Zim, Kenya bouy Adcock Ingram’s earnings
SOUTH African pharmaceutical group Adcock Ingram says its businesses in Zimbabwe and Kenya collectively increased turnover by 24,8% to R123,7 million ($10,5m) in the interim results for the six months ended December 31 2017 compared to R99,1 million ($8,4m) achieved in the prior year.
The Johannesburg Stock Exchange (JSE) listed company has interests in flagging Bulawayo-based pharmaceutical manufacturer and distributor Datlabs, whose production capacity has been picking up due to a significant improvement in demand for the top brands following improved stock availability.
“The group’s enterprises in Zimbabwe and Kenya collectively increased turnover by 24,8% to R123,7 million (Dec 2016: R99,1 million) and achieved a trading profit R12,8 million during the period under review,” reads part of the statement accompanying group’s interim results.
“The positive performance in Zimbabwe is attributable to a significant improvement in demand for the top brands following improved stock availability, whilst the improvement in the Kenyan operation is due the OTC division having assumed management responsibility for the business,” it said.
Datlabs produces brands such as Cafemol, Panado, Solphyllex and Lanolene Milk under licence but has been facing serious competition from imports, mainly from the Asian bloc.
In 2013 it launched its own camphor brand, CamphaCare, following the termination of a 50-year contract to make Ingram’s Camphor Cream by Tiger Brands of South Africa which divested from Datlabs in the same year.
The company has been seeking close to $10 million to recapatilise its operations.
Overally, Ingram said its turnover increased by 7,4% to R3,2 billion in the period under review, mainly driven by a realised average price increase of 5,2%.
These positive results were achieved in spite of political uncertainty in the period and high levels of unemployment which adversely influenced consumer spending, it said.
“Despite a challenging operating environment, we have been able to increase turnover by 7,4%, gross profit by 13% and trading profit by 25%. It is pleasing to note that the results achieved have been attained through a focused and dedicated approach by each of the business units,” said group chief executive officer, Andy Hall said.–herald
