Aspen’s “full year earnings rose by a quarter,” reports Fin24
. Earnings came in higher thanks to a “strong performance at home and overseas”. The company also revealed that it planned to expand into Russia.
The biggest maker of generic drugs in Africa said that its diluted headline earnings per shares came in at 786.9c, reports IOL
. That’s up from 626.9c for the previous year.
And earnings weren’t the only thing that rose considerably in its results. Revenue also jumped 27% higher to R19.3 billion, reports notes MoneyWeb
With reference to the current financial year, the drug maker was very positive.
Aspen’s acquisition trail should boost future growth and earnings
Aspen has plans to buy “manufacturing sites from GlaxoSmithKline (GSK) and Merck & Co,” says Bloomberg
. This will help “boost earnings this year”. These plans should bolster growth.
The deals are worth about $1 billion each, reports Fin24
. The Merck deal will expand the company’s “presence in Europe, Latin America and Asia”. The GSK deal relates to buying “thrombosis drugs and a French factory”.
With the completion of these deals comes the chance for the company to expand into Russia, notes IOL
. These deals will also help its businesses in “other Soviet republics,” Europe, “Latin America and Asia”.
Not surprising perhaps is that the drug maker will see higher debt levels as these deals are processed.
CEO of Aspen, Stephen Saad says that this should be “short-term,” notes Bloomberg
. Mr Saad anticipates cash flows from the new businesses to override this soon after.
Gearing has increased at Aspen, but once the new acquisitions are operational, that “is expected to reduce quite rapidly,” adds Bloomberg
The market liked the contents of the results. Aspen’s share price closed up 4.25% today.
So a solid set of results with a lot of future potential for further growth should all its deals plan out as hoped.