Aspen Pharmacare released results yesterday for the full year to end June

Aspen Pharmacare released results yesterday for the full year to end June. Remember that this second half includes the GSK tie up, because that part only had one month worth of the relationship. Of course there would be a dilution because there are over 70 million more shares in issue now.



OK, here are some of the key points. A twenty percent increase in revenue to top 10 billion Rands for the first time, headline earnings just shy of 2 billion Rands, 1.989 billion. Wow. That translates to a diluted basic headline earnings per share excluding the impact of a plus-minus 50 cent contribution from discontinued operations (Onco Therapies) to 444 cents per share. A twenty percent increase.




We worked out yesterday that there was roughly a 13 percent gain in the second half in headline earnings over the first half, as a direct result of having the new GSK tie up. International seems just fine, it is not easy going at the moment, but in our minds these will turn out to be great acquisitions in time. Remember of course that the Sigma acquisition down under is still rolling around and not complete.



The prospects column sees a pretty decent next year, even if the stock looks expensive now:

"Aspen's South African pharmaceutical business is well set to continue to thrive as a consequence of the addition of the GSK brands and the people who promote and support these brands, the regulatory stability and government's stated intention to support the local pharmaceutical industry.


South Africa's difficult consumer trading environment has necessitated a focus on efficiency of structures which should stand Aspen in good stead when the retail cycle improves. Initiatives being undertaken in the sub-Saharan African region should result in an increased contribution to Group profits in the year ahead.


An upswing in results in Latam, continued organic growth in Asia Pacific and the benefit of a full year of contribution from the Global Brands acquired over the last year will be growth drivers for the international business in the year ahead.


Completion of the acquisition of the Sigma pharmaceutical business will add further growth momentum. The Group has the fundamentals in place to enjoy a thirteenth consecutive year of uninterrupted real growth in 2011."

In due course we will have a bigger write up on the company. Hopefully early next week, maybe sooner. On balance the market participants seem about happy, the share price has crested 90 Rands a share in recent days, and is currently flat this morning, just above 91 Rands a share.