Aspen Pharmacare Holdings, a leading pharmaceutical company led by South African billionaire businessman Stephen Saad, posted good financial results in the first half of its fiscal year 2024, above both investor forecasts and its own guidance.
Aspen, Africa’s largest drugmaker, reported a 10% year-over-year increase in revenue to R21.1 billion ($1.11 billion) for the six months ending Dec. 31, 2023, up from R19.2 billion ($1.01 billion) in the first half of the fiscal year.
Despite a double-digit percentage increase in revenue, the group’s headline profits per share (HEPS) fell six percent to R6.207 ($0.33) from R6.606 ($0.35) in the previous year quarter. This drop is due to greater transaction costs and intangible asset impairments.
“Great progress has been made in delivering on our ambitious strategy to lay the foundation for strong growth,” Aspen’s group CEO and founder, Saad, stated. “We have effectively completed the processes required to reach the commercialization stage for the manufacture of mRNA platform products, which will increase income in H2 2024. Significant financial highlights include a 10% increase in revenue and a 44% increase in operational cash flow per share.
Saad added, “The transition to new toll manufacturing agreements for the Heparin business is expected to reduce inventory investment by R3 billion ($158.33 million) by the end of the fiscal year.” Organic growth, combined with acquisitions, is expected to increase Commercial Pharmaceuticals’ revenue in H2 2024 by approximately R1 billion ($52.76 million) over H2 2023. We are also glad to note that our recently announced acquisition of items in China, which is still subject to Competition Authority approval, will offset the group’s negative volume-based procurement impact in fiscal year 2025.”
Aspen Pharmacare Holdings, formed in 1997 and headquartered in Durban, South Africa, is Africa’s largest medication maker and a global specialized and branded pharmaceutical firm. The company has developed into a major player in the South African pharmaceutical industry.
Stephen Saad, CEO since 1999, owns a huge 12.5 percent stake in Aspen, which equates to 57,159,809 ordinary shares, making him the company’s greatest individual stakeholder. This ownership interest demonstrates his persistent devotion to the company’s success.
Aspen expects a strong second half of 2024, driven by the launch of sterile manufacturing contracts and ongoing expansion in its active pharmaceutical ingredients (API) business. The firm maintains confident in meeting its guidance for sterile manufacturing contributions of at least R3 billion in fiscal 2025 and R4 billion in fiscal 2026. This, together with a strengthened Commercial Pharmaceuticals base business, is expected to drive future organic revenue and earnings growth.
