Wrap Text
Unaudited condensed interim Group financial results for the six months ended 31 December 2025
ASPEN PHARMACARE HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 1985/002935/06
JSE Share code: APN
ISIN: ZAE000066692
LEI: 635400ZYSN1IRD5QWQ94
("Aspen" or "the Group")
Unaudited condensed interim Group financial results for the six months ended 31 December 2025
During the six months ended 31 December 2025 ("H1 2026") the Group focused on the execution of
its strategic priorities as communicated to stakeholders in a SENS announcement published on 29
December 2025 and during the stakeholder engagement call held on 15 January 2026. The Group
delivered an encouraging performance for H1 2026 supported by the continued strong momentum in
Commercial Pharmaceuticals and solid progress in reshaping its sterile finished dose form ("FDF")
Manufacturing facilities in South Africa and France. One-off restructure costs of R695 million relating
to these sterile FDF Manufacturing facilities have been incurred in H1 2026 and have negatively
impacted earnings ("EPS") and headline earnings ("HEPS") per share. H1 2026 should be viewed as
transitional with stronger relative performance anticipated in the second half of FY 2026, as the
benefits of operational improvements and the reshaping within Manufacturing are progressively
realised.
The comparative performance for the period has been influenced by a high base in the prior year. FY
2025 operating performance was heavily weighted towards the first half ("H1 2025"), which included
a contribution from the subsequently cancelled mRNA Manufacturing contract (of circa R1,5 billion),
resulting in normalised Group EBITDA of R5,8 billion in H1 2025. The second half of FY 2025 ("H2
2025") reported normalised Group EBITDA of R3,8 billion, reflecting a reversal of a portion of this
contribution (of circa R0,5 billion) following the emergence of a material contractual dispute in respect
of the mRNA Manufacturing contract ("the Dispute"). The Dispute was settled in October 2025, with
the counterparty paying Aspen EUR25 million (circa. R0,5 billion) ("Settlement Proceeds"). While
Manufacturing EBITDA for the period benefited from the Settlement Proceeds, the absence of the
prior-period mRNA contribution has resulted in H1 2026 normalised EBITDA of R5 053 million being
lower than H1 2025 by 13% (-12% CER). This outcome is consistent with guidance to the market.
H1 2026 performance highlights include:
• Commercial Pharmaceuticals, Aspen's most material business segment, delivered revenue
growth of 4% and normalised EBITDA growth of 11% in constant exchange rates ("CER")
underpinned by organic revenue growth across all three segments (Injectables, OTC and
Prescription). Performance was supported by strong demand for Mounjaro® in South Africa
and an improved profit contribution from the reshaped business in China. Reported
performance was diluted by the strength of the ZAR against most of Aspen's major trading
currencies during the period;
• Manufacturing achieved a positive EBITDA in H1 2026 of R208 million, aided by the receipt of
the Settlement Proceeds. The reshaping of the loss-making sterile FDF Manufacturing facilities
in South Africa and France is well progressed with the expected benefit of the cost reductions
to positively impact from H2 2026 onwards and planned to be fully realised in FY 2027;
• Commercial production of insulin in our South African sterile FDF Manufacturing facility is well
advanced with final regulatory approval expected in the first quarter of calendar year 2026;
• Free cash flow (excluding dividends paid) ended at R1 997 million, supported by an operating
cash conversion rate of 193%, a working capital to revenue ratio of 45% and lower capital
expenditure relative to the comparative period;
• The stronger free cash flow, together with favourable ZAR closing rates led to lower net debt
of R28,6 billion (compared to June 2025 of R31,2 billion) and a leverage ratio (net debt to
EBITDA) of 3.4x; and
• The divestment of Aspen APAC ("APAC Divestment") for a gross consideration of AUD 2 370
million was announced on 29 December 2025 (SENS - APAC Divestment) and subsequently
discussed during a stakeholder engagement call on 15 January 2026. The transaction remains
subject to certain conditions precedent, including the requirement of general shareholder
approval. The expected completion date is the end of May 2026. The APAC Divestment meets
the requirements of IFRS 5- Non-current Assets Held-for-Sale and accordingly the net asset
value of Aspen APAC, being R21,8 billion, has been classified as "net assets held-for-sale" and
the performance results for the period, including comparatives, have been separately
disclosed under discontinued operations.
GROUP PERFORMANCE
The key performance indicators for the Group for total operations, which includes continuing
operations and discontinued operations, are set out below. All performance-based commentary
relates to total operations unless stated otherwise.
Key Financial Indicators(1) – Group
Reported Reported Change at CER Change at
December December reported December CER(2)
2025 2024 rates 2024 %
R'million R'million % R'million
Revenue 21 085 21 960 (4) 21 970 (4)
Gross profit 9 584 10 454 (8) 10 355 (7)
Operating profit 2 700 3 896 (31) 3 773 (28)
Normalised EBITDA(3) 5 053 5 823 (13) 5 741 (12)
Continuing 3 802 4 407 (14) 4 420 (14)
Discontinued 1 251 1 416 (12) 1 321 (5)
Headline earnings per share 417,4 645,4 (35) 623,6 (33)
(cents)
Normalised headline earnings 574,8 724,2 (21) 703,9 (18)
per share (cents)(4)
Continuing 384,1 509,6 (25) 505,1 (24)
Discontinued 190,7 214,6 (11) 198,8 (4)
Earnings per share (cents) 331,1 537,7 (38) 511,4 (35)
(1) The Group assesses its operational performance using constant exchange rates ("CER"). The table above compares performance to the
prior comparable period at reported exchange rates and at CER.
(2) The CER % change is based upon the performance for the six months ended 31 December 2024 recalculated using the average exchange
rates for the six months ended 31 December 2025.
(3) Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group's accounting policy.
(4) Normalised headline earnings per share ("NHEPS") is headline earnings per share ("HEPS") adjusted for specific non-trading items as
defined in the Group's accounting policy.
SEGMENTAL PERFORMANCE
The key performance indicators for the Group's two business segments, being Commercial
Pharmaceuticals and Manufacturing, are set out below. All performance-based commentary relates
to total operations, unless stated otherwise.
Key Financial Indicators(1) – Segmental analysis
Reported Reported Change at CER Change
December December reported December at CER(2)
2025 2024 rates 2024 %
R'million R'million % R'million
Commercial Pharmaceuticals
Revenue 16 586 16 102 3 15 909 4
Continuing 12 825 12 286 4 12 226 5
Discontinued 3 761 3 816 (1) 3 683 2
Gross margin 9 695 9 524 2 9 329 4
Gross margin % 58,5% 59,1% (1) 58,6% 0
Normalised EBITDA(3) 4 845 4 558 6 4 370 11
Continuing 3 584 3 180 13 3 077 16
Discontinued 1 261 1 378 (8) 1 293 (2)
Normalised EBITDA(3)% 29,2% 28,3% 3 27,5% 6
Manufacturing
Revenue 4 499 5 858 (23) 6 061 (26)
Continuing 4 253 5 563 (24) 5 778 (26)
Discontinued 246 295 (17) 283 (13)
Normalised EBITDA(3) 208 1 265 (84) 1 371 (85)
Continuing 218 1 227 (82) 1 343 (84)
Discontinued (10) 38 >(100) 28 >(100)
Normalised EBITDA(3)% 4,6% 21,6% (79) 22,6% (80)
(1) The Group assesses its operational performance using constant exchange rates ("CER"). The tables above compare performance to the
prior comparable period at reported exchange rates and at CER.
(2) The CER % change is based upon the performance for the six months ended 31 December 2024 recalculated using the average exchange
rates for the six months ended 31 December 2025.
(3) Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group's accounting policy.
Commercial Pharmaceuticals (Total Operations)
Commercial Pharmaceuticals reported revenue growth of 3% (4% CER) to R16 586 million and higher
normalised EBITDA growth of 6% (11% CER) augmented by the reshaped business in China. The gross
profit margin of 58,5% was impacted by the relative strength of the ZAR against most of Aspen's major
trading currencies during the period. Aspen APAC was adversely impacted by the weakening of its
basket of currencies, particularly the Australian Dollar, with normalised EBITDA declining by 8% (-2%
CER). Normalised EBITDA for Continuing Operations increased by 13% (16% CER) to R3 584 million on
a revenue growth of 4% (5% CER).
Manufacturing (Total Operations)
Manufacturing revenue of R4 499 million ended 23% lower (-26% CER) and normalised EBITDA of R208
million declined by 84% (-85% CER) primarily due to the absence of the prior period mRNA
contribution.
PROSPECTS
Aspen remains focused on executing its communicated strategic priorities which will drive sustainable
future growth and performance in Commercial Pharmaceuticals and Manufacturing. In anticipation of
the successful completion of the APAC Divestment, guidance (which has remained consistent over the
period) has been updated to reflect the expected performance of Continuing Operations (excluding
the APAC business) as set out below:
For financial year 2026, Commercial Pharmaceuticals is expected to deliver mid-single digit organic
CER revenue growth and double-digit normalised CER EBITDA growth, supported by a higher EBITDA
margin %. Manufacturing normalised EBITDA is expected to be broadly in line with the prior financial
year in CER, with the loss of the mRNA contribution of circa R1 billion being offset by operational
improvements arising from the reshaped sterile FDF Manufacturing facilities in France and South
Africa. The sterile FDF Manufacturing facilities are targeted to shift to positive normalised EBITDA and
cash flow by financial year 2027.
Group normalised CER EBITDA for this year is targeted to achieve at least double the first half EBITDA
of R3,8 billion, supported by strong second half growth relative to the H2 2025 CER EBITDA of R2,4
billion. Consequently, the Group anticipates double-digit CER growth in normalised headline earnings
in financial year 2026.
Aspen expects to generate stronger free cash flow in the current financial year, underpinned by an
operating cash conversion rate which is forecast to exceed 100% and lower working capital and capital
expenditure compared to previous financial year. Proceeds from the APAC Divestment will effectively
eliminate most of the Group's net debt setting the foundation for improved balance sheet flexibility,
support future capital allocation, enhancing the Group's ability to deliver on its strategic objectives
and driving value and returns for shareholders.
Any forecast information in the above-mentioned paragraphs, the normalised headline earnings per
share and the constant currency information included in the announcement 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. This
short form announcement and the results contained in this short form announcement have been
prepared in compliance with the JSE Limited's Listings Requirements.
The full announcement is available on Aspen's website https://www.aspenpharma.com/investor-
relations/#financial-results-and-presentations and can also be accessed online at
https://senspdf.jse.co.za/documents/2026/jse/isse/APN/HYresults.pdf. Any investment decision
must be based on the information contained in the full announcement.
Durban
3 March 2026
Sponsor:
Investec Bank Limited
FORWARD LOOKING INFORMATION
This announcement contains certain forward-looking statements which relate to the possible future
performance and financial position of the Group. All forward-looking statements are solely based on
the views and considerations of the directors. These statements involve risk and uncertainty as they
relate to events and depend on circumstances that may or may not occur in the future. The Group
does not undertake to update or revise any of these forward-looking statements publicly, whether to
reflect new information, future events or otherwise. These forward-looking statements have not been
reviewed or reported on by the Group's external auditors.
Date: 03-03-2026 01:00:00
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