Ascendis Health FY revenue up 39%

Ascendis Health, the Health and Care Brands Group, has shown a strong growth trend as it continues to expand its operations. The company reported a remarkable 39% increase in revenue, reaching just over 3.9 billion rand for the year ending June 2016. This growth can be attributed to the successful acquisition drive by Ascendis Health, including leaders like Redomica and Citek, which have positively contributed to the company's financial performance. Shareholders have also been pleased with the increase in dividends, a testament to Ascendis Health's status as a cash-generating business. During an interview with CNBC Africa, Dr. Karsten Wellner, the Chief Executive Officer of Ascendis Health, shared insights into the company's financial results and strategic initiatives. Dr. Wellner highlighted the impact of recent acquisitions, particularly in Europe, on the company's financials. While these acquisitions have added value to the business, Dr. Wellner acknowledged the associated transaction costs, which slightly affected the numbers. Despite these costs, Ascendis Health reported normalized headline earnings per share (HEPS) up 30% and normalized profit up 40%, indicating strong underlying performance. In addition to the growth through acquisitions, Ascendis Health has also focused on organic growth strategies. Dr. Wellner revealed that the company has achieved around 8% growth in top-line revenue and 14% growth in bottom-line profit organically. This success can be attributed to the operational efficiency and synergy extraction efforts within the company's three primary divisions. The consumer brands division saw a notable increase in profits, driven by operational focus and synergy extraction. Even with challenges like the ongoing drought in the plant and animal division, Ascendis Health managed to achieve a 13% increase in sales and a 17% increase in profit. The company's international operations also showed promising growth, with 22% of total revenue now coming from international markets. Despite the overall positive performance, Ascendis Health faced some challenges in specific segments. The company's consumer brand revenue declined by about 3%, partially due to delays in product launches and market issues in Nigeria. However, Dr. Wellner remained optimistic about addressing these challenges and leveraging opportunities for growth. One of Ascendis Health's key strengths is its presence in the sports nutrition market. With the acquisition of Cytec, a leading sports nutrition brand in Europe, Ascendis Health has established a strong foothold in this competitive industry. The emphasis on quality and integrity has been crucial in maintaining leadership in the crowded sports nutrition market. Looking ahead, Ascendis Health has ambitious plans for further growth. The company recently raised significant capital through private placements and rights issues, attracting new investors and securing funds for future acquisitions. With a cash reserve of 600 million rand, Ascendis Health is well-positioned to pursue additional acquisitions in South Africa and Europe. While Dr. Wellner acknowledged the need to integrate and consolidate existing acquisitions before making further moves, he expressed confidence in Ascendis Health's ability to continue its growth trajectory. The company's focus on acquiring healthy healthcare companies and extracting synergies from these acquisitions bodes well for its future prospects. In conclusion, Ascendis Health's impressive financial performance and strategic initiatives underscore its position as a key player in the healthcare industry. With a strong emphasis on both organic and acquisitive growth, the company is poised for continued success in the market.