Aspen Earnings Fall As Manufacturing Restructuring Weighs On Performance

Performance was supported by strong demand for Eli Lilly's blockbuster weight-loss drug Mounjaro, which Aspen sells in South Africa. Image credit: © Raimond Spekking

Normalised headline earnings per share fell to 574.8c in the six months ended 31 December, while normalised earnings before interest, tax, depreciation and amortisation (EBITDA) declined 13% to R5bn.

To cut costs, Aspen is restructuring its loss-making manufacturing facilities in France and South Africa that produce sterile drugs entirely free from living microorganisms.

It incurred a one-off restructuring cost of R695m, it said.

The restructuring is "well progressed, with the expected benefit of the cost reductions to positively impact from the second half of 2026 onwards and planned to be fully realised in financial year 2027," the pharmaceutical firm said.

Normalised EBITDA in the overall manufacturing business plunged by 85% to R208m, with revenue down 26% in constant exchange rates.

Commercial Pharmaceuticals, Aspen's most material business segment, delivered revenue growth of 4% and normalised EBITDA growth of 11% in constant exchange rates, supported by organic revenue growth across injectables, over-the-counter and prescription.

Performance was supported by strong demand for Eli Lilly's blockbuster weight-loss drug Mounjaro, which Aspen sells in South Africa, and an improved profit contribution from the reshaped business in China.

Overall, group revenue fell 4% to R21.1bn.