CAPE TOWN – Aspen Pharmacare aims to further reduce net borrowings in 2020 to achieve positive free cash flows and significantly reduced deferred payables, the group announced at its annual results presentation on Wednesday.
The pharmaceutical company said favourable outcomes from its continued active assessment of value realisation opportunities would result in accelerated deleveraging of our balance sheet. “These factors, together with a substantial decline in planned capital expenditure after the 2020 financial year, will support our goal of achieving a leverage ratio of fewer than 3 times in the medium term.”
In its annual results for the year to June Aspen increased revenue by 1 percent to R38.9 billion while normalised earnings before interest, tax, depreciation and amortisation (Ebitda) declined 2 percent to R10.8bn, influenced by a lower contribution from the Manufacturing business.
Commercial Pharma delivered an increase in revenue of 3 percent to R33.1bn, while normalised headline earnings per share was 7 percent lower at R14.14.
The group did not declare a dividend, citing prioritisation of deleveraging the balance sheet, existing debt service commitments during the 2020 financial year and the short term requirements of ongoing capital projects.