JSE-listed pharmaceuticals manufacturer Adcock Ingram has recorded a 1% increase in revenue to R9.76-billion for the financial year ended June 30, while basic earnings a share increased by 8% year-on-year to 585c and headline earnings a share by 1% year-on-year to 625.6c.

The group says it delivered an outstanding operational and financial improvement in the second half of the financial year, underpinned by strong demand for its over-the-counter (OTC) and consumer healthcare products.

The performance was supported by management's focus on customer service, brand investment, operational planning and cost discipline, following the subdued results reported for the first half of the year, Adcock Ingram reports.

Highlighting the challenging environment, trading profit fell by 4% to R1.18-billion, from R1.23-billion in the prior financial year, while operating profit increased by 1% to R1.08-billion, up from R1.06-billion in the 2024 financial year.

The group's total assets increased to R8.74-billion, up from R8.35-billion, and net asset value per share increased to R39.74 a share, up from R36.88 a share, in the prior financial year.

The group declared an interim dividend of R1.15 a share, bringing the full-year dividend to R1.65 a share, or 2% higher than the 2024 financial year.

Adcock’s consumer business segment reported a 6% year-on-year increase in revenue to R1.8-billion and a 6% increase in trading profit to R384-million.

The OTC segment saw revenue decline by 1% to R2.44-billion, but its trading profit increased by 5% to R404-million.

Further, revenue in the prescription segment declined by 3% to R3.3-billion, while trading profit fell by 25% to R265-million.

Revenue for Adcock’s hospital business segment increased by 7% to R2.18-billion, while trading profit for the segment declined by 2% to R125-million.

ACQUISITION

As it announced in July, Adcock will, subject to regulatory and shareholder approvals, be acquired by Indian multinational pharmaceutical company NATCO Pharma, which will acquire all the shares in the group not owned by JSE-listed diversified industrial group Bidvest, through a scheme of arrangement.

Adcock will subsequently be delisted from the JSE and operate as a privately held company, with Bidvest as the controlling shareholder.

“The transaction presents a meaningful opportunity to unlock shareholder value and long-term strategic and operational benefits,” the company says.

Specifically, NATCO Pharma has a strong presence in developing and emerging markets and brings complementary capabilities in generic product and dossier development, intellectual property and raw material sourcing.

These strengths will enhance Adcock's competitiveness, product offering and supply chain resilience, the company says.

“Adcock will remain a South Africa-based business. The group is well-positioned to pursue targeted growth opportunities, strengthen its position in the local healthcare market, and deliver sustained value to stakeholders.”