Healthcare group AfroCentric has generated controversy as it announced a significant decline in annual profit, leading to the company’s decision to skip dividend payments to shareholders.
- The decline in profit is attributed to various factors, including company restructuring and a decrease in demand for healthcare services following the end of the Covid-19 pandemic.
- AfroCentric’s pharmaceutical cluster, which experienced a surge in sales during the peak of the pandemic, has now returned to pre-Covid levels, resulting in decreased revenue.
- Shareholders are expressing disappointment and frustration over the decision to forgo dividend payments, as they were anticipating returns on their investments.
- The company, valued at approximately R2.8 billion on the Johannesburg Stock Exchange (JSE), acknowledged the impact of these changes and expressed the need to navigate the evolving healthcare landscape.
- AfroCentric’s decision comes at a time when independent journalism in South Africa is being emphasized, and readers are urged to support organizations providing credible news and analysis.
- The healthcare industry remains under scrutiny as investors and industry experts analyze the implications of declining profits and changing market dynamics on companies like AfroCentric.