Good Fiscal 1994 For Adcock Ingram

Against another year of significant structural changes in the health care industry, Adcock Ingram of South Africa lifted turnover by 4% to 1 billion rand ($243.7 million) in the year ending September 1994, and enjoyed a big jump in interest income, ahead 15.3%, to 113 million rand. An improved sales mix, increased focus on cost containment and productivity improvements resulted in operating income increasing 11%.

Turnover increased despite the partial loss of sales of Astra and Pharmacia products to joint-venture companies, as well as the continuing rationalization of the wholesale division, and increased competition in the critical care division. Strong growth was recorded by the generics, self-medication and consumer divisions, and market share gains were achieved by various leading brands.

The pressure of cost containment and changing customer needs prompted the group to restructure, mainly to provide for a sales force that is focused on customer desires. Changes include the bringing together of the pharmaceuticals and generics divisions, and the combining of sales efforts for self-medication and consumer goods.