Life Healthcare expects headline earnings from continuing operations to be as much as 60.9% higher, it said on Monday.
The group expects headline earnings per share from continuing operations for the year ended September to increase by 55.9%-60.9% to 136.4c-140.8c, it said in a statement.
HEPS from continuing and discontinued operations are seen 69.4%-77.3% higher at 149.4c-156.4c.
The group’s results were affected by a R2.8bn one-off gain following completion of the Alliance Medical Group (AMG) disposal relative to a loss recognised in the prior year of R990m.
The group concluded the disposal of AMG on January 31 and received R10.2bn in net cash proceeds after the settlement of all offshore debt and transaction costs. A special dividend of R8.8bn was paid in April.
Other items that affected results include a R60m fair value adjustment for the Life Molecular Imaging (LMI) contingent consideration due to increased expectation of growth in sales of LMI products and the sublicensing of LMI’s RM2 product which contributed about R430m to earnings. There was also recognition of deferred tax losses previously not recognised in LMI of about R150m relating to impairments in terms of IFRS 5.
The group repayed international debt and had a positive cash balance from February 2024, resulting in net interest cost reducing by 66%, or about R360m, relative to the previous year.
Group revenue growth from continuing operations increased by 12%-13% year on year with Southern Africa revenue growing between 7.5%-7.9% and LMI revenue growing by about 180% in rand terms.
Paid patient day (PPD) grew by 1.6% in the acute hospital business and declined by 2.6% in the complementary businesses, with overall growth of 1.2%, but with an improved revenue/PPD in the second half of the year.
LMI Neuraceq doses sold increased by about 90% in 2024. The LMI revenue includes income of $36m earned from the sub-licencing arrangement of one of LMI’s early-stage novel radiotherapeutic and radio diagnostic products (RM2).
This transaction and growth in commercial sales for Neuraceq has contributed to revenue growth (in rand) in LMI of about 180%.
Group normalised earnings before interest, tax, depreciation and amortisation from continuing operations increased by 19%-20.5%. Normalised earnings before interest, tax, depreciation and amortisation was been bolstered by the RM2 gain, which contributed R580m net of costs.
Life Healthcare expects to release its full-year results on November 26.
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