Our Financial Capital

As a result of various process improvement initiatives in the finance space, we achieved excellent results for the 2022/2023 financial year and this despite an external environment that has continued to be extremely challenging.

What financial capital means to SANBS

Our financial capital consists of the pool of funds that is available to us to collect blood, conduct research and development, provide services and invest in technology, people and growth. It is largely obtained through grants and financing, generated through our operations.

CFO Financial Review


It is with pleasure to present the 2022/2023 financial year’s CFO report wherein we will talk not only about the accomplishments and strategic initiatives but also outline the financial performance of SANBS in an environment that has continued to be extremely challenging. Despite these challenges, and as a result of various process improvement initiatives in the finance field, SANBS achieved excellent results for the 2022/2023 financial year. SANBS remains committed to providing trusted blood products and services to all patients at a world-class level of cost and quality.

The environment in which we are operating

We could not have asked for a better start to the year as we saw the National State of Disaster being lifted and expectations of an economic recovery being created. The doom and gloom of economic restrictions brought on by various stages of lockdowns was a thing of the past. Unfortunately, the feelings of euphoria did not last as it became very clear that the Russia-Ukraine war was going to have a devastating effect on the world.

The Russia-Ukraine war, which sparked the largest conflict in Europe since World War II, had repercussions that have continued unabated around the world. Not only has the war in Ukraine set off geopolitical alignment, it has caused economic hardship far from the epicentre of the fighting. It contributed to volatile and elevated commodity and energy prices, which exacerbated food shortages and stoked inflation in many regions across the world, leading to rising interest rates and cost of credit.

The effect of this on the South African economy is that it has affected the ability of private patients to pay their debt to SANBS, as well as payment from government and government institutions coming under pressure.

Increased collection efforts

SANBS, which embarked on several initiatives to improve cash collection levels in the previous financial year, reaped the benefits of those improvement initiatives in the current year as we saw a steady increase in monthly cash collected throughout the year, despite the hardship brought on by the pressures identified above.


Outstanding financial results

SANBS set a new milestone and achieved outstanding financial results for the 2022/2023 financial year, with an overall surplus of R394.0m. The achieved surplus was R143.4m greater than the forecast surplus for the year and represented an 85% increase on the prior year’s surplus of R212.0m. The higher surplus than forecast is a result of a lower-than-expected provision for doubtful debts, due to improved collection efforts, continued focus on efficiencies, and strict expenditure control across the business, while striving to provide reliable and best-quality service.

Revenue increased by 10% to R4.0bn during FY2023 which was lower than the 13% increase achieved in FY2022. The increase was a result of the tariff increase and the increase in demand for blood and blood products as well as cellular therapeutic services during the year. Cellular products, at 75.4% of total revenue for both the 2022/2023 and 2022/2021 financial years, remained the highest contributor to total revenue.

Expenses increased by 7.4% as activity levels spurred on by pent-up demand in the previous financial year started to normalize. We were also able to fill in permanent positions at a quicker rate than we did previously to ensure that all vacancies are filled based on the business needs of SANBS.

Other income decreased by R30.4m as the profit in the prior year related to the profit made on the disposal of assets. Net interest income increased from R54.0m to R108.0m, as interest rates and cash balances increased during the year. Net working capital was R591.5m as at 31 March 2023, up from R558.0m on 31 March 2022. Accounts receivable increased during the year from a total gross amount of R1,794bn to R1,843bn. The breakdown between the private sector and the government sector remained consistent.

The total gross amount due at 31 March 2023 was:

Accounts Receivable 2023
% 2022
Private Sector 939,930 51% 914,887 51%
Government Sector 903,070 49% 879,009 49%
Total 1,843,000 1,793,896

Debtors Days decreased from 155 days to 149 days, mostly due to the write-off of R137m non-government debtors older than 2018, but also due to the focused efforts on debtors by the Debtors task team that was formed in the previous financial year. This task team, which includes the CEO, CFO, Medical Director, and other executives, continues to meet weekly to review the debtors balance, collections, and progress on engagements with large debtors. Engagements include discussions with national and provincial departments of health and some medical aids to ensure timeous collections. A renewed focus on the process improvement of the end-to-end Order-to-Collect cycle also commenced in the 2022/2023 financial year.

The impact on future collections, especially from private patients, remains uncertain, especially as there is a concern that the economy will continue to deteriorate due to the pandemic and other socio-economic pressures. Details of our results are contained in our Annual Financial Statements on the SANBS website.

Update on the credit note irregularity previously reported

We have previously reported a control weakness discovered in October 2018, which led to refunds and payments that were made to medical aids. The quantification of the credit notes issued to the 53 medical aid schemes was completed during the 2019 financial year.

The credit note issue and audit disclaimer remained an ongoing focus of management and our Audit Committee, and during the 2021/2022 financial year, all but ten medical aid agreements were concluded, 5 of which are on hold as they related to the GEMS litigation case. This matter was finalized during the financial year and of the 5 remaining at the end of the 2021/2022 financial year, only 3 remained unresolved at the end of the 2022/2023 financial year. We carry a provision of R705k which we believe is adequate.


The independence of our external auditors is very important and any non-audit services performed by Deloitte are approved by the Audit Committee, prior to services being rendered. During the year, Deloitte assisted with the administration of our anonymous tip-off line. Our internal audit function was outsourced to Mazars – having been appointed in this capacity since September 2019. SNG Grant Thornton have subsequently taken over the internal audit function from Mazars.


The 2022/2023 financial year saw us remaining focused on process improvements, identification of cost-reducing efficiencies and automation of finance processes that would lead to elimination of manual processes which results in delays and errors.

Additional internal improvement areas were identified, with plans developed, cross-functional task teams set up and clear objectives set for the 2022/2023 financial year. Focused optimisation and business improvement efforts, specifically for the end-to-end Procure-to-Pay and Order-to-Collect process, and continued in the current year with planned completion in FY2024.

With the world remaining a volatile and uncertain place and the global economic outlook struggling, the projects that we have embarked on take on more of an important and significant meaning. Ensuring the efficiency and effectiveness of all processes, improvement of cash collections, tight expenditure control, and continued management of investments and cash reserves becomes paramount. Global inflation and energy uncertainty will continue to have a significant impact on the business landscape. It is therefore important that strategic partnerships that are being formed are firmed up and we work together with all stakeholders in contributing to the affordability of healthcare and continued service delivery to our people. SANBS remains committed to providing trusted blood products and services to all patients at a world class level of cost and quality.


The Finance team was under tremendous pressure with several changes in leadership and challenges around stability, capacity and continuity. Despite these pressures, management, with the support of the Audit Committee and the Board, achieved excellent results and managed to navigate these challenges skillfully.

Thanks are extended to the Executive Committee for their support during the year. The dedication and tenacity of the Finance team are commendable and deserve mentioning. It is through their continued efforts that SANBS’ financial management and reporting is completed timeously and accurately, with the required governance and compliance to all applicable laws and regulations. This support is greatly appreciated under very difficult circumstances.

Very special thanks are extended to the teams from all the different business areas that worked together tirelessly to achieve the increased efficiencies and overall success of this past financial year.

We appreciate the cooperation and engagement during the year of our service providers, our medical aid partners, as well as the National and Provincial Departments of Health. We look forward to continued and renewed trusted partnerships and remain committed to living up to our purpose of being “Trusted to save lives.”