Adcock Ingram (AIP) H2 2025 earnings summary

Executive summary

• Turnover increased by 1% to R9.8 billion for the year ended 30 June 2025, with a marked improvement in the second half driven by strong demand and disciplined cost management.

• Trading profit declined 4% to R1.18 billion, a significant recovery from a 17% decline at half-year, supported by improved operational performance and cost control.

• Headline earnings per share (HEPS) rose 1.5% to 625.6 cents, aided by strong joint venture contributions and a share repurchase.

• Profit for the year rose 5% to R859 million compared to the prior year.

• Dividend per share increased 2% to 280 cents.

Financial highlights

• Revenue reached R9.8 billion, up R117 million year-over-year.

• Gross profit was R3.2 billion, with gross margin stable at 33% due to sales mix and lower factory recoveries.

• Operating profit increased 1.1% to R1.1 billion; equity-accounted earnings from JVs rose 21% to R173 million.

• Net finance costs were R110 million, reflecting higher net debt after share repurchase and acquisitions.

• Inventory days at 144; receivables days steady at 54; 94% of receivables within 60 days.

Outlook and guidance

• Operational streamlining at Wadeville and infrastructure investment at Aeroton are expected to improve future recoveries and output stability.

• New product launches and commercial agreements, including with GSK and Medline, are set to strengthen the portfolio.

• Delisting and transition to private ownership expected in late 2025, pending regulatory and shareholder approval.