Wrap Text
Business Update and Trading Statement for the six months ended 31 December 2025
ASPEN PHARMACARE HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 1985/002935/06
JSE Share code: APN
ISIN: ZAE000066692
LEI: 635400ZYSN1IRD5QWQ94
("Aspen" or "the Group")
BUSINESS UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
During the six months ended 31 December 2025 ("H1 2026") the Group focused on the execution of its
communicated strategic priorities outlined to stakeholders in a SENS announcement published on
29 December 2025 and during the stakeholder engagement call held on 15 January 2026. This business
update will cover the performance of the Group for H1 2026 followed by anticipated prospects for the full
year ending 30 June 2026 ("FY 2026"). The Group delivered an encouraging performance for H1 2026
supported by the continued strong momentum in Commercial Pharmaceuticals and solid progress in the
reshaping of its sterile finished dose form ("FDF") Manufacturing facilities in South Africa and France. One-
off restructure costs of circa R700 million relating to these sterile FDF Manufacturing facilities have been
incurred in H1 2026 and have negatively impacted earnings ("EPS") and headline earnings ("HEPS") per
share. H1 2026 should be viewed as transitional with stronger performance anticipated in the second half
of FY 2026, as the benefits of operational improvements and reshaping within Manufacturing are
progressively realised.
H1 2026 Results Update
The comparative performance for the period has been influenced by a high base in the prior year. FY 2025
operating performance was heavily weighted towards the first half ("H1 2025"), which included a
contribution from the subsequently cancelled mRNA Manufacturing contract (of circa R1,5 billion), resulting
in normalised Group EBITDA of R5.8 billion in H1 2025. The second half of FY 2025 ("H2 2025") reported
normalised Group EBITDA of R3.8 billion, reflecting a reversal of a portion of this contribution (of circa
R0,5 billion) following the emergence of a material contractual dispute in respect of the mRNA
Manufacturing contract ("the Dispute"). The Dispute was settled in October 2025, with the counterparty
paying Aspen EUR25 million (circa. R0,5 billion). While the settlement proceeds were received during
H1 2026 and Manufacturing EBITDA for the period benefited from this receipt, the absence of the prior-
period mRNA contributions has resulted in H1 2026 normalised EBITDA being lower than H1 2025. This
outcome is consistent with previous guidance to the market.
H1 2026 performance highlights include:
- Commercial Pharmaceuticals, Aspen's most material business segment, has delivered revenue
growth of 4% and double-digit normalised EBITDA growth in constant exchange rates ("CER")
underpinned by organic revenue growth in all three segments (Injectables, OTC and Prescription).
Performance was supported by strong demand for Mounjaro in South Africa and an improved profit
contribution from the reshaped business in China. Reported performance was diluted by the
strength of the ZAR against most of Aspen's major trading currencies during the period;
- Manufacturing achieved a positive EBITDA in H1 2026, aided by the receipt of the Dispute
settlement proceeds. The reshaping of the loss-making sterile FDF Manufacturing facilities in South
Africa and France is well progressed with the expected benefit of the cost reductions to positively
impact from H2 2026 onwards and planned to be fully realised in FY 2027;
- Commercial production of insulin in our South African sterile facility is well advanced with final
regulatory approval expected in the first quarter of calendar year 2026;
- Free cash flows (excluding dividends paid) are expected to exceed R1,7 billion, supported by an
operating cash conversion rate well ahead of the Group's target of 100%, a working capital to
revenue ratio of <46% and lower investment in capital expenditure;
- These stronger free cash flows together with favourable ZAR closing rates led to lower net debt of
R28,6 billion (compared to June 2025 of R31,2 billion) and a leverage ratio (net debt to EBITDA) of
below 3.5x; and
- The divestment of Aspen APAC ("APAC Divestment") for a gross consideration of AUD 2 370 million
was announced on 29 December 2025 (https://www.sharenet.co.za/jsepdf/SENS_20251229_S515214.pdf) and
subsequently discussed during a stakeholder engagement call on 15 January 2026. The APAC Divestment
is subject to certain conditions precedent, including the requirement of general shareholder approval.
The expected completion date is the end of May 2026.
Prospects
The Group's previously communicated guidance for the full year, FY 2026, remains unchanged. This
guidance related to total operations, namely continuing and discontinued operations, and accordingly
includes the APAC business for the full financial year. As such, the guidance below excludes the impact of
the APAC Divestment. The Group's FY 2026 outlook comprises the following key expectations:
- Double digit growth in normalised HEPS ("NHEPS") in CER;
- Commercial Pharmaceuticals to deliver mid-single digit revenue growth and stronger normalised
EBITDA growth in CER;
- Manufacturing normalised EBITDA for FY 2026 to be in line with FY 2025 in CER;
- Sterile FDF Manufacturing in South Africa and France to shift to positive normalised EBITDA and
cash flow by FY 2027; and
- Stronger free cash flow underpinned by an operating cash conversion ratio of >100%, reduced
capital expenditure and lower working capital.
Earnings ranges
Shareholders are advised that Aspen is currently finalising its interim financial results for the six months
ended 31 December 2025. In accordance with paragraph 3.4(b) of the JSE Listings Requirements, issuers
must publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists
that the financial results for the period to be reported upon will differ by at least 20% from the financial
results for the previous corresponding period.
Normalised EBITDA for the six months ended 31 December 2025 is expected to fall within a range of -11%
to -16% compared to the prior reported period of R5 823 million. NHEPS, HEPS and EPS for the six months
ended 31 December 2025 compared to the prior period are expected to fall within the ranges reflected in
the table below:
Earnings Expected decrease (%) Expected range Reported
measures
31 December 2025 (CPS) 31 December 2024 (CPS)
NHEPS * -24% to -19% 550.4 to 586.6 724.2
HEPS -38% to -33% 400.1 to 432.4 645.4
EPS -41% to -36% 317.2 to 344.1 537.7
*NHEPS - Comprises of HEPS, adjusted for specific non-trading items in accordance with Aspen's accounting policies
NHEPS is the primary measure used by management to assess Aspen's underlying financial performance.
EPS and HEPS for the six months ended 31 December 2025 have been negatively impacted by the once-off
restructuring costs incurred in the SA and French sterile FDF Manufacturing facilities.
The stronger ZAR, relative to the prior period, diluted the growth in all earnings measures.
The financial information on which this trading statement is based is the responsibility of the board of
directors of the Group and has not been reviewed or reported on by Aspen's external auditors.
Shareholders are advised that Aspen intends to release its results for the six months ended 31 December
2025 on Tuesday, 3 March 2026 via JSE SENS at 13:00 (SAST, GMT+2), with a presentation to members of
the investment community, in-person, at the Absa Healthcare Conference, hosted at The Vineyard Hotel,
Cape Town and via webcast on Wednesday, 4 March 2026 at 08:30 (SAST, GMT+2).
To attend the in-person presentation, interested persons are requested to RSVP by following the link
provided here: https://web-eur.cvent.com/event/c0a7b08c-a910-4ad1-ade7-5cd47cbc405d/register or
through the invitation sent through The Vault Exchange.
All interested stakeholders are invited to watch the live webcast which can be accessed using the link
provided here: https://www.corpcam.com/Aspen04032026.
The slides accompanying the presentation will be available on the home page of the Aspen website
(www.aspenpharma.com) shortly before the commencement of the presentation on Wednesday, 4 March
2026.
A playback of the webcast will be made available on our website approximately 2 hours after the
presentation.
Durban
11 February 2026
Sponsor:
Investec Bank Limited
FORWARD LOOKING INFORMATION
This announcement contains certain forward-looking statements which relate to the possible future
performance and financial position of the Group. All forward looking statements are solely based on the
views and considerations of the directors. These statements involve risk and uncertainty as they relate to
events and depend on circumstances that may or may not occur in the future. The Group does not
undertake to update or revise any of these forward-looking statements publicly, whether to reflect new
information, future events or otherwise. These forward-looking statements have not been reviewed or
reported on by the Group's external auditors.
Date: 11-02-2026 04:35:00
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