Aspen interim results: Gross revenue up by whopping 47%

(Johannesburg) – JSE Limited listed Aspen Pharmacare Holdings Limited (APN), the fifth largest generic company in the world, has announced stellar results for the six months ended 31 December 2014, which have primarily been driven by its offshore businesses.

Group Performance

• Gross revenue increased by 47% to R19.0 billion.
• Operating profit rose by 50% to R4.3 billion.
• Net profit after tax and earnings per share each advanced 27% to R2.5 billion and 539 cents respectively.
• Normalised headline earnings, being headline earnings adjusted for specific non-trading items, increased by 22% to R2.6 billion.
• Normalised headline earnings per share improved by 22% to 569 cents.
• Borrowings net of cash reduced by R1.2 billion while cash generated from operating activities accelerated 128%.

Stephen Saad, Aspen Group Chief Executive said, “We are pleased with the Group’s excellent performance. These results were underpinned by the expansion of our International business, which now contributes 46% to the Group’s gross revenue. The Nutritionals products have also made an increased contribution to the Group.”

“The global pharmaceutical industry is experiencing a prevalence of restructuring and consolidation, which creates acquisitive opportunities. Aspen is well placed to participate in these and its proven capability to successfully execute complex multi-territory transactions makes Aspen a strong candidate for such opportunities,” said Saad.

International Business

Revenue in the International business was 158% higher at R8.8 billion and performance was boosted by the inclusion of the significant transactions completed during the previous financial year.

Revenue from the Europe CIS business climbed 229% to R5.1 billion from finished dose form pharmaceuticals and active pharmaceutical ingredient sales.

Revenue in Latin America advanced 118% to R2.6 billion, largely driven by the recent infant milk formula acquisition, while sales to customers in the Rest of the World were up 36% to R0.9 billion.

Capital expenditure projects are continuing at Aspen Oss in the Netherlands and at the French- based Aspen Notre Dame de Bondeville site.

Asia Pacific Business

Revenue in the Asia Pacific region was 3% higher at R4.4 billion where the Nutritionals products led the way with strong double-digit growth. Sales to customers in Asia continued on an impressive growth trajectory, doubling to R0.6 billion.

South African Business

As the ongoing leading pharmaceutical manufacturer in the country, revenue in the South African business grew by 12% to R4.3 billion. Private sector pharmaceutical sales increased 10% through a combination of organic growth and new product launches. Sales in the public sector were flat. The consumer division raised revenue by 30%, led by the Nutritionals products with Infacare achieving an increase in its share of this category.

The capital expenditure projects at the Port Elizabeth finished dose form manufacturing site and the Cape Town API manufacturing site are progressing well.

Sub-Saharan Business

In Sub-Saharan Africa, revenue improved by 5% to R1.5 billion. Margin improvement initiatives yielded positive results and lifted EBITA 12% to R210 million.

For more information about the Aspen Group, go to www.aspenpharma.com