News Room

Adcock Ingram Highlights Business Reorganisation in Year End Results Announcement

Midrand, 28 August 2014 - Announcing the year end results today, Adcock Ingram focused on the prospects for the company following the reorganisation of the business into strategic operating divisions.

Having changed the year end from September to June, results for the nine month period showed a significant reversal of those announced for the comparable period.

“The group produces and distributes an impressive range of pharmaceutical products and has world class production facilities. Despite the very disappointing results, we remain optimistic about the longer-term prospects, ” said Kevin Wakeford, CEO since April 2014.

The margin decline was attributable largely to currency weakness, increased labour and utility costs and below capacity utilisation of certain facilities.

Turnover was flat and was affected by a weak OTC performance. Significant non-trading expenses, which included asset impairments and ARV inventory write-downs, contributed to a loss of 572 cents per share.

A recent reorganisation of the South African business into strategic divisions, is intended to facilitate accountability and renewed focus. The four commercial divisions, Consumer, OTC, Prescription and Critical Care, together with the distribution arm of the business, will enjoy the support of a small corporate office. The product portfolios have been divided into logical baskets focussing on the demand-driver.

“Although it is too early to promise a return to profitability in the short term, I am optimistic that the measures that we have put in place will put the company on the new path of recovery. We need to focus on our products, service and most importantly, our customers,” concluded Wakeford.


About Adcock Ingram:
Adcock Ingram is a leading South African pharmaceutical manufacturer, marketer and distributor. The Company provides an extensive portfolio of branded and generic medicines, has a leading presence in Over the Counter brands and is a major supplier of hospital and critical care products.

For further details contact:

Vicki St Quintin
Group Corporate Affairs and Investor Relations Manager
Vicki.stquintin@adcock.com
011 6350171
082 4534367