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Life Healthcare Group Holdings Limited (LHC) investor relations material
Life Healthcare Group Holdings Limited H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue grew 6% year-over-year to R25.1 billion, driven by 1.1% PPD growth and strong revenue per PPD, with overall occupancy at 69.7% and surpassing 70% in H2.
Normalised EPS from continuing operations increased just above 10%, with NEPS up 10.1% and strong cash generation supporting a 12% increase in total ordinary dividend to 56 cents per share.
Significant asset optimization, including the sale of LMI and non-core hospitals, closure of underperforming units, and focus on operational efficiency in top hospitals.
Robust cash generation (119.6% of EBITDA), with special and ordinary dividends totaling 291 cents per share declared.
Strategic focus on growth (greenfield and brownfield expansions), operational optimization, and technology investments.
Financial highlights
Revenue up 6% year-over-year to R25.1 billion; normalized EBITDA up 4.7% to R3.85 billion, with EBITDA margin stable at 15.3%.
Normalized EPS up 10.1%; headline EPS up 14.7% on a pro forma basis.
Return on capital employed/ROCE at 17.8%, slightly down due to CapEx projects.
Free cash flow increased 36.5% to R1.75 billion.
Net debt to normalised EBITDA at 0.77x, reflecting a strong balance sheet.
Outlook and guidance
Focus on continuing operations with clear visibility and stable positioning.
FY2026 targets include 1% PPD growth, 5% revenue growth, and EBITDA margin improvement, with 70% occupancy for next year.
Targeting ZAR 400 million in real cost savings over three years, with 20-25% expected in the first year.
Further brownfield and greenfield expansions, including 89 new acute beds and additional complementary service capacity.
Margin improvement is a key management incentive and will be tracked across all units.
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