Adcock Ingram, a pharmaceutical manufacturer, announced higher profits for the year ending June 2023, driven by strong demand for over-the-counter (OTC) and prescription medications despite a challenging economic environment.
- The company reported a 5% increase in revenue to R9.1 billion, supported by new product additions like E45, which contributed to a 4.2% revenue growth.
- Gross profits grew by 4% to R3.18 billion, while operating profit rose by 8% to R1.13 billion compared to the previous year.
- The OTC and Prescription portfolios experienced significant growth, with profits increasing by 10% and 16% respectively.
- Headline earnings per share (Heps) rose by 11.8% to 561.3 cents, driven by the repurchase of over nine million shares.
- Adcock Ingram declared a final dividend of 125 cents per share, representing a 14.67% increase compared to the previous period.
- Despite the positive results, the company remains cautious due to challenges such as currency weakness, economic growth constraints, and weak consumer spending power. Adcock Ingram acknowledges the recent “top-up” Single Exit Price adjustment, which will help alleviate margin pressures on its price-regulated products.