South African pharmaceutical company Aspen Pharmacare has reported a 22% increase in normalised headline earnings per share for the financial year ended June 30, 2026, supported by stronger operating performance and growth in its commercial pharmaceuticals business.
Aspen said normalised headline earnings per share rose to 801.5 cents from 659.2 cents a year earlier. On a constant exchange rate basis, normalised headline earnings per share from continuing operations increased 28%, reversing a 24% decline recorded in the first half of the financial year.
Normalised EBITDA increased 10% to 7.7 billion rand, while the group’s normalised EBITDA margin improved to 22.1% from 19.7%. Revenue, however, declined 1% to 34.87 billion rand at reported exchange rates, with the strength of the South African rand against several of Aspen’s major trading currencies weighing on reported results.
Aspen’s Commercial Pharmaceuticals division, its largest business segment, recorded revenue growth of 3% to 25.4 billion rand, or 5% on a constant exchange rate basis. The company said growth was supported by demand for Mounjaro in South Africa, while the discontinuation of unprofitable products in China limited overall revenue growth.
The company’s manufacturing operations also improved, with normalised EBITDA ahead of the previous year on a constant exchange rate basis. Aspen said the restructuring of its sterile finished dose form manufacturing facilities in France and South Africa was nearing completion, with operational improvements beginning to contribute during the second half of the financial year.
Aspen also completed the sale of its Asia Pacific business during the year for gross proceeds of 28 billion rand. The transaction generated a profit on sale of 2.4 billion rand and helped strengthen the group’s balance sheet, with Aspen ending the financial year in a net cash position of about 800 million rand.
The company said restructuring and efficiency programmes incurred costs of 2.3 billion rand during the year, which reduced reported headline earnings and earnings per share. Intangible asset impairments of 2.3 billion rand also affected earnings, reflecting higher discount rates linked to geopolitical and macroeconomic conditions.
Despite these charges, Aspen generated 3.8 billion rand in free cash flow before dividends, while capital expenditure was 2 billion rand lower than in the previous year. The company said the stronger cash position and proceeds from the Asia Pacific divestment had improved its financial flexibility.
Aspen has also expanded its manufacturing activities in areas relevant to medicines for chronic diseases. Commercialisation of its human insulin manufacturing contract began in May 2026 after regulatory approval from the South African Health Products Regulatory Authority. The company also received regulatory approval in Canada for its generic semaglutide injectable, although commercialisation will depend on the availability of active pharmaceutical ingredient supplies.
The board declared a dividend of 232 cents per ordinary share, up from 211 cents a year earlier. The dividend is scheduled to be paid on Oct. 12, 2026.
Aspen expects manufacturing to become a major driver of normalised EBITDA growth in the 2027 financial year, supported by continued organic growth in Commercial Pharmaceuticals and lower interest costs following the Asia Pacific divestment. Chief Executive Stephen Saad said the company entered the new financial year with stronger financial capacity and an improved operating position.
The results highlight the role of pharmaceutical manufacturing and commercial distribution in strengthening South Africa’s industrial and health sector capacity. For Aspen, continued investment in local manufacturing, regulatory approvals and supply of essential medicines could have implications for medicine availability and the broader development of pharmaceutical production across African markets.
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