Wrap Text
Unaudited Group interim results for the six months ended 31 December 2017 and cash dividend declaration
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 INTERIM RESULTS
for the six months ended 31 December 2017
AND CASH DIVIDEND DECLARATION
Salient features
Continuing Operations
Turnover increases 7% to R3,199 million
Gross profit improves 13% to R1,215 million
Trading profit increases 25% to R428 million
Headline earnings per share from continuing operations increases 33%
Net cash position of R492 million
Dividend declared: 86 cents per share
B-BBEE level 3 achieved
Introduction
The Group delivered healthy operating results in the half year under review despite a challenging operating environment characterised by
political uncertainty and high levels of unemployment impacting on consumer spending. In a highly competitive environment, each of the
business units reported growth in sales and trading profits.
In line with the Group's strategy, in September 2017 Adcock Ingram concluded a share purchase agreement to acquire 100% of the shares
of Genop Holdings Proprietary Limited (Genop). Genop is a highly specialised instrument, surgical and pharmaceutical products company
focussed on the ophthalmic, optometry, skincare, aesthetic and plastic surgery segments in Southern Africa. Genop also owns and markets
the well-known Epi-max branded range of consumer products. Adcock Ingram has received unconditional approval from the South African
Competition Commission.
Financial performance
Turnover and Profits
Group turnover during the period under review increased by 7.4% to R3,199 million (Dec 2016: R2,979 million), mainly driven by a realised average price
increase of 5.2%. Volume growth and new product launches contributed the balance. The gross margin improvement from 36.1% to 38.0% was realised
from the improvement in the exchange rate, increased ARV throughput at the Wadeville factory, as well as an improved sales mix.
Operating expenses were well controlled and increased in line with sales by 7.4%, resulting in a 25% improvement in trading profit to R428 million
(Dec 2016: R342 million).
Non-trading expenses
Non-trading expenses of R24.6 million include share-based expenses of R17.3 million and corporate activity costs of R7.3 million.
Net finance costs and headline earnings
Net finance income of R0.3 million was realised in the period, compared to net finance costs of R17.5 million in the prior period, reflective of
the improvement in the Group's net cash position.
Headline earnings for the period under review amounted to R320.4 million (Dec 2016: R241.0 million). This translates into headline earnings per
share from continuing operations of 192.6 cents (Dec 2016: 144.9 cents), an increase of 33%.
Cash flows
Cash generated from operations amounted to R455.9 million (Dec 2016: R367.6 million) after working capital increased by R85.7 million
(Dec 2016: R66.0 million). The Group had net cash resources of R492 million (June 2017: R335 million) at the end of the period.
Dividend distribution
The Board has declared an interim dividend of 86 cents per share for the six-month period ended 31 December 2017 out of income reserves,
an improvement of 37%, over the interim dividend paid in the prior year.
Business overview
Southern Africa
OTC turnover improved by 9.7% over the prior comparative period to R970.7m (Dec 2016: R884.6 million), arising from an average price
increase of 8.8%, supported by innovative new product launches and good demand for smaller pack sizes of analgesics.
Top brands including Adco-Dol, Allergex, Alcophyllex and Napamol showed double-digit growth. This business unit, which focuses on
products in the pain, coughs, colds and flu, and anti-histamine therapeutic areas through the pharmacy channel, posted growth well ahead
of the market as measured by IQVIA (previously referred to as IMS) in the categories in which it competes. The business unit launched the
GAP range of health supplements formulated to replenish vitamins and minerals that have been depleted because of chronic diseases or the
treatment thereof.
A gross margin improvement was realised in this period, driven by the improvement in the exchange rate and an advantageous sales mix. As
a result, trading profit increased by 24.4 % to R181.1 million (Dec 2016: R145.6 million).
Prescription turnover improved marginally to R1,021.1 million (Dec 2016: R1,008.6 million). An average price increase of 5.0% was realised
and volumes increased by 1.9% driven by the demand in the ARV private market. Mix was impacted by the loss of a low-margin multinational
partner contract, partially offset by the on-boarding of the Astellas portfolio from Leo Pharma and Topzole from Takeda. This division achieved
double digit growth in the private market segment as measured by IQVIA.
A gross margin improvement was realised in the period, driven by increased ARV throughput at the Wadeville factory and a better sales mix.
As a result, trading profit of R132.5 million is 13.7% ahead of the comparative period of R116.5 million.
Consumer turnover increased by 10.3% to R369.5 million (Dec 2016: R334.8 million) assisted by the acquisition of the Island Tribe sunscreen
range. Volume growth of 1.8% was achieved but price increases were negligible, indicative of the overall pressure on the consumer. Trading
profits increased by 11.5% to R58.4 million (Dec 2016: R52.4 million).
Hospital turnover improved by 3.6% to R686.4 million (Dec 2016: R662.4 million) driven by an average price increase of 2.3%, and a mix benefit
from the newly-acquired marketing rights to the Pharma Q product range. This was partially offset by lower large-volume parenteral volumes
into the Public sector. A gross margin improvement was realised in this period, driven by the variation in the sales mix. Trading profits increased
to R40.6 million (Dec 2016: R27.0 million) with very well-controlled operating expenditure. This division was awarded more than 80% of the
3-year government tender for large-volume parenterals in late September 2017.
Rest of Africa
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. 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.
Changes to the Board
On 23 November 2017, Ms Nompumelelo Madisa was appointed as non-executive Director and a member of the Acquisitions Committee.
On 29 January 2018 Mr Motty Sacks resigned as a non-executive Director, Chairman of the Audit Committee and member of various other committees.
Prospects
We are pleased with the quality of earnings, and the operational and strategic progress achieved. However, the operating environment remains
challenging in South Africa, especially seen in the light of the recent disappointing SEP increase of 1.26% and ongoing financial pressure on
consumers.
Nonetheless, the Group remains competitively positioned to defend and grow its brands and the Board remains committed in pursuing its
objective of ensuring long-term growth to create shareholder value by expanding the product portfolio through partnership arrangements
and acquisitions.
Dividend distribution
The Board has declared an interim gross dividend out of income reserves of 86.0 cents per share in respect of the six months ended 31 December
2017. The South African dividend tax ("DT") rate is 20% and the net dividend payable to shareholders who are not exempt from DT is 68.8 cents
per share. Adcock Ingram currently has 175,748,048 ordinary shares in issue of which 149 905 089 qualify for ordinary 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 Tuesday, 13 March 2018
Shares trade ex distribution Wednesday, 14 March 2018
Record date Friday, 16 March 2018
Payment date Monday, 19 March 2018
Share certificates may not be dematerialised or rematerialised between Wednesday, 14 March 2018 and Friday, 16 March 2018,
both dates inclusive.
CD Raphiri AG Hall D Neethling
Chairman Chief Executive Officer Chief Financial Officer
20 February 2018
Consolidated statements of
comprehensive income
Unaudited Unaudited
six months six months Audited year
ended ended ended
31 December 31 December 30 June
2017 % 2016 2017
Continuing operations Notes R'000 Change R'000 R'000
Revenue 2 3 213 752 8 2 985 469 5 957 700
Turnover 2 3 199 024 7 2 978 517 5 936 056
Cost of sales (1 983 641) (1 904 062) (3 693 773)
Gross profit 1 215 383 13 1 074 455 2 242 283
Selling, distribution and marketing expenses (561 537) 8 (521 861) (1 068 585)
Fixed and administrative expenses (225 586) 7 (210 695) (449 275)
Trading profit 428 260 25 341 899 724 423
Non-trading expenses 3 (24 600) (19 236) (47 128)
Operating profit 403 660 25 322 663 677 295
Finance income 2 13 109 4 071 15 665
Finance costs (12 852) (21 578) (38 239)
Dividend income 2 1 619 2 881 5 979
Equity-accounted earnings 41 888 34 160 64 144
Profit before taxation 447 424 31 342 197 724 844
Taxation (123 985) (97 596) (204 856)
Profit for the period/year from continuing operations 323 439 32 244 601 519 988
Profit after taxation for the period/year from discontinued operations 5 - 41 132 41 132
Profit for the period/year 323 439 13 285 733 561 120
Other comprehensive income which will subsequently
be recycled to profit or loss (55 491) (38 574) (24 832)
Exchange differences on translation of foreign operations:
- Continuing operations (3 795) (3 389) (5 732)
- Joint venture and associate (11 729) (16 918) (17 486)
- Discontinued operations - (21 353) (21 353)
Fair value profit on available-for-sale asset, net of tax - - 7
Movement in cash flow hedge accounting reserve,
net of tax (39 967) 3 086 19 732
Other comprehensive income recycled to profit or loss - (125 784) (125 784)
Other comprehensive income which will not be recycled to
profit or loss
Actuarial profit on post-retirement medical liability - - 511
Total comprehensive income for the period/year,
net of tax 267 948 121 375 411 015
Profit attributable to:
Owners of the parent 320 322 280 943 553 534
Non-controlling interests 3 117 4 790 7 586
323 439 285 733 561 120
Total comprehensive income attributable to:
Owners of the parent 264 831 118 724 405 568
Non-controlling interests 3 117 2 651 5 447
267 948 121 375 411 015
Continuing operations
Basic earnings per ordinary share (cents) 192,6 33 144,9 308,9
Diluted basic earnings per ordinary share (cents) 192,6 33 144,9 308,9
Headline earnings per ordinary share (cents) 192,6 33 144,9 308,9
Diluted headline earnings per ordinary share (cents) 192,6 33 144,9 308,9
Discontinued operations
Basic earnings per ordinary share (cents) 24,0 24,0
Diluted basic earnings per ordinary share (cents) 24,0 24,0
Headline earnings per ordinary share (cents) 3,7 3,7
Diluted headline earnings per ordinary share (cents) 3,7 3,7
Total operations
Basic earnings per ordinary share (cents) 192,6 14 168,9 332,9
Diluted basic earnings per ordinary share (cents) 192,6 14 168,9 332,9
Headline earnings per ordinary share (cents) 192,6 30 148,6 312,6
Diluted headline earnings per ordinary share (cents) 192,6 30 148,6 312,6
Consolidated statement of
changes in equity
Attributable to holders of the parent
Non-distributable reserves
Total
Issued attributable Non-
share Share Continuing Discontinued Retained to ordinary controlling
capital premium operations operations income shareholders interests Total
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
As at 1 July 2016 17 147 666 873 483 515 144 998 1 916 040 3 228 573 26 024 3 254 597
Movement in share-based
payment reserve 10 030 10 030 10 030
Disposal of business (18 465) (18 465)
Total comprehensive income (17 221) (144 998) 280 943 118 724 2 651 121 375
Profit for the period 280 943 280 943 4 790 285 733
Other comprehensive income (17 221) (144 998) (162 219) (2 139) (164 358)
Dividends (78 635) (78 635) (78 635)
Balance at 31 December
2016 (unaudited) 17 147 666 873 476 324 - 2 118 348 3 278 692 10 210 3 288 902
Movement in share-based
payment reserve 13 680 13 680 13 680
Share-based expenses
transferred from non-
distributable reserves (303 885) 303 885
Total comprehensive income 14 253 272 591 286 844 2 796 289 640
Profit for the period 272 591 272 591 2 796 275 387
Other comprehensive income 14 253 14 253 14 253
Dividends (91 734) (91 734) (5 484) (97 218)
Balance at 30 June 2017
(audited) 17 147 666 873 200 372 2 603 090 3 487 482 7 522 3 495 004
Movement in share-based
payment reserve 14 800 14 800 14 800
Total comprehensive income (55 491) 320 322 264 831 3 117 267 948
Profit for the period 320 322 320 322 3 117 323 439
Other comprehensive income (55 491) (55 491) (55 491)
Dividends (110 671) (110 671) (4 404) (115 075)
Balance at 31 December
2017 (unaudited) 17 147 666 873 159 681 2 812 741 3 656 442 6 235 3 662 677
Consolidated statements of
financial position
Unaudited Unaudited Audited
31 December 31 December 30 June
2017 2016 2017
R'000 R'000 R'000
ASSETS
Property, plant and equipment 1 459 029 1 388 767 1 445 095
Intangible assets 344 971 321 731 349 997
Deferred tax 1 695 7 621 1 588
Other financial assets 38 699 47 365 41 746
Investment in joint ventures 407 188 360 124 392 013
Investment in associate 5 296 6 002 6 071
Non-current assets 2 256 878 2 131 610 2 236 510
Inventories 1 290 514 1 122 507 1 156 949
Trade and other receivables 1 611 281 1 482 743 1 567 802
Cash and cash equivalents 747 606 634 567 592 070
Taxation receivable - - 9 642
Current assets 3 649 401 3 239 817 3 326 463
Total assets 5 906 279 5 371 427 5 562 973
EQUITY AND LIABILITIES
Capital and reserves
Issued share capital 17 147 17 147 17 147
Share premium 666 873 666 873 666 873
Non-distributable reserves 159 681 476 324 200 372
Retained income 2 812 741 2 118 348 2 603 090
Total shareholders' funds 3 656 442 3 278 692 3 487 482
Non-controlling interests 6 235 10 210 7 522
Total equity 3 662 677 3 288 902 3 495 004
Long-term borrowings 1 267 300 000 251 492
Post-retirement medical liability 16 931 17 132 16 793
Deferred tax 55 509 75 878 73 138
Non-current liabilities 73 707 393 010 341 423
Trade and other payables 1 828 993 1 601 265 1 644 581
Bank overdraft 3 844 10 078 5 619
Short-term borrowings 250 680 - 416
Provisions 79 795 65 337 75 930
Taxation payable 6 583 12 835 -
Current liabilities 2 169 895 1 689 515 1 726 546
Total equity and liabilities 5 906 279 5 371 427 5 562 973
Consolidated statements of
cash flows
Unaudited Unaudited
six months six months Audited
ended ended year ended
31 December 31 December 30 June
2017 2016 2017
R'000 R'000 R'000
Cash flows from operating activities
Operating profit from continuing operations 403 660 322 663 677 295
Operating profit from discontinued operations - 8 416 8 416
Operating profit 403 660 331 079 685 711
Other adjustments and non-cash items 137 901 102 532 316 097
Operating profit before working capital changes 541 561 433 611 1 001 808
Working capital changes (85 708) (65 997) (233 935)
Cash generated from operations 455 853 367 614 767 873
Finance income received 10 931 5 344 16 938
Finance costs paid (12 818) (24 696) (41 612)
Dividend income received 17 378 18 268 21 368
Dividends paid (115 075) (78 635) (175 853)
Taxation paid (109 505) (1 452) (133 281)
Net cash inflow from operating activities 246 764 286 443 455 433
Cash flows from investing activities
Decrease in other financial assets 3 047 26 945 32 356
Acquisition of business - - (9 875)
Disposal of businesses - 291 096 291 096
Purchase of property, plant and equipment - Expansion (56 044) (2 450) (75 930)
- Replacement (35 780) (33 029) (87 308)
Purchase of intangible assets - (45 822) (70 821)
Proceeds on disposal of property, plant and equipment 1 953 1 931 2 298
Net cash (outflow)/inflow from investing activities (86 824) 238 671 81 816
Cash flows from financing activities
Increase in borrowings 147 7 822 9 917
Repayment of borrowings - (200 000) (252 223)
Net cash inflow/(outflow) from financing activities 147 (192 178) (242 306)
Net increase in cash and cash equivalents 160 087 332 936 294 943
Net foreign exchange difference on cash and cash equivalents (2 776) (2 909) (2 954)
Cash and cash equivalents at beginning of period/year 586 451 294 462 294 462
Cash and cash equivalents at end of period/year 743 762 624 489 586 451
Notes to the consolidated
financial statements
1. Basis of preparation
1.1INTRODUCTION
The abridged unaudited interim results for the six months ended 31 December 2017 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 the 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 except for the adoption of the following
amended IFRS standards and interpretations during the year which did not have any effect on the financial performance or position
of the Group:
- IAS 7: Statement of cash flows - disclosure initiative amendments
- IAS 12: Income taxes - recognition of deferred tax assets for unrealised loss - amendments
Unaudited Unaudited
six months six months Audited
ended ended year ended
31 December 31 December 30 June
2017 2016 2017
R'000 R'000 R'000
2.Revenue
Turnover 3 199 024 2 978 517 5 936 056
Finance income 13 109 4 071 15 665
Dividend income - Black Managers Share Trust 1 619 2 881 5 979
3 213 752 2 985 469 5 957 700
3. Non-trading expenses
Impairments - - 217
Transaction costs 7 316 5 469 6 251
Share-based payment expenses 17 284 13 767 40 660
24 600 19 236 47 128
4. Acquisition of business
On 1 April 2017, Adcock Ingram Healthcare Proprietary Limited acquired
100% of the shareholding of Virtual Logistics Proprietary Limited (Virtual),
a national fine distribution company.
The fair value of the identifiable assets as at the date of acquisition was:
Assets 25 413
Liabilities (15 408)
Total identifiable net assets at fair value 10 005
Goodwill arising on acquisition 5 595
Purchase consideration 15 600
Deferred consideration (8 000)
Net bank overdraft acquired with the business 2 275
Net cash consideration 9 875
Unaudited
six months Audited
ended year ended
31 December 30 June
2016 2017
R'000 R'000
5. Discontinued operations
Adcock Ingram Private Limited (India) and 53.47% of Ayrton Drug Manufacturing Limited
(Ayrton) in Ghana were disposed of on 14 October 2016 and 7 December 2016 respectively.
The loss of control on disposal resulted in the foreign currency translation reserve relating to
both entities being recycled to profit and loss during the previous financial period/year.
5.1 PROFIT FOR THE PERIOD/YEAR FROM DISCONTINUED OPERATIONS 6 374 6 374
Profit on disposal of the discontinued operations 34 758 34 758
Profit for the period/year from discontinued operations 41 132 41 132
Profit/(Loss) attributable to:
India 46 638 46 638
Ayrton (5 506) (5 506)
41 132 41 132
Profit attributable to:
Owners of the parent 39 903 39 903
Non-controlling interests 1 229 1 229
41 132 41 132
5.2 CASH INFLOW ON DISPOSAL
Consideration received 338 601 338 601
India 327 565 327 565
Ayrton 11 036 11 036
Net cash disposed of with the discontinued operations (47 505) (47 505)
India (48 807) (48 807)
Ayrton 1 302 1 302
Net cash inflow 291 096 291 096
Unaudited Unaudited
six months six months Audited
ended ended year ended
31 December 31 December 30 June
2017 2016 2017
R'000 R'000 R'000
6. Segment reporting
Turnover
Southern Africa 3 111 649 2 890 382 5 754 241
OTC 970 669 884 568 1 849 038
Prescription 1 021 117 1 008 586 1 937 925
Consumer 369 478 334 849 688 807
Hospital 686 359 662 379 1 256 753
Other - shared services 64 026 - 21 718
Rest of Africa 123 743 99 118 207 052
Research and development services in India 10 197 8 426 18 396
Less: Inter-company sales (46 565) (19 409) (43 633)
3 199 024 2 978 517 5 936 056
Trading and operating profit
Southern Africa 413 806 341 527 719 103
OTC 181 111 145 626 342 322
Prescription 132 516 116 490 207 787
Consumer 58 419 52 385 110 038
Hospital 40 615 27 026 58 475
Other - shared services 1 145 - 481
Rest of Africa 12 849 (865) 2 712
Research and development services in India 1 605 1 237 2 608
Trading profit 428 260 341 899 724 423
Less: Non-trading expenses (24 600) (19 236) (47 128)
Operating profit 403 660 322 663 677 295
Total assets
Southern Africa 5 503 746 4 991 147 5 161 098
OTC 1 741 791 1 546 192 1 667 220
Prescription 1 386 414 1 279 402 1 239 248
Consumer 330 695 319 566 354 965
Hospital 1 163 652 1 044 623 1 125 158
Other - shared services 881 194 801 364 774 507
Rest of Africa 151 609 143 491 146 661
India 250 924 236 789 255 214
5 906 279 5 371 427 5 562 973
7. Inventory
The amount of inventories written down and recognised as an expense
in profit or loss:
Cost of sales 28 541 18 896 66 215
8. Capital commitments
- Contracted 115 693 52 216 72 202
- Approved, but not contracted 113 262 148 847 128 281
228 955 201 063 200 483
Unaudited Unaudited
six months six months Audited
ended ended year ended
31 December 31 December 30 June
2017 2016 2017
R'000 R'000 R'000
9. Headline earnings
Headline earnings is determined as follows:
Continuing operations
Earnings attributable to owners of Adcock Ingram from total operations 320 322* 280 943 553 534
Adjusted for:
Profit attributable from discontinued operations (refer note 5.1) - (39 903) (39 903)
Earnings attributable to owners of Adcock Ingram from continuing
operations 320 322 241 040 513 631
Adjusted for:
Loss/(Profit) on disposal of property, plant and equipment 220 (1) (194)
Tax effect on loss/(profit) on disposal of property, plant and equipment (165) - 76
Adjustments relating to equity accounted joint ventures (26) - 199
Headline earnings from continuing operations 320 351* 241 039 513 712
Discontinued operations
Profit attributable to owners of Adcock Ingram from discontinued
operations - 39 903 39 903
Adjusted for:
Profit on sale of discontinued operations (refer note 5.1) - (34 758) (34 758)
Loss on disposal/scrapping of property, plant and equipment - 975 975
Headline earnings from discontinued operations - 6 120 6 120
* Total and continuing operations.
'000 '000 '000
10. Share capital
Number of shares in issue 175 748 175 748 175 748
Number of ordinary shares held by the Group company (4 285) (4 285) (4 285)
Net shares in issue 171 463 171 463 171 463
Headline earnings and basic earnings per share are based on:
Weighted average number of ordinary shares outstanding 166 294 166 294 166 294
Diluted weighted average number of shares outstanding 166 295 166 294 166 295
Corporate information
Adcock Ingram Holdings Limited Postal address
Incorporated in the Republic of South Africa Private Bag X69, Bryanston, 2021
(Registration number 2007/016236/06)
Income tax number 9528/919/15/3 Transfer secretaries
Share code: AIP ISIN: ZAE000123436
Computershare Investor Services Proprietary Limited
("Adcock Ingram" or "the Company" or "the Group")
Rosebank Towers, 15 Bierman Avenue, Rosebank
Directors Johannesburg, 2196
Ms L Boyce (Independent Non-executive Director) PO Box 61051
Mr A Hall (Chief Executive Officer) Marshalltown, 2107
Prof M Haus (Independent Non-executive Director)
Ms J John (Independent Non-executive Director) Auditors
Dr T Lesoli (Independent Non-executive Director) Ernst & Young Inc.
Ms B Letsoalo (Executive Director) 102 Rivonia Road, Sandton, 2146
Ms N Madisa (Non-executive Director)
Mr M Makwana (Independent Non-executive Director) Sponsor
Dr C Manning (Non-executive Director) Rand Merchant Bank (A division of FirstRand Bank Limited)
Dr A Mokgokong (Non-executive Director) 1 Merchant Place, corner Fredman Drive and Rivonia Road
Ms D Neethling (Chief Financial Officer) Sandton, 2196
Mr L Ralphs (Non-executive Director)
Mr C Raphiri (Independent Non-executive Chairman) Bankers
Dr R Stewart (Independent Non-executive Director) Nedbank Limited
135 Rivonia Road, Sandown
Company secretary Sandton, 2146
NE Simelane Rand Merchant Bank
1 Merchant Place, corner Fredman Drive and Rivonia Road
Registered office Sandton, 2196
1 New Road, Midrand, 1682
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 differ 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.
http://www.adcock.com
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