Life Healthcare has seen a drop in its earnings following the sale of one of its businesses to pharmaceutical giant Lantheus. <\/p>\n\n\n\n
Life Healthcare Group announced its audited results for the year ended 30 September 2025, with revenue increasing by 6.4%, on a like-for-like basis and excluding assets sold in FY2025, to R21.3 billion.<\/p>\n\n\n\n
Despite the revenue growth, healthcare services revenue declined by 7.5% following the loss of two government contracts during H2 FY2024, it said.<\/p>\n\n\n\n
Life Healthcare also concluded the disposal of Life Molecular Imaging (LMI) during the year, generating upfront proceeds of S$355 million (R6.3 billion).\u00a0<\/p>\n\n\n\n
The deal will also entitle Life Healthcare to potential future earnouts of up to US$400 million linked to future commercial and regulatory milestones.<\/p>\n\n\n\n
Life Healthcare sold LMI to the British subsidiary of United States-based pharmaceutivcal group, Lantheus.\u00a0<\/p>\n\n\n\n
Through the deal, the local group retains the rights to M2 milestone and regulatory payments, as well as the rights to manufacture, commercialise and distribute LMI products in Africa.\u00a0<\/p>\n\n\n\n
Following the sale, Life Healthcare delivered a special dividend of R2.35 per share in September 2025. <\/p>\n\n\n\n
The group\u2019s overall EBITDA increased 4.7% to R3.8 billion, while normalised earnings per share (EPS) were up 10.1%. <\/p>\n\n\n\n
However, earnings per share and headline earnings per share were materially affected by the\u00a0R2.9 billion fair value adjustment to the Piramal liability, which reduced earnings from continuing operations.\u00a0<\/p>\n\n\n\n
When Life Healthcare acquired LMI, it had a profit-sharing deal with Piramal Enterprises. As per the sale of LMI to Lantheus, proceeds went to Piramal.<\/p>\n\n\n\n
Life Healthcare said that the drop in earnings was caused by the following: <\/p>\n\n\n\n
While total EPS decreased by 20% to 263.0 cents, the group\u2019s total dividend increased 12.0% to 35 cents per share.\u00a0<\/p>\n\n\n\n
\u201cThe fundamentals of our business remain resilient, and the substantial returns to shareholders this year reflect our disciplined capital management,\u201d said Life Healthcare CEO Pete Wharton-Hood. <\/p>\n\n\n\n
\u201cWith our focus now firmly on continuing operations, investors have clearer visibility into a stable, well-positioned organisation.\u201d <\/p>\n\n\n\n
\u201cThe targeted interventions within our asset optimisation programme, together with our strategic growth initiatives such as Life Paarl Valley Hospital, position us for stronger performance in FY2026 and beyond.\u201d<\/p>\n\n\n\n Life Healthcare has seen a drop in total earnings following the sale of Life Molecular Imaging to a US company for over R6 billion. <\/p>\n","protected":false},"author":95,"featured_media":844859,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[11955],"class_list":["post-844856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-life-healthcare"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/844856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=844856"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/844856\/revisions"}],"predecessor-version":[{"id":844865,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/844856\/revisions\/844865"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/844859"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=844856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=844856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=844856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Metric<\/strong><\/td> 2025 (Cents)<\/strong><\/td> Pro forma adjustments (Cents)<\/strong><\/td> 2025 Pro forma (Cents)<\/strong><\/td> 2024 actual (Cents)<\/strong><\/td> % change 2025 vs 2024<\/strong><\/td> % change Pro forma vs 2024<\/strong><\/td><\/tr> From continuing operations<\/strong><\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> EPS<\/td> (106.9)<\/td> 201.0<\/td> 94.1<\/td> 92.2<\/td> > (100)<\/td> 2.1<\/td><\/tr> HEPS<\/td> (93.9)<\/td> 201.0<\/td> 107.1<\/td> 93.4<\/td> > (100)<\/td> 14.7<\/td><\/tr> NEPS<\/td> 100.3<\/td> –<\/td> 100.3<\/td> 91.1<\/td> 10.1<\/td> 10.1<\/td><\/tr> From continuing & discontinued ops<\/strong><\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> EPS<\/td> 263.0<\/td> –<\/td> 263.0<\/td> 328.8<\/td> (20.0)<\/td> (20.0)<\/td><\/tr> HEPS<\/td> (112.1)<\/td> 201.0<\/td> 88.9<\/td> 152.9<\/td> > (100)<\/td> (41.9)<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
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