Share

Adcock warns of profit loss

Johannesburg - Adcock Ingram [JSE:AIP]  flagged nine-month losses and gave a gloomy outlook on Monday, pushing shares in South Africa's No.2 drugmaker to their lowest level in almost five years.

The stock slumped nearly 7% before recouping some of the losses to close 5.27% lower at R48.68, a level last seen in December 2009.

Adcock said headline loss per share would likely fall in range of 175 and 185 cents when it reports the results for the nine months ended June later this month. It posted headline earnings per share, the main profit measure in South Africa, of 271.7 cents the same time a year earlier.

Adcock is trailing rivals such as Aspen Pharmacare as it grapples with slowing sales, over-reliance on a heavily regulated home market and poor distribution network.

The company is the middle of a turnaround plan led by top investor Bidvest, which torpedoed a $1.2bn takeover bid from Chile's CFR Pharmaceuticals earlier this year.

The plan is aimed at making it more nimble and increase accountability by reorganising to match the decentralised model of Bidvest.

It gave investors little comfort about when it would start turning profit, saying it was too early for the strategy to start bearing fruit.

"But the board remains optimistic about the group's longer term prospects," the company said.

Adcock said the results also included "several substantial" write downs as some of its factories ran at low levels of capacity.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders