Adcock Ingram reports interim earnings decline
ADCOCK Ingram, the South African pharmaceutical manufacturer, reported a double-digit decline in its half-year earnings, due to low levels of patients consulting doctors and postponement of elective surgeries.
Its headline earnings per share declined by 14.6 percent to 186.5 cents a share for the six months to end December, down from 218.5c compared to last year.
Chief executive Andy Hall said the results were achieved in a challenging trading and operating environment, with the uncertainty that the Covid-19 pandemic continues to bring.
“Despite these challenges, Covid19 has also presented the company with opportunities to adapt to the ever-changing environment, and at the same time deliver on our promise of ‘Adding value to life’ by producing and supplying life-saving and acute medicines especially at a time when they are needed the most,” Hall said.
Group turnover rose by 4 percent to R3.8 billion.
Its price realisation was 4.7 percent, slightly ahead of the single exit price increase of 4.5 percent awarded in February 2020 while organic volumes declined by 6 percent, mainly as a result of the absence of a cold and flu season which severely impacted the over-the-counter division, where cough and cold formulations normally make up 40 percent of their portfolio.
Its trading profit fell by 11.7 percent to R433 million, but the group declared an interim dividend of 80c.