Company news in brief

Netcare posts higher HEPS

South Africa's Netcare Ltd said yesterday its first-half results for 2020 would take a hit from hospital network arrangements and reported higher full-year headline earnings per share, in line with its forecast.

The private hospital firm said headline earnings per share more than tripled to 165.9 cents for the year ended Sept. 30, compared to last year when its earnings were hit by costs related to selling its interests in UK's BMI Healthcare.

Adjusted HEPS rose to 171.2 cents, compared to 158.1 cents last year. Headline EPS is the main profit measure in South Africa and strips out certain one-off items.

Netcare said 2019 hospital network arrangements will impact the first quarter of next year, but the company had secured participation as an anchor provider in new restricted hospital networks which is expected to have a positive impact.

It also expects an about R50 million increase in central costs next year, and will take a one-off, non-cash IFRS 2 charge of R347 million from a broad-based black economic empowerment transaction.

Normalised group earnings before interest, tax, depreciation and amortisation (EBITDA) rose 4.3% to R4.39 billion, while the normalised EBITDA margin was unchanged at 20.3%. – Nampa/Reuters

Pioneer Food reports 6% fall in profit

South African food and drinks company Pioneer Food Group Ltd yesterday reported a 6% fall in full-year profit and said it expects its takeover by PepsiCo Inc for US$1.7 billion to be finalised in early 2020.

Pepsi announced the deal in July in a boost to Pioneer's shares and a sector hurt by drought and tough trading conditions.

Pioneer said yesterday the companies had filed their submissions for regulatory approvals in a number of markets, with South African regulators expected to make an announcement on the matter next year.

The company also reported a drop in headline earnings per share to 511 cents in the year to Sept. 30, from 545 cents a year earlier.

Pioneer, whose brands include Weet-Bix cereal, Liqui Fruit juice and Sasko bread, said its revenue and volume growth was "acceptable" given the difficult environment, hurt by weak demand and maize shortages. The company uses the staple crop in many of its products. – Nampa/Reuters

SA Premier League smashes revenue mark

The South African Premier Soccer League (PSL), boosted by a lucrative TV deal, posted record revenue of more than R1 billion last season.

A statement said TV rights and sponsorships from banks, telecommunication and engineering companies were responsible for the R1,005 billion bonanza.

The PSL runs a 30-round league, which the SuperSport channel screens throughout Africa, and the first prize increased 50% to R15 million for the 2019/20 season.

SuperSport paid more than R2 billion this year for a five-year renewal of the deal to screen the South African Premiership and three knockout competitions.

The Johannesburg-based pay-to-view channel has a reported seven million subscribers in South Africa, and millions more spread across the rest of Africa.

One challenge for the PSL is attracting more spectators to fixtures not featuring the big crowd-pullers, Soweto sides Kaizer Chiefs and Orlando Pirates and Pretoria-based Sundowns. – Nampa/AFP

Ethiopian undecided on more Boeing 737 MAX

Ethiopian Airlines has not decided yet whether to take more deliveries of the 737 MAX, the jet grounded worldwide in the wake of crashes in Ethiopia and Indonesia, the airline's CEO said on Sunday, as Boeing completes revisions to the aircraft's design.

Asked at the Dubai Airshow whether he supported changes to software and training being finalised by Boeing, Tewolde Gebremariam said, "It is still work in progress ... We will have to see it completed and the result of the further tests that are still to come."

Reports into the March 10 crash in Ethiopia and a Lion Air accident in Indonesia, which killed a combined total of 346 people, have suggested an automated system erroneously pointed the planes' noses down repeatedly after take-off.

Boeing says it has revised the software system to prevent repeated dives and is waiting for the approval of US and global regulators before putting the plane back in service, expected early next year.

Asked whether Ethiopian Airlines would take any further deliveries of the aircraft, of which it has more than 20 on order, Tewolde told reporters: "We have not yet decided." – Nampa/Reuters

Aramco declares blockbuster IPO

Saudi Arabia on Sunday put a value of up to US$1.71 trillion on energy giant Aramco in what could be the world's biggest IPO, but missed crown prince Mohammed bin Salman's initial target of US$2 trillion.

Aramco said it would sell 1.5% of the company in a blockbuster initial public offering worth US$24-25.6 billion, scaling down Saudi Arabia's original plan to sell up to five percent of the firm.

The much-delayed offering, a cornerstone of de facto ruler Prince Mohammed's ambitious plan to diversify the oil-reliant economy, could exceed the world's biggest listing - the US$25 billion float of Chinese retail giant Alibaba in 2014.

But the plans are a long way from the crown prince's initial aim to raise as much as US$100 billion from a dual listing - a first flotation of 2% on the kingdom's Tadawul bourse, followed by a further 3% on an overseas exchange.

The firm has said there are no current plans for an international stock sale and the IPO seems to be banking on local demand, with one-third of the offering reserved for Saudi retail investors. – Nampa/AFP