Aspen Pharmacare (APN) Q2 2026 TU earnings summary

Executive summary

• Focused on executing strategic priorities, including reshaping sterile FDF Manufacturing in South Africa and France.

• H1 2026 marked as a transitional period with stronger performance expected in H2 2026.

• Commercial Pharmaceuticals segment showed strong momentum and organic growth across all sub-segments.

Financial highlights

• H1 2026 normalised EBITDA decreased by 11% to 16% year-over-year, reflecting the absence of prior mRNA contract contributions.

• One-off restructuring costs of approximately R700 million negatively impacted EPS and HEPS.

• NHEPS expected to decrease by 19% to 24% year-over-year; HEPS by 33% to 38%; EPS by 36% to 41%.

• Free cash flows (excluding dividends) expected to exceed R1.7 billion, with strong operating cash conversion.

• Net debt reduced to R28.6 billion from R31.2 billion in June 2025; leverage ratio below 3.5x.

Outlook and guidance

• Guidance for FY 2026 remains unchanged, excluding the impact of the APAC Divestment.

• Double-digit growth in normalised HEPS (NHEPS) in constant exchange rates expected for FY 2026.

• Commercial Pharmaceuticals to deliver mid-single digit revenue growth and stronger normalised EBITDA growth in CER.

• Manufacturing normalised EBITDA for FY 2026 expected to be in line with FY 2025 in CER.

• Sterile FDF Manufacturing in South Africa and France expected to achieve positive normalised EBITDA and cash flow by FY 2027.