Aspen Pharmacare Share Price Heads Below R100 as FY2025 Loss Deepens Investor Concerns
Aspen Pharmacare’s share price is under renewed pressure as FY2025 results reveal a rare annual loss and lingering structural challenges.
Quick overview
- Aspen Pharmacare's share price is under pressure, nearing the critical R100 mark after a significant decline of over 60% in the past year.
- The company reported a rare annual loss for FY2025, driven by severe impairments and restructuring costs, with operating profit plunging 79%.
- Despite challenges, Aspen remains Africa's largest pharmaceutical firm, with a focus on growth in its Commercial Pharmaceuticals segment and new product launches.
- Management anticipates a recovery in 2026, targeting double-digit earnings growth as operations stabilize and new markets are explored.
Aspen Pharmacare’s share price is under renewed pressure as FY2025 results reveal a rare annual loss and lingering structural challenges.
Stock Performance Under Pressure
Aspen Pharmacare’s stock (JSE: APN) is edging closer to the R100 mark, threatening to break below this key psychological level. The company’s shares have already fallen more than 60% in the past year, dropping from above R250 to current levels.
APNJ Chart Daily – The R100 Level Has Been Breached 
Looking further back, Aspen is now almost 78% lower than its 2015 peak of R450, underscoring the depth of its long-term decline. A decisive fall under R100 would mark yet another blowout for investors already grappling with heavy losses.
Africa’s Largest Pharma Firm Losing Ground
Despite its weakened valuation, Aspen remains the largest pharmaceutical company in Africa, now worth just under R47 billion on the Johannesburg Stock Exchange. The business operates significant manufacturing facilities in France and Gqeberha, producing finished dosage products for third-party customers. Yet, its current challenges highlight the contrast between Aspen’s operational scale and its shrinking market perception.
FY2025 Results – A Rare Loss
The company released results for the financial year ended June 30, 2025, on Wednesday, September 3. Headline figures showed a difficult year, with severe impairments dragging profitability sharply lower and pushing Aspen into a rare annual loss. Investors reacted to a combination of restructuring costs in China, contract disputes in its manufacturing unit, and higher tax charges.
Aspen Pharmacare H1 2025 Earnings
Financial Performance
- Operating profit plunged 79% to R1.4 billion (from R7 billion in FY2024).
- Group revenue declined 3% to R43.4 billion.
- Normalised EBITDA fell 15% to R9.6 billion.
- Headline EPS (Heps) dropped 42% to 792.1 cents, while NHEPS fell 29% to 1 055.8 cents.
- EPS swung to a loss of 243.9 cents, compared with 991.4 cents profit last year.
- Dividend declared at 211 cents per share, down from 359 cents in 2024.
Impairments and Restructuring
- Recognised a R4.1 billion loss from intangible asset impairments and China-related restructuring.
- Chinese operations restructuring cost about R0.5 billion, with R0.3 billion in inventory rationalisation.
- Margins in China expected to normalise in 2026.
Segment Highlights
- Commercial Pharmaceuticals (70%+ of group revenue):
- Delivered 10% growth in revenue and EBITDA at constant exchange rates.
- Supported by organic growth across injectables, OTC, and prescription medicines.
- Benefited from SA launch of weight-loss drug Mounjaro and new products in Latin America.
Manufacturing:
- Normalised EBITDA fell 62% to R668 million.
- Impacted by contractual dispute with mRNA manufacturing customer (R2 billion EBITDA hit vs guidance).
- Dispute now under adjudication.
Balance Sheet & Cash Flow
- Strong operating cash conversion of 147%, above 100% target.
- Net debt rose slightly to R31.2 billion.
Tax & Regulatory Impact
- Global minimum tax rules weighed heavily on earnings.
- Mauritian top-up tax and South African adjustments contributed R1.7 billion to impairments.
Outlook for 2026
- Mid-single digit organic revenue growth expected.
- Stronger EBITDA growth from Commercial Pharmaceuticals.
- Normalised headline earnings projected to grow double digits, with recovery weighted toward H2.
- Manufacturing to stabilise as disputes are resolved and China operations recover.
A Glimpse of Recovery Ahead
Despite the pain of FY2025, management highlighted areas of resilience. Commercial Pharmaceuticals performed well, supported by organic growth and new product launches. Strategic moves, such as the introduction of weight-loss treatments and partnerships in Latin America, also offered green shoots of opportunity. With the stabilisation of its China operations and a stronger outlook for 2026, Aspen is targeting a return to double-digit earnings growth in the coming year.
Outlook: Aspen’s downward spiral in share price reflects investor doubts about its recovery path. However, the company’s emphasis on new growth markets, product innovation, and restructuring progress could restore confidence if execution matches expectations. For now, the looming R100 level remains a crucial test of sentiment in Africa’s pharmaceutical giant.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save