Ascendis Health

Investment case

Ascendis Health aims to create wealth for shareholders through the successful execution of its organic, acquisitive, international and synergistic growth strategies.

Ascendis Health assures investors of exposure to the high-growth health and wellness sector with a diversified revenue and earnings base. The health and care markets are resilient and defensive with significant barriers to entry, but with high growth both locally and internationally.

Ascendis Health delivers sustained financial performance showing a 111% compound growth in EBITDA since 2013, making it only one of a few companies on the JSE to show normalised EPS growth over 25% per annum over three consecutive years.

Ascendis Health has a market leading health and care brand portfolio with long-established and defensible brands with strong Number 1 or Number 2 brands in core markets.

Ascendis Health’s revenue is diversified across the brand portfolio, multiple health and care market segments and geographic regions.

Ascendis Health shows organic growth through acquisitive and synergistic development. We have:

  1. An 87% compound growth in revenue since 2013
  2. More than R10 billion invested in 30 acquisitions since 2008
  3. The acquisition of Remedica and Scitec in 2016
  4. Strict acquisition criteria, find out more by downloading the latest Integrated Report
  5. A proven ability to integrate acquisitions and extract efficiencies
  6. Seen total synergy savings of R80 million since 2014
  7. A strong acquisition pipeline

Ascendis Health is expanding internationally with Farmalider (Spain), Scitec (Europe) and Remedica (Cyprus) with the goal of generating half of revenue offshore from FY2017 as these earnings provide a natural hedge against Rand volatility. Currently products are sold in more than 140 countries, including 50 in Africa.

Ascendis Health shareholding sits at 28% interest held by founding company, Coast2Coast, 27% black economic empowerment shareholding, 16% international shareholding and 6% with Ascendis Health management.