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ADCOCK INGRAM HOLDINGS LIMITED - Group annual results and cash dividend declaration for the year ended 30 June 2019

Release Date: 28/08/2019 07:05
Code(s): AIP     PDF:  
 
Wrap Text
Group annual results and cash dividend declaration for the year ended 30 June 2019

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")


GROUP ANNUAL RESULTS AND CASH DIVIDEND DECLARATION 
FOR THE YEAR ENDED 30 JUNE 2019


Continuing operations

REVENUE INCREASES
11% to R7,089 million

GROSS PROFIT IMPROVES
11% to R2,789 million

TRADING PROFIT INCREASES
12% to R955 million

HEPS INCREASES
11%

TOTAL DIVIDEND INCREASES
16% to 200 cents per share

B-BBEE
Level 3


Introduction
The Board of Directors (Board) is pleased with the robust results
delivered by the Group in a volatile market, characterised by weak
economic growth and declining consumer spend. Under these
circumstances, each of the business units performed well, with
core brands showing encouraging market share, indicative of the
brand resilience of our trusted portfolio. The Group's Zimbabwean
enterprise, which was reflected as an asset held-for-sale at
31 December 2018, was disposed of in January 2019 and the results
are reflected as a discontinued operation. The Group has also
disposed of its investment in Ayrton Drug Manufacturing Limited,
the associate in Ghana, as performance from this business did not
meet expectations.

Prospects
The Bidvest Group's shareholding in Adcock Ingram recently
increased to 50.1%. This will enhance interactions between the entities
in exploring strategic and operational possibilities for Adcock
Ingram's operations and options for growth. Bidvest is supportive of
Adcock Ingram's current decentralised and autonomous business
model and sees opportunity for the Company to grow.

The Board expects that the current economic environment,
exchange rate weakness and volatility, and constraints on consumer
spending will not change in the short term. The Group remains
committed to the growth of our well-respected and diversified
basket of brands, and seeking additional affordable brands to
augment our portfolios across the business.

                                                   Audited     Audited   
                                        Change        2019        2018   
Continuing operations                                                    
Revenue                       (R'000)      11%   7 089 058  6 405 316*   
Gross profit                  (R'000)      11%   2 789 106  2 511 309*   
Trading profit                (R'000)      12%     955 421    849 944*   
Operating profit              (R'000)      10%     883 537    803 049*   
Headline earnings per share   (cents)      11%       421,7      381,3*   
Basic earnings per share      (cents)      10%       414,8      377,2*   

* Prior year restated to show comparatives for the discontinued operation.


Total operations                                                         
Revenue                       (R'000)       9%   7 175 319   6 562 865   
Gross profit                  (R'000)      10%   2 814 202   2 566 020   
Trading profit                (R'000)      11%     960 340     866 377   
Operating profit              (R'000)       8%     886 635     819 482   
Headline earnings per share   (cents)       9%       422,8       387,7   
Basic earnings per share      (cents)       8%       413,8       383,6   
Total assets                  (R'000)            6 250 793   6 270 725   
Net asset value per share     (cents)              2 505,7     2 281,9   
Dividend per share            (cents)                200,0       172,0   


Dividend distribution
The Board has declared a final gross dividend out of income reserves
of 100 cents per share in respect of the year ended 30 June 2019. The
South African dividend tax ("DT") rate is 20% and the net dividend
payable to shareholders who are not exempt from DT is 80 cents per
share. Adcock Ingram currently has 175 756 026 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, 17 September 2019
Shares trade ex distribution             Wednesday, 18 September 2019
Record date                                 Friday, 20 September 2019
Payment date                                Monday, 23 September 2019

Share certificates may not be dematerialised or rematerialised
between Wednesday, 18 September 2019 and Friday, 20 September 2019, 
both dates inclusive.

By order of the Board

LP Ralphs                       AG Hall
Chairman                        Chief Executive Officer

Signed off by the Board: 27 August 2019
SENS release date: 28 August 2019

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, 
Rosebank Towers, 
15 Biermann Avenue, 
Rosebank, 
Johannesburg, 2196. 
PO Box 61051,
Marshalltown, 2107 

Auditors 
Ernst & Young Inc., 
102 Rivonia Road, 
Sandton, 2146 

Sponsor 
Rand Merchant Bank 
(a division of FirsRand 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

The full long form announcement is available at 
https://senspdf.jse.co.za/documents/2019/JSE/ISSE/AIP/AIP062019.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 which will be published on the 
Company's website at www.adcock.com/investors/financialreports.
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: 28/08/2019 07:05:00
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