| Mon 28 Aug 2006, 9:31 | | Enaleni Pharmaceuticals Limited - Trebles first-ha |
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Enaleni Pharmaceuticals Limited - Trebles first-half HEPS
Enaleni Pharmaceuticals Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/018027/06)
(JSE code: ENL & ISIN: ZAE000067740)
("Enaleni")
Press Release
Embargoed: 28 August 2006
Enaleni trebles first-half HEPS
Enaleni Pharmaceuticals Limited, the Durban-based pharmaceuticals group
that listed on the JSE last year, has reported a 188% rise in headline
earnings per share to 12.4 cents for the six months ended 30 June 2006.
The rise in earnings came on the back of a surge in revenue to R371
million, more than 300% higher than the corresponding period in 2005.
Operating profit increased twelve-fold to R93.1 million compared with
R7.5 million in 2005.
Cash flows for the group were strong. The business generated R55.3
million from operating activities in the period under review. In line
with the group"s growth strategy, these cash flows have been used to
repay debt and fund growth in its two operating divisions.
"We are very pleased with these results," said Trevor Edwards, the chief
executive officer of Enaleni. "They reflect our excellent operating
performance as well as the successful integration of generics
pharmaceutical company Cipla Medpro, which is now the major contributor
to revenue and profitability.
"Our other acquisitions, including FirstPharm and Bioharmony, the Cape
Town-based vitality and wellness company, have also been integrated
smoothly. We are looking forward to a very positive second half."
Enaleni acquired Cipla Medpro for R1.2 billion in November 2005 in one of
the largest deals ever in the domestic pharmaceuticals industry. Apart
from substantially strengthening its pharmaceutical business, the
acquisition formed the start of Enaleni"s relationship with India"s Cipla
Limited, the largest generics producer in India and a world leader in
generics research, innovation and production.
The partnership gives Enaleni a strategic advantage in South Africa,
allowing it to be first to market with new products and giving it access
to Cipla"s dossiers, which can be acquired at no cost. Evidence of this
advantage exists in the fact that Enaleni launched more new products in
the past 12 months than any of its competitors.
The group is now well positioned to capitalise on the government
pharmaceutical tenders to be awarded in 2007. The value of the tenders in
the generic drugs market is estimated at between R3 billion and R4
billion over a two-year period. Enaleni will be competing for a
substantial portion of this opportunity, aiming its efforts at R1
billion. In addition, the group now has a formidable basket of
antiretrovirals (ARVs) available, which should position it as a
significant player at the next round of tenders in the ARV market,
estimated at R3 billion.
Enaleni also intends to leverage Cipla"s technology and products for use
in Africa.
Enaleni"s pharmaceutical division includes Cipla Medpro (incorporating a
fledgling veterinary division), FirstPharm and the contract manufacturing
business. The division performed well and increased its market share
during the period. Revenue increased seven-fold to R318 million, compared
with R45.3 million in the comparative period.
The consumer and vitality division, which includes Bioharmony, health and
nutrition specialists Muscle Science and consumer brands Hercules,
Caivil, Just For Baby and Black Chic, also performed strongly. Revenue
during this period increased by 26% to R53 million.
In the circular issued to shareholders on 28 November 2005, the group
forecast sales of R731 million for 2006 and profit before interest and
tax of R178.5 million. The group is trading in line with the forecast.
"Enaleni is delivering on its promise to be a truly South African
pharmaceutical company that improves and saves lives, and makes
affordable medicine available to all," said Edwards. "We remain committed
to building a business that can generate sustainable earnings and long-
term growth. The group will continue to invest in growth opportunities,
marketing and brands to achieve these objectives."
Issued on behalf of Enaleni Pharmaceuticals by:
AHOY! PR
Contact: Dermott White
Tel: 031 201 4382
E-mail: dermott@ahoypr.co.za
More about Enaleni
Founded as a start-up in 2003, Enaleni Pharmaceuticals Limited is the
fastest growing pharmaceuticals company in South Africa and has developed
into a group with a market capitalisation of approximately R1.7 billion.
Now listed on the JSE, it is the country"s third largest generics
provider and one of the top 10 pharmaceuticals companies in South Africa.
It is also the country"s top black economic empowerment pharmaceuticals
company and the fourth most empowered company quoted on the entire JSE,
as rated by the Financial Mail. Enaleni also has an AA rating from
empowerment ratings agency Empowerdex.
The company has now completed 10 takeovers since 2003, extending its
product range from pharmaceuticals and medicines to cosmetics and
vitality and wellness products. The largest of these acquisitions was
generics pharmaceutical company Cipla Medpro in November 2005, at R1.2
billion one of the biggest deals ever in the domestic pharmaceuticals
industry.
Enaleni"s strategy is to build a well-balanced portfolio of two business
units, the Pharmaceutical division and the Consumer and Vitality
division. The Pharmaceutical division includes Cipla Medpro, FirstPharm
and the contract manufacturing business. The division has increased its
market share in the past year from 12th position to 10th, according to
IMS.
The consumer business continues to focus on affordable health- and
personal-care products and includes vitality and wellness brands
Bioharmony and Muscle Science.
Based in Durban, Enaleni is the largest pharmaceuticals manufacturer in
KZN. It employs more than 600 people, and operates out of a 15 000 square
metre manufacturing facility.
Visit www.enaleni.com
Date: 28/08/2006 09:31:04 AM Produced by the JSE SENS Department
