Adcock Ingram financial results expected to take a knock

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The South African healthcare company stated that their financial results are expected to differ by at least 20 per cent from those of the previous corresponding period.

Group revenue as at 31 December 2013 is expected to increase by 4 per cent while revenue in their Southern African businesses is 4 per cent less than the prior period due to a slowdown in the Over the Counter (OTC) and Prescription Generic Portfolios.

“The gross profit as a percentage of sales is under extreme pressure as a result of the unfavourable revenue mix, Rand depreciation which has negatively affected the cost of imported active ingredients and other materials, and cost input inflation,” said the Adcock Ingram [DATA AIP:Adcock Ingram Holdings Limited] in a statement.

Operating expenditure has also been impacted by high marketing and distribution costs as well as salary and wage increases.

Adcock’s basic earnings per share for the six month period ending 31 March 2014 are expected to be lower than the previous period of 188 cents a share.

The group expect that EPS as well as Headline Earnings per share will be lower that the previous period’s figures by a minimum of 20 per cent.

The company’s financial results for the six months ending 31 March 2014 are expected to be released around the 27 May 2014.