Adcock Falls to a Nine Month Loss as a Result of Restructuring. *Turnover of R3 615 million. *Gross profit for the nine-month period decreased by 24% to R1 140 million (2013: R1 504 million). *Operating overheads increased by 26% to R1 147 million (2013: R 908 m). *A trading loss of R7,1 million was incurred, compared to a profit of R595,7 million in 2013. *Headline loss per share of 179,5 cents (2013: earnings of 271,7 cents). *Cash generated from operations was R114 million (2013: R121 million) Adcock, which is in the middle of a turnaround plan led by top shareholder Bidvest, posted a headline loss of 179.5 cents a share in the nine months to end-June, from a profit of 271.7 cents a year earlier. Adcock took 281.9 million Rand ($27 million) in write-downs - including some on the value of drug inventory and plants, following a review of the business launched by Bidvest. Adcock had under performed rivals such as Aspen Pharmacare as it struggled with slowing sales, over-reliance on a heavily regulated home market and poor distribution network. Bidvest, a vast conglomerate that spans from shipping to catering, acquired its 34.5% stake in Adcock early this year, blocking a $1.2 billion takeover bid from Chiles CFR Pharmaceuticals. Bidvest is looking to turn Adcock around by reorganising it to match its own decentralised model. Bidvest stated it has yet to make a decision on whether or not to make an offer to shareholders.
Posted on: Thu, 28 Aug 2014 09:56:44 +0000
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