Annual Financial Statements

celebrating 20 years Group segmental analysis

for the year ended 30 June 2018

  2018
  Therapeutic
Focused Brands
R’million
Other
Pharmaceuticals
R’millio
Total
Pharmaceuticals
R’million
Nutritionals
R’million
  Total
R’million
Revenue 18 934 20 571 39 505 3 091   42 596
Cost of sales (7 946) (11 348) (19 294) (1 697)   (20 991)
Gross profit 10 988 9 223 20 211 1 394   21 605
Selling and distribution expenses     (6 578) (882)   (7 460)
Contribution profit     13 633 512   14 145
Administrative expenses           (3 103)
Net other operating income           249
Depreciation           740
Normalised EBITDA*           12 031
Adjusted for:            
Depreciation           (740)
Amortisation           (632)
Loss on sale of assets           (4)
Impairment of assets           (872)
Reversal of impairments           130
Restructuring costs           (199)
Transaction costs           (160)
Product litigation costs           (317)
Operating profit           9 237
Gross profit (%) 58,0 44,8 51,2 45,1   50,7
Selling and distribution expenses (%)     16,7 28,5   17,5
Contribution profit (%)     34,5 16,6   33,2
Administrative expenses (%)           7,3
Normalised EBITDA (%)           28,2
  2017
  Therapeutic
Focused Brands
R’million
Other
Pharmaceuticals
R’millio
Total
Pharmaceuticals
R’million
Nutritionals
R’million
  Total
R’million
Revenue 17 417 20 572 37 989 3 224   41 213
Cost of sales (8 438) (11 047) (19 485) (1 832)   (21 317)
Gross profit 8 979 9 525 18 504 1 392   19 896
Selling and distribution expenses     (5 880) (840)   (6 720)
Contribution profit     12 624 552   13 176
Administrative expenses           (2 780)
Net other operating income           320
Depreciation           700
Normalised EBITDA*           11 416
Adjusted for:            
Depreciation           (700)
Amortisation           (567)
Loss on sale of assets           (196)
Impairment of assets           (726)
Reversal of impairments           4
Restructuring costs           (494)
Transaction costs           (208)
Product litigation costs           (208)
Operating profit           8 321
Gross profit (%) 51,6 46,3 48,7 43,2   48,3
Selling and distribution expenses (%)     15,5 26,1   16,3
Contribution profit (%)     33,2 17,1   32,0
Administrative expenses (%)           6,7
Normalised EBITDA (%)           27,7

* Normalised EBITDA represents operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy.

  % change
  Therapeutic
Focused Brands
%
Other
Pharmaceuticals
%
Total
Pharmaceuticals
%
Nutritionals
%
Total
%
Revenue 9 0 4 (4) 3
Cost of sales (6) 3 (1) (7) (2)
Gross profit 22 (3) 9 0 9
Selling and distribution expenses     12 5 11
Contribution profit     8 (7) 7
Administrative expenses         12
Net other operating income         (22)
Depreciation         6
Normalised EBITDA*         5

* Normalised EBITDA represents operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy.