Netcare forecasts strong FY2025 earnings despite primary care challenges

Netcare Limited expects Group revenue to increase by 4.5% to 4.7% for FY 2025, reaching R25 202 million. Group EBITDA is projected to strengthen by 6.5% to 8.5%, with operating profit anticipated to improve by 8.5% to 11.5%. Adjusted HEPS is forecasted to grow between 16.0% and 19.0%.

In Hospital and emergency services, total paid patient days for FY 2025 are expected to increase by approximately 0.8% year-on-year, and full-week occupancy in acute hospitals is projected to improve to around 65.0%. However, the Primary Care segment anticipates a 7.0% to 8.0% revenue decline due to the termination of a large occupational health contract, though underlying revenue growth, excluding this contract, is estimated at 2.0% to 3.0%.

The Group continued its share buyback program, returning R854 million to shareholders by repurchasing 64.2 million ordinary shares. This activity contributed to a reduction in the weighted average number of shares in issue for FY 2025 to 1 223.7 million.