Take over sees Adcock report a loss

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Pharma REUTERS A pharmacist counts pills in a pharmacy.

Johannesburg - Adcock Ingram, South Africa’s largest supplier of hospital products, posted a nine-month loss amid changes being made to the structure of the business after a failed takeover bid.

The loss per share, excluding one-time items, was 1.80 rand in the nine months through June, compared with 2.72 rand a year earlier, the Johannesburg-based company said in a statement today.

Sales climbed 0.1 percent to 3.6 billion rand.

“The reorganisation and corrective actions within the operating divisions are expected to stabilise the group’s immediate state of affairs,” Adcock said in the statement, referring to the takeover bid.

“But it is too early to provide shareholders with any comfort regarding a return to profitability in the short term.”

Adcock was the subject of a 10-month battle for control after profit margins came under pressure from rising production costs and a weaker rand in 2012.

CFR Pharmaceuticals SA, Chile’s biggest drug maker, called off a 12.8 billion-rand cash and stock offer to buy Adcock after Johannesburg-based Bidvest built a blocking stake.

Bidvest chief executive Brian Joffe became Adcock’s new chairman with Kevin Wakeford becoming chief executive.

The stock has fallen 27 percent this year to 52 rand.

Bidvest paid 70 rand per share to build a 34.5 percent stake in January. - Bloomberg News

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