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Unaudited group financial results and cash dividend declaration for the six-month period ended 31 December 2015
ADCOCK INGRAM HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 2007/016236/06
Income tax number 9528/919/15/3
Share code: AIP ISIN: ZAE000123436
(“Adcock Ingram” or “the Company” or “the Group”)
UNAUDITED GROUP FINANCIAL RESULTS AND CASH DIVIDEND DECLARATION
for the six-month period ended 31 December 2015
Salient features
Turnover increased 7% to R2 752 million
Gross profit improved 11% to R1 006 million
Trading profit increased 20% to R293 million
Dividend declared: 50 cents per share
B-BBEE level 4 achieved
INTRODUCTION
The divisional reorganisation of Adcock Ingram’s business, commenced early in the 2015 financial year, has in a sense been a contributing feature in
maintaining the positive trend of performance during the interim period presently under review. In a period of economic uncertainty and intensifying
currency devaluation, the Group’s improved factory efficiencies, better customer relations, pleasing service level statistics and a concentrated marketing
effort, yielded impressive market share gains, measured by IMS and Nielsen, particularly in the OTC and Consumer divisions.
FINANCIAL PERFORMANCE OF CONTINUING OPERATIONS
TURNOVER AND PROFITS
Group turnover increased by 7.1% to R2 752 million, partly aided by the 7.5% SEP price increase in April 2015 on the segment of products to which those
regulatory limitations apply. All segments, however, posted improvements in turnover over the prior period. Volume improvement was also encouraging,
but the benefits therefrom were unfortunately offset by the discontinuation of certain uneconomic product lines in the Consumer Division and the
repatriation of some MNC business in the Prescription division.
Given the adverse impact through currency devaluations, the collective gross margin improvement from 35.2% to 36.5% was more than encouraging,
this substantially arising through increased and more streamlined factory throughput, including lower inventory impairments, and sales mix benefits
when measured against the comparable period. The relatively high inventory holding in the current period provided some protection in the depreciating
Rand environment.
Having regard to the relatively early stage of the divisional restructure in the period to 31 December 2014, a deliberately aggressive selling and
marketing plan was carried out during the current reporting period. A well mounted and cost-effective marketing programme was implemented and the
additional cost thereof is clearly evident in the statement of comprehensive income. What is particularly pleasing, however, is the expected outcome of
the more disciplined control over fixed and administrative expenditure.
The overall advantages of the reorganised divisional management structure started to reveal themselves in this period with trading profits increasing by
20% from R243.8 million to R292.6 million.
NON-TRADING EXPENSES
Non-trading expenses during the period includes share-based payments of R35.9 million of which R20.8 million relates to a once-off IFRS 2 charge, arising
through the implementation of the July 2015 B-BBEE scheme.
TAX AND Headline earnings
The effective tax rate of 32% is a consequence of certain expenditure being non-deductible for tax purposes.
Headline earnings from continuing operations for this interim period amounted to R164.8 million (Dec 2014: R157.9 million). This translates into headline
earnings per share of 98.6 cents (Dec 2014: 93.6 cents). Excluding the once-off IFRS 2 charges of R20.8 million relating to the B-BBEE scheme,
headline earnings from continuing operations would be R185.6 milllion (111.0 cents, an improvement of 19%).
CASH FLOWS
Cash generated from operations was R269.7 million despite working capital utilisation increasing by R93.2 million.
BUSINESS OVERVIEW
Turnover in the OTC division increased by 9% to R761.5 million (Dec 2014: R698.6 million). According to IMS, the Division posted growth ahead of the
market, with double digit ex-factory growth in Adco-dol, Allergex and Corenza-C, the top three brands. Despite increased throughput in the Clayville
factory, the punitive impact of the exchange rate and a detectable change in consumer buying patterns, put margins under pressure. OTC trading profit
of R128.6 million is reported, compared to R141.2 million in the comparable period.
Prescription turnover of R892.4 million is marginally ahead of the comparable period (Dec 2014: R880.9 million), this the result of static volumes in the
Generics portfolio and the singular effect of a repatriation of certain products to multinational partners. A large percentage of the contributions arising
from the SEP price increase and a much improved performance from ARV sales were unfortunately absorbed through the aforesaid circumstances. Gross
margins, however, improved in this period due to better production recoveries, increased ARV sales volumes and lower inventory write-offs. Trading
profits of R87.1 million are accordingly well ahead of the comparative performance of R57.9 million.
Consumer turnover of R328.1 million is 8% ahead of the comparable period (Dec 2014: R304.2 million) with Panado, Probiflora, Compral and Cepacol all
posting healthy growth. Trading profit improved by 10% to R42.1 million (Dec 2014: R38.3 million).
Hospital turnover increased by 12% to R626.2 million (Dec 2014: R557.8 million) notwithstanding an increasingly competitive environment and with
good cost control, trading profit increased to R21.6 million (Dec 2014: R1.1 million).
The Group’s revised B-BBEE structure was successfully implemented in July 2015. The level 4 rating achieved under the new B-BBEE codes, in contrast
to the level 3 rating held previously, will hopefully contribute towards providing reciprocal advantage to the Company and stakeholders under this
imperative modality for conducting business in South Africa.
INDIA
Following the Board’s decision to dispose of the Group’s Indian operating subsidiary, this operation has been treated as an asset held-for-sale and is
reflected in the financial statements as a discontinued operation. Amortisation and depreciation of assets in such subsidiary were accordingly suspended
in the current period.
CHANGES TO THE BOARD AND IN DIRECTORS’ FUNCTIONS
On 11 November 2015, Clifford Raphiri, the Company´s lead independent director, was appointed Non-Executive Chairman. Former Non-executive
Chairman, Brian Joffe assumed the role of Deputy Chairman. Kevin Wakeford resigned as Chief Executive Officer and Andrew Hall, the Company´s Deputy
Chief Executive Officer and Chief Financial Officer, was appointed Chief Executive Officer. Dorette Neethling, the Group Financial Executive was appointed
Acting Chief Financial Officer. Lindsay Ralphs resigned as a Non-executive Director and was replaced by David Cleasby.
On 2 February 2016, Clifford Raphiri, now Non-executive Chairman, relinquished his chairmanship of the HR, Remuneration and Nominations Committee,
but remains a member of this Committee. Mpho Makwana relinquished his membership of the Risk and Sustainability Committee and assumed
chairmanship of the HR, Remuneration and Nominations Committee. David Cleasby assumed membership of the Risk and Sustainability Committee and
the Chief Financial Officer will no longer be a member of the Social Ethics and Transformation Committee.
On 23 February 2016, Dorette Neethling was appointed to the Board as executive director and Chief Financial Officer.
PROSPECTS
During calendar year 2015 and particularly during the period under review, the Group continued to make progress in restoring its status and regaining the
respect of the broader South African pharmaceutical market. The trend of improvement in the Group’s operating performance, in this and immediately
past periods, bears testimony to the beneficial outcome arising from the refocused effort of management under the divisional restructure.
While the improvement in profits during the subject period would suggest a continuing level of growth going forward, stakeholders will be acutely aware
of the economic challenges that lie ahead. Recent increases in interest rates, consequential inflation, continued under-recovery of currency losses under
government’s SEP reimbursement model and the potential further decline in disposable incomes, will surely have an effect on future sales volumes and
profitability.
Notwithstanding these direct challenges, continued effort will be invested to enhance the quality and efficacy of brands, build customer relationships
and maintain service levels within each of the operating divisions. The Group provides an excellent range of products into the market and management
will continue to diligently apply themselves to maximise opportunities for optimal achievement. Concurrently with normal trading activities, there is a
purposeful process in place to seek to expand the Group’s non-regulated product portfolio, through partnerships and acquisitions.
DIVIDEND DISTRIBUTION
The Board has declared an interim gross dividend out of income reserves of 50 cents per share in respect of the six months ended 31 December 2015. The
South African dividend tax (“DT”) rate is 15% and the net dividend payable to shareholders who are not exempt from DT is 42.50 cents per share. Adcock
Ingram currently has 175 748 048 ordinary shares in issue of which 149 902 758 qualify for dividends. The income tax reference number is 9528/919/15/3.
The salient dates for the distribution are detailed below:
Last date to trade cum distribution Friday, 11 March 2016
Shares trade ex distribution Monday, 14 March 2016
Record date Friday, 18 March 2016
Payment date Tuesday, 22 March 2016
Share certificates may not be dematerialised or rematerialised between Monday, 14 March 2016 and Friday, 18 March 2016, both dates inclusive.
CD Raphiri AG Hall
Chairman Chief Executive Officer
23 February 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited Change % Unaudited Audited
six months six months year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
Continuing operations Note R’000 R’000 R’000
REVENUE 2 2 758 393 2 583 395 5 294 511
TURNOVER 2 2 752 416 7% 2 568 814 5 270 697
Cost of sales (1 746 768) (1 664 128) (3 359 850)
Gross profit 1 005 648 11% 904 686 1 910 847
Selling, distribution and marketing expenses (499 377) (444 279) (970 435)
Drug management and regulatory expenses (57 836) (60 759) (119 288)
Fixed and administrative expenses (155 853) (155 818) (311 997)
Trading profit 292 582 20% 243 830 509 127
Non-trading expenses 3 (42 135) (16 977) (26 350)
Operating profit 250 447 226 853 482 777
Finance income 2 1 483 10 624 13 144
Finance costs (44 723) (57 189) (100 525)
Dividend income 2 4 494 3 957 10 670
Equity-accounted earnings 26 177 32 511 65 608
Profit before taxation 237 878 10% 216 756 471 674
Taxation (67 461) (55 274) (141 031)
Profit for the period/year from continuing operations 170 417 6% 161 482 330 643
Profit/(Loss) after taxation for the period/year from discontinued operation 4 2 075 (16 530) (131 834)
Profit for the period/year 172 492 144 952 198 809
Other comprehensive income which will subsequently be recycled to
profit or loss 204 043 40 562 61 722
Exchange differences on translation of foreign operations:
– Continued operations 65 969 14 673 10 581
– Discontinued operation 127 189 25 843 50 661
Movement in cash flow hedge accounting reserve, net of tax 9 818 46 77
Other 1 067 – 403
Other comprehensive income which will not be recycled to profit or
loss
Actuarial loss on post-retirement medical liability – – (442)
Total comprehensive income for the period/year, net of tax 376 535 185 514 260 089
Profit attributable to:
Owners of the parent 166 662 141 892 197 932
Non-controlling interests 5 830 3 060 877
172 492 144 952 198 809
Total comprehensive income attributable to:
Owners of the parent 367 363 181 142 260 419
Non-controlling interests 9 172 4 372 (330)
376 535 185 514 260 089
Continuing operations
Basic earnings per ordinary share (cents) 98.4 5% 93.9 195.3
Diluted basic earnings per ordinary share (cents) 98.3 5% 93.8 195.3
Headline earnings per ordinary share (cents) 98.6 5% 93.6 192.8
Diluted headline earnings per ordinary share (cents) 98.4 5% 93.5 192.8
Discontinued operation
Basic earnings/(loss) per ordinary share (cents) 1.2 (9.8) (78.1)
Diluted basic earnings/(loss) per ordinary share (cents) 1.2 (9.8) (78.1)
Headline earnings/(loss) per ordinary share (cents) 1.2 (9.8) (32.7)
Diluted headline earnings/(loss) per ordinary share (cents) 1.2 (9.8) (32.7)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to holders of the parent
Non-distributable
reserves
Discon
tinued Total
Issued operation attributable Non-
share Share Continuing held-for- Retained to ordinary controlling
capital premium operations sale income shareholders interests Total
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
As at 1 July 2014 16 878 510 920 426 415 1 784 688 2 738 901 118 578 2 857 479
Share issue 6 1 187 1 193 1 193
Movement in share-based
payment reserve 11 497 11 497 11 497
Acquisition of non-controlling
interests in Ayrton Drug
Manufacturing Limited (31) (31) (100) (131)
Total comprehensive income 39 250 141 892 181 142 4 372 185 514
Profit for the period 141 892 141 892 3 060 144 952
Other comprehensive
income 39 250 39 250 1 312 40 562
Balance at 31 December
2014 (unaudited) 16 884 512 107 477 162 1 926 549 2 932 702 122 850 3 055 552
Share issue 4 831 835 835
Movement in share-based
payment reserve 4 601 4 601 4 601
Acquisition of non-controlling
interests in Ayrton Drug
Manufacturing Limited (1) (1)
Total comprehensive income 23 237 56 040 79 277 (4 702) 74 575
Profit for the period 56 040 56 040 (2 183) 53 857
Other comprehensive
income 23 237 23 237 (2 519) 20 718
Disposal of non-controlling
interest in Bioswiss (Pty)
Limited (14 101) (14 101)
Dividends (4 537) (4 537)
Balance at 30 June 2015
(audited) 16 888 512 938 505 000 - 1 982 589 3 017 415 99 509 3 116 924
Share issue 1 188 189 189
Discontinued operation (252 688) 252 688 – –
Movement in share-based
payment reserve 14 369 14 369 14 369
Implementation of BEE
scheme 258 153 746 (5 624) (44 587) 103 793 (79 883) 23 910
Total comprehensive income 200 701 166 662 367 363 9 172 376 535
Profit for the period 166 662 166 662 5 830 172 492
Other comprehensive
income 200 701 200 701 3 342 204 043
Dividends (117 952) (117 952) (117 952)
Balance at 31 December
2015 (unaudited) 17 147 666 872 461 758 252 688 1 986 712 3 385 177 28 798 3 413 975
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited Unaudited Audited
31 December 31 December 30 June
2015 2014 2015
Note R’000 R’000 R’000
ASSETS
Property, plant and equipment 1 471 029 1 540 308 1 490 828
Intangible assets 283 934 827 632 743 156
Deferred tax 3 542 4 891 12 091
Other financial assets 84 420 138 349 91 106
Investment in joint ventures 337 907 239 835 279 135
Non-current assets 2 180 832 2 751 015 2 616 316
Inventories 1 292 841 1 032 932 1 207 581
Trade and other receivables 1 394 038 1 383 248 1 408 728
Cash and cash equivalents 192 115 459 429 147 379
Taxation receivable 63 987 79 678 77 948
Current assets 2 942 981 2 955 287 2 841 636
Assets classified as held-for-sale 4 828 560 – –
Total current assets 3 771 541 2 955 287 2 841 636
Total assets 5 952 373 5 706 302 5 457 952
EQUITY AND LIABILITIES
Capital and reserves
Issued share capital 17 147 16 884 16 888
Share premium 666 872 512 107 512 938
Non-distributable reserves: Continuing operations 461 758 477 162 505 000
Discontinued operation held-for-sale 4 252 688 – –
Retained income 1 986 712 1 926 549 1 982 589
Total shareholders’ funds 3 385 177 2 932 702 3 017 415
Non-controlling interests 28 798 122 850 99 509
Total equity 3 413 975 3 055 552 3 116 924
Long-term borrowings 507 260 1 015 332 513 753
Post-retirement medical liability 22 935 22 194 22 796
Deferred tax 78 213 51 788 81 854
Non-current liabilities 608 408 1 089 314 618 403
Trade and other payables 1 296 475 1 266 310 1 328 431
Bank overdraft 421 008 228 719 304 210
Short-term borrowings 16 636 10 693 13 273
Cash-settled options 6 973 16 362 6 519
Provisions 61 588 39 352 70 192
Current liabilities 1 802 680 1 561 436 1 722 625
Liabilities classified as held-for-sale 4 127 310 – –
Total current liabilities 1 929 990 1 561 436 1 722 625
Total equity and liabilities 5 952 373 5 706 302 5 457 952
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
R’000 R’000 R’000
Cash flows from operating activities
Operating profit from continuing operations 250 447 226 853 482 777
Operating loss from discontinued operation (1 110) (26 583) (138 119)
Operating profit 249 337 200 270 344 658
Non-cash items 113 628 153 980 379 892
Operating profit before working capital changes 362 965 354 250 724 550
Working capital changes (93 249) 39 493 (126 423)
Cash generated from operations 269 716 393 743 598 127
Finance income, excluding receivable 4 504 16 120 14 409
Finance costs, excluding accrual (44 050) (60 592) (103 871)
Dividend income 19 150 3 957 10 670
Dividends paid (117 952) – (4 537)
Taxation paid (52 075) (18 053) (87 312)
Net cash inflow from operating activities 79 293 335 175 427 486
Cash flows from investing activities
Decrease in other financial assets 6 686 606 37 962
Disposal of business – – (2 663)
Purchase of property, plant and equipment – Expansion (25 454) (20 216) (23 560)
– Replacement (18 762) (32 988) (56 304)
Proceeds on disposal of property, plant and equipment 137 573 2 243
Disposal of non-controlling interest in Blue Falcon Trading (Pty) Limited (11 616) – –
Net cash outflow from investing activities (49 009) (52 025) (42 322)
Cash flows from financing activities
Acquisition of non-controlling interests in Ayrton Drug Manufacturing Limited – (131) (132)
Proceeds from issue of share capital 189 1 193 2 028
Proceeds from sale of investment 30 410 – –
Increase in borrowings – 15 278 23 915
Repayment of borrowings (2 932) – (506 031)
Net cash inflow/(outflow) from financing activities 27 667 16 340 (480 220)
Net increase/(decrease) in cash and cash equivalents 57 951 299 490 (95 056)
Net foreign exchange difference on cash and cash equivalents 19 984 2 981 9 986
Cash and cash equivalents at beginning of period/year (156 831) (71 761) (71 761)
Cash and cash equivalents at end of period/year* (78 896) 230 710 (156 831)
* Made up as follows:
Cash and cash equivalents 192 115 459 429 147 379
Bank overdraft (421 008) (228 719) (304 210)
Net cash position per statement of financial position (228 893) 230 710 (156 831)
Cash at banks and short-term deposits attributable to discontinued operation 149 997 – –
Cash and cash equivalents at end of period/year (78 896) 230 710 (156 831)
Notes to the consolidated financial statements
1 BASIS OF PREPARATION
1.1 Introduction
The abridged unaudited interim results for the six months ended 31 December 2015 have been prepared in compliance with the Listings
Requirements of the JSE Limited, International Financial Reporting Standards (IFRS), the requirements of the International Accounting Standards,
IAS 34: Interim financial reporting, SAICA Financial Reporting Guidelines as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council and the Companies Act, No. 71 of 2008. The Board of directors take full
responsibility for this set of financial results which have been prepared by Ms Dorette Neethling, Chief Financial Officer.
1.2 Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year.
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
R’000 R’000 R’000
2 REVENUE
Turnover 2 752 416 2 568 814 5 270 697
Finance income 1 483 10 624 13 144
Dividend income 4 494 3 957 10 670
2 758 393 2 583 395 5 294 511
3 NON-TRADING EXPENSES
Impairments 1 356 – 5 351
Transaction costs 4 881 – 13 678
Share-based payment expenses 35 898 16 977 15 081
Lease cancellation expenses – – 500
Profit on disposal of business – – (8 260)
42 135 16 977 26 350
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
R’000 R’000 R’000
4 DISCONTINUED OPERATION
The Board has resolved to dispose of Adcock Ingram Private Limited (India).
The results of India are presented below and the net assets were reclassified as
held-for-sale as completion of this disposal is expected by year-end.
REVENUE 118 096 133 688 264 415
TURNOVER 114 614 130 517 257 672
Cost of sales (40 280) (42 176) (86 864)
Gross profit 74 334 88 341 170 808
Selling, distribution and marketing expenses (59 041) (74 700) (144 796)
Fixed and administrative expenses (11 103) (40 224) (84 156)
Trading profit/(loss) 4 190 (26 583) (58 144)
Non-trading expenses (5 300) – (79 975)
Operating loss (1 110) (26 583) (138 119)
Finance income 3 482 3 171 6 743
Finance costs (297) (203) (458)
Profit/(Loss) before taxation 2 075 (23 615) (131 834)
Taxation – 7 085 –
Profit/(Loss) for the period/year 2 075 (16 530) (131 834)
ASSETS
Property, plant and equipment 14 798
Intangible assets 556 060
Inventories 39 840
Trade and other receivables 67 865
Cash and cash equivalents 149 997
Total assets 828 560
LIABILITIES
Long-term borrowings 5 868
Trade and other payables 118 126
Provisions 3 316
Total liabilities 127 310
Foreign currency translation reserve related to assets classified as held-for-sale 252 688
Net assets 448 562
Included in the Group’s consolidated statement of cash flows are cash flows from the
India discontinued operation. These cash flows are included in operating, investing and
financing activities as follows:
Cash inflow from operating activities 4 358
Cash outflow from investing activities (445)
Cash outflow from financing activities (208)
Net cash inflow 3 705
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
R’000 R’000 R’000
5 SEGMENT REPORTING
As at December 2014 the assets and liabilities of the OTC, Consumer and Prescription
products were integrated and managed as the Pharmaceutical division in Southern
Africa. The Group regarded this as a single primary business segment for statement
of financial position purposes. The prior year figures have now been restated in line
with the current group structure.
Turnover
Continuing operations:
Southern Africa 2 608 213 2 441 439 5 022 770
OTC 761 465 698 568 1 454 224
Consumer 328 122 304 152 628 991
Prescription 892 380 880 914 1 812 735
Hospital 626 246 557 805 1 126 820
Rest of Africa and India* 159 117 134 731 270 761
Less: Intercompany sales (14 914) (7 356) (22 834)
2 752 416 2 568 814 5 270 697
Discontinued operation:
India 114 614 130 517 257 672
2 867 030 2 699 331 5 528 369
Trading and operating profit
Continuing operations:
Southern Africa 279 318 238 518 520 894
OTC 128 642 141 174 260 717
Consumer 42 050 38 298 79 301
Prescription 87 054 57 909 148 099
Hospital 21 572 1 137 32 777
Rest of Africa and India* 13 264 5 312 (11 767)
Trading profit 292 582 243 830 509 127
Less: Non-trading expenses (42 135) (16 977) (26 350)
Operating profit 250 447 226 853 482 777
Total assets
Continuing operations:
Southern Africa 4 199 702 3 936 264 4 064 031
OTC 1 442 263 1 346 847 1 419 863
Consumer 350 916 441 509 393 820
Prescription 1 318 918 1 112 274 1 209 513
Hospital 1 087 605 1 035 634 1 040 835
Rest of Africa 260 529 218 025 193 171
India joint venture 228 624 145 388 171 787
Other – shared services 434 958 678 580 348 597
5 123 813 4 978 257 4 777 586
Discontinued operation:
India 828 560 728 045 680 366
5 952 373 5 706 302 5 457 952
* Research and development services in India.
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
R’000 R’000 R’000
6 INVENTORY
The amount of inventories written down recognised as an expense in profit or loss:
Cost of sales 17 992 31 906 97 800
Non-trading expenses – – (8 375)
17 992 31 906 89 425
7 CAPITAL COMMITMENTS
– contracted 12 460 21 140 7 000
– approved, but not contracted 13 083 10 841 33 026
25 543 31 981 40 026
8 HEADLINE EARNINGS
Headline earnings is determined as follows:
Continuing operations
Earnings attributable to owners of Adcock Ingram from total operations 166 662 141 892 197 932
Adjusted for:
(Earnings)/Loss attributable from discontinued operation (2 075) 16 530 131 834
Earnings attributable to owners of Adcock Ingram from continuing operations 164 587 158 422 329 766
Adjusted for:
Loss/(Profit) on disposal/scrapping of property, plant and equipment 255 (475) (1 750)
Tax effect on disposal of property, plant and equipment (7) – (227)
Impairment of property, plant and equipment – – 7 390
Share of non-controlling interest in the impairment of property, plant and equipment – – (1 819)
Profit on disposal of business – – (8 260)
Adjustments relating to equity-accounted joint ventures – – 412
Headline earnings from continuing operations 164 835 157 947 325 512
Discontinued operation
Earnings/(Loss) attributable to owners of Adcock Ingram from discontinued operation 2 075 (16 530) (131 834)
Adjusted for:
Impairment of intangible assets – – 74 432
Loss on disposal/scrapping of property, plant and equipment – – 2 241
Headline earnings/(loss) from discontinued operation 2 075 (16 530) (55 161)
’000 ’000 ’000
9 SHARE CAPITAL
Number of shares in issue 175 748 201 652 201 685
Number of treasury shares held (9 454) (32 800) (32 800)
Net shares in issue 166 294 168 852 168 885
Headline earnings and basic earnings per share are based on:
Weighted average number of shares 167 219 168 795 168 834
Diluted weighted average number of shares 167 492 168 844 168 841
CORPORATE INFORMATION
Directors
Mr D Cleasby (Non-executive Director)
Mr A Hall (Chief Executive Officer)
Prof M Haus (Independent Non-executive Director)
Mr B Joffe (Deputy Chairman)
Dr T Lesoli (Independent Non-executive Director)
Mr M Makwana (Independent Non-executive Director)
Dr A Mokgokong (Non-executive Director)
Mr R Morar (Non-executive Director)
Mr C Raphiri (Independent Non-executive Chairman)
Mr M Sacks (Independent Non-executive Director)
Dr R Stewart (Independent Non-executive Director)
Company secretary
NE Simelane
Registered office
1 New Road, Midrand, 1682
Postal address
Private Bag X69, Bryanston, 2021
Transfer secretaries
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Auditors
Ernst & Young Inc.
102 Rivonia Road, Sandton, 2146
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
Bankers
Nedbank Limited, 135 Rivonia Road, Sandown, Sandton, 2146
Rand Merchant Bank, 1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
Forward-looking statements
Adcock Ingram may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based
on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments
and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations,
volume growth, increases in market share, total shareholder return and cost reductions. Words such as “believe”, “anticipate”, “expect”, “intend”, “seek”,
“will”, “plan”, “could”, “may”, “endeavour” and “project” and similar expressions are intended to identify such forward-looking statements, but are not the
exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general
and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of
these risks materialise, or should underlying assumptions prove incorrect, our actual results may di?er materially from those anticipated. Forward-looking
statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a
result of new information, future events or otherwise.
www.adcock.com
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