Healthcare products conglomerate Ascendis is still on the acquisition trail, but an investment presentation last week stressed a focus on markedly improving profit margins in existing operations that span the pharma-med, consumer brands and phyto-vet segments. Ascendis CEO Karsten Wellner said an ebitda (earnings before interest, tax, depreciation and amortisation) margin of 18% had been set for the next 12 to 18 months. In the year to end-June 2017, Ascendis achieved an ebitda margin of 17%. While the trading environment is likely to drag on growth prospects in the year ahead, he was adamant that Ascendis could bolster ebitda by R19m-R31m in the next 18 months, mainly through realising further operational synergies. There is already a project under way to consolidate two manufacturing plants in SA. This is a key initiative since about 44% of cost of goods produced is incurred at the firm’s plants. Wellner said the company was in a "diagnostic" phase to ensure more operating efficie...
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