Good sales mix and better exchange rate lifts Adcock Ingram’s profit
Prescription drugs are Adcock Ingram’s biggest revenue generator, but over-the-counter medicines contribute nearly half its operating profit, the pharmaceutical group’s 2018 financial results showed.Adcock Ingram’s over-the-counter division contributed 30% of the group’s revenue and 46% of its operating profit in the year to end-June. "Over the counter, which focuses on products in the pain, coughs, colds and flu, and anti-histamine therapeutic areas through the pharmacy channel, has seen a turnover improvement of 7.6% to R1.99bn, with top brands like Adco-Dol, Allergex, Alcophyllex and Napamol showing double-digit growth. This business unit realised the full single exit price increase granted by government," the company said in its results statement, which was released on Wednesday morning."A gross margin improvement was realised in this year, driven by an advantageous sales mix and the improvement in the exchange rate. As a result, trading profit increased by 16.7% to R399m."Presc...
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