Aspen Pharmacare (APN) H2 2026 earnings summary

Executive summary

• Achieved all six commercial objectives, including strong Commercial Pharma momentum and realization of GLP-1 investments, marking an inflection point for sustained future growth.

• APAC division divested for ZAR 28 billion, unlocking value and strengthening the balance sheet.

• Demonstrated resilience and value creation through operational efficiency, strategic investments, and a strong balance sheet.

• Delivered 13% CER EBITDA growth and 28% CER NHEPS growth from continuing operations year-over-year.

• Free cash flow exceeded ZAR 3.8 billion, with net cash position after share buybacks.

Financial highlights

• Group revenue flat at ZAR 34.87 billion, with Commercial Pharma up 5% and Manufacturing down 10%.

• Normalised EBITDA up 14% to ZAR 7.7 billion, with margin rising to 22.1%.

• NHEPS up 28% to ZAR 8.02.

• Free cash flow surged to ZAR 3.8 billion, supported by lower CapEx and improved working capital.

• Gross margin improved to 43% from 41.6% year-over-year.

Outlook and guidance

• FY 2027 guidance: normalized EBITDA of at least ZAR 9 billion, over 50% NHEPS growth, and stronger free cash flow.

• Manufacturing EBITDA guidance raised to ZAR 2.2 billion, driven by steriles and efficiency gains.

• Commercial pharma expected to grow mid-single digits in revenue and EBITDA; GLP-1s rollout to be additive.

• Sterile FDF expected to drive group profitability with over 50% revenue growth forecast.

• No large-scale acquisitions planned; focus on organic growth, buybacks, and sum-of-parts value unlock.