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Ascendis expects sharp rise in normalised earnings – bdlive.co.za

By Business Day Live | September 7, 2016

ASCENDIS Health, the healthcare conglomerate that has been growing rapidly through acquisitions, has issued a trading statement showing a sharp divergence between normalised and basic earnings.

Normalised headline earnings for the year to end-June are expected to rise 33%-37% from last year’s R245m, to between R325m and R336m, while basic earnings will fall 22%-28% to between R151m and R163m, and headline earnings will fall 24%-30% to between R147m and R158m.

The difference is due to costs arising from the acquisitions of Remedica and Scitec, Ascendis said in a Sens statement on Wednesday morning. Earnings from those acquisitions would come through only in the 2017 financial year, it said.

Acendis also issued additional shares during the 2016 financial year. As a result, the fall in headline earnings per share (HEPS) is estimated at 28%-34% to 52c-47c; the fall in earnings per share at 26%-33% to 54c-59c; while normalised HEPS are expected to rise 25%-30% to 116c-121c.

Ascendis owns a wide range of brands in the human, animal and plant healthcare sectors, including vitamin supplements, sports nutrition and skin care products.

Remedica and Scitec are both European businesses, but Remedica is focused on emerging markets. Scitec’s markets are in Europe but in the fast-growing sports nutrition sector.

The acquisitions cost about R7.3bn, funded in part by a successful R1.2bn rights issue in August that was more than three times oversubscribed.

Read the full article on Business Day Live here