ADCOCK Ingram is selling more Panado tablets, raising fears that the tough economic climate was giving the country a headache.

Yesterday, the company reported a 25 percent increase in Panado sales in the first quarter of 2013.

"Maybe there are more headaches because of the economic conditions," Adcock Ingram chief executive Jonathan Louw said after the company released its financial results for 2013.

The sale of Panado tablets in pharmacies grew by 36% and 10% in retail stores.

The harsh economic condition saw the unemployment rate rising to 25.2% in the first quarter of 2013.

Louw said the company had reduced operational expenditure and he hoped the 5.8% increase on the regulated price of medication would have a positive effect on the company's revenue.

Adcock also recently acquired Indian company Cosme Brands.

Louw said Cosme Brands' performance in the first two months was slow.

"We had to consolidate operations and check how the staff could add value.

"The first two months of trading this year have been slow but the second two months were much better.

"We hope to benefit more from the acquisition because India has a high growth rate," he said, adding that Adcock expected the acquisition to contribute 5% to the group's revenue.

Adcock also has operations in east and west Africa.

The company's market share in Ghana, Zimbabwe and Kenya stands at 10%, respectively.

South Africa contributes 90% of Adcock's revenue, while India puts in 3% and the other African countries contribute 7%.

The company reported headline earnings of R317-million, representing a 5% decrease, in earnings per share.

"In the light of the challenging market conditions, Adcock Ingram has delivered satisfactory operating results, reflecting continued progress with our strategic priorities," Louw said.

The company's turnover increased by 9% to R2.46-billion.