Ascendis’ FY performance driven by organic growth - CNBC Africa

Ascendis’ FY performance driven by organic growth


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Ascendis is a health and care brands company. PHOTO: UNOmaha

“The group owns a portfolio of market-leading health and care brands, which are housed in three divisions: Consumer Brands, Phyto-Vet and Pharma-Med,” it said.

[DATA ASC:Ascendis] exceeded its pre-listing profit forecast in its maiden annual results to June 2014, with the performance driven by healthy organic growth and the benefit of strategic acquisitions made over the past year.”

The health and care brands company also stated that revenue for the year ending 30 June 2014 increased by 171 per cent to 1.6 billion rand from 597 million rand for the same period in 2013.

(WATCH VIDEOAscendis Health's interim revenue improves by 114%)

This included revenue for Surgical Innovations for six months and PharmaNatura for one month, but excluded recent acquisitions Respiratory Care Africa (RCA) and Arctic Healthcare.

“Ascendis follows an acquisition strategy of buying established businesses and resilient brands which are integrated into divisional platforms without the full associated fixed overhead structure,” said the company.

“This bolt-on strategy ensures immediate synergy benefits and efficiencies as well as enhanced sales and operating margins.”

Operating profit increased to 215 million rand for the 2014 year from 52 million rand in 2013 and profit before income tax grew to 186 million rand from six million rand in 2013.

Headline earnings were up from 1.7 million rand in 2013 to 138 million rand in 2014 while basic earnings per share, from continuing operations, increased to 65 cents from 9.07 cents.

“The group is well positioned to accelerate the growth in its export operations and is targeting 30 per cent of sales from international markets within three years. The group has a healthy acquisition pipeline and is currently evaluating projects in all divisions,” Ascendis said.

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“The key deliverables for the year ahead include the finalisation of current acquisition projects, the integration of the recently announced acquisitions of PharmaNatura, RCA and the Arctic brands [and] further organic growth.”