Aspen reports challenging year with loss, but core pharma shows growth

Aspen Pharmacare Holdings Limited reported a challenging FY2025, incurring a loss for the year due to R4.1 billion in intangible asset impairments and increased restructuring costs. Revenue decreased by 3% to R43,363 million, while normalised EBITDA fell by 15% to R9,591 million. A significant contractual dispute negatively impacted the manufacturing business, with its normalised EBITDA of R0.7 billion in CER being 38% of FY2024 levels.

Despite these headwinds, the commercial pharmaceuticals segment, comprising over 70% of group revenue, delivered 10% revenue and normalised EBITDA growth in constant exchange rate (CER). The injectables portfolio returned to growth, rising 4% (10% CER) to R9,885 million, boosted by the Mounjaro® launch in South Africa. The company declared a gross dividend of 211 cents per ordinary share, a decrease from 359 cents in 2024.

For FY2026, Aspen anticipates mid-single digit organic revenue and stronger EBITDA growth in CER for commercial pharmaceuticals. The group projects double-digit CER growth in normalised headline earnings for FY2026, with a leverage ratio expected to be less than 3.0x by year-end.