Netcare, one of South Africa’s largest private healthcare groups, has appointed long-serving executive Melanie Da Costa as its next CEO, succeeding Dr Richard Friedland who steps down at the end of 2026 after three decades at the helm.
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Netcare Group is moving swiftly on its sustainability strategy and arguably boasts one of the most ambitious targets among JSE-listed companies: achieving a full transition to renewable energy sources by 2030.
The group, which operates private healthcare facilities in South Africa, aims to achieve net zero Scope 2 emissions by 2030 as part of the second phase of its environmental sustainability strategy, which commenced in 2022. Their combined Scope 1 and Scope 2 emissions target, which emphasises waste, water, and backup energy resilience, stands at 84%.
In its financial results for the six months to March 31, Netcare on Monday announced that a wind power purchase agreement, covering six Eskom-supplied hospitals, is on track to deliver up to 100% renewable electricity to these facilities from September 2026.
Ongoing engagements position the group well to extend wind power to an additional 56 municipally supplied acute hospitals, including Akeso and Medicross facilities, with up to 100% supply of wind power expected from March 2027.
This will elevate the group’s renewable energy utilisation to approximately 60% and accelerate progress towards its 2030 targets, according to Netcare CEO Dr Richard Friedland.
Notably, the group is on track to achieve its objective of zero general waste to landfill by 2026, with Netcare Blaauwberg Hospital recently certified as the first Green Hospital in Africa. The initial target of a 20% reduction in freshwater utilisation was exceeded in the 2025 year, with a 28% reduction achieved.
Netcare reported a strong interim results, despite a competitive operating environment. An interim dividend of 44 cents per share was declared, representing 61.4% of adjusted headline earnings per share (HEPS) and a 22.2% increase compared to the same period the previous year.
Total paid patient days (PPD) increased by 0.7% compared to the prior period, driven by a 0.4% increase in acute PPD and a 3.4% increase in mental health PPD. Group revenue rose by 4.8% to R13.28 billion.
Normalised group earnings before interest, tax, depreciation, and amortisation (EBITDA) improved by 6.6% to R2.5bn, with better efficiencies leading to an increase in the group EBITDA margin to 18.8% from 18.5%.
Profit for the period increased by 11.9% to R924 million, and adjusted HEPS rose by 21.9% to 71,7 cents. Dr Friedland said performance was underpinned by resilient demand, alongside the ongoing benefits of their digitisation and AI strategy, which is delivering a meaningful digital dividend, as well as the continued execution of the share buyback programme.
In line with a capital allocation strategy of returning excess cash to shareholders, the group repurchased 21.6 million shares between October 1, 2025, and March 31, 2026, at an average price of 1,618 cents per share. A further 11.1 million shares were purchased post-March 31, 2026, at an average price of 1,723 cents per share.
The group held R3bn in cash and undrawn facilities as of March 31.
A pilot of wearable monitoring technology in general wards at a flagship facility was progressing, the first part of what will be the biggest rollout of its kind in the world.
The devices enable continuous, clinical-grade monitoring of vital signs, including continuous blood pressure monitoring, thereby extending predictive analytics and early-warning capabilities beyond the ICU.
“Our strategy of person-centred health and care that is digitally enabled, and data and AI-driven, continues to strengthen our competitive position. We have established a strong digital foundation from which to scale the next phase of innovation,” he stated.
Dr Friedland emphasised the underlying demand for quality private healthcare remains resilient, supported by an ageing insured population and a rising burden of disease.
Melanie Da Costa was announced as Netcare’s incoming CEO. She will assume the role of CEO Designate on June 1, 2026, working alongside Dr Friedland, who will formally retire from the board on December 31, 2026.
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