Ascendis Health reports healthy interim results - CNBC Africa

Ascendis Health reports healthy interim results

Earnings

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The Ascendis Health Johannesburg, South Africa office. PHOTO: Getty Images

Revenue for the company improved 114 per cent to 661.9 million rand for the six months ended December 31 2013. This improvement is from the previous year’s revenue record of 309.6 million rand. Foreign revenue also increased 209 per cent.

Operating profit was up 366 per cent to 88 million rand from 19 million rand in the previous comparative period.

“Ascendis has delivered on the commitments made to stakeholders at the time of the listing, with the results for the six months indicating that the group is well on track to meet its pre-listing year end forecasts,” the company said in a statement.

“The performance has benefited from several acquisitions made by the group over the past 18 months and healthy organic growth of the underlying established brands.”

[DATA ASC:Ascendis Health] is a health and care group that sells health brands for humans, plants and animals. The company currently exports products to 45 countries, mainly in Europe and Africa.

Headline earnings were up from 4 million rand in 2013 to 54 million rand, and the company’s operating margin improved from 6 per cent to 13 per cent.

“The gross margin expanded from 42 per cent to 46 per cent despite imported inflation from the devaluation of the Rand. The improvement was achieved through better buying, selected price increases as well as a better product and customer mix,” the company added.  

Revenue for the company’s consumer brands division increased from 177 million rand to 299.2 million rand, and its Phyto-Vet division followed a similar trend with an increase from 192.5 million rand in the previous comparative period to 292.1 million rand.

Brands in the Consumer Brands and Phyto-Vet divisions are mostly aimed at higher LSM consumers, which have assisted the company in remaining resilient towards of weaker economic conditions.

Brands in the pharmaceutical sector of the Pharma-Med division focus more on the lower LSM consumer. According to Asendis Health, the consumers in this category will benefit from government's focus on making medicines more affordable and accessible alongside the National Health Insurance implementation.

“The group has a track record of acquiring established businesses and strong brands which are integrated into the divisional operations to create synergies,” said Ascendis Health.

“A key focus for the remainder of the financial year will be on continuing to deliver organic growth, integrating acquisitions and extracting synergies both within and across the operating divisions.”

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