25 August 2021
Adcock Ingram reports resilient performance under COVID-19

Johannesburg – The Adcock Ingram Group delivered a healthy set of results in the year ended 30 June 2021, with turnover increasing by 6%, despite the effects of the COVID-19 pandemic.

Salient features:

• Turnover Increase of 6% to R7.8 billion

• Operating expenses decreased by 6% on a like-for-like basis

• Headline earnings per share decreased by 3% to 404.7 cents

• Cash on hand R48 million

• Level 3 B-BBEE rating

• Final dividend of 90 cents

‘Adcock Ingram delivered these results under challenging trading and operating conditions due to the continued impact and uncertainty of the COVID-19 pandemic. Despite these complexities, the Group’s people displayed adaptability and resilience, with agile supply chain, sales, marketing and innovation strategies to sustain and grow its diversified portfolio of products.’ said Andy Hall, Chief Executive Officer.

Turnover increased by 6% to R7.8 billion, as all divisions, with the exception of the Over-the-Counter (OTC) business unit, which is the largest cough, colds and flu company in South Africa, posted good growth in sales. The Consumer division, which now includes a full year’s contribution from the Plush shoe and household care business, increased its turnover by 42% to R1.3 billion. The Group experienced good demand for immune-boosting products, and certain small-volume parenterals and acute renal dialysis products associated with the treatment of COVID-19. The general absence of colds and flu, saw sales in the OTC business unit declining by 15%.

The gross margin decreased from 37% to 34%, driven by a 9% depreciation of the Rand against the US Dollar and Euro, directly affecting the cost of imported goods, and a higher proportion of anti-retroviral products (ARV’s) in the sales mix. Reduced demand in OTC products also resulted in lower factory recoveries at the Clayville factory.