Ascendis pursues organic and acquisitive growth – iol.co.zaBy SANDILE MCHUNU - BUSINESS REPORT | September 13, 2017
Ascendis said the acquisitions boosted its earnings 60% during the period.
Chief executive Karsten Wellner said that the group felt there was no need to relent on the proven strategy and international growth to create shareholder value.
“We have initiated projects to enhance organic growth and margins,” Wellner said.“This includes consolidating our medical devices division, focusing on cost efficiencies across the group, in particular in the sports nutrition business, rationalising manufacturing facilities in South Africa and investing in new product development and launches.”
Wellner said the group would buy smaller complementary bolt-on businesses in the next financial year with a particular focus in the higher growth economies in central and eastern Europe as well as South Africa.
He said Ascendis would also target fast growing health and care market segments.
Ascendis Health increased international sales following the completion of two acquisitions in Europe in August last year. It paid 260 million (R4.03billion) for Remedica and 170m for Scitec to take the combined deals to around R7.3bn.
It has since concluded the acquisition of Sun Wave Pharma in Romania late in the reporting period for 42.5m.
Wellner said Remedica had now been successfully integrated into the business with ongoing synergy projects within the Ascendis Pharma-Med division covering cross-selling, procurement, research and development, new product development and production.
Remedica generated revenue of R987m since acquisition, with profit of R243m being ahead of expectations.
Scitec, the third largest sports nutrition brand in Europe, reported sales of R1.2bn and profit of R121m.“These acquisitions have been game-changing, as 60% of our earnings are now generated outside of South Africa,” Wellner said.
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