Wrap Text
Unaudited interim results for the six months ended 31 December 2022 and cash dividend declaration
Adcock Ingram Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2007/016236/06)
Share code: AIP ISIN: ZAE000123436
("Adcock Ingram" or "the Company" or "the Group")
Unaudited interim results for the six months ended
31 December 2022 and cash dividend declaration
Revenue
+8%
Gross profit
+8%
Trading profit
+15%
HEPS
+20%
Dividend
+20%
B-BBEE level
2
Unaudited Unaudited
six-month six-month
Change period ended period ended
% 31 December 2022 31 December 2021
Revenue (R'000) 8 4 676 411 4 345 674
Gross profit (R'000) 8 1 640 236 1 521 652
Trading profit (R'000) 15 623 462 543 226
Operating profit (R'000) 16 594 038 511 584
Headline earnings per share (cents) 20 289.9 242.3
Basic earnings per share (cents) 20 289.9 242.2
Total assets (R'000) 8 036 326 7 560 989
Net asset value per share (cents) 3 412.0 3 096 6
Dividend declared per share (cents) 125.0 104.0
Segment revenue
Consumer (R'000) 6 846 707 795 187
OTC (R'000) 15 1 146 256 993 915
Prescription (R'000) 9 1 720 589 1 572 368
Hospital (R'000) (2) 962 462 983 891
Segment trading profit
Consumer (R'000) 7 185 182 172 934
OTC (R'000) 9 181 081 166 847
Prescription (R'000) 37 167 447 121 878
Hospital (R'000) 10 88 601 80 565
Introduction
The Board of Directors (Board) is pleased to report that the Group performed very well in the half year
under review, attributed to its diverse and affordable portfolio of products, excellent sales and marketing
strategies, and a focus on external and internal customer service. The broad portfolio includes non-regulated
products which compete in the fast-moving consumer goods (FMCG) space, leading OTC brands where
the pharmacist plays a role in the product choice, products prescribed by medical practitioners, specialised
instruments, and surgical products, as well as hospital and critical care products, including intravenous
solutions, blood collection products and renal dialysis systems.
The healthy financial and operational performance was delivered against a backdrop of tight economic
conditions, high levels of disruption to operations due to utility supply challenges, currency devaluation and
high fuel prices.
Prospects
Trading conditions are expected to remain challenging, with consumers facing considerable hardship
as a result of elevated transport, electricity, food and borrowing costs. The disappointing low Single Exit
Price (SEP) adjustment of 3.28% granted to the industry in the current calendar year will not compensate
for the abnormal cost increases in certain raw materials and packaging, the weak currency, and the above
inflationary increases in wages and utilities, resulting in gross margin compression being difficult to avoid.
Nonetheless, the strength of the Group's broad and affordable portfolio of well-known brands, should
continue to withstand many of the macroeconomic challenges in South Africa.
Dividend distribution
The Board has declared an interim dividend out of income reserves of 125 cents per share in respect of the
six-months ended 31 December 2022. The South African dividend tax ("DT") rate is 20% and the net dividend
payable to shareholders who are not exempt from DT is 100 cents per share. Adcock Ingram currently has
169 718 861 ordinary shares in issue and qualifying 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, 14 March 2023
Shares trade ex distribution Wednesday, 15 March 2023
Record date Friday, 17 March 2023
Payment date Monday, 20 March 2023
Share certificates may not be dematerialised or rematerialised between Wednesday, 15 March 2023 and
Friday, 17 March 2023, both dates inclusive.
N Madisa AG Hall
Chairperson Chief Executive Officer
Approved by the Board: 20 February 2023
SENS release date: 21 February 2023
Registered office 1 New Road, Midrand, 1682
Postal address Private Bag X69, Bryanston, 2021
Transfer secretaries
Computershare Investor Services Proprietary Limited,
Rosebank Towers, 15 Biermann Avenue,
Rosebank, Johannesburg, 2196.
Private Bag X9000, Saxonwold, 2132
Auditors
PricewaterhouseCoopers Inc, 4 Lisbon Lane, Waterfall, 2090
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.
Investec Bank Limited, 100 Grayston Drive, Sandton, 2146
The full announcement has been published on SENS and is available at https://senspdf.jse.co.za/documents/2023/JSE/ISSE/AIP/AIP012023.pdf
The contents of this short-form summary announcement are the responsibility of the Board of Directors.
Any investment decision should be considered and based on the content of the information contained in the full announcement,
that will be published on the Company's website at www.adcock.com/investors/financial reports.
Copies of the full announcement are available for inspection at the registered office of the Company and may be requested without charge
during office hours by phoning +27 11 635 0143.
Date: 21-02-2023 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.