SENS

[BACK TO ARTICLES]

2/21/2018 7:05:00 AM

I-Net Bridge
AIP: ADCOCK INGRAM HOLDINGS LIMITED - Unaudited Group interim results for the six months ended 31 December 2017 and cash dividend declaration
AIP: ADCOCK INGRAM HOLDINGS LIMITED - Unaudited Group interim results for the six months ended 31 December 2017 and cash dividend declaration
Unaudited Group interim results for the six months ended 31 December 2017 and cash dividend declaration
Adcock Ingram Holdings Limited                
Incorporated in the Republic of South Africa  
(Registration number 2007/016236/06)
Income tax number 9528/919/15/3               
Share code: AIP    ISIN: ZAE000123436
("Adcock Ingram" or "the Company" or "the Group")
UNAUDITED GROUP INTERIM RESULTS
for the six months ended 31 December 2017
AND CASH DIVIDEND DECLARATION
Salient features
Continuing Operations
Turnover increases 7% to R3,199 million
Gross profit improves 13% to R1,215 million
Trading profit increases 25% to R428 million
Headline earnings per share from continuing operations increases 33%
Net cash position of R492 million
Dividend declared: 86 cents per share
B-BBEE level 3 achieved
Introduction
The Group delivered healthy operating results in the half year under review despite a challenging operating environment characterised by
political uncertainty and high levels of unemployment impacting on consumer spending. In a highly competitive environment, each of the
business units reported growth in sales and trading profits.
In line with the Group's strategy, in September 2017 Adcock Ingram concluded a share purchase agreement to acquire 100% of the shares
of Genop Holdings Proprietary Limited (Genop). Genop is a highly specialised instrument, surgical and pharmaceutical products company
focussed on the ophthalmic, optometry, skincare, aesthetic and plastic surgery segments in Southern Africa. Genop also owns and markets
the well-known Epi-max branded range of consumer products. Adcock Ingram has received unconditional approval from the South African
Competition Commission.
Financial performance
Turnover and Profits
Group turnover during the period under review increased by 7.4% to R3,199 million (Dec 2016: R2,979 million), mainly driven by a realised average price
increase of 5.2%. Volume growth and new product launches contributed the balance. The gross margin improvement from 36.1% to 38.0% was realised
from the improvement in the exchange rate, increased ARV throughput at the Wadeville factory, as well as an improved sales mix.
Operating expenses were well controlled and increased in line with sales by 7.4%, resulting in a 25% improvement in trading profit to R428 million
(Dec 2016: R342 million).
Non-trading expenses
Non-trading expenses of R24.6 million include share-based expenses of R17.3 million and corporate activity costs of R7.3 million.
Net finance costs and headline earnings
Net finance income of R0.3 million was realised in the period, compared to net finance costs of R17.5 million in the prior period, reflective of
the improvement in the Group's net cash position.
Headline earnings for the period under review amounted to R320.4 million (Dec 2016: R241.0 million). This translates into headline earnings per
share from continuing operations of 192.6 cents (Dec 2016: 144.9 cents), an increase of 33%.
Cash flows
Cash generated from operations amounted to R455.9 million (Dec 2016: R367.6 million) after working capital increased by R85.7 million
(Dec 2016: R66.0 million). The Group had net cash resources of R492 million (June 2017: R335 million) at the end of the period.
Dividend distribution
The Board has declared an interim dividend of 86 cents per share for the six-month period ended 31 December 2017 out of income reserves,
an improvement of 37%, over the interim dividend paid in the prior year.
Business overview
Southern Africa
OTC turnover improved by 9.7% over the prior comparative period to R970.7m (Dec 2016: R884.6 million), arising from an average price
increase of 8.8%, supported by innovative new product launches and good demand for smaller pack sizes of analgesics.
Top brands including Adco-Dol, Allergex, Alcophyllex and Napamol showed double-digit growth. This business unit, which focuses on
products in the pain, coughs, colds and flu, and anti-histamine therapeutic areas through the pharmacy channel, posted growth well ahead
of the market as measured by IQVIA (previously referred to as IMS) in the categories in which it competes. The business unit launched the
GAP range of health supplements formulated to replenish vitamins and minerals that have been depleted because of chronic diseases or the
treatment thereof.
A gross margin improvement was realised in this period, driven by the improvement in the exchange rate and an advantageous sales mix. As
a result, trading profit increased by 24.4 % to R181.1 million (Dec 2016: R145.6 million).
Prescription turnover improved marginally to R1,021.1 million (Dec 2016: R1,008.6 million). An average price increase of 5.0% was realised
and volumes increased by 1.9% driven by the demand in the ARV private market. Mix was impacted by the loss of a low-margin multinational
partner contract, partially offset by the on-boarding of the Astellas portfolio from Leo Pharma and Topzole from Takeda. This division achieved
double digit growth in the private market segment as measured by IQVIA.
A gross margin improvement was realised in the period, driven by increased ARV throughput at the Wadeville factory and a better sales mix.
As a result, trading profit of R132.5 million is 13.7% ahead of the comparative period of R116.5 million.
Consumer turnover increased by 10.3% to R369.5 million (Dec 2016: R334.8 million) assisted by the acquisition of the Island Tribe sunscreen
range. Volume growth of 1.8% was achieved but price increases were negligible, indicative of the overall pressure on the consumer. Trading
profits increased by 11.5% to R58.4 million (Dec 2016: R52.4 million).
Hospital turnover improved by 3.6% to R686.4 million (Dec 2016: R662.4 million) driven by an average price increase of 2.3%, and a mix benefit
from the newly-acquired marketing rights to the Pharma Q product range. This was partially offset by lower large-volume parenteral volumes
into the Public sector. A gross margin improvement was realised in this period, driven by the variation in the sales mix. Trading profits increased
to R40.6 million (Dec 2016: R27.0 million) with very well-controlled operating expenditure. This division was awarded more than 80% of the
3-year government tender for large-volume parenterals in late September 2017. 
Rest of Africa
The Group's enterprises in Zimbabwe and Kenya collectively increased turnover by 24.8% to R123.7 million (Dec 2016: R99.1 million) and
achieved a trading profit R12.8 million during the period under review. The positive performance in Zimbabwe is attributable to a significant
improvement in demand for the top brands following improved stock availability, whilst the improvement in the Kenyan operation is due the
OTC division having assumed management responsibility for the business.
Changes to the Board
On 23 November 2017, Ms Nompumelelo Madisa was appointed as non-executive Director and a member of the Acquisitions Committee.
On 29 January 2018 Mr Motty Sacks resigned as a non-executive Director, Chairman of the Audit Committee and member of various other committees.
Prospects
We are pleased with the quality of earnings, and the operational and strategic progress achieved. However, the operating environment remains
challenging in South Africa, especially seen in the light of the recent disappointing SEP increase of 1.26% and ongoing financial pressure on
consumers.
Nonetheless, the Group remains competitively positioned to defend and grow its brands and the Board remains committed in pursuing its
objective of ensuring long-term growth to create shareholder value by expanding the product portfolio through partnership arrangements
and acquisitions.
Dividend distribution
The Board has declared an interim gross dividend out of income reserves of 86.0 cents per share in respect of the six months ended 31 December
2017. The South African dividend tax ("DT") rate is 20% and the net dividend payable to shareholders who are not exempt from DT is 68.8 cents
per share. Adcock Ingram currently has 175,748,048 ordinary shares in issue of which 149 905 089 qualify 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, 13 March 2018
Shares trade ex distribution                                                                                      Wednesday, 14 March 2018
Record date                                                                                                          Friday, 16 March 2018
Payment date                                                                                                         Monday, 19 March 2018
Share certificates may not be dematerialised or rematerialised between Wednesday, 14 March 2018 and Friday, 16 March 2018, 
both dates inclusive.
CD Raphiri                                      AG Hall                                                D Neethling
Chairman                                        Chief Executive Officer                                Chief Financial Officer
20 February 2018
Consolidated statements of
comprehensive income
                                                                                    Unaudited              Unaudited
                                                                                   six months             six months    Audited year
                                                                                        ended                  ended           ended
                                                                                  31 December            31 December         30 June
                                                                                         2017      %            2016            2017
Continuing operations                                                    Notes          R'000 Change           R'000           R'000
Revenue                                                                     2       3 213 752      8       2 985 469       5 957 700
Turnover                                                                    2       3 199 024      7       2 978 517       5 936 056
Cost of sales                                                                     (1 983 641)            (1 904 062)     (3 693 773)
Gross profit                                                                        1 215 383     13       1 074 455       2 242 283
Selling, distribution and marketing expenses                                        (561 537)      8       (521 861)     (1 068 585)
Fixed and administrative expenses                                                   (225 586)      7       (210 695)       (449 275)
Trading profit                                                                        428 260     25         341 899         724 423
Non-trading expenses                                                        3        (24 600)               (19 236)        (47 128)
Operating profit                                                                      403 660     25         322 663         677 295
Finance income                                                              2          13 109                  4 071          15 665
Finance costs                                                                        (12 852)               (21 578)        (38 239)
Dividend income                                                             2           1 619                  2 881           5 979
Equity-accounted earnings                                                              41 888                 34 160          64 144
Profit before taxation                                                                447 424     31         342 197         724 844
Taxation                                                                            (123 985)               (97 596)       (204 856)
Profit for the period/year from continuing operations                                 323 439     32         244 601         519 988
Profit after taxation for the period/year from discontinued operations      5               -                 41 132          41 132
Profit for the period/year                                                            323 439     13         285 733         561 120
Other comprehensive income which will subsequently
be recycled to profit or loss                                                        (55 491)               (38 574)        (24 832)
 Exchange differences on translation of foreign operations:
 - Continuing operations                                                              (3 795)                (3 389)         (5 732)
 - Joint venture and associate                                                       (11 729)               (16 918)        (17 486)
 - Discontinued operations                                                                  -               (21 353)        (21 353)
 Fair value profit on available-for-sale asset, net of tax                                  -                      -               7
 Movement in cash flow hedge accounting reserve,
 net of tax                                                                          (39 967)                  3 086          19 732
Other comprehensive income recycled to profit or loss                                       -              (125 784)       (125 784)
Other comprehensive income which will not be recycled to 
profit or loss 
Actuarial profit on post-retirement medical liability                                       -                      -             511
Total comprehensive income for the period/year,
net of tax                                                                            267 948                121 375         411 015
Profit attributable to: 
Owners of the parent                                                                  320 322                280 943         553 534
Non-controlling interests                                                               3 117                  4 790           7 586
                                                                                      323 439                285 733         561 120
Total comprehensive income attributable to: 
Owners of the parent                                                                  264 831                118 724         405 568
Non-controlling interests                                                               3 117                  2 651           5 447
                                                                                      267 948                121 375         411 015
Continuing operations
Basic earnings per ordinary share (cents)                                               192,6      33          144,9           308,9
Diluted basic earnings per ordinary share (cents)                                       192,6      33          144,9           308,9
Headline earnings per ordinary share (cents)                                            192,6      33          144,9           308,9
Diluted headline earnings per ordinary share (cents)                                    192,6      33          144,9           308,9
Discontinued operations
Basic earnings per ordinary share (cents)                                                                       24,0            24,0
Diluted basic earnings per ordinary share (cents)                                                               24,0            24,0
Headline earnings per ordinary share (cents)                                                                     3,7             3,7
Diluted headline earnings per ordinary share (cents)                                                             3,7             3,7
Total operations
Basic earnings per ordinary share (cents)                                               192,6      14          168,9           332,9
Diluted basic earnings per ordinary share (cents)                                       192,6      14          168,9           332,9
Headline earnings per ordinary share (cents)                                            192,6      30          148,6           312,6
Diluted headline earnings per ordinary share (cents)                                    192,6      30          148,6           312,6
Consolidated statement of
changes in equity
                                                   Attributable to holders of the parent
                                                      Non-distributable reserves
                                                                                                      Total
                               Issued                                                          attributable        Non-
                                share       Share       Continuing  Discontinued      Retained  to ordinary controlling
                              capital     premium       operations    operations        income shareholders   interests         Total
                                R'000       R'000            R'000         R'000         R'000        R'000       R'000         R'000
As at 1 July 2016              17 147     666 873          483 515       144 998     1 916 040    3 228 573      26 024     3 254 597
Movement in share-based
payment reserve                                             10 030                                   10 030                    10 030
Disposal of business                                                                                           (18 465)      (18 465)
Total comprehensive income                                (17 221)     (144 998)       280 943      118 724       2 651       121 375
 Profit for the period                                                                 280 943      280 943       4 790       285 733
 Other comprehensive income                               (17 221)     (144 998)                  (162 219)     (2 139)     (164 358)
Dividends                                                                             (78 635)     (78 635)                  (78 635)
Balance at 31 December
2016 (unaudited)               17 147     666 873          476 324             -     2 118 348    3 278 692      10 210     3 288 902
Movement in share-based
payment reserve                                             13 680                                   13 680                    13 680
Share-based expenses
transferred from non-
distributable reserves                                   (303 885)                     303 885
Total comprehensive income                                  14 253                     272 591      286 844       2 796       289 640
 Profit for the period                                                                 272 591      272 591       2 796       275 387
 Other comprehensive income                                 14 253                                   14 253                    14 253
Dividends                                                                             (91 734)     (91 734)     (5 484)      (97 218)
Balance at 30 June 2017
(audited)                      17 147     666 873          200 372                   2 603 090    3 487 482       7 522     3 495 004
Movement in share-based
payment reserve                                             14 800                                   14 800                    14 800
Total comprehensive income                                (55 491)                     320 322      264 831       3 117       267 948
 Profit for the period                                                                 320 322      320 322       3 117       323 439
 Other comprehensive income                               (55 491)                                 (55 491)                  (55 491)
Dividends                                                                            (110 671)    (110 671)     (4 404)     (115 075)
Balance at 31 December
2017 (unaudited)               17 147     666 873          159 681                   2 812 741    3 656 442       6 235     3 662 677
Consolidated statements of
financial position                                                          
                                                                                                 Unaudited      Unaudited     Audited
                                                                                               31 December    31 December     30 June
                                                                                                      2017           2016        2017
                                                                                                     R'000          R'000       R'000
ASSETS                                                          
Property, plant and equipment                                                                    1 459 029      1 388 767   1 445 095
Intangible assets                                                                                  344 971        321 731     349 997
Deferred tax                                                                                         1 695          7 621       1 588
Other financial assets                                                                              38 699         47 365      41 746
Investment in joint ventures                                                                       407 188        360 124     392 013
Investment in associate                                                                              5 296          6 002       6 071
Non-current assets                                                                               2 256 878      2 131 610   2 236 510
Inventories                                                                                      1 290 514      1 122 507   1 156 949
Trade and other receivables                                                                      1 611 281      1 482 743   1 567 802
Cash and cash equivalents                                                                          747 606        634 567     592 070
Taxation receivable                                                                                      -              -       9 642
Current assets                                                                                   3 649 401      3 239 817   3 326 463
Total assets                                                                                     5 906 279      5 371 427   5 562 973
EQUITY AND LIABILITIES                                                          
Capital and reserves                                                          
Issued share capital                                                                                17 147         17 147      17 147
Share premium                                                                                      666 873        666 873     666 873
Non-distributable reserves                                                                         159 681        476 324     200 372
Retained income                                                                                  2 812 741      2 118 348   2 603 090
Total shareholders' funds                                                                        3 656 442      3 278 692   3 487 482
Non-controlling interests                                                                            6 235         10 210       7 522
Total equity                                                                                     3 662 677      3 288 902   3 495 004
Long-term borrowings                                                                                 1 267        300 000     251 492
Post-retirement medical liability                                                                   16 931         17 132      16 793
Deferred tax                                                                                        55 509         75 878      73 138
Non-current liabilities                                                                             73 707        393 010     341 423
Trade and other payables                                                                         1 828 993      1 601 265   1 644 581
Bank overdraft                                                                                       3 844         10 078       5 619
Short-term borrowings                                                                              250 680              -         416
Provisions                                                                                          79 795         65 337      75 930
Taxation payable                                                                                     6 583         12 835           -
Current liabilities                                                                              2 169 895      1 689 515   1 726 546
Total equity and liabilities                                                                     5 906 279      5 371 427   5 562 973
Consolidated statements of
cash flows
                                                                                              Unaudited       Unaudited
                                                                                             six months      six months       Audited
                                                                                                  ended           ended    year ended
                                                                                            31 December     31 December       30 June
                                                                                                   2017            2016          2017
                                                                                                  R'000           R'000         R'000
Cash flows from operating activities                            
Operating profit from continuing operations                                                     403 660         322 663       677 295
Operating profit from discontinued operations                                                         -           8 416         8 416
Operating profit                                                                                403 660         331 079       685 711
Other adjustments and non-cash items                                                            137 901         102 532       316 097
Operating profit before working capital changes                                                 541 561         433 611     1 001 808
Working capital changes                                                                        (85 708)        (65 997)     (233 935)
Cash generated from operations                                                                  455 853         367 614       767 873
Finance income received                                                                          10 931           5 344        16 938
Finance costs paid                                                                             (12 818)        (24 696)      (41 612)
Dividend income received                                                                         17 378          18 268        21 368
Dividends paid                                                                                (115 075)        (78 635)     (175 853)
Taxation paid                                                                                 (109 505)         (1 452)     (133 281)
Net cash inflow from operating activities                                                       246 764         286 443       455 433
Cash flows from investing activities                            
Decrease in other financial assets                                                                3 047          26 945        32 356
Acquisition of business                                                                               -               -       (9 875)
Disposal of businesses                                                                                -         291 096       291 096
Purchase of property, plant and equipment - Expansion                                          (56 044)         (2 450)      (75 930)
                                          - Replacement                                        (35 780)        (33 029)      (87 308)
Purchase of intangible assets                                                                         -        (45 822)      (70 821)
Proceeds on disposal of property, plant and equipment                                             1 953           1 931         2 298
Net cash (outflow)/inflow from investing activities                                            (86 824)        238 671        81 816
Cash flows from financing activities                            
Increase in borrowings                                                                              147           7 822         9 917
Repayment of borrowings                                                                               -       (200 000)     (252 223)
Net cash inflow/(outflow) from financing activities                                                 147       (192 178)     (242 306)
Net increase in cash and cash equivalents                                                       160 087         332 936       294 943
Net foreign exchange difference on cash and cash equivalents                                    (2 776)         (2 909)       (2 954)
Cash and cash equivalents at beginning of period/year                                           586 451         294 462       294 462
Cash and cash equivalents at end of period/year                                                 743 762         624 489       586 451
Notes to the consolidated
financial statements
1. Basis of preparation
   1.1INTRODUCTION
       The abridged unaudited interim results for the six months ended 31 December 2017 have been prepared in compliance with the
       Listings Requirements of the JSE Limited, International Financial Reporting Standards (IFRS), the requirements of the International
       Accounting Standards, IAS 34: Interim financial reporting, SAICA Financial Reporting Guidelines as issued by the Accounting
       Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and the Companies
       Act, No.  71 of 2008. The Board of directors take full responsibility for the set of financial results which have been prepared by
       Ms Dorette Neethling, Chief Financial Officer.
   1.2 CHANGES IN ACCOUNTING POLICIES
        The accounting policies adopted are consistent with those of the previous financial year except for the adoption of the following
        amended IFRS standards and interpretations during the year which did not have any effect on the financial performance or position
        of the Group:
         - IAS 7: Statement of cash flows - disclosure initiative amendments
         - IAS 12: Income taxes - recognition of deferred tax assets for unrealised loss - amendments
                                                                                         Unaudited         Unaudited
                                                                                        six months        six months           Audited
                                                                                             ended             ended        year ended
                                                                                       31 December       31 December           30 June
                                                                                              2017              2016              2017
                                                                                             R'000             R'000             R'000
2.Revenue
   Turnover                                                                              3 199 024         2 978 517         5 936 056
   Finance income                                                                           13 109             4 071            15 665
   Dividend income - Black Managers Share Trust                                              1 619             2 881             5 979
                                                                                         3 213 752         2 985 469         5 957 700
3. Non-trading expenses
   Impairments                                                                                   -                 -               217
   Transaction costs                                                                         7 316             5 469             6 251
   Share-based payment expenses                                                             17 284            13 767            40 660
                                                                                            24 600            19 236            47 128
4. Acquisition of business
   On 1 April 2017, Adcock Ingram Healthcare Proprietary Limited acquired
   100% of the shareholding of Virtual Logistics Proprietary Limited (Virtual),
   a national fine distribution company.
   The fair value of the identifiable assets as at the date of acquisition was:
   Assets                                                                                                                       25 413
   Liabilities                                                                                                                (15 408)
   Total identifiable net assets at fair value                                                                                  10 005
   Goodwill arising on acquisition                                                                                               5 595
   Purchase consideration                                                                                                       15 600
   Deferred consideration                                                                                                      (8 000)
   Net bank overdraft acquired with the business                                                                                 2 275
   Net cash consideration                                                                                                        9 875
                                                                                                              Unaudited
                                                                                                             six months        Audited
                                                                                                                  ended     year ended
                                                                                                            31 December        30 June
                                                                                                                   2016           2017
                                                                                                                  R'000          R'000
5. Discontinued operations     
   Adcock Ingram Private Limited (India) and 53.47% of Ayrton Drug Manufacturing Limited     
   (Ayrton) in Ghana were disposed of on 14 October 2016 and 7 December 2016 respectively.     
   The loss of control on disposal resulted in the foreign currency translation reserve relating to     
   both entities being recycled to profit and loss during the previous financial period/year.     
   5.1   PROFIT FOR THE PERIOD/YEAR FROM DISCONTINUED OPERATIONS                                                  6 374          6 374
         Profit on disposal of the discontinued operations                                                       34 758         34 758
         Profit for the period/year from discontinued operations                                                 41 132         41 132
         Profit/(Loss) attributable to:      
         India                                                                                                   46 638         46 638
         Ayrton                                                                                                 (5 506)        (5 506)
                                                                                                                 41 132         41 132
         Profit attributable to:      
         Owners of the parent                                                                                    39 903         39 903
         Non-controlling interests                                                                                1 229          1 229
                                                                                                                 41 132         41 132
   5.2 CASH INFLOW ON DISPOSAL      
       Consideration received                                                                                   338 601        338 601
          India                                                                                                 327 565        327 565
          Ayrton                                                                                                 11 036         11 036
         Net cash disposed of with the discontinued operations                                                 (47 505)       (47 505)
          India                                                                                                (48 807)       (48 807)
          Ayrton                                                                                                  1 302          1 302
      
         Net cash inflow                                                                                        291 096        291 096
                   
                                                                                               Unaudited       Unaudited
                                                                                              six months      six months       Audited
                                                                                                   ended           ended    year ended
                                                                                             31 December     31 December       30 June
                                                                                                    2017            2016          2017
                                                                                                   R'000           R'000         R'000
6. Segment reporting                   
   Turnover                   
   Southern Africa                                                                             3 111 649       2 890 382     5 754 241
    OTC                                                                                          970 669         884 568     1 849 038
    Prescription                                                                               1 021 117       1 008 586     1 937 925
    Consumer                                                                                     369 478         334 849       688 807
    Hospital                                                                                     686 359         662 379     1 256 753
    Other - shared services                                                                       64 026               -        21 718
   Rest of Africa                                                                                123 743          99 118       207 052
   Research and development services in India                                                     10 197           8 426        18 396
   Less: Inter-company sales                                                                    (46 565)        (19 409)      (43 633)
                                                                                               3 199 024       2 978 517     5 936 056
   Trading and operating profit                   
   Southern Africa                                                                               413 806         341 527       719 103
    OTC                                                                                          181 111         145 626       342 322
    Prescription                                                                                 132 516         116 490       207 787
    Consumer                                                                                      58 419          52 385       110 038
    Hospital                                                                                      40 615          27 026        58 475
    Other - shared services                                                                        1 145               -           481
   Rest of Africa                                                                                 12 849           (865)         2 712
   Research and development services in India                                                      1 605           1 237         2 608
   Trading profit                                                                                428 260         341 899       724 423
   Less: Non-trading expenses                                                                   (24 600)        (19 236)      (47 128)
   Operating profit                                                                              403 660         322 663       677 295
                   
   Total assets                   
   Southern Africa                                                                             5 503 746       4 991 147     5 161 098
    OTC                                                                                        1 741 791       1 546 192     1 667 220
    Prescription                                                                               1 386 414       1 279 402     1 239 248
    Consumer                                                                                     330 695         319 566       354 965
    Hospital                                                                                   1 163 652       1 044 623     1 125 158
    Other - shared services                                                                      881 194         801 364       774 507
   Rest of Africa                                                                                151 609         143 491       146 661
   India                                                                                         250 924         236 789       255 214
                                                                                               5 906 279       5 371 427     5 562 973
                   
7. Inventory                   
   The amount of inventories written down and recognised as an expense                   
   in profit or loss:                   
   Cost of sales                                                                                  28 541          18 896        66 215
                   
8. Capital commitments                   
   - Contracted                                                                                  115 693          52 216        72 202
   - Approved, but not contracted                                                                113 262         148 847       128 281
                                                                                                 228 955         201 063       200 483
 
                                                                                               Unaudited       Unaudited
                                                                                              six months      six months       Audited
                                                                                                   ended           ended    year ended
                                                                                             31 December     31 December       30 June
                                                                                                    2017            2016          2017
                                                                                                   R'000           R'000         R'000
           
9. Headline earnings           
   Headline earnings is determined as follows:           
   Continuing operations           
   Earnings attributable to owners of Adcock Ingram from total operations                       320 322*         280 943       553 534
   Adjusted for:           
   Profit attributable from discontinued operations (refer note 5.1)                                   -        (39 903)      (39 903)
   Earnings attributable to owners of Adcock Ingram from continuing           
   operations                                                                                    320 322         241 040       513 631
   Adjusted for:           
   Loss/(Profit) on disposal of property, plant and equipment                                        220             (1)         (194)
   Tax effect on loss/(profit) on disposal of property, plant and equipment                        (165)               -            76
   Adjustments relating to equity accounted joint ventures                                          (26)               -           199
   Headline earnings from continuing operations                                                 320 351*         241 039       513 712
   Discontinued operations           
   Profit attributable to owners of Adcock Ingram from discontinued           
   operations                                                                                          -          39 903        39 903
   Adjusted for:           
   Profit on sale of discontinued operations (refer note 5.1)                                          -        (34 758)      (34 758)
   Loss on disposal/scrapping of property, plant and equipment                                         -             975           975
            
   Headline earnings from discontinued operations                                                      -           6 120         6 120
   * Total and continuing operations.           
           
                                                                                                    '000            '000          '000
10. Share capital            
   Number of shares in issue                                                                     175 748         175 748       175 748
   Number of ordinary shares held by the Group company                                           (4 285)         (4 285)       (4 285)
   Net shares in issue                                                                           171 463         171 463       171 463
   Headline earnings and basic earnings per share are based on:            
   Weighted average number of ordinary shares outstanding                                        166 294         166 294       166 294
   Diluted weighted average number of shares outstanding                                         166 295         166 294       166 295
Corporate information
Adcock Ingram Holdings Limited                                                 Postal address
Incorporated in the Republic of South Africa                                   Private Bag X69, Bryanston, 2021
(Registration number 2007/016236/06)
Income tax number 9528/919/15/3                                                Transfer secretaries
Share code: AIP    ISIN: ZAE000123436
                                                                               Computershare Investor Services Proprietary Limited
("Adcock Ingram" or "the Company" or "the Group")
                                                                               Rosebank Towers, 15 Bierman Avenue, Rosebank
Directors                                                                      Johannesburg, 2196
Ms L Boyce (Independent Non-executive Director)                                PO Box 61051
Mr A Hall (Chief Executive Officer)                                            Marshalltown, 2107
Prof M Haus (Independent Non-executive Director)
Ms J John (Independent Non-executive Director)                                 Auditors
Dr T Lesoli (Independent Non-executive Director)                               Ernst & Young Inc.
Ms B Letsoalo (Executive Director)                                             102 Rivonia Road, Sandton, 2146
Ms N Madisa (Non-executive Director)
Mr M Makwana (Independent Non-executive Director)                              Sponsor
Dr C Manning (Non-executive Director)                                          Rand Merchant Bank (A division of FirstRand Bank Limited)
Dr A Mokgokong (Non-executive Director)                                        1 Merchant Place, corner Fredman Drive and Rivonia Road
Ms D Neethling (Chief Financial Officer)                                       Sandton, 2196
Mr L Ralphs (Non-executive Director)                                       
Mr C Raphiri (Independent Non-executive Chairman)                              Bankers
Dr R Stewart (Independent Non-executive Director)                              Nedbank Limited
                                                                               135 Rivonia Road, Sandown
Company secretary                                                              Sandton, 2146
NE Simelane                                                                    Rand Merchant Bank
                                                                               1 Merchant Place, corner Fredman Drive and Rivonia Road 
Registered office                                                              Sandton, 2196                                           
1 New Road, Midrand, 1682                                                              
Forward-looking statements
Adcock Ingram may, in this document, make certain statements that are not historical facts and relate to analyses and other information
which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future
prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements
regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return and cost reductions. Words such
as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour" and "project" and similar expressions are intended to
identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking
statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections
and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove
incorrect, our actual results may differ materially from those anticipated. Forward-looking statements apply only as of the date on which they
are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
http://www.adcock.com
Date: 21/02/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.
   Source: JSE News Service (SENS)
[BACK TO ARTICLES]