Categories: Stories

Datlabs challenges hit Adcock Ingram profit

South African pharmaceutical group Adcock Ingram says its businesses in Zimbabwe and Kenya have continued to underperform, cumulatively incurring a trading loss of $69 000 in the six months to December, 2016.

The Johannesburg listed company has interests in flagging Bulawayo-based pharmaceutical manufacturer and distributor Datlabs, whose production capacity has been going down due to operational challenges.

“The units in Zimbabwe and Kenya have for some time underperformed in challenging markets. These entities fortunately constitute a very small percentage of Group assets and collectively incurred a trading loss of R0.9 million during the period under review,” the company said in its unaudited group interim results for the six months ended 31 December 2016.

Datlabs produces leading brands such as Cafemol, Panado, Solphyllex and Lanolene Milk under licence but has been facing serious competition from imports mainly from the Asian bloc.

The company has been seeking close to $10 million to recapatilise its operations.-The Source

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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