Life Healthcare Group today reported its unaudited interim results for the six months ended 31 March 2026, demonstrating progress in executing its Grow, Drive and Optimise strategy, with improved operational momentum in the second quarter and sustained investment in capacity to meet evolving patient demand.

Despite a constrained operating environment in the first half, the Group maintained strategic discipline – advancing key optimisation initiatives, strengthening operational efficiency and investing in infrastructure to support long-term growth.

Strategic execution driving access to care

Life Healthcare continues to translate strategy into measurable delivery, with a focused approach to aligning capacity with patient demand and expanding access to quality healthcare in key growth markets.

During the period, construction commenced of the 140-bed Life Paarl Valley Hospital, alongside a series of brownfield expansion projects across the portfolio. These include additional acute beds and specialised facilities, designed to respond to the shifting disease profiles and growing demand for complex care.

The Group also continued to scale its complementary services, expanding high-demand offerings in acute rehabilitation, advanced diagnostic imaging and renal dialysis, while progressing its investment in cyclotron infrastructure. These initiatives support a more integrated, patient-centred care model and broaden access to specialised services.

Progress also continues on the Group’s asset optimisation programme, under Board oversight, with a clear focus on enhancing portfolio alignment, improving operational efficiency and strengthening long-term returns, while maintaining continuity and quality of care.

Financial highlights

• Group revenue increased by 2.4% to R12.4 billion
• Normalised EBITDA increased by 5.2% to R2.0 billion
• Operating profit before non-trading items increased by 8.4%
• Normalised earnings per share increased by 8.4% to 53.1 cents
• Second-quarter occupancies exceeded 70%
• 9.5% increase in interim cash dividend of 23.0 cents per share

 Operational performance strengthens in second quarter

While the first half was impacted by external factors, including funder-related disruptions, the Group saw an improvement in occupancies recovering above 70% and utilisation trends strengthening across the portfolio.

Disciplined cost management supported an improvement in EBITDA margin, reflecting a continued focus on efficiency, cost control and earnings quality.

Acute hospitals delivered a resilient performance, with occupancies on a like-for-like basis of 67.0% for the six-month period and strong ICU utilisation at 82.0%. Momentum improved during the second quarter, with occupancies exceeding 70%, signalling a recovery in activity levels.

Medical admissions continued to account for a large portion of admissions, with a medical-to-surgical case mix of 54% to 46%, consistent with underlying demand trends.

Complementary services remained a key growth contributor, supported by sustained demand across mental health, diagnostic imaging and renal dialysis.

Strong balance sheet supports disciplined investment

The Group maintains a strong financial position, with net debt to normalised EBITDA at 0.93 times, providing capacity to fund ongoing strategic investments.

Capital expenditure of R722 million during the period was directed toward expansion and infrastructure development, aligned with the Group’s focus on targeted capacity growth and service diversification.

Peter Wharton-Hood, Chief Executive of Life Healthcare Group, said: “We are executing with discipline and clarity. Our focus is on building capacity where it is needed most, improving utilisation across our network and advancing our optimisation programme to strengthen returns. Encouragingly, we saw a meaningful recovery in activity in the second quarter, reflecting the underlying resilience of our business. We remain confident in our strategy and our ability to deliver sustainable growth over the medium term.

Outlook

The Group’s priorities for the remainder of the financial year are clear: restoring activity levels, improving utilisation and driving revenue growth, while maintaining a strong focus on productivity and cost discipline to support margin expansion including cost savings of R400 million over 3 years.

Capital allocation will remain disciplined, with continued investment in the current expansion pipeline, alongside preserving balance sheet strength and flexibility for future opportunities.

The Group expects occupancies of approximately 68% and revenue growth of 2.0% for the remainder of FY2026, supported by continued strategic project delivery and further progress in optimisation initiatives.

For the full results presentation - click here.