GROUP PERFORMANCE

  • Revenue
    increased by

    16% to R41,2 billion

    Solid revenue growth of 16% (up 22% on a constant exchange rate (“CER*”) basis), led by the acquisition of the commercial rights to AstraZeneca’s (“AZ”) global anaesthetic portfolio (excluding the USA) and strong underlying growth in Other Pharmaceuticals, particularly in emerging markets.

  • Normalised headline earnings
    per share increased by

    16% to 1 463,2 cents

    Normalised headline earnings per share comprises headline earnings per share adjusted for specific non-trading items and is a measure which provides clear comparability of the financial performance of Aspen’s ongoing underlying business. The increase (up 21% on a CER* basis) is attributable to the acquired AZ and GSK anaesthetics portfolios and a strong core business performance in the second half.

  • Normalised EBITDA
    increased by

    13% to R11,4 billion

    Normalised EBITDA, comprising operating profit before depreciation and amortisation adjusted for specific non-trading items, grew 18% on a CER* basis. The growth from the acquired AZ and GSK anaesthetic portfolios coupled with a strong second half recovery in the core business were the key contributors.

  • Operating cash flow
    per share increased by

    101% to 1 421,4 cents

    Reduced inventory levels benefiting from focused working capital management significantly augmented positive operating cash flows.


  • Earnings per share
    increased by

    19% to 1 123,4 cents

    The increase (up 24% on a CER* basis) driven by a solid overall performance, further influenced by the following factors which had a net negative effect on the prior year’s performance:

    • the devaluation of Aspen’s Venezuelan business; and
    • higher intangible asset impairments;
    • offset by significant capital profits realised from the disposal of non-core businesses and products.
  • Distribution to shareholders
    per share increased by

    16% to 287 cents

    Declared after taking into account earnings and cash flow performance, debt service commitments, future proposed investments and funding options.

  • Headline earnings
    per share increased by

    46% to 1 299,5 cents

    The significant increase (up 53% on a CER* basis) is attributable to strong operational performance, further influenced by the lower prior year caused by the devaluation of Aspen’s Venezuelan business.

  • Residual rights
    to the AZ anaesthetics portfolio acquired

    The agreement for the acquisition of the residual rights to the AZ anaesthetics portfolio was signed on 13 September 2017 and is expected to be effective in the final quarter of 2017. This acquisition will enhance Aspen’s ability to maximise the value of this portfolio through product development and market leverage opportunities.


* The constant exchange rate (“CER”) restatement has been calculated by adjusting the prior year’s reported results at the current year’s reported exchange rate. This provides illustrative comparability with the current year’s reported performance.

COMMENTARY

Aspen increased revenue by 16% to R41,2 billion and raised normalised headline earnings per share (“NHEPS”) by 16% to 1 463 cents in the year ended 30 June 2017.

  • The acquisition of the commercial rights to AstraZeneca’s global (excluding the USA) anaesthetic portfolio (“the AZ anaesthetics”) which was effective from 1 September 2016 and the acquisition of GlaxoSmithKline’s anaesthetics portfolio (“the GSK anaesthetics”) which was effective from 1 March 2017 (together the “Anaesthetics Portfolio”). The Anaesthetics Portfolio generated revenue of R7,0 billion;
  • The positive turnaround in the South African pharmaceutical business;
  • The entry into China with the Anaesthetics Portfolio and a Thrombosis Portfolio supported by Aspen’s largest regional sales force;

FULL COMMENTARY