Durban-headquartered pharmaceutical giant Aspen Pharmacare is forecasting a double-digit surge in normalised headline earnings per share (NHeps) or earnings from continuing operations for its half-year ending December 31 2021.
The JSE-listed group put out a trading statement on Tuesday, highlighting that it expects NHeps to increase by between 18% to 22% (798 cents to 825 cents) for H1 2022, compared with its corresponding half-year.
Aspen’s share price firmed some 5% (to around R217 a share) on the news in early morning trade on Tuesday.
“NHeps is the primary measure used by management to assess Aspen’s underlying financial performance,” the group noted.
“Growth in NHeps is lower than growth in headline earnings per share [Heps] and earnings per share [EPS} primarily as a result of reduced normalisation adjustments in the current year relating mainly to restructuring costs and transaction related costs which do not impact the growth in headline earnings per share or earnings per share.”
In the trading statement, Aspen pointed out that Heps (total operations) for the half-year is forecast to surge between 34% to 38%, while EPS is expected to come in between 29% and 33% higher.
“The stronger ZAR [rand], relative to the comparative period, diluted the growth in all earnings measures and, accordingly, the growth in constant exchange rate earnings measures is higher than the reported earnings growth…”
Aspen is set to publish its latest half-year results on the JSE after market close on March 9, 2022.