Full Year 2024 Aspen Pharmacare Holdings Ltd Earnings Call Transcript
Key Points
- Aspen Pharmacare Holdings Ltd (JSE:APN) reported a 10% growth in group revenue, driven by strong manufacturing performance.
- The company achieved its highest EBITDA in the second half, with a 17% growth in normalized EBITDA and normalized HEPS.
- Aspen's Commercial Pharma business grew by 4%, with strong growth in Prescription and OTC segments offsetting declines in Injectables.
- The company successfully integrated regional transactions, particularly in Latin America, which is now one of the most exciting regions for Aspen.
- Aspen has secured a EUR500 million funding package from development finance institutions to support its sterile capacity journey in Africa, enhancing its capital structure mix.
- Aspen faced significant challenges in China and Russia, with a combined ZAR2 billion impact on gross margin due to VBP risks and geopolitical issues.
- The company had to absorb ZAR1 billion in manufacturing impacts from the loss of grant funding and COVID vaccine benefits.
- Aspen's net debt increased by ZAR4.7 billion to ZAR27 billion, driven by acquisitions, including the Viatris LatAm transaction.
- The company's gross profit percentage declined from 46.2% to 43.5%, primarily due to a higher mix of lower-margin manufacturing sales.
- Aspen anticipates further interest rate increases in FY25, which could impact financing costs despite the expected peak in the interest rate cycle.
Good morning, everyone. It's good to see you all here today and welcome to Aspen's full year financial results for the 2024 period. In today's program, we're going to have Steven, he's going to start us off with the performance overview. Sean will then follow with the financial highlights and review. Steven will then return and he's going to give us the strategic review and some outlook, and then we'll move on to questions-and-answers. (Operator Instructions)
Thank you all. Over to you, Steven.
Thank you for your attendance and for, I believe there are many more online, so welcome to all that are listening. I think, if we reflect on where we are and where we're going to, the second half was a really important half for Aspen. We flagged it over a year ago as being a critical inflection point for Aspen. And indeed, it was. We had some very important deliverables. Now after the last seven to eight
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