Wrap Text
Unaudited interim results for the six months ended 31 December 2024 and cash dividend declaration
Adcock Ingram Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number: 2007/016236/06
Share code: AIP
ISIN: ZAE000123436
("Adcock Ingram" or "the Company" or "the Group")
TOP RANKED PHARMACEUTICAL COMPANY IN THE SOUTH AFRICAN PRIVATE MARKET
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 LSM's and reduced inventory holdings in the
pharmaceutical wholesalers 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 an 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.
Unaudited Unaudited
six-month six-month
period ended period ended
Change 31 December 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 (R'000) 10 1 115 452 1 011 992
Segment trading profit
Consumer (R'000) (6) 177 414 188 670
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 ex 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.
N Madisa AG Hall
Chairperson Chief Executive Officer
Approved by the Board: 19 February 2025
SENS release date: 20 February 2025
Adcock Ingram Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 2007/016236/06) Share code: AIP ISIN: ZAE000123436
("Adcock Ingram" or "the Company" or "the Group") Company secretary M Phalafala Registered office 1 New Road, Midrand, 1682
Postal address Private Bag X69, Bryanston, 2021 Transfer secretaries Computershare Investor Services Proprietary Limited, Rosebank Towers,
15 Biermann Avenue, Rosebank, Johannesburg,2196. Private Bag X9000, Saxonwold, 2132
Auditors PricewaterhouseCoopers Inc, 4 Lisbon Lane, Waterfall, 2090 Sponsor Rand Merchant Bank
(a division of FirstRand Bank Limited), 1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
Bankers Nedbank Limited, 135 Rivonia Road, Sandown, Sandton, 2146. Rand Merchant Bank, 1 Merchant Place, corner Fredman Drive and Rivonia Road,
Sandton, 2196. Investec Bank Limited, 100 Grayston Drive, Sandton, 2146
The unaudited interim results for the 6 months ended 31 December 2024 ("interim results") have been published on SENS and are available at
https://senspdf.jse.co.za/documents/2025/JSE/ISSE/AIP/AIP012025.pdf.
The contents of this results announcement are the responsibility of the Board of Directors.
As this results announcement does not contain full details, any investment decision should be based on the contents of
the information contained in the interim results, which are also available on the Company's website at www.adcock.com/investors/financialreports.
Date: 20-02-2025 07:05:00
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