SOUTH AFRICA – According to an earnings report filed, South Africa’s JSE-listed Aspen Pharmacare Holdings Limited (APN) has delivered a strong performance, with double digit organic growth in normalized EBITDA, operating profit and earnings for the financial year ended 30th June 2022.

Aspen said that revenue from continuing operations increased by 2% to R38,6 billion, normalized EBITDA from continuing operations increased by 11% to R11,0 billion and normalized headline earnings per share from continuing operations increased by 24% to 1 627,6 cents.

Aspen further said that headline earnings per share from total operations increased by 31% to 1 461,2 cents, earnings per share from total operations increased by 36% to 1 432,3 cents while dividend declared to shareholders increased by 24% to 326 cents per ordinary share.

Operating cash flow was impacted as a consequence of increased inventory investment by the Manufacturing segment in key input materials to mitigate future supply constraint risks which may arise from continued global supply chain disruptions,” the pharma giant observed.

In addition, the global multinational specialty pharmaceutical company has concluded a 10-year collaboration agreement with Serum Institute of India Pvt. Ltd. to manufacture, market and distribute four Aspen-branded routine vaccines in Africa.

The signature of a long-term agreement with the Serum Institute of India Pvt Limited for Aspen to manufacture, market and distribute four Aspen-branded vaccines in Africa is an important milestone as Aspen seeks to optimise its sterile manufacturing capacity in Gqeberha.

Solid underlying volume growth of 4% was impacted by the divestment of certain products in South Africa, challenges faced by our Chinese business including volume-based procurement and COVID-19 related lockdowns, as well as the impact of the geopolitical situation in Russia and Ukraine,” the Group explained.

Stephen Saad, Aspen Group Chief Executive noted that the Group has achieved a robust set of results in the latest financial year, supported by improved operating margins underpinned by a lower operating expense base and a strong balance sheet building a solid foundation for future sustainable growth.

In responding to the COVID-19 pandemic, investing billions to establish world class steriles manufacturing capability, Aspen has demonstrated its ability to partner successfully to deliver millions of doses of vaccine to the highest standard,” said Stephen Saad.

He highlighted that through the agreement with the Serum Institute, the partners are responding to the African Union’s call for more African vaccine manufacturing on the continent, adding that enhancing access to medicines is at the forefront of Aspen’s Environmental, social, and governance (ESG) strategy.

Furthermore, the double-digit organic growth in normalized EBITDA, operating profit and earnings is testimony to Aspen’s resilience against the backdrop of a challenging trading environment and inflationary cost pressures.

Aspen expects to deliver organic CER revenue growth of between 3% and 7%, (excluding potential Aspenovax orders), in the year ahead, notwithstanding the challenging trading conditions. Sales will be heavily weighted towards the second half of the year,” the pharmaceutical company added.

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