Annual Report 2018/2019pmg-assets.s3-website-eu-west-1.amazonaws.com/191009OBP.pdf · Animal feed...

Annual Report

2018/2019

1 | Onderstepoort Biological Products © | September 30, 2019

Presented by Chief Executive Officer:

Dr Baptiste Dungu

Executive Summary New CEO appointed 1st March 2019

46% overall achievement compared to 64% of previous financial year

Sales revenue R163 million against target R320 million

Achieved R17,8 million profits before tax compared to R16,9 million from the previous financial year

Auditor-General report of the financial statements

Unqualified audit



Focus areas

1. About OBP

2. Governance

3. Organisational Performance

4. Financial Performance

5. GMP project update

6. Conclusion

Mission and Vision

MissionTo translate science

into bio-pharmaceutical health products and technologies

resulting in improved animal

and human health, and food security

to satisfy our stakeholders

VisionTo be a global bio-

pharmaceutical manufacturer and

distributor of animal health products


Strategic Goal 1:To build a world-class organisation with globally competitive products to achieve high levels of

financial sustainability

Strategic Goal 2:customer-driven organisation through innovative

technology and service

Strategic Goal 3:To drive performance in order to improve

organisational effectiveness

Strategic Goal 4:To contribute to government priorities with respect

to socio-economic development


OBP Facts

LEADERLeading role in ANIMAL HEALTH

1

DISTRIBUTION

network

Expanding

213Employees

FACILITIES

Modernising manufacturing

UNQUALIFIED AUDIT

2018/2019

Investment in

PRODUCT DEVELOPMENT

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiS4djB05zTAhVEPhQKHf6iBHEQjRwIBw&url=https://www.smarthousing.com/product/smart-leads&bvm=bv.152180690,d.ZGg&psig=AFQjCNEcUOckD95v6we70cjv4WqcXZQXvw&ust=1492008479109379

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiS4djB05zTAhVEPhQKHf6iBHEQjRwIBw&url=https://www.smarthousing.com/product/smart-leads&bvm=bv.152180690,d.ZGg&psig=AFQjCNEcUOckD95v6we70cjv4WqcXZQXvw&ust=1492008479109379

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjl9JiKwtfZAhUBPRQKHdj1B6UQjRx6BAgAEAU&url=http://footage.framepool.com/en/shot/762458778-earth's-rotation-economic-development-budgeting-gain&psig=AOvVaw0Guda2FLYxRLwtWDyceowv&ust=1520419293254123

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjl9JiKwtfZAhUBPRQKHdj1B6UQjRx6BAgAEAU&url=http://footage.framepool.com/en/shot/762458778-earth's-rotation-economic-development-budgeting-gain&psig=AOvVaw0Guda2FLYxRLwtWDyceowv&ust=1520419293254123

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiOrsbuxdfZAhXC6xQKHSufDHYQjRx6BAgAEAU&url=http://actigraphcorp.com/resources/research-database/&psig=AOvVaw0W4-kFtHVwlt8MgYMtW5Go&ust=1520420462106438

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiOrsbuxdfZAhXC6xQKHSufDHYQjRx6BAgAEAU&url=http://actigraphcorp.com/resources/research-database/&psig=AOvVaw0W4-kFtHVwlt8MgYMtW5Go&ust=1520420462106438


Workforce ProfileOBP Staff

Management

OBP Staff

Management

Governance


Governance Structure

OBP Board

Research Development & Operations Committee

(RDOC)

Audit, Risk & ITCommittee (ARIC)

Chief Executive Officer(CEO)

Management Committee(ManCO)

Executive Committee(ExCo)

Other Committees

Remuneration, Human Resources & Ethics Committee

(RHEC)


Board of Directors


From left to right: Dr Charlotte Nkuna, Mr Yaasir Haffejee, Mr Ronald Ramabulana(Chairperson of the Board), Ms Fulufhelo Mphuthi, Dr Pieter Vervoort, Ms Koekie Mdlulwa

Organisational Structure


Executive Management team

Back row(left to right): Dr Jacob Modumo,, Dr Bethuel Nthangeni, Mr Simphiwe Ntombela, Mr Matsobane Gololo

Front row (left to right):, Ms Mpume Ramutle, Ms Zodwa Mobeng


CEO: Dr Baptiste Dungu

Organisational Performance


OBP

Strategic goals

1, 2 & 4

National Growth Path

Job drive 2: Main economic sectors (agricultural sector)

Job driver 3: Seizing the potential of new economies.

DAFF Strategic Plan

Strategic Goal 2: Enhance production, employment and economy

Strategic Goal 3: Enabling environment for food security and sector transformation

National Development Plan

Outcome 4: Economy and Employment

Outcome 6: Economic Infrastructure

Outcome 7: Comprehensive rural development and food security

Outcome 12: Positioning South Africa in the World


Alignment to Government Priorities

Performance Information


Strategic Goal 1: continued…

15| Onderstepoort Biological Products © | September 30, 2019

Financial Performance



Income Statement


Balance Sheet


Cash Flow Statement


Financial Performance (R’ 000)

Summary of Audit findings

Findings affecting the Audit report.

Irregular expenditure of R42 million

relating to:

Animal feed

Appointment of professional team

Contract and document management

Compliance to regulations


GMP project upgrade


Project Overview

Refurbishment and Modernisation of Existing Manufacturing Facility (GMP Facility Upgrade)

• Project Objectives:

• Improve Regulatory Compliance for Vaccine Production & Attain GMP Certification

• Improve Production Capacity & Reduce Operational Costs

- Increased responsiveness to disease outbreaks & unexpected demand

• Increase Competitiveness & International Markets

• Project Timelines:

• Project Started: Q3 2017/18

• Expected Completion: Q4 2020/21

• Project Budget: R316 million


Project Progress Summary

Q2 2017/18 – Block – T Feasibility (Completed)

Q3 2017/18 – Contractor Appointment (Completed)

Q4 2017/18 – Start Phase 1 Construction for API (In Progress)

Q3 2018/19 – Procurement of Long Lead Items (Completed)

Q2 2019/20 – Delivery of Long Lead items (In Progress)

Q3 2020/21 – Validation Complete

Q4 2020/21 – GMP Audit & Certification

Block-T

(Bacterial Vaccines)


2019/20 Q1 Performance update


93% of sales target achieved (R42 million vs R45 million

target)

• Total sales volumes : 4 247 712 doses

top selling vaccines were viral vaccines, contributing

65% of sales revenue generated( export market

contributed 59% revenue from viral vaccines).

• Global competitiveness

diversification and/to expansion product portfolio.

Ongoing negotiations with 3 international

partners

Strengthening our export market in the Middle East,

Europe and Africa

Challenges & MitigationChallenges Mitigation

Loss of Market Share Strengthen marketing ability; Develop emerging

market

Production inefficiencies Skills audit; expert process review & correction;

technological alignment; reinforced quality systems

Loss of Expertise Skills audit; tap into expertise of retired staff;

Outdated Vaccine

Technology for some

products

Global expertise & partnerships; partnerships with

SA universities and research organisations; new

GCP compliant animal facility being established

Production Facility not

compliant to GMP

Standards

New compliant facility under construction

Areas of mismanagement

and management

misalignment with business

Realignment of supply chain; policies’ review;

planned strategic review



Conclusion

• Unqualified audit report for 2018/19

• Distribution strategy expanding

• Strong balance sheet

• Improved production output

• Modernisation of plant to GMP commenced and at an advanced stage

THANKYOU


Annual Report 2018/2019pmg-assets.s3-website-eu-west-1.amazonaws.com/191009OBP.pdf · Animal feed...

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