Africa’s largest drug manufacturer Aspen Pharmacare’s share price fell 7.49% on Tuesday, its biggest drop in nine years, after it said a stronger rand reduced revenue by R1bn in the second half of its financial year. The market had taken a dim view of the update, but this was simply a case of the market expecting a slightly better performance during the period, said Fairtree Capital portfolio manager Jean Pierre Verster. In constant exchange rate terms, revenue in the second half of the financial year was in line with the first half, but Aspen’s voluntary statement disappointed the market, sending the company’s share price as much as 10% lower before losses were pared.
Headline earnings per share (Heps) are expected to grow between 11% and 15% to between R14.42 and R14.94, while earnings per share are expected to rise between 15% and 19% to between R12.92 and R13.37. Nontrading items The company’s preferred measure of performance, normalised Heps, which adjusts for specific no...
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