Growth was underpinned by a 52 per cent increase in operating profit at the South African business which took the total to R1.6bn. This increase in operating profit was underpinned by growth in the pharma business, which posted a 40 per cent rise in revenues.
Profit margins in South Africa benefited from improved production efficiencies and procurement savings. These factors were supported by a stronger Rand which lowered to cost of imported materials.
“Ongoing organic growth was instrumental in Aspen maintaining its position as the leading supplier of pharmaceuticals to both the private and public sectors in South Africa”, said Stephen Saad, CEO of Aspen Group.
During the year Aspen integrated GlaxoSmithKline’s South African business into its operations, resulting in an increase in its share of the branded products sector.
Rest of the world
Revenues from sub-Saharan Africa declined two per cent but this was offset by a 27 per cent increase in international sales, which totalled R4.1bn. Growth was underpinned by a 33 per cent increase in revenues, up to R2.0bn, from global brands acquired from GSK in 2008.
Asia Pacific domestic brands also posted growth, with revenues increasing by 11 per cent to R1.0bn. A three per cent dip in revenues from Latin America partially offset gains in other geographies.
Sigma Pharmaceuticals
In August Aspen agreed to acquire the pharmaceutical business of Australia-based Sigma Pharmaceuticals for AU$900m. Regulatory approval and agreement of Sigma shareholders is needed to complete the deal.
Earlier today, Sigma said it will take a charge of up to AU$270m from the sale of the unit. This will have a material impact on full year results and is likely to result in a breach of bank loan conditions, said Sigma.