Aspen Pharmacare Holdings reported a 28% year-over-year increase in normalized headline earnings per share to 802 cents for the fiscal year ended May 31, 2026, as operating leverage offset flat revenue growth.
Normalized EBITDA rose 14% to R7.7 billion on revenue of R34.9 billion, while free cash flow surged to R3.8 billion from R166 million a year earlier. The company posted its first net cash position in 25 years, at R800 million, as gross margins expanded to 43.0% from 41.6%.
Operating expenses fell 4% in constant currency terms to 24.8% of revenue, contributing to a 30% increase in profit before tax to R4.7 billion. Capital expenditure totaled R3.0 billion, R2 billion below the prior year and R800 million below guidance. The effective interest rate improved to 4.5% from 4.9%.
Aspen completed the divestment of its Asia-Pacific operations in May 2026 for gross proceeds of approximately R28 billion at an 11.5x EBITDA multiple, generating annual net free cash flow losses of R600 million. The transaction contributed to a R1.2 billion reduction in normalized headline earnings, offset by R1.2 billion in interest savings and R100 million in capital expenditure savings.
Commercial Pharma revenue grew 5% in constant currency terms to R25.4 billion, with normalized EBITDA up 13% to R6.9 billion and EBITDA margins expanding to 27.1%. The manufacturing division’s revenue declined 10% to R9.5 billion due to the loss of a R1 billion mRNA contract, though normalized EBITDA rose 21% to R828 million as Sterile FDF operations improved EBITDA by R1.2 billion.
The company’s GLP-1 franchise, anchored by Mounjaro, achieved a 53% market share in South Africa’s private GLP-1 market, valued at R2.8 billion and growing 92% year-over-year. Management expects Mounjaro sales to exceed R2 billion in FY2027, supported by Canadian approvals for generic semaglutide and progress in emerging markets including Brazil.
For FY2027, Aspen targets normalized EBITDA growth of at least R1.3 billion to exceed R9 billion, with Sterile FDF manufacturing EBITDA growth raised to R2.2 billion. Commercial Pharma is guided to mid-single-digit revenue and EBITDA growth, while capex is projected at R3.4 billion. The effective tax rate is expected to range between 24% and 25%.
