Wrap Text
Trading statement for the six months ended 31 December 2024
Ascendis Health Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2008/005856/06)
Share code: ASC
ISIN: ZAE000185005
Listed on the General Segment of the Main Board
("Ascendis" or "the Company" or "the Group")
TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2024
In terms of the Listings Requirements of the JSE, a listed company is required to publish a trading
statement as soon as a reasonable degree of certainty exists that the financial results for the period
to be reported on next will differ by 20% or more from the financial results for the previous published
corresponding period.
Shareholders are referred to the announcement released on the Stock Exchange News Service
("SENS") on 3 September 2024 in which Ascendis advised shareholders of the Group's transition to
an Investment Entity. Following the announcement, effective 1 July 2024, the Group met the
requirements as set out in IFRS 10 exemption as an Investment Entity and therefore ceased to
consolidate its subsidiaries in accordance with the requirements set out in the standard. Ascendis
therefore measures its investments through fair value through profit and loss. The results ended 31
December 2024 are reflective of the material change in reporting.
An investment company prioritises transparency and ensures a continuous, active process to assess
whether the Group is acting in the financial best interest of its shareholders. It offers a cost-effective
way to align management's decisions and actions with shareholder interests by proactively evaluating
the return on investment for each business within the Group's portfolio. Additionally, it enables the
Group to bring in equity partners at the portfolio company level and provide equity incentives for
management at the investment level with relative ease.
As a result, it is more appropriate to report on net asset value as a performance metric and it has
therefore been resolved to adopt Net Asset Value Per Share as the Group's relevant financial
measure for trading statement purposes going forward. This metric reflects the value of the Group's
investments and unless a disposal occurs, the reported earnings (or losses) are primarily unrealised
gains or losses, driven by fluctuations in the value of the underlying investment portfolio.
In light of the above, the board of directors of Ascendis advises shareholders that a reasonable degree
of certainty exists that the financial results for the six months ended 31 December 2024 ("Current
Period"), when compared with the published or restated results for the six months ended 31
December 2023 ("Prior Corresponding Period"), are expected to differ as follows:
31 December 31 December 31 December 2024
2023 (Unaudited) 2024 (Unaudited) Expected
- Cents - Expected in Increase/(decrease) in %
Cents
Tangible Net Asset Value 94 101.7 to 119.4 8.2% to 27.1%
per share
Headline earnings/(loss) per 3.4* 4.7 to 5.3 38.2% to 55.9%
share
*31 December 2023 headline earnings per share have been restated from 12.7 to 3.4 cents per share
as a result of the "reacquisition" of Surgical innovations from an accounting perspective during the
prior period. The once off gain has been adjusted to reflect normalised headline earnings. Refer to
the reconciliation below.
Shareholders are further advised of the expected decrease in the earnings per share of between 5.8
and 7.1 cents in the Current Period, compared to 31 December 2023: 12.7 cents (a decrease of 44%
to 54%). Shareholders should be cautious when comparing EPS year-on-year, as this decrease is
partly attributable to the change in Ascendis' reporting as an Investment Entity as noted above, as
well as the inclusion of the non-recurring Surgical Innovations reacquisition gain in the prior period as
noted above.
The Medical portfolio, which consists of five investee entities (The Scientific Group, Surgical
Innovations, InterV Med, Cardio Tech and Ortho Xact), provides lifesaving medical devices to the
private and government sectors. The net asset value of this portfolio grew by 16.5% from 1 July 2024
until 31 December 2024, increasing its net asset value to R252 million to end December 2024 (1 July
2024: R217m). Surgical Innovations exited business rescue in 2023 but remains under pressure
operationally and from a cash flow perspective. The Scientific Group was able to onboard new
agencies and is a growing business. Through the improved cash position of the group, Ortho Xact
was able to acquire two strategic agencies in the orthopaedic division.
The Consumer portfolio is made up of three investee companies: Ascendis Consumer Brands,
Chempure and The Compounding Pharmacy of SA. This portfolio faced subdued consumer demand
and retail pricing pressure and grew by 1% from 1 July 2024 until 31 December 2024, increasing its
net asset value to R467m (1 July 2024: R463m). Good cash management and improvement in
working capital means the portfolio is now in a position to launch new products to the market, including
in weight management (where a strategic acquisition has been made). There is a positive outlook for
the future as the portfolio's brands are able to innovate and grow.
Looking ahead, the board is optimistic about the Group's future. The Group has worked hard to cut
and restructure expenses, which has led to significant savings. Using its improved working capital
and debt free position, Ascendis plans to grow by introducing new consumer-facing products, expand
into new areas, and will consider acquiring other businesses when opportunities arise.
Cost control and managing cash flow remain priorities. While the Company has done well in handling
its finances, ongoing challenges in the broader economy mean careful budgeting and smart
investment decisions will remain essential, but Ascendis is in a better financial position in order to
launch new medical devices and new consumer wellness products and grow market share.
This trading statement is the responsibility of the directors and the financial information on which this
statement is based has not been reviewed or reported on by the external auditors of the Company.
The expected publication date of the Company's condensed unaudited results is 27 March 2025.
Restatement of Prior Corresponding Period
31 December 2023 headline earnings per share have been restated from 12.7 to 3.4 cents per share
as a result of the "reacquisition" of Surgical innovations from an accounting perspective during the
prior period. The once off gain has been adjusted to reflect normalised headline earnings. Refer to
the reconciliation below.
The Prior Corresponding Period results have been restated accordingly as follows:
Six months ended
31 December 2023
Restated
R'000
Total Total
Operations Operations
As reported *Restated
Basic profit/(loss) per share
Profit/(Loss) attributable to owners of the parent 79,527 79,527
Profit/(Loss) 79,527 79,527
Weighted average number of ordinary shares in issue 626,045,476 626,045,476
Basic profit/(loss) per share (cents) 12.7 12.7
Headline earnings/(loss) per share
Profit/(loss) attributable to owners of the parent 79,527 79,527
Adjusted for:
Net loss/(profit) on the sale of property, plant and equipment 1,364 1,364
Tax effect (368) (368)
Profit on reacquisition and loss of control of subsidiary* (27,169) (85,198)
Goodwill, intangible asset and tangible asset impairment 26,111 26,111
Headline earnings/(loss) 79,465 21,436
Weighted average number of shares in issue 626,045,476 626,045,476
Headline earnings/(loss) per share (cents) 12.7 3.4
Further details on the restatement will be included in the unaudited results for the six months ended
31 December 2024.
Johannesburg
24 March 2025
Sponsor
Valeo Capital (Pty) Ltd
Date: 24-03-2025 03:26:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
