| UNAUDITED INTERIM RESULTS |
| for the six months ended 31 December 2024 and cash dividend declaration |
| Revenue -1% |
| · Gross profit -5% |
| · HEPS -9% |
| · Dividend 115 cents |
| · B-BBEE level 1 |
| Introduction |
| The Group's operational and financial performance during the period under review ended below expectations, driven by several sector-specific factors, including constrained consumer spending within the lower LSMs and reduced inventory holdings in the pharmaceutical wholesaler’s channel, evidenced by their sales into pharmacies being higher than orders placed on the Company. |
| The reduced demand adversely impacted the gross margin due to significantly reduced production levels in the period, particularly |
| at the Wadeville facility. The Board of Directors (Board) is pleased to report that Adcock Ingram is now a certified Level 1 B-BBEE contributor. |
| Prospects |
| The implementation of a SEP adjustment of 5.25% in February 2025 will assist in countering the gross margin pressure, but we |
| do not foresee that the Wadeville facility will materially increase output in the next six months. Lower interest rates and reduced inflation should provide some relief to constrained consumers going forward. Nonetheless, we remain concerned about unemployment, the effect of which has an impact on a number of our brands. We expect some recovery in the independent wholesale channel and envisage a movement towards normal |
| inventory holdings at two of our large pharmaceutical wholesale customers. Management remains committed to seeking additional affordable brands to expand the non-price-regulated portfolio and pursuing further partnerships with multinational pharmaceutical companies as they evaluate their front-end models in South Africa. |
|
Change |
The unaudited six-month period ended
31 December |
The unaudited six-month period ended
31 December |
| % |
2024 |
2023 |
| Revenue |
(R'000) |
(1) |
4 |
714 234 |
4 |
740 424 |
| Gross profit |
(R'000) |
(5) |
1 |
535 606 |
1 |
609 667 |
| Operating profit |
(R'000) |
(17) |
|
487 328 |
|
585 747 |
| Headline earnings per share |
(cents) |
(9) |
|
265.5 |
|
293.0 |
| Basic earnings per share |
(cents) |
(9) |
|
265.5 |
|
291.3 |
| Total assets |
(R'000) |
|
8 |
743 013 |
8 |
329 023 |
| Net asset value per share |
(cents) |
|
|
3 777.5 |
|
3 625.8 |
| Dividend declared per share |
(cents) |
|
|
115.0 |
|
125.0 |
| Segment revenue Consumer |
(R'000) |
1 |
|
870 539 |
|
866 028 |
| OTC |
(R'000) |
(4) |
1 |
101 971 |
1 |
149 370 |
| Prescription |
(R'000) |
(5) |
1 |
625 661 |
1 |
712 894 |
| Hospital
Segment trading profit Consumer |
(R'000)
(R'000) |
10
(6) |
1 |
115 452
177 414 |
1 |
011 992
188 670 |
| OTC |
(R'000) |
4 |
|
171 852 |
|
164 955 |
| Prescription |
(R'000) |
(52) |
|
89 884 |
|
189 131 |
| Hospital |
(R'000) |
- |
|
74 238 |
|
74 198 |
| Cash dividend declaration |
|
|
|
|
|
|
The Board has declared a final gross dividend out of income reserves of 115 cents per share in respect of the six months ended 31 December 2024. The South African dividend tax ("DT") rate is 20%, and the net dividend payable to shareholders who are not exempt from DT is 92 cents per share. |
| Adcock Ingram currently has 161 300 000 ordinary shares in issue and qualifying for ordinary dividends. The income tax reference number is 9528/919/15/3. |
| The salient dates for the distribution are detailed below: |
| Last date to trade cum distribution: Tuesday, 11 March 2025 |
| Shares trade-distribution: Wednesday, 12 March 2025 |
| Record date: Friday, 14 March 2025 |
| Payment date: Monday, 17 March 2025 |
| Share certificates may not be dematerialised or rematerialised between Wednesday, 12 March 2025 and Friday, 14 March 2025, both dates inclusive. |
| For the full document, click the link below: |
| Adcock Ingram Holdings Limited |
| Stay ahead of the curve! Subscribe to InsidEntity for daily updates on all your favourite companies. |
