Commentary
Headline earnings
The Group achieved headline earnings from continuing operations for the year ended 30 September 2011 of R793,9 million (465,1 cents per share). This represents a 28,8% increase over the comparable figure for 2010 of R616,3 million and translates into an increase of 31,1% in headline earnings per share. This result was achieved during a year in which Adcock Ingram was allocated only 4% of the Anti-retroviral (ARV) tender, saw the suspension of sales of dextropropoxyphene-containing (DPP) products and experienced significant upgrade-related production disruptions in its Critical Care facility. It should be noted that the increases calculated for Headline Earnings and HEPS incorporate in the prior year, a R269 million (154,8 cents per share) IFRS 2 charge in relation to the Broad Based Black Economic Empowerment (BBBEE) transaction.
Turnover
The impact of the acquisitions of NutriLida, Bioswiss, as well as Ayrton Drug Manufacturing Limited (Ayrton) in Ghana, together with the various co-promotion and distribution agreements with multinational (MNC) partners, supported turnover growth of 8% to R4 454 million (2010: R4 130 million). With the significant reduction in DPP and ARV revenue, the decline in revenue excluding acquisitions and MNC revenue was 4.6%.
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Adcock Ingram is a leading South African pharmaceutical manufacturer,
marketer and distributor. The Company occupies a 10% share of the
private pharmaceutical market in South Africa with a strong presence in
over-the-counter brands. The Company is South Africa’s largest supplier of
hospital and critical care products. Its footprint extends to India and other
territories in sub-Saharan Africa. 
