Wrap Text
Voluntary update on FY 2025 trading
NETCARE LIMITED
Incorporated in the Republic of South Africa
(Registration number 1996/008242/06)
JSE ordinary share code: NTC
ISIN: ZAE000011953
JSE preference share code: NTCP
ISIN ZAE000081121
A2X share code: NTC
("Netcare" or the "Group")
Voluntary update on FY 2025 trading
Netcare is pleased to provide a voluntary update on high-level operational performance indicators for
the year ending 30 September 2025 ("FY 2025"). Further details on FY 2025 performance will be provided
with the annual results to be released on or about Monday, 24 November 2025.
Reference is also made to the year ended 30 September 2024 ("FY 2024"), the six months ended 31 March
2025 ("H1 2025") and the six months ending 30 September 2025 ("H2 2025").
Salient features
• Group revenue expected to increase by 4.5% to 4.7%
• Group EBITDA expected to strengthen by 6.5% to 8.5%
• Group operating profit expected to improve by 8.5% to 11.5%
• Adjusted HEPS anticipated to grow between 16.0% and 19.0%
• R854 million returned to shareholders in share buybacks
Segmental performance - Hospital and emergency services
Hospital and emergency services comprise acute and mental hospitals, as well as emergency and ancillary
services.
Following strong growth in total paid patient days ("PPD") in H1 2025, consistent with expectations and
seasonal trends, activity growth slowed in H2 2025. As a result, total PPD for FY 2025 are expected to
increase by c.0.8%1 year-on-year, comprising an increase of c.0.8%1 in acute hospital PPD and an
1 In December 2024, a fire occurred at the 358-bed Netcare Pretoria East Hospital, affecting activity in multiple wards and
seven theatres. As a result, certain disciplines experienced temporary disruptions while restoration efforts were underway.
Accordingly, PPD, occupancy and net revenue per PPD metrics for FY 2025 have been reported excluding this facility.
increase of c.0.5% in mental health PPD.
Full week occupancy in acute hospitals is expected to improve to c.65.0%1 for the year from 64.3%1 in
FY 2024.
Segment revenue for FY 2025 is expected to grow by 4.8% to 5.0% compared to FY 2024 revenue of
R24 506 million.
The EBITDA for the segment is expected to increase between 6.5% and 8.5% from R4 366 million in
FY 2024, while the operating profit is expected to grow by 8.5% to 11.5% from R3 121 million in FY 2024.
Demand for mental health remains strong and notwithstanding the temporary unavailability of beds at certain
high occupancy sites for essential refurbishment, activity recovered well in H2 2025, with expected full-year
PPD growth of c.0.5% against FY 2024, from the decline of 1.3% reported in H1 2025. Average occupancy
of c.70.3% is expected for FY 2025 (FY 2024: 70.3%).
Segmental performance - Primary Care
In line with recent trends and expectations, same-store medical and dental visits are expected to decline by
2.5% to 3.5%, reflective of the constrained consumer environment. In addition, a large occupational health
contract ended in May 2025 and was not renewed, which largely accounts for the expected 7.0% to 8.0%
revenue decline in the Primary Care segment. However, the business has been successful in actively
diversifying its base of occupational health customers during the year by securing new contracts. Normalised
for the loss of this single occupational health contract, the underlying revenue growth in the Primary Care
segment is 2.0% to 3.0%. Despite the challenging environment, the EBITDA margin is expected to expand
by 100 to 150 basis points.
Group performance
Group revenue is expected to increase by 4.5% to 4.7% from R25 202 million in FY 2024, which is slightly
below the guidance range of 5.0% to 6.0%, largely due to the occupational health contract within the Primary
Care segment terminating during H2 2025.
Group EBITDA is expected to strengthen by 6.5% to 8.5% (FY 2024: R4 530 million). Operating profit is
expected to improve by between 8.5% and 11.5% against R3 198 million in FY 2024.
The Group's financial performance in H2 2025 is expected to exceed that of H1 2025, supported by sustained
operational efficiencies, the realisation of digitisation benefits, reduced strategic and diesel costs, lower
interest rates and the positive impact of the share buyback programme. Adjusted HEPS is anticipated to grow
between 16.0% and 19.0% against FY 2024 adjusted HEPS of 113.7 cents.
The Group's statement of financial position remains solid, with strong cash generation.
In line with Netcare's capital allocation strategy of returning excess cash to shareholders, the Group
continued with its share buyback program. For FY 2025, R854 million has been applied to repurchase 64.2
million ordinary shares at an average price of 1 324 cents per share. In addition, 52.9 million shares were
cancelled during the year. The Group currently has 1 191.8 million shares in issue, net of 172.8
million treasury shares (FY 2024: 1 248.7 million shares in issue, net of 168.8 million treasury shares). The
weighted average number of shares in issue for FY 2025 is 1 223.7 million (FY 2024:1 279.2 million). Since
the commencement of the share buyback program in September 2023, Netcare has bought back 149.0
million shares (10.4% of total ordinary shares in issue on 30 September 2023) at an average price of 1 269
cents per share.
Strategic projects
The Group made excellent progress during FY 2025 across all strategic projects aligned to its strategy of
delivering person centred health and care that is digitally enabled and data driven.
Board changes
As previously reported, Netcare is pleased to announce the appointment of Ms B (Busisiwe) Mathe as
independent non-executive director with effect from 01 October 2025. Ms B Mathe will serve as a member of
the Social and Ethics Committee and Audit Committee.
The Board is also pleased to announce the appointment of Ms L Stephens as chair of the Audit Committee
with effect from 01 October 2025, following the resignation of Ms B Bulo from the Board effective 30
September 2025. The Board thanks Ms B Bulo for her service and wishes her all the best in her future
endeavours.
Results announcement
Further details on the Group's financial performance for FY 2025 and the outlook for the 2026 financial year
will be provided in the audited Group results due to be released on or about Monday, 24 November 2025.
Normalised numbers exclude the impact of exceptional items. The normalised information is the responsibility
of the directors of Netcare, has been prepared for illustrative purposes only and, because of its nature, may
not fairly present Netcare's financial position, changes in equity, results of operations or cash flows.
The information presented in this announcement reflects the Group's latest estimates of its financial results
and related metrics for FY 2025 and has not been reviewed or reported on by Netcare's external auditors.
30 September 2025
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 30-09-2025 10:25:00
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