Aspen Pharmacare (APN) H1 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in H1 2025, with double-digit CER growth in Commercial Pharma and Manufacturing, and all major strategic objectives met despite headwinds in China and Russia.

• Commercial Pharma business de-risked and reshaped, resolving historic risks and integrating new product acquisitions, notably in Latam and China.

• GLP-1 and insulin opportunities identified as major future growth drivers, with significant progress in dossier submissions and regulatory feedback.

• Early delivery of manufacturing contracts and robust execution led to double-digit revenue and EBITDA growth at constant exchange rates.

Financial highlights

• Group revenue grew 9% CER and 4% reported to R21.96bn; normalized EBITDA up 21% CER and 12% reported to R5.82bn.

• Gross profit margin improved to 47.6% from 44.0%; normalized headline EPS up 17% CER to 724 cents.

• Underlying group growth (excluding one-off heparin impact) was 15%; manufacturing segment underlying growth at 20%.

• Commercial Pharma delivered 13% CER revenue growth; manufacturing FDF growth at 65% CER.

• EBITDA margin improved from 24.6% to 26.5%.

Outlook and guidance

• Double-digit CER growth in sales and normalized EBITDA expected for FY 2025, with H2 CER normalized EBITDA to exceed H1.

• Manufacturing rollout and new contracts in insulins and pediatrics to contribute from FY 2026.

• Operating cash flow conversion forecast to exceed 100% for the full year; working capital ratio targeted at 45% by year-end.

• High restructuring costs anticipated, mainly related to China; effective tax rates to increase due to higher sterile profit mix and global minimum tax.

• Currency volatility expected to continue impacting reported results.