Adcock rides crest of profit wave

ADCOCK Ingram, SA's largest over-the-counter drugs maker, increased its profit after tax by 11percent for the six months ended March.

ADCOCK Ingram, SA's largest over-the-counter drugs maker, increased its profit after tax by 11percent for the six months ended March.

The results were boosted by the stronger rand and volume growth in antiretroviral drugs. This was offset by declining volumes in the over-the-counter segment as consumers down-traded.

Adcock's business is particularly sensitive to consumer demand and more than 80percent of its pharmacy products are not reimbursed by funders and used for acute ailments.

Adcock now has 9,8percent of the pharmaceutical market in public and private sectors, growing ahead of the market at 13percent compared with market growth of 10,4percent.

Chief executive Jonathan Louw said the group's acquisitive strategy remained based on three growth horizons: adjacent categories in SA, sub-Saharan Africa and markets outside of Africa.

Louw said in the next two to three years, it is expected that 30percent of group earnings will be derived beyond Africa. - Adele Shevel

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