Adcock shares rise as prescription medicine boosts sales
Bidvest-subsidiary Adcock Ingram says profits improved in the year to end-June, thanks in part to better sales of prescription medication.
That helped boost the company’s shares as much as 5.4% to R58.48 on Wednesday morning.
“The board of directors is pleased with the robust results delivered by the group in a volatile market, characterised by weak economic growth and declining consumer spend,” Adcock said.
Group profit after tax rose 8% to R695.4m, with revenue from continuing operations up 11% to R7.1bn. The company said it would pay a final dividend of 100c a share, taking the total dividend for the year to 200c a share, a 16% improvement.
Adcock said while turnover from over-the-counter products was flat, prescription-medication turnover surged 22.4% to R2.7bn. Launches of Innuvair, Rapacid and Versatis products helped boost sales.
The group sold its interests in Zimbabwe and Ghana during the year.
Bidvest Group recently raised its shareholding in Adcock to slightly above 50%.
Adcock CEO Andy Hall said this move would “enhance interactions between the entities in exploring strategic and operational possibilities for Adcock Ingram’s operations and options for growth”.
“Bidvest is supportive of Adcock Ingram’s current decentralised and autonomous business model and sees opportunity for the company to grow,” Hall said.
The company expected no improvement in trading conditions in the short term, but it “remains committed to the growth of our well-respected and diversified basket of brands”.
It was also seeking “additional affordable brands to augment our portfolios across the business”, Hall said.