AfroCentric FY2025 loss

AfroCentric Investment Corporation, a Johannesburg-listed investment holding company majority owned by Sanlam, has warned shareholders to expect a sharp swing in reported earnings for the year ended Dec. 31, 2025, citing structural reporting changes and significant impairment charges, even as underlying operations showed resilience.

In a trading statement issued under Johannesburg Stock Exchange listings requirements, the healthcare administration and managed care group said it expects a loss per share of between R1.5 ($0.09) and R1.53 ($0.092) for the 12 months, compared with a loss of R0.15 ($0.01) per share in the prior corresponding period, representing a decline of more than 100%.

Headline earnings per share, however, are projected to rise to between R0.135 ($0.01) and R0.143($0.011), more than tripling from R0.038 previously reported.

Reporting changes distort comparability
AfroCentric said the earnings volatility largely reflects its decision to shift its financial year-end from June 30 to Dec. 31 in December 2024. As a result, prior-period figures are not directly comparable to the latest 12-month reporting cycle. The reporting change materially affects year-on-year analysis under JSE Listings Requirements.

Impairments and contract losses weigh
The group recognized impairment losses across several Service Cluster entities, including Medscheme. The move followed Bonitas’ Jan. 29 decision to award certain key contracts to alternative service providers effective June 1, 2026. Additional pressure came from operational underperformance at Activo, now classified as held for sale.

Core operations show resilience
Despite the reported loss, AfroCentric’s core local administration and managed care divisions remained resilient. Capitation-based revenue streams, particularly in dental and managed care segments, supported the improvement in headline earnings.

AfroCentric expects to release its audited full-year 2025 results on or about March 3, 2026. The financial information in the trading statement has not been audited or reviewed by external auditors.

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