News Column

Headline loss of almost 24c a share is anticipated

May 21, 2014

South Africa's No 2 drugmaker, Adcock Ingram Holdings Ltd, flagged a first-half loss yesterday, citing costs related to a failed $1.2 billion (R12.49bn) takeover bid from Chile'sCFR Pharmaceuticals.

Adcock said it was likely to swing to a headline loss of as much as 24c a share in the six months to end-March compared with headline earnings of 188.1 cents a year earlier.

Headline EPS, the most widely watched profit gauge in South Africa, strips out certain one-off and non-trading items. Shares in the company fell 1.4 percent to R61 by 8am, lagging behind a slightly higher JSE all share index.

Adcock, which is also struggling with slowing sales, poor distribution and over-reliance on a heavily regulated local market, will pay $15.6 million in costs related to a collapsed deal with CFR.

Santiago-based CFR dropped its offer for the drugmaker earlier this year, saying it could not win approval from Adcock shareholders after rival suitor Bidvest Group had raised its stake to more than a third.

Bidvest has since been pushing through changes at Adcock, with Bidvest chief executive Brian Joffe taking over as chairman and one of his veteran lieutenants, Kevin Wakeford, as chief executive.

"The recently reconstituted board of directors has approved substantive changes to the group's internal processes and structures," Adcock said in a statement.

Adcock also said it had changed its fiscal year-end to June from September. - Reuters

Cape Argus

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Source: Cape Argus (South Africa)

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