News24
12 Sep 2019, 02:13 GMT+10
Pharmaceutical company Aspen's [JSE:APN] net profit declined 14% as the group disposed of some of its businesses during the period as part of its strategic review to focus on pharmaceuticals.
The pharma group on Wednesday released its financial results for the year ended June 2019.
While revenue increased slightly by 1% to R38.9bn, normalised earnings before interest, taxation, depreciation and amortisation was 4% lower at R10.8bn due to weaker results from the group's manufacturing businesses. Operating profit took a 35% dip to R5.5bn. Higher net financing costs also contributed to an 8% decline in normalized headline earnings to R6.5bn.
Normalised headline earnings per share was 7% lower at R14.14. Net profit was down 14% from R8.3bn reported in the previous year to R7.07bn.
During the period the group announced a strategic review of its European and South African commercial businesses to be more "market-focused", according to the board's statement in the financial report. While the review of the group's European commercial business is ongoing, the South African business review has been completed.
In the closing six months of the year the group completed the disposal of its Nutritionals Business and a portfolio of products which are distributed in Asia Pacific. The disposal translated into cash proceeds of R12.3bn (before tax) and a combined profit on disposal of R5.4bn. The proceeds from disposals have helped reduce net borrowings from R53.5bn, as reported on December 31, 2018 to R39bn by year-end.
Aspen rockets after good news on debt
"While the past year has presented its challenges, we have achieved most of our short-term goals.
"The completion of the disposals of the Nutritionals Business and the non-core product portfolio has allowed us to fully focus on our core pharmaceuticals business," the board said in the financial report.
The board elected not to declare a dividend. "Taking into account our prioritisation of deleveraging the balance sheet, existing debt service commitments during the 2020 financial year and the short-term requirements of the ongoing capital projects, notice is hereby given that the board has decided that it would not be prudent to declare a dividend at this time," the statement read.
"The board will re-evaluate the relevant circumstances regularly with a view to declaring a dividend when it is considered prudent to do so."
Get a daily dose of Beijing Bulletin news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Beijing Bulletin.
More InformationBEIJING, China: Huawei has launched its first laptops running on its proprietary HarmonyOS, marking a significant step in its effort...
WASHINGTON, D.C.: The Trump administration is scrutinizing Apple's plans to partner with Chinese tech giant Alibaba to bring its artificial...
SAN FRANCISCO, California: Google One, Alphabet's subscription service that offers cloud storage and AI-powered features, has surpassed...
The path to full digital autonomy is proving to be not only longer, but far more urgent than many European policymakers had anticipated....
The anti-fraud measure would let borrowers opt to unblock credit access, a senior Interior Ministry representative has said The Russian...
The anti-fraud measure would let borrowers opt to unblock credit access, a senior Interior Ministry representative has said ...
MOSCOW, Russia: Russia's top oil company, Rosneft, has taken over control of the country's largest rare earth metals deposit, Tomtor,...
GOTHENBURG, Sweden: Volvo Cars is stepping up its collaboration with Google to become the lead development partner for Android automotive...
NEW YORK, New York - U.S. stock markets fell Friday as President Donald Trump launched an extraordinary attack on the European Union,...
SAN FRANCISCO, California: Levi Strauss is parting ways with Dockers. The denim giant announced this week that it will sell the Dockers...
OTTAWA, Canada: Canada's inflation picture became more complicated in April, with headline inflation easing but core measures ticking...
NEW YORK, New York - U.S. stocks had a volatile day on Thursday after the House of Representatives narrowly passed President Donald...