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AfroCentric Group, the Johannesburg-based healthcare investment company led by Gerald van Wyk, reported a slight decline in revenue for the first half of 2025. Revenue for the six months ending June 30 fell to just under $240 million, driven mainly by fewer private patient prescriptions following the loss of Pharmacy Direct contracts and weaker margins on hospital products.
In its latest half-year report, AfroCentric said revenue dropped 2.6 percent to R4.21 billion ($237.67 million) from R4.32 billion ($243.91 million) a year earlier. The decline reflected lower private patient prescriptions after the company lost designated service provider contracts in Pharmacy Direct, along with thinner margins on hospital products.
Despite the weaker top line, the company returned to profit, posting R106.65 million ($6.02 million) in earnings, compared with a R110.72 million ($6.25 million) loss in the previous year. This improvement came from stronger performance in core operations. Basic earnings of R9.71 billion ($547.78 million) also reversed a loss of R118.4 million ($6.68 million) a year earlier, while earnings per share rose to R0.115 ($0.0068) from a loss of R0.143 ($0.008).
Services gain, retail struggles
AfroCentric’s services segment saw growth of 8.7 percent, supported by scheme growth, gains from Fedhealth, fee adjustments, and higher primary health insurance revenue. These gains were partly offset by a decline in Bonitas membership following the end of Boncap’s contract and lower ADS marketing income. Operating earnings in this segment rose 3.7 percent, although higher clinical service costs and spending on product development and cybersecurity weighed on margins.
By contrast, the retail segment, anchored by Pharmacy Direct, faced a 14.2 percent revenue decline. The drop reflected the loss of Boncap and Primary Option contracts, as well as weaker hospital product margins. Inflation-linked fee increases at Scriptpharm softened the impact, but operating earnings still fell 13.2 percent. AfroCentric said it is focusing on tightening working capital management and optimizing inventory in this segment.
Looking ahead
AfroCentric, a Black-owned healthcare investment firm listed on the JSE, is a key player in Southern Africa’s health management sector. Through unit such as Medscheme and Pharmacy Direct, the group administers medical schemes, delivers managed care, distributes medicines, and develops digital health solutions, serving more than 4 million people across the region.
Since taking over as CEO in October 2023, Gerald van Wyk has focused on expanding the group’s footprint, strengthening its managed care offerings, and advancing digital modernization. Central to this effort is AfroCentric’s Vision 2030 agenda, pursued amid regulatory changes and evolving healthcare contracts.
The group is also collaborating with majority shareholder Sanlam to integrate products more closely and broaden distribution. Financially, total assets edged up 0.74 percent to R5.5 billion ($307.63 million), while total equity slipped 2.1 percent to R3.33 billion ($187.92 million). Despite ongoing operational pressures, AfroCentric is moving forward with initiatives to stabilize earnings, improve efficiency, and build a stronger foundation for long-term growth.
