2024-03-05 16:10:23 ET
Aspen Pharmacare Holdings Limited (APNHF)
Q2 2024 Results Conference Call
March 05, 2024 1:30 AM ET
Company Participants
Sibongakonke Nkosi - Investor Relations Manager
Stephen Saad - Group CEO & Executive Director
Sean Capazorio - Group CFO & Executive Director
Conference Call Participants
Letlotlo Lenake - Investec Bank
Presentation
Sibongakonke Nkosi
Good morning, ladies and gentlemen, in the room and those of you joining us via webcast today. It is my pleasure to welcome you to the financial results of the first 6 months of Aspen's results financial year, sorry. My name is Sibonga Nkosi, and I'm the group Investor Relations Manager here at Aspen.
In today's proceedings, you'll be hearing from Stephen Saad, the Group Chief Executive; who will be providing you with insightful overview of our results, taking us through the revenue performance of the group and its segments. Notably, we have revised the segmental reporting, both in commercial pharma and manufacturing. These new segments give improved insights, understanding and more granular disclosure. We've also bolstered the appendices to provide more detailed analysis into -- In the appendices, you will find a comparison of the revenue disclosure, between the old and the new reporting segments for commercial pharma and manufacturing. Also included in the appendices is a table illustrating the currency contribution of the group at a revenue and an EBITDA level. This will facilitate a deeper understanding of the dynamics between constant currency and reported performance. In the financial highlights, as you dive deeper into the financial highlights and the finance cost slides. We've also updated the capital allocation framework, emphasizing that share buybacks fall within the fourth quadrant of our investment options alongside strategic M&A. And in the projected CapEx slide, we have -- you will see an uptick in the FY '24 numbers. We expect a slight uptick in the numbers as we -- in order to meet evolving customer needs and market demand. However, we do anticipate that this will taper down in FY '25, and you should see a resulting impact of lower FY '25 spend onwards -- from FY '25 onwards.
And with that said, I'd like to invite Stephen Saad to provide the overview of the performance of these results to be followed by Sean, who will dive into the financial review. Stephen will then return to give a strategic overview as well as provide financial guidance. We'll then go into Q&A, and I request those joining us online to post their questions via the Q&A tab, and it's open already. Thank you, all of you. Stephen, over to you.
Stephen Saad
Thank you, Sibonga. Good morning, everybody. Thank you for all of you that are here in person and thank you for your interest in Aspen. And for those that are watching through the screen, welcome to everyone.
It's an interesting journey, an interesting position we're in now. You start -- I was sitting there while I was listening out, you start years and years ago and you say you're going to build something. And in 5 years and 3 months, and in March, this is where you'll be, and it all looks great on an Excel spreadsheet. All businesses look fantastic on Excel spreadsheets. And the trick with everything, of course, the most difficult part is execution. And for those of you that have followed us, we've just been ticking the blocks, ticking the blocks. And we've got to the exciting part of the spreadsheet, that part where the merchant bankers sell you the hockey stick effect. business has done this for this period, we're going to do this for the next period. But we're at this stage now where we're in a position to deliver. We've been patiently building and block by block. But you'll hopefully, you'll pick up from today and where we're positioned, that this is a period -- the period for delivery starts -- for real delivery on earning starts now.
Just to -- we don't like to run each presentation as independent of the past. We -- I've just taken you -- I'd just like to just remind you of the links that we had at the end of last year. At the end of last year, we said we had some 5 strategic objectives. We -- and it will always be an objective organic growth. There's no better growth in organic growth. Organic growth is really important to our business. And we get good organic growth just because of where we are. The absolute number of people in emerging markets, buying more medicines and having more access to medicines.
We've had this sword of -- hanging over our head for a couple of years in China. It's called BBP. For those that aren't familiar with what it means. It effectively is what what people in other parts of the world would call what happens post patent. And we've had some very big products, and they have been -- and they -- we thought we'd be impacted, some were impacted, we thought some would be. It all has happened. So we had to deal with us year after year. We keep coming back here and say, we really don't want to do badly in China, and we want to keep our business there. It's a good market for us, but we have these issues. So that was a critical area for us to address....
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Aspen Pharmacare Holdings Limited (APNHF) Q2 2024 Earnings Call Transcript