Netcare profits jump 19%
If the world's economy has slowed, Netcare does not seem to be feeling it. In the Group’s 2016 annual financial results released on 21 November, it noted that group revenue was up 12.1%, to R37 796 million, group EBITDA was up 11.2% to R5 539 million, and normalised profit after taxation was up 19.1% to R2 906 million.
In its results statement, Dr Richard Friedland, CEO (pictured), described Netcare as having a strong group balance sheet with comfortable gearing and leverage, and said the South African operations posted solid results, with activity boosted by the prior year's investment in 584 new beds.
South African revenue increased 9.7% to R18 958 million (R17 289 million in 2015). Hospital and Emergency Services grew revenue by 10.3% to R17 780 million, while in Primary Care revenue was up 0.7% to R1 178 million. EBITDA grew 5.0% to R4 147 million with margins of 21.9% (22.8% the previous year).