Cost-cutting counterbalances Aspen’s currency losses
The company says its synergies programme delivered savings that partially offset the currency hit, ‘price erosion’ in Europe and a drop in revenue in the Australian nutritional division
Aspen Pharmacare took a knock from a stronger rand in the year to end-June but its headline earnings per share (HEPS) were flattered by the devaluation of its Venezuelan business in the previous year, and cost-cutting helped offset some of the currency losses. Revenue rose 16% to R41.2bn, but that increase would have been 22% at constant exchange rates. Normalised HEPS were also up 16%, to R14.63 per share, and would have been 21% higher at constant exchange rates. HEPS rose 46%. The currency translation was a R3.5bn loss, against a R5.2bn profit the year before. Aspen said its synergies programme delivered savings of R1.2bn, partially offsetting the currency hit, "price erosion" as a result of mandated price cuts in Europe, and a sharp drop in revenue in the nutritional division in Australia, which led to a 3% decline in nutritional revenue across the group, despite growth in African and Latin America. Aspen said its anaesthetics division posted revenue of R7bn. The company made tw...
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