Adcock Ingram : Unaudited interim results for the six months ended 31 December 2021 and cash dividend declaration

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" or "the Group")

Unaudited interim results for the six months ended 31 December 2021 and cash dividend declaration

• Revenue +16%
• Gross profit +17%
• Trading profit +25%
• HEPS +30%
• Dividend +30%
• B-BBEElevel 2

Introduction

The Board of Directors (Board) is very pleased to report a strong operational and financial performance, driven mainly by improved demand in the current reporting period for its over-the-counter (OTC) and consumer healthcare products.

The Group has achieved very healthy growth in turnover, which with some improvement in the exchange rate, manufacturing efficiencies and cost control, has yielded an exceptional increase in trading profits and excellent cash generation.

Dividend

The Board has declared an interim dividend of 104 cents per share for the six-month period ended

31 December 2021 out of income reserves, an increase of 30% over the comparative period and in line with the growth in earnings.

Prospects

In December, Adcock Ingram received regulatory approval from SAHPRA for the sterile eye drops facility at the Clayville factory. We have commenced production of validation batches of the first product we intend to manufacture in the facility, and on a staged basis will introduce at least four additional products in the financial year.

The Board is confident that the strength and resilience of the Company's broad and affordable portfolio of well-known brands, can continue to withstand the macroeconomic challenges in South Africa.

The exchange rate has had a favourable impact on the Group in the period and the 2022 SEP increase of 3.5% will assist in protecting the gross margin.

Nonetheless, the Company continues to seek-out investment opportunities for non price-regulated brands to limit the impact of the SEP environment.

			Unaudited	Unaudited
		Change	six-month	six-month
		period ended	period ended
Revenue	(R'000)	%	31 December 2021	31 December 2020
16	4	345	674	3	758	258
Gross profit	(R'000)	17	1 521 652	1 298	425
Trading profit	(R'000)	25		543 226		432	989
Operating profit	(R'000)	33		511 584		385	813
Headline earnings per share	(cents)	30		242.3		186.5
Basic earnings per share	(cents)	30		242.2		186.5
Total assets	(R'000)		7 560 989	7 508	322
Net asset value per share	(cents)			3 096.6		2 842.8
Dividend per share	(cents)			104.0			80.0
			Unaudited	Unaudited
		Change	six-month	six-month
		period ended	period ended
Segment revenue		%	31 December 2021	31 December 2020
(R'000)	33		795	187		598	938
Consumer
OTC	(R'000)	26	1	993	915	1	786	150
Prescription	(R'000)	5	572	368	502	632
Hospital	(R'000)	13		983	891		870	323
Segment trading profit	(R'000)	59		172	934		108	782
Consumer
OTC	(R'000)	58		166	847		105	768
Prescription	(R'000)	(14)		121	878		142	249
Hospital	(R'000)	6		80	565		75	798

Epi-max was moved from the Prescription segment to the Consumer segment on 1 January 2021. On a like-for-like basis, adjusting for Epi-max, Consumer turnover and trading profit improved by 14% and 21% respectively, and Prescription turnover and trading profit by 11% and 12% respectively.

Dividend distribution

The Board has declared an interim gross dividend out of income reserves of 104 cents per share in respect of the six-months ended 31 December 2021. The South African dividend tax ("DT") rate is 20% and the net dividend payable to shareholders who are not exempt from DT is 83.2 cents per share. Adcock Ingram currently has 175 758 861 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:	Tuesday, 15	March 2022
Last date to	trade cum distribution
Shares	trade	ex distribution	Wednesday, 16	March 2022
Record	date		Friday,	18	March	2022
Payment date		Tuesday,	22	March	2022

Share certificates may not be dematerialised or rematerialised between Wednesday, 16 March 2022 and

Friday, 18 March 2022, both dates inclusive.

N Madisa			AG Hall
Chairperson		Chief Executive Officer
Approved	by	the Board: 22 February 2022

SENS release date: 23 February 2022

Company secretary

M Phalafala

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.

Private Bag X9000, Saxonwold, 2132

Auditors

PricewaterhouseCoopers Inc, 4 Lisbon Lane, Waterfall, 2090

Sponsor

Rand Merchant Bank (a division of FirstRand 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. Investec Bank Limited, 100 Grayston Drive, Sandton, 2146

The full announcement has been published on SENS and is available at https://senspdf.jse.co.za/documents/2022/JSE/ISSE/AIP/AIP012022.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, that 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 [phone].