JSE-listed pharmaceuticals manufacturer Adcock Ingram on Thursday reported a 17% increase in trading profit to R485-million for the six months ended December 31, 2018, compared with the R416-million profit posted in the comparable period of 2017.
The company also reported a 16% increase in headline earnings to R361-million, compared with R310-million in the comparable prior period and declared a total dividend of R1 apiece.
The company stated this was against a backdrop of a strictly price-regulated environment, coupled with tough trading conditions as a consequence of continued pressure on the consumer.
“The group’s positive results can be attributed to the resilience within our diversified portfolio, with growth in sales and market share, and continued focus on customer service and uncompromised product quality,” said CEO Andy Hall.
He noted that Adcock’s gross margin improved to 38.7%, which was driven by an advantageous sales mix and improved throughput at the Clayville factory.
“The low Single Exit Price increases granted to the industry in March 2018, of 1.26% and 3.78% in the current calendar year, do not compensate for the above inflationary increases in salaries, wages and utilities.
“Adcock remains focused on improving its operational efficiency, growing the established brands and expanding its product range through the acquisition of non-regulated brands to defend its position in the market,” Hall stated.