Aspen Pharmacare Holdings, a leading pharmaceutical company led by South African billionaire businessman Stephen Saad, reported strong financial performance in the first half of its 2024 fiscal year, exceeding both investor expectations and its own guidance.
Revenue tops $1.1 billion
For Aspen, which ranks as Africa’s largest drugmaker, its revenue for the six months ended Dec. 31, 2023, surged 10 percent year-over-year to R21.1 billion ($1.11 billion), up from R19.2 billion ($1.01 billion) in the first half of its 2023 fiscal year, highlighting the group’s strategic progress.
Despite the double-digit percent surge in its revenue, the group’s headline earnings per share (HEPS) declined six percent to R6.207 ($0.33) from R6.606 ($0.35) in the prior-year period. This decrease reflects higher transaction costs and intangible asset impairments.
CEO comments on progress and future outlook
“Great progress has been made in delivering on our ambitious strategy to lay the foundation for strong growth,” Saad, Aspen’s group CEO and founder, said. “We have successfully completed the necessary steps to reach the commercialization stage for the manufacture of mRNA platform products which will augment revenue in H2 2024. Notable financial highlights include a 10 percent increase in revenue and a 44 percent increase in operating cash flow per share.”
Saad further commented, “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 financial year. Organic growth complemented by acquisitions is set to drive Commercial Pharmaceuticals’ revenue in H2 2024 up by some R1 billion ($52.76 million) over H2 2023. We are also pleased to report that our recently announced acquisition of products in China, which remain subject to Competition Authority approval, will mitigate the negative volume-based procurement impact from the group’s 2025 fiscal year.”
About Aspen Pharmacare Holdings
Headquartered in Durban, South Africa, Aspen Pharmacare Holdings (founded in 1997) is a global specialty and branded pharmaceutical company and the largest drug manufacturer in Africa. The company has grown into a leading player in the South African pharmaceutical market.
Stephen Saad, who has served as CEO since 1999, holds a significant 12.5-percent stake in Aspen, representing 57,159,809 ordinary shares, making him the largest individual shareholder. This ownership stake underscores his unwavering commitment to the company’s success.
Aspen anticipates a robust second half of 2024, supported by the launch of sterile manufacturing contracts and continued growth in its active pharmaceutical ingredients (API) business. The company remains confident in achieving its guided sterile manufacturing contributions of at least R3 billion in fiscal 2025 and R4 billion in fiscal 2026. This, coupled with a strengthened Commercial Pharmaceuticals base business, is expected to fuel organic revenue and earnings growth going forward.
