Aspen Pharmacare Holdings Limited

FY2026 revenue was flat overall in constant exchange rates, with commercial pharma revenue up 5% and manufacturing revenue down 10%. Group normalized EBITDA grew 14% to ZAR 7.7 billion, gross profit rose 4% and gross margin improved from 41.6% to 43%, and NHEPS in continuing operations grew 28% to ZAR 8.02. Free cash flow was ZAR 3.8 billion, cash from operating activities was ZAR 6.8 billion, CapEx was ZAR 3 billion, and the company ended with net cash of ZAR 0.8 billion after share buybacks of ZAR 0.5 billion. For FY2027, Aspen guided to normalized EBITDA of at least ZAR 9 billion, sterile FDF EBITDA of ZAR 2.2 billion, commercial pharma growth in mid-single digits, and stronger free cash flow and NHEPS growth of more than 50%.

Stephen Saad framed Aspen as a dependable, resilient, and enduring business with “sizzle” coming from steriles and GLP-1s. He said the company has learned from setbacks, is “back on the horse,” and expects those investments to show up more strongly in FY2027. His tone was confident and upbeat, especially on balance-sheet strength, buybacks, and future growth, while stressing that execution and operating leverage matter more than the spreadsheet model.

Sean Capazorio focused on the mechanics behind the year’s improvement: flat revenue at the top line, but better gross profit, lower operating expenses, and strong cash conversion. He highlighted gross profit up 4%, gross margin moving from 41.6% to 43%, operating expenses down 4%, and normalized EBITDA at ZAR 7.7 billion. He also pointed to ZAR 3.8 billion of free cash flow, CapEx falling from ZAR 5 billion to ZAR 3 billion, working capital ratio improving to 44% of revenue from 47%, and the APAC sale producing ZAR 28 billion of gross proceeds and ZAR 2.4 billion profit on sale. He said FY2027 interest savings should be more than ZAR 1.2 billion because Aspen has no debt, and that buybacks remain the preferred use of capital.

The main analyst focus was the GLP-1 opportunity, especially the Canada API supply issue and how competitive semaglutide generics will be. Management said the Canada dossier depends on API purity and supply, with a decision expected by the end of the month and no red flags at the time, while noting that Brazil is not dependent on that API. On competition, Stephen Saad said the market will be highly competitive but believes lower prices and broader access will expand volumes, and Aspen is well positioned because it can eventually make products in its own sterile facilities. There were also questions on the ZAR 923 million inventory impairment, which management linked to restructuring and closures such as the eye-drop unit, and on share buybacks, which management confirmed are capped at 20% approval.