Adcock Ingram Holdings Limited
(Incorporated | in | the | Republic of South Africa) |
(Registration | number | 2007/016236/06) | |
Share code: AIP | ISIN: ZAE000123436 | ||
("Adcock Ingram" | or "the Company" or "the Group") |
Unaudited interim results for the six months ended 31 December 2021 and cash dividend declaration
- Revenue +16%
- Gross profit +17%
- Trading profit +25%
- HEPS +30%
- Dividend +30%
- B-BBEElevel 2
Introduction
The Board of Directors (Board) is very pleased to report a strong operational and financial performance, driven mainly by improved demand in the current reporting period for its over-the-counter (OTC) and consumer healthcare products.
The Group has achieved very healthy growth in turnover, which with some improvement in the exchange rate, manufacturing efficiencies and cost control, has yielded an exceptional increase in trading profits and excellent cash generation.
Dividend
The Board has declared an interim dividend of 104 cents per share for the six-month period ended
31 December 2021 out of income reserves, an increase of 30% over the comparative period and in line with the growth in earnings.
Prospects
In December, Adcock Ingram received regulatory approval from SAHPRA for the sterile eye drops facility at the Clayville factory. We have commenced production of validation batches of the first product we intend to manufacture in the facility, and on a staged basis will introduce at least four additional products in the financial year.
The Board is confident that the strength and resilience of the Company's broad and affordable portfolio of well-known brands, can continue to withstand the macroeconomic challenges in South Africa.
The exchange rate has had a favourable impact on the Group in the period and the 2022 SEP increase of 3.5% will assist in protecting the gross margin.
Nonetheless, the Company continues to seek-out investment opportunities for non price-regulated brands to limit the impact of the SEP environment.
Unaudited | Unaudited | |||||||
Change | six-month | six-month | ||||||
period ended | period ended | |||||||
Revenue | (R'000) | % | 31 December 2021 | 31 December 2020 | ||||
16 | 4 | 345 | 674 | 3 | 758 | 258 | ||
Gross profit | (R'000) | 17 | 1 521 652 | 1 298 | 425 | |||
Trading profit | (R'000) | 25 | 543 226 | 432 | 989 | |||
Operating profit | (R'000) | 33 | 511 584 | 385 | 813 | |||
Headline earnings per share | (cents) | 30 | 242.3 | 186.5 | ||||
Basic earnings per share | (cents) | 30 | 242.2 | 186.5 | ||||
Total assets | (R'000) | 7 560 989 | 7 508 | 322 | ||||
Net asset value per share | (cents) | 3 096.6 | 2 842.8 | |||||
Dividend per share | (cents) | 104.0 | 80.0 | |||||
Unaudited | Unaudited | |||||||
Change | six-month | six-month | ||||||
period ended | period ended | |||||||
Segment revenue | % | 31 December 2021 | 31 December 2020 | |||||
(R'000) | 33 | 795 | 187 | 598 | 938 | |||
Consumer | ||||||||
OTC | (R'000) | 26 | 1 | 993 | 915 | 1 | 786 | 150 |
Prescription | (R'000) | 5 | 572 | 368 | 502 | 632 | ||
Hospital | (R'000) | 13 | 983 | 891 | 870 | 323 | ||
Segment trading profit | (R'000) | 59 | 172 | 934 | 108 | 782 | ||
Consumer | ||||||||
OTC | (R'000) | 58 | 166 | 847 | 105 | 768 | ||
Prescription | (R'000) | (14) | 121 | 878 | 142 | 249 | ||
Hospital | (R'000) | 6 | 80 | 565 | 75 | 798 |
Epi-max was moved from the Prescription segment to the Consumer segment on 1 January 2021. On a like-for-like basis, adjusting for Epi-max, Consumer turnover and trading profit improved by 14% and 21% respectively, and Prescription turnover and trading profit by 11% and 12% respectively.
Dividend distribution
The Board has declared an interim gross dividend out of income reserves of 104 cents per share in respect of the six-months ended 31 December 2021. The South African dividend tax ("DT") rate is 20% and the net dividend payable to shareholders who are not exempt from DT is 83.2 cents per share. Adcock Ingram currently has 175 758 861 ordinary shares in issue and qualifying for ordinary dividends. The income tax reference number is 9528/919/15/3.
The salient dates for the distribution are detailed below: | Tuesday, 15 | March 2022 | ||||
Last date to | trade cum distribution | |||||
Shares | trade | ex distribution | Wednesday, 16 | March 2022 | ||
Record | date | Friday, | 18 | March | 2022 | |
Payment date | Tuesday, | 22 | March | 2022 |
Share certificates may not be dematerialised or rematerialised between Wednesday, 16 March 2022 and
Friday, 18 March 2022, both dates inclusive.
N Madisa | AG Hall | ||
Chairperson | Chief Executive Officer | ||
Approved | by | the Board: 22 February 2022 |
SENS release date: 23 February 2022
Company secretary
M Phalafala
Registered office
1 New Road, Midrand, 1682
Postal address
Private Bag X69, Bryanston, 2021
Transfer secretaries
Computershare Investor Services Proprietary Limited,
Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196.
Private Bag X9000, Saxonwold, 2132
Auditors
PricewaterhouseCoopers Inc, 4 Lisbon Lane, Waterfall, 2090
Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited),
1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
Bankers
Nedbank Limited, 135 Rivonia Road, Sandown, Sandton, 2146.
Rand Merchant Bank, 1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196. Investec Bank Limited, 100 Grayston Drive, Sandton, 2146
The full announcement has been published on SENS and is available at https://senspdf.jse.co.za/documents/2022/JSE/ISSE/AIP/AIP012022.pdf
The contents of this short-form summary announcement are the responsibility of the
Board of Directors. Any investment decision should be considered and based on the content
of the information contained in the full announcement, that will be published on the Company's website at www.adcock.com/investors/financialreports. Copies of the full announcement are available for inspection at the registered office of the Company and may be requested without charge during office hours by phoning +27 11 635 0143.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Adcock Ingram Holdings Limited published this content on 23 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2022 05:28:01 UTC.