Ascendis to focus on organic growth

Ascendis Healthcare, a leading healthcare company, has recently reported impressive financial results for the year ending in August. With a 21% growth in the top line and an 18% increase in EBITDA on a reported level, the company is celebrating a successful year. CEO Thomas Thomsen shared in an interview with CNBC Africa that the organic growth stood at 5% at the top line, a figure that while satisfactory, the company aimed to surpass. The focus on cash conversion also yielded positive results, with a remarkable 92% cash conversion by the end of the year. Thomsen highlighted the strategic decision to divest non-core businesses in South Africa, such as sports nutrition, direct selling, and certain manufacturing units, a move that has streamlined operations and boosted overall performance. While challenges were noted in certain sectors like the sports nutrition business in Europe and consumer businesses in the midst of economic uncertainty, successes in other areas like the medical device business in South Africa indicated a balanced performance across divisions. Ascendis Healthcare's new strategic focus on Pharma and Consumer Healthcare as core areas is set to drive future growth. Thomsen emphasized the importance of organic growth, aiming for a 7-10% increase over five years, alongside improved returns and strong cash generation. The company is committed to simplifying and strengthening its core business, focusing on key areas like pharmaceuticals, consumer healthcare, animal health, and medical devices. With international operations currently contributing significantly to revenue, Ascendis Healthcare is looking to further leverage its global presence for organic growth and increased profitability. The company has already completed transactions for divesting certain businesses in South Africa and is in the final stages of divesting more, signaling a strategic shift towards a more focused and efficient operation.