Aspen FY revenue up 9% to R38.6bn
Aspen has reported an annual revenue increase of 9 per cent to R38.6 billion boosted by growth from Commercial Pharmaceuticals and 22 per cent increase from its Manufacturing sector. The group has not declared an annual dividend amid the volatile market conditions, but it continues to ramp up production of its COVID-19 treatment drug dexamethasone. Aspen CEO, Stephen Saad joins CNBC Africa for more.
Thu, 10 Sep 2020 11:05:46 GMT
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AI Generated Summary
- Aspen reports a 9% increase in annual revenue to 38.6 billion rent, driven by success in commercial pharmaceuticals and manufacturing sectors.
- The company proactively addresses debt concerns through strategic divestitures and anticipates strong financial position post transactions.
- Aspen focuses on operational efficiency and value extraction from existing assets while ramping up production of COVID-19 treatment drug, Dexamethasone.
Aspen, a leading pharmaceutical company, has reported a significant annual revenue increase of 9% to reach 38.6 billion rent. The growth was primarily driven by the success in Aspen's commercial pharmaceuticals division and a remarkable 22% increase from its manufacturing sector. Despite the challenging market conditions, Aspen has been making strategic moves to strengthen its financial position and ensure stability in the face of debt covenants. The company recently sold its thrombosis business in Europe to Mylan, a move aimed at reducing debt levels and managing debt covenants effectively. Aspen's CEO, Stephen Saad, highlighted that the company had planned these actions proactively and was well aware of the necessary steps to take to address debt concerns. The successful sale of the infant formula business and the decision to divest the insolvent Japanese business were part of Aspen's strategic initiatives to maintain financial health. With these transactions in place, Aspen anticipates that its debt covenants will be well below the required levels, providing the company with financial flexibility to explore growth opportunities. While Aspen has refrained from declaring an annual dividend in the current volatile market environment, the company's strengthened balance sheet positions it well for future investments and strategic acquisitions. Saad hinted at potential bolt-on acquisitions to enhance Aspen's existing infrastructure and expand its product offerings. The company's focus remains on operationalizing its business efficiently and maximizing the value from its current assets and market presence. Saad emphasized Aspen's commitment to playing a significant role in the global fight against COVID-19. The company has ramped up production of its COVID-19 treatment drug, Dexamethasone, which has been instrumental in saving lives, particularly in critical care situations. Aspen's involvement in manufacturing sterile products, including anaesthetics, has garnered recognition from heads of state and highlighted the company's essential role in healthcare provision. Looking ahead, Aspen aims to further contribute to vaccine manufacturing and play a crucial part in combating the pandemic at a global level. Saad expressed optimism about Aspen's enhanced capacity and capabilities, enabling the company to expand its role in sterile manufacturing and potentially participate in COVID-19 vaccine development in Africa. Despite the recent challenges, Aspen's revenue growth and strategic initiatives demonstrate the company's resilience and commitment to advancing healthcare solutions.