Adcock Ingram holds on to dividend amid Covid-19 uncertainty
The group’s revenue in the year to end-June improved, but faced pandemic-related costs
Drugmaker Adcock Ingram has opted to hold on to a final dividend, citing market uncertainty and a subdued pharmaceutical market.
Revenue rose 4% to R7.34bn during the year to end-June, but profit for the year fell 2% to R682.1m.
The group cited unfavourable exchange rates, as well as R31m in Covid-19-related costs, including transport and meals for staff during lockdown.
The group generated strong cash flows in 2020, but growth was adversely affected by an almost complete absence of a cold and flu season in SA.
As a result of the slow performance of the pharmaceutical market since the end of March, as well as “extraordinary levels of uncertainty” regarding the economy, Adcock has opted not to pay a final dividend, having paid out 100c previously.
The group had net cash resources of R316.8m as of the end of June, from R448m previously.
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