South African drugmaker Aspen Pharmacare says it expects double-digit profit growth for the full 2026 financial year, even after reporting a sharp decline in earnings during the first half, driven largely by once-off restructuring costs.
The company reported a 21% drop in normalised headline earnings for the six months ended December 31, with earnings per share falling to 574.8 cents. Normalised EBITDA declined 13% to about 5 billion rand, reflecting the financial impact of restructuring loss-making manufacturing operations in France and South Africa.
Aspen said it incurred a one-off restructuring charge of 695 million rand as it works to streamline its sterile drug manufacturing facilities. Chief executive Stephen Saad said the company had been forced to reduce costs as demand for European manufacturing contracts weakened, with many customers opting to produce in the United States following the introduction of new U.S. tariffs.
The restructuring, which includes workforce reductions, is “well progressed,” Aspen said, with cost savings expected to start benefiting results from the second half of 2026 and to be fully realised in the 2027 financial year.
Despite the challenges in manufacturing, Aspen said growth in its Commercial Pharmaceuticals business is helping to offset pressure elsewhere. That division posted 4% revenue growth and an 11% increase in normalised EBITDA, supported by strong organic growth across injectables, over-the-counter products and prescription medicines.
Performance in the segment was boosted by demand for Eli Lilly’s weight-loss drug Mounjaro, which Aspen distributes in South Africa, as well as improved profitability from its restructured operations in China.
Aspen’s manufacturing business, however, remained under pressure, with normalised EBITDA plunging 85% and revenue falling 26% in constant currency terms.
Looking ahead, the company said restructuring benefits combined with continued growth in commercial pharmaceuticals should support a return to double-digit growth in normalised headline earnings for the full year.
