Ascendis Health earnings to rise by more than 30%
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Ascendis Health said yesterday that it expected its earnings for the six months to end December to reflect double-digit growth. Photo: Supplied
DURBAN - ASCENDIS Health said yesterday that it expected its earnings for the six months to end December to reflect double-digit growth, boosted largely by the Covid-19 defensive portfolio of the business.
The South African-based global health and care company said it expected its normalised earnings before interest, tax, depreciation and amortisation (Ebitda) to increase by between 36 percent and 56 percent, to be between R718 million and R822m.
“The group has benefited from a largely Covid-19-defensive portfolio with strong operational performance in both its European and South African-based businesses,” the group said.
Its revenue was expected to increase by between 29 percent and 35 percent, to between R3.87 billion and R4.06bn.
The group’s international operations consist of Remedica, Sun Wave and Farmalider, and South African operations.
The international revenue was expected to range between €111m (R2.023bn) and €116m, to reflect an increase of between 11 percent and 17 percent compared to a year earlier, while normalised Ebitda was expected to increase by between 22 percent and 41 percent, to be between €30m and
€35m. The group’s South Africa operations, which consists of Medical Devices, Consumer Health, Ascendis Pharma, Animal Health and Biosciences divisions, expects its revenue to increase by between 4 percent and 10 percent, to be between R1.97bn and R2.06bn.
Its normalised Ebitda is likely to increase by between 29 percent and 48 percent, to be between R323m and R372m compared to normalised Ebitda reported last year, with Medical Devices and Animal Health divisions the main contributors to the performance.
Ascendis said Medical Devices was instrumental in the fight against Covid19, as it houses the Respiratory Care
Africa (RCA) and The Scientific Group (TSG) subsidiaries that supply high-flow oxygen units, airvos and ventilators that are critical to the fight against Covid-19, as well as the testing equipment used to detect the virus.
“Strong performance in RCA and TSG was offset by the Surgical Innovations and Ortho-Xact subsidiaries, that are also housed within Medical Devices and whose businesses have been negatively impacted by lower elective surgery and trauma cases as a result of lockdown restrictions,” the group said.
Remedica remained the largest contributor to revenue and normalised Ebitda in the international segment, and it delivered strong performance across each of its agency, NGO, out-licensing and home market channels.
“Farmalider achieved solid revenue and Ebitda growth, driven by sales in licensing and contract supply despite challenges brought about by the need to revise operations due to Covid-19. Sun Wave has continued to capitalise on its strong market position in Romanian nutraceuticals and over-the-counter products,” the group said.
Sun Wave was currently executing innovative digital strategies to reach its target market, Ascendis said.
The share closed 2.7 percent lower at R0.72 on the JSE yesterday.
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