Health and care brands group Ascendis Health on Thursday reported a 101% year-on-year rise in revenue to R1.3-billion for the six months ended December 31.

It declared an interim dividend of 8c a share for the six months under review.

Speaking at a presentation of the group’s interim results, in Johannesburg, Ascendis CEO Karsten Wellner noted that the performance was driven by comparable organic growth of 14.9% and R617-million from strategic acquisitions that were concluded over the last year.

Ascendis Health’s operating profit increased by 84% to R161-million, while its operating margin declined from 13.2% to 12.1% at the end of the period.

The group achieved headline earnings growth of 65% to R88.6-million, with headline earnings a share increasing 21.6% to 35.5c, impacted by a 23% increase in the weighted average number of shares in issue during the period.

Revenue generated from foreign markets increased by 10% to R114-million and accounted for 9% of the group’s total sales.

Ascendis Health’s Consumer Brands division, which includes nutraceuticals, vitamins, sports nutrition and skincare products, increased its revenue by 55% to R462-million and contributed 35% of group revenue.

The Pharma-Med division, which includes prescription drugs and medical devices, grew its revenue by 654% to R531-million, representing 40% of group revenue. 

The Phyto-Vet division, which focuses on plant and animal health and care, increased revenue by 16% to R340-million, contributing 25% of group revenue.

“We are targeting 10% to 15% organic revenue growth from the group’s strong and resilient brands. This is supported by the acquisition of complementary businesses, brands and dossiers targeting a further 20% to 25% revenue growth,” said Wellner.

ACQUISITIONS AND OUTLOOK
In February, Ascendis acquired the diagnostics business of the Scientific Group for R284-million.

Merging this entity with Ascendis’ medical device distributor Surgical Innovations and specialist medical equipment distributor Respiratory Care Africa, will create a R1-billion Ascendis Medical platform and position the group as the country’s second-largest medical device company, said Wellner.

“The diagnostics product range of the Scientific Group will further entrench a turnkey offering of medical equipment and devices to private and public hospitals, clinics and medical professionals,” he added.

Ascendis undertook a successful private capital raising of R455-million in the period under review, which was partially used to fund the acquisition.

The acquisitions of Respiratory Care Africa and health and wellness products provider Arctic Healthcare both became effective during the reporting period.

Speaking on the group’s outlook, Wellner said the priority was to deliver on its organic and acquisitive growth strategies.

“Ascendis owns a portfolio of leading South African brands and plans to maximise the export potential of these brands and to focus on offshore acquisitions to grow its international operations. We are currently considering the pursuit of international acquisitions for the Pharma-Med platform. We are also evaluating potential bolt-on acquisitions for the Consumer Brands and Phyto-Vet divisions,” he said.