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Johannesburg - Aspen Pharmacare Holdings, a R21bn pharmaceutical firm, said full year earnings were powered by sales of anti-retrovirals (ARVs) in South Africa, as well as growth from its newly established export business lines.
However, Aspen CEO Stephen Saad, said he was concerned about prospects in the current financial year. "At the end of the day, I have got to deliver on strategies, but I'm really worried about next year," he said in an interview.
One concern was the possible effect of currency volatility on earnings owing to Aspen's wide exposure to foreign markets.
In the year under review, local revenue was 30% higher owing to the ARV sales, but it's also notable that up to 15% of proceeds from its South African business were from exports.
Overall, revenue was 80% higher at R8.4bn. The outcome was a 68% increase in share earnings to 389.4 cents/share.
Tellingly, Aspen did not declare a dividend. Cash would be preserved to repay debt and grow the company's businesses, Saad said.
Revenue from international operations rose 244% to R3.8bn which Saad said was fuelled by expansions in Brazil, Mexico, Venezuela, Tanzania, Kenya and Uganda.
Legislation also contributed to the South African operation's success with the single exit price (SEP) 13.2% increase implemented by the Health Department in February this year.
Saad, who described inaugural exports of Aspen products, as "a proud moment", said the firm's manufacturing facilities were running in Port Elizabeth.
New packing lines in Port Elizabeth would supply additional oral solid dose (OSD) tablet manufacturing by the year-end.
The company plans to inject more money into its facilities and focus on creating a big export base into sub-Saharan Africa.
In order to strengthen Aspen in the branded segments market and build more equity, the group expected its transactions with GlaxoSmithKline (GSK) to be complete before the year end.
Aspen has bought the rights to sell, market and distribute GSK products in South Africa through its wholly owned subsidiary, Pharmacare.
Commenting on plans by government to rollout a national health offering, Saad said it was too early to comment. He added, however, that the firm provided a comprehensive service and should not be in any worse situation.
- Fin24.com