Wrap Text
Group annual results and cash dividend declaration for the year ended 30 June 2019
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")
GROUP ANNUAL RESULTS AND CASH DIVIDEND DECLARATION
FOR THE YEAR ENDED 30 JUNE 2019
Continuing operations
REVENUE INCREASES
11% to R7,089 million
GROSS PROFIT IMPROVES
11% to R2,789 million
TRADING PROFIT INCREASES
12% to R955 million
HEPS INCREASES
11%
TOTAL DIVIDEND INCREASES
16% to 200 cents per share
B-BBEE
Level 3
Introduction
The Board of Directors (Board) is pleased with the robust results
delivered by the Group in a volatile market, characterised by weak
economic growth and declining consumer spend. Under these
circumstances, each of the business units performed well, with
core brands showing encouraging market share, indicative of the
brand resilience of our trusted portfolio. The Group's Zimbabwean
enterprise, which was reflected as an asset held-for-sale at
31 December 2018, was disposed of in January 2019 and the results
are reflected as a discontinued operation. The Group has also
disposed of its investment in Ayrton Drug Manufacturing Limited,
the associate in Ghana, as performance from this business did not
meet expectations.
Prospects
The Bidvest Group's shareholding in Adcock Ingram recently
increased to 50.1%. This will enhance interactions between the entities
in exploring strategic and operational possibilities for Adcock
Ingram's operations and options for growth. Bidvest is supportive of
Adcock Ingram's current decentralised and autonomous business
model and sees opportunity for the Company to grow.
The Board expects that the current economic environment,
exchange rate weakness and volatility, and constraints on consumer
spending will not change in the short term. The Group remains
committed to the growth of our well-respected and diversified
basket of brands, and seeking additional affordable brands to
augment our portfolios across the business.
Audited Audited
Change 2019 2018
Continuing operations
Revenue (R'000) 11% 7 089 058 6 405 316*
Gross profit (R'000) 11% 2 789 106 2 511 309*
Trading profit (R'000) 12% 955 421 849 944*
Operating profit (R'000) 10% 883 537 803 049*
Headline earnings per share (cents) 11% 421,7 381,3*
Basic earnings per share (cents) 10% 414,8 377,2*
* Prior year restated to show comparatives for the discontinued operation.
Total operations
Revenue (R'000) 9% 7 175 319 6 562 865
Gross profit (R'000) 10% 2 814 202 2 566 020
Trading profit (R'000) 11% 960 340 866 377
Operating profit (R'000) 8% 886 635 819 482
Headline earnings per share (cents) 9% 422,8 387,7
Basic earnings per share (cents) 8% 413,8 383,6
Total assets (R'000) 6 250 793 6 270 725
Net asset value per share (cents) 2 505,7 2 281,9
Dividend per share (cents) 200,0 172,0
Dividend distribution
The Board has declared a final gross dividend out of income reserves
of 100 cents per share in respect of the year ended 30 June 2019. The
South African dividend tax ("DT") rate is 20% and the net dividend
payable to shareholders who are not exempt from DT is 80 cents per
share. Adcock Ingram currently has 175 756 026 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, 17 September 2019
Shares trade ex distribution Wednesday, 18 September 2019
Record date Friday, 20 September 2019
Payment date Monday, 23 September 2019
Share certificates may not be dematerialised or rematerialised
between Wednesday, 18 September 2019 and Friday, 20 September 2019,
both dates inclusive.
By order of the Board
LP Ralphs AG Hall
Chairman Chief Executive Officer
Signed off by the Board: 27 August 2019
SENS release date: 28 August 2019
Company secretary
NE Simelane
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.
PO Box 61051,
Marshalltown, 2107
Auditors
Ernst & Young Inc.,
102 Rivonia Road,
Sandton, 2146
Sponsor
Rand Merchant Bank
(a division of FirsRand 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
The full long form announcement is available at
https://senspdf.jse.co.za/documents/2019/JSE/ISSE/AIP/AIP062019.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 which 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: 28/08/2019 07:05:00
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