Discovery Group's half-year results
This morning I delivered Discovery’s interim results to the analyst community and touched on important strategic themes for the Group going forward. The COVID-19 pandemic continues to dominate the landscape, creating not only market uncertainty but real human tragedy. Over the period we continued our strategy of supporting our people, members and broader society, while maintaining a prudent approach to capital and liquidity. Against this backdrop, the Group performed excellently with resilient COVID-19 provisions and reserves, although market volatility affected our normalised and headline earnings. Normalised operating profit increased by 19% to R4 507 million, and total new business was up 8% to R10 920 million. Normalised headline earnings decreased by 1% to R2 284 million. Importantly, the organic growth model continues to deliver, with Established businesses achieving 11% profit growth, while the Emerging businesses saw exceptional growth rates, up 81%. Investment in New initiatives stood at 22% of earnings, with more than 60% going to Discovery Bank. You can see the full results presentation here.
A key strategic point is that Discovery’s business model has proven to be highly relevant during the COVID-19 pandemic and the trends emerging are likely to accentuate this relevance in a post-COVID world. These include a focus on wellness and resilience; the importance of healthcare; the growth of digital platforms; and the rise of purpose and ESG. We are confident in our ability to capitalise on these emerging opportunities as our purpose, model and capabilities position us strongly. Over the medium term, Ambition 2023 remains the strategic focus, with the goal of being a leading financial services organisation globally, positively influencing 100 million lives – with 10 million directly insured – and being a powerful force for social good.
I want to thank our remarkable people for the exceptional work done over this period and the continued support to our members, nation and broader society.
Child of God • Whistleblower • Activist: GBVF & Corruption • Victim Advocacy • Public Speaker • Artist
4yAdrian, could you give the audience some clarification on how “we continued our strategy of supporting our people, members... while maintaining a prudent approach to capital and liquidity?” This prudent approach would be inferring to your ‘people, members’ claims being repudiated/stalled/suspended/terminated/ex-gratia’d across almost all of your businesses divisions? This includes your very own “people’s” Discovery Group Life Employee Benefits? This the “liquidity” you’re referring to? The lump sums, payouts, income protections that should be paid to your members rather than funding your “new initiatives?” “Discovery’s Ambition 2023 remains the strategic focus for the medium-term... well positioned for growth... with the capital plan able to fund its new initiatives.” The business acumen & company culture of Discovery is far off instilling confidence in the current people/members/staff, let alone the market, albeit the ‘Congrats’ / ‘This is great!’ comments posted here. The vision you left Liberty for, straight to FNB for start up CAPEX for Discovery, is a far different organisation that I see before me now- Advise from a member? Crawl before you walk, before you run, kind-of-advise. Back2Ground0. Discovery Limited Adrian Gore
Doing Great Things contemplating the next steps
4yBrilliant results I tough economic times, well done 👏
Marketing Technologist
4yDiscovery is truly a world leader in delivering medical aid. Kudos to you and your amazing team. Proud to be a member since inception.
Organizational leadership/Coaching/Speaking/Designing/Delivering people, culture & leadership initiatives
4yPeople program productivity- when people are considered intentionally we can run programs and make profit. It is important that big business consider innovation and more opportunities that can be launched by reducing declared profit and returning more to people focussed quality of life.
ESD Senior Project Manager at LEAP. Economist | Business Development | Strategy | Business and Systems Analysis | B-BBEE Transformation | Business and Student Mentor |
4yInteresting! I like