The diversified healthcare company saw revenue increase from 531 million rand for the six months ended 30 June 2013 to 618 million rand in 2014.
“Revenue increased in H1 2014 primarily as a result of the sale of robotic equipment in Litha Medical and strong flu sales in Litha Biotech,” [DATA LHG:Litha Healthcare] said.
“Despite effective cost control over general and administrative expenses, EBITDA fell by 10.2 per cent, mainly due to product mix in Litha Medical and pricing pressure and commoditisation in Litha Pharma.”
However, the group’s operating profit decreased to 11 million rand in the 2014 period from 40 million rand in 2013.
“Operating profit was further negatively impacted by foreign exchange losses incurred on revaluation of foreign exchange contracts,” said Litha.
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It also reported a loss before taxation of 323,000 rand in 2014 from a profit of 27 million rand in 2013.
“The group engaged in a restructuring exercise during the first half of 2014. The group has already experienced significant cost savings following this exercise; the full impact however will be felt in the second half of 2014,” Litha said.
“In addition to anticipated cost savings, revenue from the sale of consumables for the da Vinci Surgical Robotics Systems sold during the first half of 2014 is expected to start to flow through.”