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Aspen - business update and trading statement
The Group has demonstrated resilience during a challenging financial year. Notable events over the reporting period ("FY 2025") include:
• Commercial Pharmaceuticals, Aspen's core business segment comprising more than 70% of the Group's revenue, has delivered double digit revenue and normalised EBITDA growth in constant exchange rate ("CER") underpinned by organic revenue growth in all three segments (Injectables, OTC and Prescription). This has been supplemented by the launch and rollout of Mounjaro® in South Africa, while also benefiting from the acquired product portfolio in Latam. Reported performance has been diluted by the strength of the ZAR average exchange rates against Aspen's major trading currencies;
• Considerable progress has been made in executing the Group's generic semaglutide GLP-1 strategy;
• The restructure of Aspen China and its integration with the acquired Sandoz business has been completed. Consequently, significant restructuring costs of circa R0.5 billion were incurred in H2 2025 as well as one-off inventory rationalisation and write-offs. These diluted the Group's Injectables gross profit margin percentage in FY 2025 but is expected to revert to normal levels in FY 2026. The restructured China business, supported by higher EBITDA margins, is now well positioned to contribute positively towards earnings in FY 2026;
• Manufacturing performance and intangible asset impairments have been negatively impacted by the material contractual dispute ("Dispute") announced on SENS on 22 April 2025, whereby shareholders were advised that normalised EBITDA from the Manufacturing business for FY 2025 in CER would potentially be R2 billion lower than last guided in March 2025. The Dispute, the details of which are subject to contractual confidentiality, relates to a manufacturing and technology agreement with a contract manufacturing customer for mRNA products. As a consequence of the Dispute and related risks, normalised EBITDA from the Manufacturing business for FY 2025 in CER is expected to be circa 40% of that reported in FY 2024. The Dispute is now the subject of a contractually prescribed adjudication process;
• Aspen reported that the validation stage of the insulin contract has been successfully completed in our South African sterile facility with commercial production commencing in FY 2026 pending final regulatory approval;
Earnings ranges
Aspen is currently finalising its annual financial results for the year ended 30 June 2025. Normalised headline earnings per share ("NHEPS"), headline earnings per share ("HEPS") and earnings per share ("EPS") for the year ended 30 June 2025 compared to the prior year are expected to fall within the ranges reflected in the table below:
Earnings measures, Expected decrease (%), Expected range 30 June 2025 (CPS) and Reported 30 June 2024 (CPS)
NHEPS: -27% to -32%; 1 089.2 to 1 014.6; 1 492.1
HEPS: -40% to -45%; 814.0 to 746.1; 1 356.6
EPS: -123% to -128%; -228.0 to -277.6; 991.4
Aspen intends on releasing its results for the year ended 30 June 2025 on Wednesday, 3 September 2025 via JSE SENS at 13:00pm (SAST, GMT+2), with a presentation to members of the investment community via webcast on Thursday, 4 September 2025 at 08:30am (SAST, GMT+2)
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