Netcare Hospital Group reports upbeat forecast after 27% annual profit jump
Bruce Whitfield speaks to Dr Richard Friedland, CEO of Netcare Group.
Private hospital group, Netcare posted increased earnings for the year ended 30 September 2023, with revenue up 9.5% to almost R24 billion
The group’s profit after tax increased by 27.2% to more than R1.3m.
For the 2024 financial year, Netcare expects a revenue growth of between 7.5% and 9.5%.
We're particularly pleased with the results because they're against the backdrop of hyper inflationary costs, a catastrophic collapse of the grid and interest rates that are at a 14-year high.Richard Friedland - CEO, Netcare Group
...so we had a number of factors stacked against us, but we were able to produce excellent operating leverage off good volumes. Volumes that are now higher in the last six months, than they were pre-Covid.Richard Friedland - CEO, Netcare Group
Although the macro environment remains impacted by a national power crisis, global supply chain limitations, constrained consumers, and high levels of unemployment, the healthcare provider has a number of measures in place to mitigate these challenges.
Dr Richard Friedland, CEO of the Netcare Group says they are encouraged by the ongoing improvement in its financial performance, as demand continues to normalise from the impact of the COVID-19 pandemic.
You've still got to eek out efficiency, because most of the input costs are way above the tariffs were achieved from the medical schemes. And when you're faced with an 18% increase in electricity and double digit increase in water and other administrative costs, and collapse of service delivery, you have an untold plethora of additional challenges that impact your cost base.Richard Friedland - CEO, Netcare Group
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This article first appeared on CapeTalk : Netcare Hospital Group reports upbeat forecast after 27% annual profit jump
Source : EWN