An extensive valuation process was completed, which had resulted in a total impairment across goodwill, intangible assets and property, plant and equipment.
The share price declined to R4 a share after the release of the trading update. It recouped some of the losses in the afternoon before closing at R4.44 on the JSE yesterday. Difficult trading conditions in the South African consumer market and the European sports nutrition business had a negative impact on its expected results.
“Lower sales in South Africa caused by liquidity constraints and related supply challenges as well as the depressed consumer environment resulted in earnings declining in all businesses except Animal Health.
"In Europe, Sun Wave Pharma performed well, but both Scitec and Farmalider reported lower earnings,” the group said. Ascendis Health acquired Europe’s leading sports nutrition company, Scitec for 170million (R2.8billion) in 2016.