JSE-listed pharmaceutical manufacturer Adcock Ingram has reported a 6% year-on-year increase in revenue, from about R9.1-billion in 2023 to about R9.6-billion for the financial year ended June 30.

Trading profit also increased by 4% year-on-year, from about R1.1-billion to about R1.2-billion. Gross profit increased by 1% year-on-year, from about R3.1-billion to about R3.2-billion, while operating profit declined by 6%, from about R1.1-billion to about R1-billion.

Owing to these results, the company announced a 10% year-on-year increase in headline earnings per share (HEPS), from R5.61 to R6.12. Basic earnings per share, however, decreased by 4%, from R5.61 to R5.40.

The company declared a final dividend of R1.50 a share, stating that it was “very pleased” with the financial results.

In a trading statement issued on August 22, Adcock Ingram characterised its full-year results as exhibiting good trading performance, coupled with robust cost control, which resulted in the double-digit HEPS growth.

The company said strong cash generation had facilitated the continued return of value to shareholders, including the repurchase of six-million shares and a 10% dividend growth, emphasising that it had increased its share of the market during the year.

"We are encouraged by the positive sentiment generated by the formation of a Government of National Unity. This development, along with the possibility of the Reserve Bank reducing interest rates due to improving inflation rates, and the good progress on structural reforms in the electricity and rail sectors, are positive indications for the economy," the company said.

However, Adcock Ingram added that it expected a significant recovery in consumer spending would take some time, even if economic and sociopolitical factors remained favourable.

The company also advised that the continued financial health of its business remained subject to the performance of the rand and the ability of the company to obtain selling price increases, both in the regulated and non-regulated portfolios.

The Adcock Ingram board said it would continue to seek out additional affordable brands, as reflected by the recently acquired Dermopal, as it sought to expand the non-price regulated portfolio and pursue partnerships with multinational companies.