Johannesburg – JSE-listed Aspen Pharmacare Holdings Limited (APN), a global multinational specialty pharmaceutical company, has announced condensed Group financial results for the year ended 30 June 2026, and declared a cash dividend.
Stephen Saad, Aspen Group Chief Executive said, “FY 2026 marked a significant inflection point for Aspen. We delivered strong normalised earnings growth, improved profitability across both Commercial Pharmaceuticals and Manufacturing, and successfully completed the APAC divestment. This unlocked significant shareholder value and when combined with strong free cash flow generation, these achievements strengthened our balance sheet and positioned the Group into a net cash position.”
“We enter FY 2027 with strong momentum. Manufacturing is expected to be the primary driver of the Group’s normalised EBITDA growth supported by sustainable organic growth in Commercial Pharmaceuticals. The anticipated strong EBITDA growth together with significant interest cost savings is expected to drive substantial double-digit growth in normalised earnings and enhance shareholder returns.”
The Group delivered on its core strategic priorities for the financial year ended 30 June 2026 (“FY 2026”). These were communicated to its stakeholders at the interim results presentation held on 4 March 2026. The Group’s operational performance was aligned to published guidance underpinned by the continued strong momentum in Commercial Pharmaceuticals which was the principal driver of growth in FY 2026. To achieve full year normalised EBITDA guidance from continuing operations, required second half growth (“H2 2026”) of 52% over the prior year comparable period[1]. The strong H2 2026 EBITDA delivery ensured that the Group achieved 28% growth in FY 2026 normalised headline earnings per share (“NHEPS”) from continuing operations in constant exchange rate (“CER”), materially reversing a decline in H1 2026 NHEPS of 24%. Reported performance was diluted by the strength of the ZAR against most of Aspen’s major trading currencies during the year.
The reshaping of the sterile finished dose form (“FDF”) manufacturing facilities in France and South Africa is nearing completion with the initial benefits of operational improvements materialising in H2 2026. Both facilities are well positioned to be the primary drivers of Group EBITDA growth in FY 2027.
The divestment of the Aspen APAC business (“APAC Divestment”) for gross proceeds of R28 billion was a tangible demonstration of the Group unlocking the intrinsic value in the sum of its parts. This together with stronger free cash flow generation, meant Aspen concluded FY 2026 with a substantially strengthened balance sheet, ending the year with net cash of circa R0,8 billion after investment in share buybacks of R0,5 billion.
Highlights for the FY 2026 reporting period are set out below (unless otherwise stated, all commentary refers to constant exchange rate (“CER”) performance from continuing operations only):
- Operating leverage realised from efficiency projects resulted in 14% growth in normalised Group EBITDA off a flat revenue base;
- Commercial Pharmaceuticals, Aspen’s largest business segment, delivered 5% revenue growth and stronger normalised EBITDA growth of 13%;
- Manufacturing achieved a normalised EBITDA of R828 million ending 21% ahead of FY 2025;
- Regulatory approval was received from Health Canada for Aspen’s generic semaglutide injectable in that country with commercialisation timing dependent on the availability of active pharmaceutical ingredient supply from Dr. Reddy’s Laboratories Limited;
- Commercialisation of the human insulin manufacturing contract commenced in May 2026 following regulatory approval from the South African Health Products Regulatory Authority;
- Aspen initiated several value enhancement and operational efficiency projects across the Group. The related restructuring costs of R2,3 billion negatively impacted headline earnings per share (“HEPS”) and earnings per share (“EPS”). These restructuring projects are fundamental to our future success and have already yielded and will yield further substantial sustainable benefits for the Group;
- The APAC Divestment resulted in gross proceeds of R28 billion generating a profit on sale of R2,4 billion which positively impacted EPS in the current year;
- Intangible asset impairments were adversely impacted by higher discount rates driven by current geopolitical and macro-economic conditions. These impairments total R2,3 billion and although they have no cash impact do affect EPS. Despite the negative effect of the higher discount rates, brand related intangible assets retain a valuation of more than 45% above carrying amount. This premium is supported by the sustained organic growth of Commercial Pharmaceuticals; and
- Strong free cash flow (before dividends paid) of R3,8 billion was generated, underpinned by an operating cash conversion rate well above the Group’s target of 100%, a working capital to revenue ratio of 44% (prior year of 47%) and capital expenditure ending R2 billion lower than the prior year.
1 H2 2025 reported normalised EBITDA from continuing operations was R2 565 million.
GROUP PERFORMANCE
1 The Group assesses its operational performance using CER. The table above compares performance to the prior comparable period at reported exchange rates and at CER.
2 Refer to note G of Group supplementary information for the restatement as a result of the divestment of Aspen APAC business.
3 The CER % change is based upon the performance for the year ended 30 June 2025 recalculated using the average exchange rates for the year ended 30 June 2026.
4 Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy.
5 NHEPS is HEPS adjusted for specific non-trading items as define in the Group’s accounting policy.
6 Divident declared on 2 September 2026, to be paid on 12 October 2026 (2025: Declared on 3 September 2025 and paid on 6 October 2025).
SEGMENTAL PERFORMANCE
The key performance indicators for the Group’s two business segments, being Commercial Pharmaceuticals and Manufacturing, are set out below. All performance-based commentary relates to total operations, unless stated otherwise.
1 The Group assesses its operational performance using CER. The table above compares performance to the prior comparable period at reported exchange rates and at CER.
2 Refer to note G of Group supplementary information for the restatement as a result of the divestment of Aspen APAC business.
3 The CER % change is based upon the performance for the year ended 30 June 2025 recalculated using the average exchange rates for the year ended 30 June 2026.
4 Operating profit before depreciation and amortisation adjusted for specific non-trading items as defined in the Group’s accounting policy.
5 Normalised gross profit excluding restructuring costs. Refer note B of Group supplementary information.
Commercial Pharmaceuticals
Revenue growth of 5% to R25 405 million was led by strong Mounjaro® demand in South Africa. Discontinuation of unprofitable products in China, following execution of the business reshape plan, diluted overall revenue growth. Normalised EBITDA growth of 13% exceeded revenue growth, leveraging the operating model efficiencies in the reshaped China business and building on the double-digit EBITDA growth in CER enjoyed in FY 2025.
Manufacturing
Revenue of R9 465 million ended 10% lower due to the absence of the prior period’s mRNA contract. Normalised EBITDA of R828 million was up 21% on the prior year, more than recovering the loss of the mRNA contract contribution of R1 billion in FY 2025, with the initial benefits of the sterile FDF reshape being the key driver.
PROSPECTS
Aspen is focused on delivering stronger organic normalised EBITDA growth in FY 2027 with the ambition of recovering the divested contribution of the APAC business in FY 2026 and the loss of the mRNA contract in FY 2025. The Group is targeting a normalised EBITDA of at least R9 billion in CER. This together with anticipated net interest savings of circa R1,2 billion is expected to drive substantial double-digit growth in CER NHEPS in FY 2027.
Commercial Pharmaceuticals is anticipating mid-single digit CER growth in both revenue and normalised EBITDA led by sustainable organic growth in emerging markets and will be impacted by the commencement and performance of a global rollout of the Group’s GLP-1 portfolio.
Manufacturing CER normalised EBITDA is expected to be more than double that of FY 2026 and will be the primary driver of the Group’s FY 2027 normalised EBITDA growth. In FY 2026, Sterile FDF achieved R1,2 billion of the R1,7 billion FY 2026/FY 2027 cumulative EBITDA growth guidance published. Aspen has raised this guidance by R0,5 billion to R2,2 billion shifting Sterile FDF to a higher anticipated positive EBITDA in the upcoming financial year. The API business is expected to return to growth, benefitting from new third party contract manufacturing opportunities.
The Group will continue to respond to opportunities which unlock the value of the sum of its parts.
Increasing free cash flow, a strong balance sheet, organic growth in both Manufacturing and Commercial Pharmaceuticals and continued capital discipline will provide Aspen with the flexibility to invest in its core businesses and share buybacks, with the goal of increasing shareholder returns.
Any forecast information in the above-mentioned paragraphs has not been reviewed or reported on by the Group’s auditors and is the responsibility of the directors.
DECLARATION OF DIVIDEND
The Board has declared a gross dividend of 232 cents per ordinary share (2025: 211 cents per share) (or 185,6 cents net of a 20% dividend withholding tax, where this maximum rate of tax applies) which is 20% of normalised headline earnings per share and aligned to the Group’s capital allocation framework. The dividend will be paid from income reserves.