Probiotec made a $12.9m half-year profit but 91pc of it was from businesses it has sold
Health & Biotech
Health & Biotech
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Diversified pharmaceutical maker Probiotec (ASX:PBP) posted a $12.9 million profit for the 2019 half-year, more than triple what it made for the entirety of the 2018 financial year.
However, 91 per cent of that came from its pharmaceuticals brand porfolio and its Impromy weight loss brand that it has sold.
Not counting the discontinued operations, it still made a tidy $1.1 million profit, a 258 per cent increase on the 2018 half-year. Revenue also grew 35 per cent to $37 million.
Probiotec announced back in August last year that it would sell its pharma brands — Gold Cross, David Craig and Skin Basics — to Singaporean company iNova Pharmaceuticals, and Impromy to Blackmores, in order to focus on its “core manufacturing business”. It picked up $22 million for the pair, and retained manufacturing rights for the pharma brands on an “exclusive, long-term basis” and for Impromy for three years.
It is also still looking for a buyer for its Celebrity Slim brand, which makes diet shakes.
Earnings per share rose 241 per cent over the period to $1.80 and the company will pay an interim dividend of 1c on March 19, a 33 per cent increase on last period’s 75c dividend. Cash in the bank rose 1,000 per cent to $19.8m.
“Pleasingly, the executive team at Probiotec was able to execute the above whilst still continuing to deliver growth across all financial metrics, including significant growth in contract manufacturing revenue,” the company told investors.
“The demand for the group’s manufacturing services and product development capabilities continues to underpin strong orders for this segment and this is expected to contribute to further growth in the second half of this financial year and into FY2020.”
It made no forecasts for the full-year results.
Shares in the company dropped 2 per cent to $1.48.