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ADCOCK INGRAM HOLDINGS LIMITED - Trading Statement

Release Date: 31/01/2014 13:00
Code(s): AIP     PDF:  
Wrap Text
Trading Statement

Adcock Ingram Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 2007/016236/06
ISIN: ZAE000123436
Share code: AIP
(“Adcock Ingram” or “the Company”)

Trading Statement

In terms of paragraph 3.4(b) of the JSE Limited (“JSE”) Listings Requirements, an issuer is required to
publish a trading statement as soon as the issuer and its directors are satisfied that there is a reasonable
degree of certainty that the financial results for the next reporting period will differ by at least 20% from
those of the previous corresponding period.

As at 31 December 2013, the end of the first quarter of trading for the 2014 financial year, group revenue
was 4% ahead of the previous corresponding period, including the Cosme and Datlabs businesses which
were not in the comparative period. Revenue in the Southern African business is 4% behind the
corresponding period, including a sharp slow-down in the OTC and Prescription Generics portfolios.

The gross profit as a percentage of sales is under extreme pressure as a result of the unfavourable revenue
mix, Rand depreciation which has negatively affected the cost of imported active ingredients and other
materials, and cost input inflation. Operating expenditure has been impacted by increased marketing and
distribution costs, salary and wage increases across the business, and costs related to the current
corporate activity.

Accordingly, shareholders are advised that Adcock Ingram`s basic earnings per share ("EPS") for the six-
month period ending 31 March 2014 from continuing operations are expected to be lower than the
previous corresponding period`s figure of 188.0 cents. Headline earnings per share ("HEPS") for the six-
month period ending 31 March 2014 from continuing operations are expected to be lower than the
previous corresponding period`s figure of 188.1 cents. The board is unable to provide a range as
contemplated in paragraph 3.4(b) of the JSE Limited Listings Requirements at this stage of the financial
period in question but has reasonable certainty that the EPS and HEPS will be lower than the previous
corresponding figures by a minimum of 20%.

The financial information on which this trading statement is based has not been reviewed and reported on
by Adcock Ingram’s auditors.

The Company’s financial results for the six months period ending 31 March 2014 will be released on the
Stock Exchange News Service of the JSE on or about 27 May 2014.

Midrand
31 January 2014

Sponsor
Deutsche Securities (SA) Proprietary Limited

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