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Johannesburg - South Africa's biggest over-the-counter drugs maker Adcock Ingram booked an 11% rise in first-half profit, helped by the stronger rand and volumes growth in its aids-suppressing drugs unit.
Adcock, which makes painkillers such as Panado and flu remedy Corenza Para-C, said on Tuesday headline earnings per share totalled 226.5c in the six months to end-March compared with 204.8c a year ago.
The company said the results were bolstered by the stronger rand, which makes imported raw material cheaper, and continued volume growth in life-prolonging antiretroviral drugs.
Adcock Ingram has seen lower volumes in its mainstay over-the-counter unit as recession-hit consumers scale down in pack size or move to cheaper brands, but demand for antiretroviral drugs in the country with one of the world's heaviest HIV-Aids caseloads has cushioned the blows.
South Africa has the world's largest HIV/Aids treatment programme, and plans to double that with a $960m scheme to increase access to Aids-suppressing anti-retroviral drugs to 80% of patients by 2013.
Adcock said it expects volumes to grow further in the second half, while improving trading activity and the stronger rand are expected to help maintain margins.
The company, which scrapped a bid for rival Cipla Medpro last year, said turnover rose 7% to R2bn, helped by the acquisitions of fast-moving consumer goods firms TLC and vitamins supplements business Unique Formulations.
- Reuters
