Afrocentric reports ‘unprecedented’ sales of multivitamins in March
Its companies stocked up ahead of the lockdown, and the group also says it has chronic medication stocks to last until the end of May
The share price of health services company AfroCentric surged on Friday after it reported “unprecedented” sales of multivitamins in March due to the Covid-19 outbreak.
This increase in demand at its pharmaceutical manufacturing division. Activo Health, is expected to continue in April as courier companies and pharmacies seek to increase stock levels, the group said in an update on Friday.
In afternoon trade on Friday Afrocentric's share price had jumped 14.92% to R3.39, putting it on track for its best one-day performance since October 2018.
Activo Health provides a broad scope of pharmacy products across SA, Botswana, Namibia and Swaziland and has a national sales and marketing footprint in these regions.
AfroCentric’s brands include medical aid company Medscheme and Pharmacy Direct, a courier pharmacy that delivers prescribed chronic medication to patients.
The group said on Friday that Pharmacy Direct had increased its stock levels ahead of anticipated pharmaceutical price increases in March, and was preparing chronic medication packs that would last two months, to offer peace of mind to customers.
“Although the Afrocentric Group is presently gaining additional advantage from the increased pharma and related device volumes, it is nevertheless cognisant of the adverse macro- economic environment in SA,” the group said.