Aspen Pharmacare (APN) FY23 – Results Snapshot

Diluted HEPS decreased to 1 405.4cps (-3.8% y-y), and Normalised Diluted HEPS decreased to 1 498.5cps (-7.9% y-y).
Turnover growth +5.4% y-y, driven by strong growth in APN’s Regional Brands division (+8.2% y-y).
Group GPM decreased to 46.5% from 47.4% LY.
Group expenses increased +1.9% y-y to R11.8bn, with expenses to sales declining to 29.0% compared to 30.0% LY.
OPM decreased by 330bps to 19.2%.
Dividend of 342cps (LY: 326cps)
Gross debt grew from R22.2bn to R29.3bn in FY23.
Group announced just before results release that they had concluded an agreement with Eli Lilly Export S.A, where APN will distribute and promote Eli Lilly’s products in South Africa and certain sub-Saharan African countries for an initial term of 10 years, automatically renewable for two further periods of 5 years. APN will pay USD 41.5m as consideration for distribution rights.
APN also secured three sterile manufacturing agreements with multinational pharma companies for production at its French manufacturing facilities.