Pharmaceutical manufacturer Adcock Ingram reported a 6% increase in total turnover, reaching R9.6 billion for the year ending in June. This growth was primarily driven by a rise in demand for the company’s winter products, as cold and flu cases and other respiratory illnesses surged.
The company noted that it had increased its market share, maintaining its position as the leading pharmaceutical player in South Africa’s private sector during this period. Over-the-counter (OTC) product sales improved by 7.9% compared to the previous year, thanks to solid demand for the company’s winter range, which saw increased cases of cold, flu, and respiratory illnesses.
Adcock Ingram also reported that its organic volumes recovered slightly, rising by 0.4% after experiencing a 6.3% decline in the first half of the financial year. Popular brands like Corenza C, Citro-Soda, Dilinct, Solphyllex, and Adco-Mayogel showed significant growth.
Adcock Ingram’s headline earnings per share (HEPS) rose 10% to 616.6 cents. The company declared a final dividend of 275 cents per share, up 10% from the previous year. Prescription sales improved by 4.1% to R3.4 billion, though organic volumes declined by 1.7%, partly due to a lower antiretroviral (ARV) tender contribution. Hospital sales saw a 7.9% increase to R2 billion, bolstered by a large volume parenterals (LVP) tender awarded over a year ago.
CEO Andy Hall expressed optimism about the future, particularly with the positive sentiment around the Government of National Unity (GNU) and potential interest rate cuts signalling economic improvement. However, he cautioned that any significant recovery in consumer spending might take time.
He said the financial results, the repurchase of 6 million shares during the year, and increased dividends have created value for shareholders. Hall said the focus has been on growing market share, delivering excellent customer service, and maintaining strict cost control. Looking ahead, he emphasised the company’s plans to expand its portfolio beyond price-regulated products and increase collaborations with respected multinational companies.