Life Healthcare Group Holdings (LHC) H2 2024 earnings summary

Executive summary

• Group revenue grew 12.7% year over year, with normalised EBITDA up 19.9% and strong H2 margin performance.

• FY2024 dividends totalled 720c per share (R10.6bn), including a 70c special dividend.

• Strategy prioritises acute network optimisation, complementary services, and value-based care contracting.

Financial highlights

• Revenue rose 12.7% to R25.5bn; normalised EBITDA increased 19.9% to R4.3bn.

• Net profit attributable to shareholders grew 65% to R2.07bn; normalised EPS rose 48.5% to 132.3c.

• LMI revenue increased 181.3%, driven by NeuraCeq® sales growth and a $36m sub-licensing transaction.

• Free cash flow rose 79.7% to R1.84bn; net debt fell to R1.96bn and net debt/EBITDA was 0.45x.

• Net finance costs fell 66%, reflecting higher interest income and debt repayment.

Outlook and guidance

• Plans to add 79 beds in FY2025 and begin construction of a 140-bed Western Cape hospital; imaging and PET-CT expansion underway.

• Targeting PPD growth of 1–1.5%, occupancy improvement to 70%, and further operational efficiencies.

• NeuraCeq® commercial volume expected to grow ~50% in FY2025, with continued US sales growth focus.