Adcock increases market share despite weaker rand
by Staff Writer,
2016-02-24 09:07:06.0
PHARMACEUTICAL group Adcock Ingram on Wednesday reported a slight increase in interim headline earnings per share (HEPS) to 98.6c from 93.6c in the year-earlier period.
The company declared a six-month dividend of 50c per share as total revenue rose 7% to R2.758bn from the previous comparable period.
"In a period of economic uncertainty and intensifying currency devaluation, the group’s improved factory efficiencies, better customer relations, pleasing service level statistics and a concentrated marketing effort, yielded impressive market share gains," the company said in its results statement.
The company said it was encouraged by its gross margin increase to 36.5% from 35.2%, given the adverse effect of the devaluation of the rand.
During the review period the company’s over-the-counter turnover increased 9%, consumer turnover grew 8%, hospital turnover rose 12% and prescription turnover of R892.4 was marginally ahead of the previous period’s R880.9m.
The company said it had continued to "make progress in restoring its status and regaining the respect of the broader South African pharmaceutical market".
Despite the improvement in profits Adcock said stakeholders would be "acutely aware of the economic challenges that lie ahead".
Notwithstanding these challenges, the company said, "continued effort will be invested to enhance the quality and efficacy of its brands".
A sign outside the Adcock Ingram offices in Johannesburg. Picture: REUTERS
PHARMACEUTICAL group Adcock Ingram on Wednesday reported a slight increase in interim headline earnings per share (HEPS) to 98.6c from 93.6c in the year-earlier period.
The company declared a six-month dividend of 50c per share as total revenue rose 7% to R2.758bn from the previous comparable period.
"In a period of economic uncertainty and intensifying currency devaluation, the group’s improved factory efficiencies, better customer relations, pleasing service level statistics and a concentrated marketing effort, yielded impressive market share gains," the company said in its results statement.
The company said it was encouraged by its gross margin increase to 36.5% from 35.2%, given the adverse effect of the devaluation of the rand.
During the review period the company’s over-the-counter turnover increased 9%, consumer turnover grew 8%, hospital turnover rose 12% and prescription turnover of R892.4 was marginally ahead of the previous period’s R880.9m.
The company said it had continued to "make progress in restoring its status and regaining the respect of the broader South African pharmaceutical market".
Despite the improvement in profits Adcock said stakeholders would be "acutely aware of the economic challenges that lie ahead".
Notwithstanding these challenges, the company said, "continued effort will be invested to enhance the quality and efficacy of its brands".
Change: -0.42%
Change: -0.35%
Change: -0.17%
Change: 0.14%
Change: -2.58%
Data supplied by Profile Data
Change: -0.54%
Change: -0.13%
Change: -0.42%
Change: 0.00%
Change: -0.48%
Data supplied by Profile Data
Change: 2.93%
Change: 2.04%
Change: 3.04%
Change: 3.82%
Change: 2.02%
Data supplied by Profile Data
Change: -0.26%
Change: -0.21%
Change: -0.33%
Change: 0.00%
Change: -2.97%
Data supplied by Profile Data