Local pharmaceutical company, Adcock Ingram Group has
reported a 17% increase in trading profit for the six-month period ended 31
December 2018 despite a strictly price-regulated environment, coupled with
tough trading conditions as a consequence of continued pressure on the
‘The Group’s positive set of results can be attributed to
the resilience within our diversified portfolio with growth in sales and market
share and continued focus on customer service and uncompromised product
quality,’ said Adcock Ingram CEO, Andy Hall.
Gross margin improved to 38.7%, driven by an advantageous
sales mix and improved throughput at the Clayville factory.
Operating expenses increased by 6% on a like-for-like
basis, resulting in a 17% improvement in trading profit to R485 million (2017:
R416 million). All the commercial divisions recorded an increase in
Headline earnings for the period under review from
continuing operations increased to R361.2 million when compared to R310.3
million in the previous year. This translates into headline earnings per share
from continuing operations of 217.2 cents, an increase of 16.4%.
An interim dividend of 100 cents per share was
declared for the six months ended 31 December 2018, an improvement of 16% over
the comparable period.
‘The Group remains focused on improving its
operational efficiency, growing the established brands and expanding its
product range through the acquisition of non-regulated brands to defend its
position in the market. The low Single Exit Price (SEP) increases granted to
the industry in March 2018 of 1.26% and 3.78% in the current calendar year do
not compensate for the above inflationary increases in salaries, wages and
utilities’ Hall noted.
He says the allocation of 12% of government’s HIV
tender for 2019 to Adcock reflects positively on the company’s manufacturing
capability, breadth of product offering and historical service delivery levels..
The full results information can be accessed on the
Adcock Ingram website at: http://www.adcock.co.za/Investors/FinancialReports.