets depreciation
Depreciation
Amortisation of intangible assets
Profit before income taxation	(51.6%)	(36.8%)	(3.3%)	30.2%	1.7%	(1.8%)	(17.4%)