‘Cleansed’ management just the medicine Adcock Ingram needed
Pharmaceutical group says its interim results show that its new management has ‘effectively dealt with inherited underperforming assets’
The new management installed by Bidvest following its hostile takeover in 2014 "starts to reveal the positive impact and favourable direction that a cleansed Adcock Ingram is capable of delivering", the pharmaceutical group said in its interim results on Wednesday morning. Adcock Ingram raised its interim dividend 26% to 63c thanks to a 66% jump in aftertax profit to R286m. The group’s revenue grew 11% to R3bn for the six months to end-December. During the reporting period, Adcock Ingram sold its Indian sales and marketing business for R328m, which was booked as a R49m accounting loss. The former Tiger Brands subsidiary reduced its stake in Ghanaian pharmaceutical company Ayrton from 78% to 25%, selling 53% for R11m, contributing an accounting profit of R1.3m. This means the new management has "effectively dealt with all other inherited underperforming assets", the company said. Adcock Ingram’s most recent annual report listed Bidvest as its largest shareholder, with a 37.5% stake, ...
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