In the media

AfroCentric annual results reflect a commitment to consumers amid challenging conditions

13 September 2022

Highlights:

• Group revenue – up 8.0%
• B-BBEE rating – Level 1
• Profit for the year – up 2.6%
• Basic earnings – up 4.1%
• Headline earnings – down 3.6%

 

Off the back of a challenging operating environment and economic uncertainty, AfroCentric has released its annual results for the period ending 30 June 2022.

According to CEO of the AfroCentric Group, Ahmed Banderker, these results reflect the Group’s commitment to consumers in the form of growth initiatives designed to create a healthcare enterprise that helps drive down costs for consumers.

"Healthcare should be designed to protect the interests of those who depend on it. We are proud to continue our efforts of investing in innovation towards value, and hope to see the fruits of our labour in the form of more affordable patient care with viable patient outcomes for easier accessibility to a broader community.

"The Group’s revenue for the year increased by 8% from the prior year. This was mainly attributable to a 35% increase in revenue from the DENIS Group, whose complete annual results were incorporated into the Group annual results for the first time. Banderker said the additional services from the GEMS managed care contract, coupled with the growth in the GEMS membership contributed to a 12.7% growth in the Group’s Services Cluster revenue.

"While this was a boon, we have to note that our Services Cluster operating profit actually declined slightly by 2.4% due to the once-off investment in our vaccination projects," Banderker noted. Had it not been for this investment, the services cluster would have increased by 1.1%.

The Pharma Cluster achieved a 3.8% increase in revenue compared with the previous period under review. This was despite a decline in chronic medicine adherence and demand for complementary medicines such as multivitamins, which had reverted to pre-Covid levels in the year under review. "This decline was partly driven by waning fear around Covid-19 as the pandemic subsides," he said.

Banderker said the 3.6% decline in headline earnings reflected a focus on improving efficiencies coupled with the Group’s digitalisation drive, in which it has invested heavily in digital platforms and partners to strengthen its preventative care offerings for consumers.

"Digitalisation has allowed us to focus on high-quality customer experience initiatives, enabling us to make significant gains in improving customer experience metrics over the year," he said. "The intelligent automation of processes, coupled with automated decision-making remain a priority and will enable efficiency in delivering value-added services that foster a unified experience and added value for our businesses and customers.

"Although the economic landscape has created a challenging operating environment for healthcare, Banderker said he was confident that investments made into innovative solutions and services would pay off in the near to medium term. "These results are encouraging and make sense as we drive forward towards a future in which healthcare is more efficient and accessible for all our stakeholders," he said.