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Aspen Pharmacare Holdings, Africa’s largest pharmaceutical group led by South African billionaire Stephen Saad, posted a net loss in its 2025 financial year, dragged down by impairments, restructuring charges, and a dispute in its manufacturing business.
For the year ended June 30, 2025, Aspen reported a loss of R1.08 billion ($61.34 million), compared with a profit of R4.4 billion ($249.36 million) the year before. This is linked to a contractual dispute over manufacturing, including issues tied to mRNA technology, which also erased more than R22 billion ($1.2 billion) from the group’s market capitalization.
Aspen revenue declines 3 percent
Revenue fell slightly, down 3 percent to R43.36 billion ($2.46 billion) from R44.71 billion ($2.53 billion) a year earlier, despite solid performance in its core pharmaceutical business. Aspen’s Commercial Pharmaceuticals division, which contributes more than 70 percent of total revenue, continued to grow steadily. Revenue in this segment rose 5 percent to R32.2 billion ($1.82 billion), while normalized EBITDA increased 10 percent at constant exchange rates.
Prescription brands advanced 10 percent to R12.5 billion ($708.27 million), lifted by strong growth in the Americas and ongoing expansion in Africa and the Middle East. The over-the-counter business saw modest growth, edging up 1 percent to R9.8 billion ($555.29 million), supported by a stronger second half in Africa and steady gains in Australasia.
Injectables rose 4 percent to R9.9 billion ($561 million), driven by a sharp 45-percent increase in Africa and the rollout of Mounjaro. By contrast, Aspen’s manufacturing segment faced significant challenges. Revenue fell 21 percent to R11.1 billion ($629 million), while normalized EBITDA tumbled 62 percent following the contractual dispute in its finished dose unit.
Headline EPS drops 42 percent
Headline earnings per share dropped 42 percent, while normalized headline earnings per share, Aspen’s preferred profit measure, fell 29 percent. The decline reflected R4.1 billion ($232.22 million) in impairments, including charges linked to South Africa’s global minimum tax and mRNA asset write-downs, alongside R800 million ($45.3 million) in restructuring costs.
Stephen Saad, Aspen’s founder and CEO, acknowledged the difficult year but highlighted progress in key areas. “FY 2025 has been a challenging year, but we have made meaningful progress in executing our strategy and strengthening the foundations for future growth,” he said. “We completed the restructuring of Aspen China and integrated the acquired Sandoz business, positioning the region to contribute positively to earnings in FY 2026.”
Aspen’s equity steady at $4.81 billion
Founded in 1997 and headquartered in Durban, Aspen Pharmacare has grown into a leading global specialty pharmaceutical company. It remains the largest drug manufacturer in Africa and a dominant player in the South African market. Saad, who has led the company since 1999, owns 13.02 percent of Aspen, or 58,075,716 shares, making him the largest shareholder.
Total equity held steady at R84.89 billion ($4.81 billion), supported by strong operating cash flows that offset impairments, restructuring costs, and currency losses. Total assets slipped 2.28 percent to R135.89 billion ($7.69 billion) from R139.06 billion ($7.87 billion), weighed down by impairments, inventory write-offs from the China restructuring, and weaker rand translation of foreign assets.
