Adcock Ingram HEPS up 38%

by Trust Matsilele 0

The group saw a one per cent surge to 2.7 billion rand for the six month period ended 31 December 2014 from 2.6 billion rand for the same period in 2013.

(READ MORE: Adcock’s earnings suffer due to failed CFR deal)

The group saw a 38 per cent increase headline earnings per share in 2014 to 83.8 cents from 60.7 cents for the same period in 2013.

[DATA AIP:Adcock Ingram Holdings Limited] said having regard to the substantive changes and reorganisation of the business into separate and distinct business units, there was already evidence of added efficiencies and productivity; this coupled with encouraging increases in certain product turnover and improved margins.

“Most business units achieved their internal targets during the period under review, and additional marketing investment is being made to support those products where the pace of recovery has been slow,” said the group in a statement. 

“Notwithstanding the aforesaid, turnover reached a satisfactory level of 2.7 billion rand, even with lower volumes in the ARV and tender businesses, also through the discontinuation of certain uneconomic product lines.”

Adcock Ingram also saw gross profit margins being well maintained. The company generated a gross profit for the period of 993 million rand, which, after well controlled operating costs, yielded a trading profit of 217.2 million rand.

Profits after taxation amounted to 144.9 million rand of which 141.9 million rand was attributable to shareholders.

“This translates into headline earnings of 83.8 cents per share for the period, a distinctly more reassuring start to the year when compared to the group’s immediately preceding reported performance.”

(READ MOREAdcock Ingram posts 39 million rand headline loss)

Adcock Ingram said, notwithstanding the volatile economics and uncertainties in both South African and world markets, the board is satisfied with the direction and progress made during this reporting period.