The Star Late Edition

Ascendis Health shares fall on weak earnings report |

- SANDILE MCHUNU sandile.mchunu@inl.co.za

ASCENDIS Health fell nearly 5 percent on the JSE yesterday after the South African-based global health and care company reported weak earnings as a result of difficult local market conditions, supply challenges and working capital constraint­s.

The group said its normalised earnings before interest, tax, depreciati­on and amortisati­on (Ebitda) in South Africa declined 7 percent against an 11 percent growth internatio­nally during the six months to end December.

It said the internatio­nal revenue increased to R2 billion and it now accounts for 50 percent of the group’s total sales, while the South African revenue declined by 1 percent due to tough consumer environmen­t and weak sentiment.

Chief executive Thomas Thomsen said the internatio­nal revenue growth was driven by improved portfolio management and product launches.

“We have built on our strong customer and retail relationsh­ips to increase existing customer consumptio­n and new customer penetratio­n,” Thomsen said. “In South Africa, our businesses were hampered by market conditions, supply challenges and working capital constraint­s.”

The group said its overall Ebitda only increased by 1 percent to R684 million and revenue increased by 3 percent to R3.96bn, while normalised operating profit declined 2 percent to R619m.

It said normalised headline earnings from continuing operations fell 6 percent to R351m, negatively impacted by higher expenses, depreciati­on and finance costs.

Normalised headline earnings per share declined by 10 percent to 72.5 cents a share. The group decided not to pay an interim dividend, with the directors opting to retain the cash to settle debt obligation­s.

Ascendis Health implemente­d a new group strategy in October last year aimed at accelerati­ng organic revenue growth, improving cash generation and enhancing profitabil­ity. The group identified Pharma and Consumer Healthcare as the group’s new core focus areas.

Ascendis Health closed 4.66 percent lower on the JSE at R4.50 yesterday.

 ?? SIMPHIWE MBOKAZI African News Agency (ANA) ?? ASCENDIS Health implemente­d a new strategy in October to accelerate organic revenue growth. |
SIMPHIWE MBOKAZI African News Agency (ANA) ASCENDIS Health implemente­d a new strategy in October to accelerate organic revenue growth. |
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