Wrap Text
Voluntary Operational Update
NETCARE LIMITED CLINDEB INVESTMENTS LIMITED
(Registration number 1996/008242/06) (Registration number 1991/001634/06)
JSE ordinary share code: NTC Issuer code: BICI
ISIN: ZAE000011953 ("Clindeb")
JSE preference share code: NTCP
ISIN: ZAE000081121
A2X share code: NTC
("Netcare" or the "Group")
VOLUNTARY OPERATIONAL UPDATE
This voluntary announcement provides a brief overview of high-level operational performance indicators for the
five months ended 28 February 2026 ("review period") ahead of Netcare's participation in an investor
conference at Sun City on 24 and 25 March 2026.
Overview
We are encouraged by the improving macroeconomic indicators in South Africa, which have supported a more
constructive long-term outlook for the operating environment. Recent developments, including moderating
inflation, an improvement in the unemployment rate, a more stable interest rate outlook and improving consumer
and business confidence, are positive for the broader healthcare sector. While challenges remain, these trends
provide a supportive backdrop for continued operational momentum and reinforce our confidence in the
resilience of the Group's strategy, financial performance and long-term growth prospects.
While we remain encouraged by the improving macroeconomic environment, we have noted continued pressure
within the medical scheme industry, which resulted in scheme-specific changes to benefit structures into
calendar year 2026, prompting shifts in member utilisation patterns and tighter managed healthcare
interventions. This has, in turn, influenced activity levels in our acute hospitals. Notwithstanding these industry
dynamics, Group revenue remains on track and, together with continued disciplined cost management, has
supported a resilient EBITDA performance.
Total normalised paid patient days grew by 0.8%(1) for the review period, comprising 0.5%1 in acute hospitals
and 2.9% in mental health facilities. In line with usual seasonality, activity in the acute hospitals is expected to
be weighted towards the second half of the 2026 financial year ("H2 2026"). This will be further supported by
capacity optimisation initiatives, including the in-year conversion of 36 existing beds into higher-demand
disciplines, together with the addition of 53 new beds at established acute facilities where demand remains
robust. Similarly, activity in the mental health division during H2 2026 will benefit from the commissioning of the
87-bed Netcare Akeso Polokwane facility on 16 March 2026.
For the five months ended 28 February 2026, Group revenue increased by 4.5% compared to the prior
comparative period. Total operating costs have been well contained, and notwithstanding lower activity levels,
EBITDA margins have increased slightly over the prior period.
In line with Netcare's capital allocation strategy of returning excess cash to shareholders, the Group continued
with the share buyback program. From 1 October 2025 to date, R292 million has been applied to repurchase
18.1 million ordinary shares at an average price of 1 608 cents per share. Since the commencement of the
share buyback program in September 2023, Netcare has bought back 167.1 million shares (11.6% of total
ordinary shares in issue on 30 September 2023) at an average price of 1 306 cents per share.
A comprehensive voluntary update on the financial performance for the six months ending 31 March 2026 will
be made available prior to the release of the interim results on Monday, 25 May 2026.
The information contained in this announcement has not been reviewed or reported on by Netcare's auditors.
Footnote
1. In December 2024, a fire occurred at the 358-bed Netcare Pretoria East Hospital, affecting activity in multiple wards and seven theatres. As a result, certain disciplines
experienced temporary disruptions while restoration efforts were underway. Accordingly, paid patient day metrics for the review period have been reported excluding this
facility
24 March 2026
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 24-03-2026 07:20:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
