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Audited Group Financial Results and Cash Dividend Declaration for the year ended 30 June 2021
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")
Audited Group Financial Results and Cash Dividend Declaration
For the year ended 30 June 2021
- B-BBEE Level 3
- Revenue Increased 6%
- Gross profit declined 2%
- HEPS declined 3%
- Final dividend 90 cents per share
Introduction
The Group delivered a resilient performance in the year under review, despite the difficult operating
environment, characterised by the continuing adverse impact of COVID-19, the tough economic
environment and high levels of unemployment impacting consumer spending.
The Group's activities are regarded as essential services and all business units continued operating
throughout all levels of lockdowns, while maintaining rigorous monitoring and evaluation of
COVID-19 protocols to safeguard our employees and customers. This ensured continuity in producing and
supplying medicines, including life-saving products such as intravenous fluids, renal dialysis fluids and ARVs,
as well as other acute medicines and hygiene products used to minimise the impact of COVID-19.
As the disease spread, the prevalence of infections amongst employees has unfortunately increased, putting
certain of the operations at risk of not being able to operate on an uninterrupted basis. All factories and
warehouses had to close for certain periods to allow for additional sanitising procedures and testing of
employees, but never for more than a few days at a time at most. In addition, global supply constraints,
particularly on medicines and active pharmaceutical ingredients from Asia needed to be overcome
at various points in the year. We have proven that we can continue to protect our people in the work
environment, and maintain financial stability for the Group to continue all of its operations. The business
adopted new operational strategies based on the changes in the market, providing a solid foundation for
the continuity of operations.
The Group experienced good demand for immune-boosting products, certain small-volume parenterals and
acute renal dialysis products.
Demand was poor for cough, colds and flu medicine (due to the absence of a flu season in South Africa).
Low levels of patients consulting doctors and postponement of elective surgeries affected the performance
of certain, mainly acute, prescription medicines and ophthalmic surgical products and instruments.
Lockdown restrictions also had an impact on many hospital products (due to reduced number of trauma
and medical admissions), as well as on shoe care and sun care products.
Nonetheless, with the exception of the OTC business unit, which is the largest cough, colds and flu
company in South Africa, all business units posted solid trading performances, achieving good growth in
turnover, with disciplined cost control and yielding healthy growth in trading profit. Adcock Ingram's strong
and adaptable people, and diverse portfolios have proved beneficial in this unprecedented operating
environment. In addition, these results could not have been achieved without the support of our customers,
partners and suppliers.
Change Audited Audited
% 2021 2020
Revenue (R'000) 6 7 776 854 7 346 558
Gross profit (R'000) (2) 2 682 775 2 739 056
Trading profit (R'000) (3) 914 610 944 280
Operating profit (R'000) (1) 849 755 862 181
Headline earnings per share (cents) (3) 404.7 417.5
Basic earnings per share (cents) 396.3 398.0
Total assets (R'000) 7 040 418 7 181 750
Net asset value per share (cents) 2 894.7 2 708.6
Interim dividend declared per share (cents) 80.0 100.0
Final dividend declared per share (cents) 90.0 -
Segment revenue
Consumer (R'000) 42 1 267 287 892 392
OTC (R'000) (16) 1 735 239 2 054 114
Prescription (R'000) 10 3 021 520 2 758 538
Hospital (R'000) 8 1 752 229 1 627 518
Segment trading profit
Consumer (R'000) 52 235 380 155 134
OTC (R'000) (31) 292 327 425 747
Prescription (R'000) 3 223 826 217 652
Hospital (R'000) 15 161 385 140 453
Prospects
As the effects of the COVID-19 pandemic persist, coupled with the recent civil unrest in the country,
the economic outlook for our market remains uncertain and we face the reality of living with
COVID-19 restrictions until the vaccines have been widely administered.
Although we remain cautious about the effects of COVID-19, the Group has proved its resilience through its
diversified portfolio of products and generated solid cash inflows despite the impact of the lockdowns and
we are confident of continued value creation for our shareholders.
We are supporting our customers where possible to restore their operations following the recent civil unrest
in KwaZulu-Natal and Gauteng, so that they are able to continue delivering essential medicine to the people
of South Africa.
The Group remains committed to expanding its product portfolio in each of its business units.
Dividend distribution
The Board has declared a final gross dividend out of income reserves of 90 cents per share in respect
of the year ended 30 June 2021. The South African dividend tax ("DT") rate is 20% and the net dividend
payable to shareholders who are not exempt from DT is 72 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, 14 September 2021
Shares trade ex distribution Wednesday, 15 September 2021
Record date Friday, 17 September 2021
Payment date Monday, 20 September 2021
Share certificates may not be dematerialised or rematerialised between Wednesday, 15 September 2021 and
Friday, 17 September 2021, both dates inclusive.
N Madisa AG Hall
Chairperson Chief Executive Officer
Approved by the Board: 24 August 2021
SENS release date: 25 August 2021
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/2021/JSE/ISSE/AIP/AIP022021.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 and the group annual financial statements which includes the unqualified audit opinion, 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: 25-08-2021 07:05:00
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