S.Africa's Life Healthcare posts profit slide, holds back dividend on pandemic hit (updated)

King International Investment

27/05/2021 07:27

* Life Healthcare's H1 revenue up 4% 
    * To review dividend after FY results
    * Expects growth in H2, but flags third wave hit

 (Adds details from results, background)
    JOHANNESBURG, May 27 (Reuters) - South Africa's Life
Healthcare Group  LHCJ.J  on Thursday reported a near 12% drop
in half-year profit and held back on its interim dividend, as
the COVID-19 pandemic forced people to delay elective medical
procedures that form the bulk of revenue for hospitals.
    The health crisis has also pushed South African hospitals to
prioritise beds for coronavirus patients, and experts have said
that the country might see the onslaught of a third wave of
COVID-19 infections between June and July. 
    Life Healthcare's headline earnings per share (HEPS), the
main profit gauge for South African companies, fell to 47.4
cents for the six months ended March 31 from 53.8 cents a year
earlier.
    However, the company's revenue from continuing operations
for the first half was up 4% to 13 billion rand. 
    The country's second-biggest operator of hospital networks
also said it expects a doubling in full-year profit, primarily
due to a 793 million rand ($57.64 million) impairment charge it
had taken the previous year.
    Life Healthcare said its revenue and operating profit in
Southern Africa would grow in the second half, but cautioned
that its outlook could vary depending on "the timing and
magnitude of a potential third COVID-19 wave."
    It said it would reconsider a dividend after its full-year
results.
    The company operates in South Africa and Botswana and has
investments in medical imaging services company Alliance Medical
which operates in Europe. 

($1 = 13.7584 rand)

 (Reporting by Promit Mukherjee; Editing by Ramakrishnan M.)
 ((promit.mukherjee@thomsonreuters.com; +27 64833 4448;))