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Interim results for the six months ended 31 March 2024

Life Healthcare’s broadening services demonstrates growth opportunities


  • Conclusion of sale of Alliance Medical Group
  • Revenue from continuing operations up 7.8%
  • Southern Africa acute PPD growth up 2.7%
  • Southern Africa acute revenue up 5.9%
  • Conclusion of Fresenius Medical Care acquisition
  • Life Molecular Imaging Neuraceq® dosage sales up by 74.4%
  • Life Molecular Imaging revenue up 77.5%
  • Interim Dividend of 19 cents up 11.8%

Life Healthcare Group (LHG) has announced strong operating performance for the six-month period to 31 March 2024, growing group revenue from continuing operations by 7.8% to R11.7 billion, this driven primarily from robust activity in southern Africa. Normalised earnings per share (NEPS) increased by 8.4% to 44.1cents (H1-2023: 40.7cents)

During the period, the Group concluded the disposal of Alliance Medical Group (AMG) and received R10.2 billion in net cash proceeds after the settlement of all offshore debt and transaction costs. A special dividend of R8.8 billion was paid in April 2024 from the proceeds.

Chief Executive Peter Wharton-Hood says: “Having completed the successful AMG sale, our Group boasts a strong balance sheet, with the lowest gearing in the history of the company. This places us on an extremely strong financial footing. Life Healthcare is now well equipped to focus on the continued growth of our southern African business.”

The Group SA operations experienced strong demand for their services in the current period driven by the preferred provider network arrangements with the major medical schemes. This led to higher utilisation with PPD growth of 2.3%, which resulted in a weighted average occupancy level during H1-2024 of 66.6%, up from the 65.9% occupancy in the prior period. Revenue for SA grew by 5.9% and normalised EBITDA decreased by 4.6% year-on-year resulting in a margin of 15.7% compared to 17.4% reported in H1-2023. Numerous initiatives have been undertaken to improve normalised EBITDA margin, with improvements already seen in Q2-2024, with the normalised EBITDA margin for that period above 17%. This is expected to continue into the second half.

In line with Life Healthcare’s strategy of growing the non-acute portion of the business, the company completed the acquisition of 43 Fresenius Medical Care (FMC) renal dialysis units and added to our imaging footprint with the acquisition of additional imaging equipment of an imaging practice in KZN.  Chief Strategy and Growth Officer Adam Pyle says: “We are excited by the underlying growth in our non-acute businesses, and the positive impact we can have on patient-centred care. In addition, we have begun construction of the cyclotron site, which has a promising growth potential in the nuclear imaging space”.

LMI’s revenue grew 77.5% year on year to R513 million (H1-2023: R289 million) following the reimbursement approval of the disease-modifying drug in the USA.  Sales of Neuraceq® doses, a PET diagnostic imaging tracer grew 74.4%.  LMI’s normalised EBITDA loss decreased to R12 million from a loss of R38 million in H1-2023.


The acute hospital business delivered 5.5% revenue growth year-on-year, driven by PPD growth of 2.7%, and increased activity in theatre, cathlab, general ward and ICU services. Revenue per PPD grew 2.8%.

Revenue from the Group's complementary services grew 7.9% year-on-year, driven by strong activity growth in diagnostic imaging services and renal dialysis. The Group's diagnostic imaging services grew MRI/CT/PET-CT volumes by around 17.9% year-on-year, with the newly acquired TheraMed Nuclear Imaging and PET Vision molecular imaging businesses performing ahead of expectations.

Renal dialysis treatments increased 8.5% to reach 103 971 during H1-2024 – the highest ever – assisted by increased adoption of the Life Healthcare integrated renal care product by healthcare funders. The Group also received approval from the Competition Commission to acquire 43 Fresenius Medical Care renal dialysis clinics, increasing the number of Life Renal Dialysis stations to 145. This is effective from 1 April 2024.

Driven by excellent growth in sales of Neuraceq® in the USA, LMI has delivered excellent results for the current period, with revenue for H1 2024 increasing by 77.5%. 


Total EPS (from continuing and discontinued operations) increased by 540.6% to 242.8 cents (H1-2023:37.9 cents) mainly due to the R2.8 billion once-off gain recognised following the completion of the AMG disposal. Total HEPS increased by 63.0% to 65.2 cents (H1-2023: 40.0 cents) NEPS, which excludes non-trading related items, increased by 8.4% to 44.1 cents (H1-2023: 40.7 cents).

The Group is in a net cash position as of 31 March due to the proceeds received from the sale of AMG.


The Group expects continued activity growth in its southern African operations driven by growth in volumes from the network deals and through the impact of acquisitions concluded in the last 12 months.

For LMI, the Group expects sales of Neuraceq® to continue to grow strongly with EBITDA losses expected to reduce after FY-2024.


Life Healthcare have over the years engaged constructively on NHI and we have made our position clear: we unequivocally support the outcomes visualised by the Act, quality healthcare services for all. The focus of our engagement to date and in future will be to enable the sensible introduction of NHI, and to ensure that expanding access to healthcare is achieved sustainably, without compromising the essential healthcare delivery platform or harming the entire healthcare system - this remains unchanged.

However, the approval of the Bill without addressing concerns raised during the parliamentary process, is a regrettable missed opportunity to expand sustainable access to healthcare. We, therefore, expect a lengthy implementation journey of NHI due to operational and legislative changes required, as well as the current fiscal constraints.

The proposed healthcare reform decisions within the NHI Act will profoundly impact the sustainability of South Africa's health system for generations to come. On that basis, as a significant healthcare provider, who delivers the highest standards of private healthcare, we will continue to contribute meaningfully to the envisaged extensive legislative reforms of the NHI Act.


The Group’s ability to effectively respond to operational challenges, while continuing to provide quality care to its patients is largely due to the resilience, dedication and unwavering support of its employees, doctors, and other healthcare professionals. Life Healthcare would like to thank them for their tireless work and for the care they deliver.