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Unaudited interim results for the six months ended 31 December 2021 and cash dividend declaration

Published: 2022-02-23 05:05:00 ET

Adcock Ingram Holdings (JSE:AIP) News - Unaudited interim results for the six months ended 31 December 2021 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 2021 
and cash dividend declaration


  - Revenue +16%
  - Gross profit +17%
  - Trading profit +25%
  - HEPS +30%
  - Dividend +30%
  - B-BBEE level 2


Introduction
The Board of Directors (Board) is very pleased to report a strong operational and financial performance,
driven mainly by improved demand in the current reporting period for its over-the-counter (OTC) and
consumer healthcare products.

The Group has achieved very healthy growth in turnover, which with some improvement in the exchange
rate, manufacturing efficiencies and cost control, has yielded an exceptional increase in trading profits 
and excellent cash generation.

Dividend
The Board has declared an interim dividend of 104 cents per share for the six-month period ended
31 December 2021 out of income reserves, an increase of 30% over the comparative period and in line with
the growth in earnings.

Prospects
In December, Adcock Ingram received regulatory approval from SAHPRA for the sterile eye drops facility at
the Clayville factory. We have commenced production of validation batches of the first product we intend
to manufacture in the facility, and on a staged basis will introduce at least four additional products in 
the financial year.

The Board is confident that the strength and resilience of the Company's broad and affordable portfolio of
well-known brands, can continue to withstand the macroeconomic challenges in South Africa.

The exchange rate has had a favourable impact on the Group in the period and the 2022 SEP increase of
3.5% will assist in protecting the gross margin.

Nonetheless, the Company continues to seek-out investment opportunities for non price-regulated brands
to limit the impact of the SEP environment.
                                                                        Unaudited             Unaudited
                                                                        six-month             six-month
                                                      Change         period ended          period ended
                                                           %     31 December 2021      31 December 2020
Revenue                                     (R'000)       16            4 345 674             3 758 258
Gross profit                                (R'000)       17            1 521 652             1 298 425
Trading profit                              (R'000)       25              543 226               432 989
Operating profit                            (R'000)       33              511 584               385 813
Headline earnings per share                 (cents)       30                242.3                 186.5
Basic earnings per share                    (cents)       30                242.2                 186.5
Total assets                                (R'000)                     7 560 989             7 508 322
Net asset value per share                   (cents)                       3 096.6               2 842.8
Dividend per share                          (cents)                         104.0                  80.0

                                                                        Unaudited             Unaudited
                                                                        six-month             six-month
                                                      Change         period ended          period ended
                                                           %     31 December 2021      31 December 2020
Segment revenue
Consumer                                    (R'000)       33              795 187               598 938
OTC                                         (R'000)       26              993 915               786 150
Prescription                                (R'000)        5            1 572 368             1 502 632
Hospital                                    (R'000)       13              983 891               870 323
Segment trading profit
Consumer                                    (R'000)       59              172 934               108 782
OTC                                         (R'000)       58              166 847               105 768
Prescription                                (R'000)     (14)              121 878               142 249
Hospital                                    (R'000)        6               80 565                75 798

Epi-max was moved from the Prescription segment to the Consumer segment on 1 January 2021. On a
like-for-like basis, adjusting for Epi-max, Consumer turnover and trading profit improved by 14% 
and 21% respectively, and Prescription turnover and trading profit by 11% and 12% respectively.

Dividend distribution
The Board has declared an interim gross dividend out of income reserves of 104 cents per share in respect
of the six-months ended 31 December 2021. The South African dividend tax ("DT") rate is 20% and the net
dividend payable to shareholders who are not exempt from DT is 83.2 cents per share. Adcock Ingram
currently has 175 758 861 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, 15 March 2022
Shares trade ex distribution                                               Wednesday, 16 March 2022
Record date                                                                   Friday, 18 March 2022
Payment date                                                                 Tuesday, 22 March 2022

Share certificates may not be dematerialised or rematerialised between Wednesday, 16 March 2022 and
Friday, 18 March 2022, both dates inclusive.
 
N Madisa                                                                    AG Hall
Chairperson                                                 Chief Executive Officer

Approved by the Board: 22 February 2022

SENS release date: 23 February 2022

Company secretary 
M Phalafala

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/2022/JSE/ISSE/AIP/AIP012022.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/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: 23-02-2022 07:05:00
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Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

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Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.