Wrap Text
Reviewed Condensed Group Financial Results for the year ended 30 June 2026 and Cash Dividend Declaration
ASPEN PHARMACARE HOLDINGS LIMITED AND ITS SUBSIDIARIES
Incorporated in the Republic of South Africa
Registration number: 1985/002935/06
Share code: APN
ISIN: ZAE000066692
("Aspen" or "the Group" or "the Company")
REVIEWED CONDENSED GROUP FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2026
AND CASH DIVIDEND DECLARATION
The Group delivered on its core strategic priorities for the financial year ended 30 June 2026
(“FY 2026”). These were communicated to its stakeholders at the interim results presentation
held on 4 March 2026. The Group’s operational performance was aligned to published
guidance underpinned by the continued strong momentum in Commercial Pharmaceuticals
which was the principal driver of growth in FY 2026. To achieve full year normalised EBITDA
guidance from continuing operations, required second half growth (“H2 2026”) of 52% over
the prior year comparable period(1). The strong H2 2026 EBITDA delivery ensured that the
Group achieved 28% growth in FY 2026 normalised headline earnings per share (“NHEPS”)
from continuing operations in constant exchange rate (“CER”), materially reversing a decline
in H1 2026 NHEPS of 24%. Reported performance was diluted by the strength of the ZAR
against most of Aspen’s major trading currencies during the year.
The reshaping of the sterile finished dose form (“FDF”) manufacturing facilities in France and
South Africa is nearing completion with the initial benefits of operational improvements
materialising in H2 2026. Both facilities are well positioned to be the primary drivers of Group
EBITDA growth in FY 2027.
The divestment of the Aspen APAC business (“APAC Divestment”) for gross proceeds of R28
billion was a tangible demonstration of the Group unlocking the intrinsic value in the sum of
its parts. This together with stronger free cash flow generation, meant Aspen concluded FY
2026 with a substantially strengthened balance sheet, ending the year with net cash of circa
R0,8 billion after investment in share buybacks of R0,5 billion.
Highlights for the FY 2026 reporting period are set out below (unless otherwise stated, all
commentary refers to CER performance from continuing operations only):
- Operating leverage realised from efficiency projects resulted in 14% growth in
normalised Group EBITDA off a flat revenue base;
- Commercial Pharmaceuticals, Aspen’s largest business segment, delivered 5% revenue
growth and stronger normalised EBITDA growth of 13%;
- Manufacturing achieved a normalised EBITDA of R828 million ending 21% ahead of FY
2025;
- Regulatory approval was received from Health Canada for Aspen’s generic semaglutide
injectable in that country with commercialisation timing dependent on the availability
of active pharmaceutical ingredient supply from Dr. Reddy's Laboratories Limited;
- Commercialisation of the human insulin manufacturing contract commenced in May
2026 following regulatory approval from the South African Health Products Regulatory
Authority;
- Aspen initiated several value enhancement and operational efficiency projects across
the Group. The related restructuring costs of R2,3 billion negatively impacted headline
earnings per share (“HEPS”) and earnings per share (“EPS”). These restructuring
projects are fundamental to our future success and have already yielded and will yield
further substantial sustainable benefits for the Group;
- The APAC Divestment resulted in gross proceeds of R28 billion generating a profit on
sale of R2,4 billion which positively impacted EPS in the current year;
- Intangible asset impairments were adversely impacted by higher discount rates driven
by current geopolitical and macro-economic conditions. These impairments total R2,3
billion and although they have no cash impact do affect EPS. Despite the negative
effect of the higher discount rates, brand related intangible assets retain a valuation of
more than 45% above carrying amount. This premium is supported by the sustained
organic growth of Commercial Pharmaceuticals; and
- Strong free cash flow (before dividends paid) of R3,8 billion was generated,
underpinned by an operating cash conversion rate well above the Group’s target of
100%, a working capital to revenue ratio of 44% (prior year of 47%) and capital
expenditure ending R2 billion lower than the prior year.
(1) H2 2025 reported normalised EBITDA from continuing operations was R2 565 million.
GROUP PERFORMANCE
KEY FINANCIAL INDICATORS(1)
Reviewed Restated(2) Change Change
June 2026 June 2025 at at CER3
reported
rates
Continuing operations R'million R'million % %
Revenue 34 870 35 336 (1) 0
Gross profit 14 055 14 832 (5) (3)
Gross profit % 40.3% 42.0% (4) (3)
Operating profit/(loss) 763 (790) >100 >100
Normalised EBITDA(4) 7 703 6 972 10 14
Normalised EBITDA %(4) 22.1% 19.7%
Normalised headline earnings per 801.5 659.2 22 28
share (cents)(5)
Total operations
Headline earnings per share (cents) 630.0 792.1 (20) (15)
Earnings/(loss) per share (cents) 596.0 (243.9) >100 >100
Dividend per share (cents)(6) 232 211 10
(1) The Group assesses its operational performance using CER. The table above compares performance to the prior comparable period at
reported exchange rates and at CER.
(2) Refer to note G of Group supplementary information for restatement as a result of the divestment of Aspen APAC business.
(3) The CER % change is based upon the performance for the year ended 30 June 2025 recalculated using the average exchange rates for the
year ended 30 June 2026.
(4) Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy.
(5) NHEPS is HEPS adjusted for specific non-trading items as defined in the Group’s accounting policy.
(6) Dividend declared on 2 September 2026, to be paid on 12 October 2026 (2025: Declared on 3 September 2025 and paid 6 October 2025).
SEGMENTAL PERFORMANCE
KEY FINANCIAL INDICATORS1
Reviewed Restated(2) Change Change
June 2026 June 2025 at at CER3
reported
rates
Continuing operations R'million R'million % %
Commercial Pharmaceuticals
Revenue 25 405 24 752 3 5
Gross profit 14 679 14 387 2 5
Gross profit % 57.8% 58.1% (1) 0
Normalised EBITDA(4) 6 875 6 325 9 13
Normalised EBITDA %(4) 27.1% 25.6%
Manufacturing
Revenue 9 465 10 584 (11) (10)
Gross profit(5) 299 445 (33) (38)
Gross profit %(5) 3.2% 4.2% (25) (31)
Normalised EBITDA(4) 828 647 28 21
Normalised EBITDA %(4) 8.7% 6.1%
(1) The Group assesses its operational performance using CER. The table above compares performance to the prior comparable period at
reported exchange rates and at CER.
(2) Refer to note G of Group supplementary information for restatement as a result of the divestment of Aspen APAC business.
(3) The CER % change is based upon the performance for the year ended 30 June 2025 recalculated using the average exchange rates for the
year ended 30 June 2026.
(4) Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy.
(5) Normalised gross profit excluding restructuring costs. Refer note B of Group supplementary information.
The key performance indicators for the Group's two business segments, being Commercial
Pharmaceuticals and Manufacturing, are set out above (all commentary refers to CER
performance from continuing operations only):
Commercial Pharmaceuticals
Revenue growth of 5% to R25 405 million was led by strong Mounjaro® demand in South
Africa. Discontinuation of unprofitable products in China, following execution of the business
reshape plan, diluted overall revenue growth. Normalised EBITDA growth of 13% exceeded
revenue growth, leveraging the operating model efficiencies in the reshaped China business
and building on the double-digit EBITDA growth in CER enjoyed in FY 2025.
Manufacturing
Revenue of R9 465 million ended 10% lower due to the absence of the prior period’s mRNA
contract. Normalised EBITDA of R828 million was up 21% on the prior year, more than
recovering the loss of the mRNA contract contribution of R1 billion in FY 2025, with the initial
benefits of the sterile FDF reshape being the key driver.
PROSPECTS
Aspen is focused on delivering stronger organic normalised EBITDA growth in FY 2027 with
the ambition of recovering the divested contribution of the APAC business in FY 2026 and
the loss of the mRNA contract in FY 2025. The Group is targeting a normalised EBITDA of at
least R9 billion in CER. This together with anticipated net interest savings of circa R1,2 billion
is expected to drive substantial double-digit growth in CER normalised headline earnings per
share in FY 2027.
Commercial Pharmaceuticals is anticipating mid-single digit CER growth in both revenue and
normalised EBITDA led by sustainable organic growth in emerging markets and will be
impacted by the commencement and performance of a global rollout of the Group’s GLP-1
portfolio.
Manufacturing CER normalised EBITDA is expected to be more than double that of FY 2026
and will be the primary driver of the Group’s FY 2027 normalised EBITDA growth. In FY 2026,
Sterile FDF achieved R1,2 billion of the R1,7 billion FY 2026/FY 2027 cumulative EBITDA
growth guidance published. Aspen has raised this guidance by R0,5 billion to R2,2 billion
shifting Sterile FDF to a higher anticipated positive EBITDA in the upcoming financial year.
The API business is expected to return to growth, benefitting from new third party contract
manufacturing opportunities.
The Group will continue to respond to opportunities which unlock the value of the sum of its
parts.
Increasing free cash flow, a strong balance sheet, organic growth in both Manufacturing and
Commercial Pharmaceuticals and continued capital discipline will provide Aspen with the
flexibility to invest in its core businesses and share buybacks, with the goal of increasing
Shareholder returns.
Any forecast information in the above-mentioned paragraphs has not been reviewed or
reported on by the Group's auditors and is the responsibility of the directors.
REGULATORY REQUIREMENTS
The contents of the short form announcement are the responsibility of the Board of directors
of Aspen. The information in the short form announcement is a summary of the full
announcement available on the Company's website at
https://www.aspenpharma.com/investor-relations/#financial-results-and-presentations on
03 September 2026 and accordingly does not contain full or complete details. The full
announcement can also be accessed online at
https://senspdf.jse.co.za/documents/2026/jse/isse/APN/YEresults.pdf
This announcement and the results contained in this announcement have been prepared in
compliance with the Listings Requirements of the JSE Limited.
REVIEW BY INDEPENDENT AUDITOR
These condensed Group Financial Results for the year ended 30 June 2026 have been
reviewed by independent external auditors, Ernst & Young Inc. and their unmodified review
report is included in the full announcement. The review was performed in accordance with
ISRE 2410 'Review of Interim Financial Information Performed by the Independent Auditor of
the Entity'. Any reference to future financial performance included in this announcement has
not been reviewed or reported on by the Group's external auditors. The auditor's review
report does not necessarily report on all of the information contained in this
announcement/financial results. Shareholders are therefore advised that in order to obtain a
full understanding of the nature of the auditor's engagement, they should refer to the full
announcement. Any investment decisions by shareholders/investors should be based on the
full announcement.
DECLARATION OF DIVIDEND
The Board has declared a gross dividend of 232 cents per ordinary share (2025: 211 cents per
share) (or 185,6 cents net of a 20% dividend withholding tax, where this maximum rate of tax
applies) which is 20% of normalised headline earnings per share and aligned to the Group’s
capital allocation framework. The dividend will be paid from income reserves.
Shareholders should seek their own advice on the tax consequences associated with the
dividend and are particularly encouraged to ensure their records are up to date with Aspen so
that the correct withholding tax rate is applied to their dividend. The Company income tax
number is 9325178714. The issued share capital of the Company is 446 252 332 ordinary
shares. Future distributions will continue to be decided on a year-to-year basis. In compliance
with IAS 10 – Events After the Reporting Period, the dividend will be accounted for in the
financial statements in the year ended 30 June 2027.
Last day to trade cum dividend Tuesday, 6 October 2026
Shares commence trading ex-dividend Wednesday, 7 October 2026
Record date Friday, 9 October 2026
Payment date Monday, 12 October 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 7
October 2026 and Friday, 9 October 2026, both days inclusive.
Registered office
Building 8
Healthcare Park
Woodlands Drive
Woodmead
Sandton
2 September 2026
Sponsor
Investec Bank Limited
Date: 02/09/2026 01:00:00
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