South African pharmaceutical group Adcock Ingram says its businesses in Zimbabwe and Kenya collectively posted a trading profit of R2.7 million ($200 000) in the year ended 30 June compared to a trading loss of R3.5 million ($268 000) in the prior year.
The Johannesburg Stock Exchange (JSE) 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 Group’s non-South African enterprises comprise of operations in Zimbabwe and Kenya. The OTC Division has assumed management responsibility for the Kenyan operation, the purpose being to exercise better control over operations in that region,” the company said in its audited group annual results for the year ended 30 June 2017.
“These foreign entities collectively posted a trading profit of R2.7 million, compared to a trading loss of R3.5 million in the prior year”.
Datlabs produces brands such as Cafemol, Panado, Solphyllex and Lanolene Milk under licence but has been facing serious competition from imports mainly from the Asian bloc.
In 2013 it launched its own camphor brand, CamphaCare,following the termination of a 50-year contract to make Ingram’s Camphor Cream by Tiger Brands of South Africa which divested from Datlabs in the same year.
The company has been seeking close to $10 million to recapatilise its operations. –The Source
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