Ascendis Health warns of full-year loss after huge write-downs
Ascendis says it has seen lower sales in SA owing to liquidity constraints and supply challenges
Health and wellness firm Ascendis Health, which has twice delayed its results to end-June, warned on Tuesday it swung into a loss after suffering impairments that are almost double its market capitalisation.
The company's share price slumped 9.91% to R4.18 on Tuesday morning, putting it on track for its worst one-day performance in seven months.
As a result of the economic headwinds in SA and Europe, an extensive valuation process was completed, which resulted in a total impairment across goodwill, intangible assets and property, plant and equipment of approximately R4.2bn, the company said.
Ascendis, which has a market capitalisation of R2.2bn, said it had seen lower sales in SA due to liquidity constraints and supply challenges.
Along with the depressed consumer environment, earnings declined in all businesses except animal health, it said.
In Europe, Sun Wave Pharma performed well, but both Scitec and Farmalider reported lower earnings.
Ascendis expects a headline loss from continuing operations of between R475m and R495m compared to the prior period's headline earnings of R100m.
The company expects to release it results on October 30.