2018 core[1] results summary
- Group core revenue of $2,076 million, up 7%
- Group core operating profit of $460 million, up 19%
- Core basic earnings per share of 137.8 cents, up 31%
- Cashflow from operating activities of $430 million
- Net debt reduced to $361 million and low leverage ratios maintained
2018 reported results summary
- Group revenue of $2,070 million, up 7%
- Group operating profit of $371 million
- Basic earnings per share of 117.0 cents
- Proposed full year dividend of 38 cents per share, up from 34 cents per share
Strategic highlights
- Appointed new Chief Executive Officer and strengthened leadership teams across the Group
- Leveraged our high-quality injectables manufacturing facilities and broad product portfolio to deliver critical medicines to our hospital customers
- Strengthened our Generics business, by enhancing commercial capabilities and streamlining operations
- Reinforced our position as ‘partner of choice’ in MENA, adding important in-licensed products
- Restructured our global R&D function to improve productivity and increase returns on investment
- Launched 122 new products across all markets, expanding our global product portfolio
- Strengthened our pipeline through a long-term agreement with Vectura to develop and commercialise generic versions of GSK’s Ellipta® products
Siggi Olafsson, Chief Executive Officer of Hikma, said:
“The Group has delivered a strong performance in 2018, with revenue and profitability significantly ahead of our expectations at the start of the year. We also made good strategic progress, strengthening our management teams, growing our portfolio, investing in our capabilities and adding new partners.
Our Injectables business continued to perform very well, demonstrating the diversification of our portfolio, the flexibility of our operations in responding to customer needs and our ability to bring important products to market. The significant commercial and operational improvements we have made enabled our Generics business to deliver strong growth and our Branded business continued to grow steadily.
These results show considerable progress and I am confident that we can build on this momentum going forward.”
Said Darwazah, Executive Chairman of Hikma, said
“In 2018, we have made transformational changes across our businesses that will enable us to be more competitive and achieve our strategic goals. I am very pleased with the progress we’ve made and the strong financial performance this year. Looking ahead to 2019 and beyond, I am very optimistic for the future of Hikma. I believe we have set ourselves the right strategic objectives and have a strong leadership team in place to deliver sustainable growth over the long term.”
Core results | 2018 $ million | 2017 $ million | Change | Constant currency[2] change |
Core revenue | 2,076 | 1,936 | 7% | 8% |
Core operating profit | 460 | 386 | 19% | 24% |
Core EBITDA[3] | 549 | 468 | 17% | 21% |
Core profit attributable to shareholders | 332 | 252 | 32% | 39% |
Core basic earnings per share (cents) | 137.8 | 105.0 | 31% | 38% |
Reported results | 2018 $ million | 2017 $ million | Change | Constant currency change |
Revenue | 2,070 | 1,936 | 7% | 8% |
Operating profit/(loss) | 371 | (747) | N/A | N/A |
EBITDA | 492 | 488 | 1% | 5% |
Profit/(loss) attributable to shareholders | 282 | (843) | N/A | N/A |
Basic earnings/(loss) per share (cents) | 117.0 | (351.3) | N/A | N/A |
[1] Core results throughout the document are presented to show the underlying performance of the Group, excluding the exceptional items and other adjustments set out in note 5.
[2]Constant currency numbers in 2018 throughout the document represent 2018 numbers re-stated using average exchange rates in 2017, excluding price increases in the business which resulted from the devaluation of currencies
[3] EBITDA is earnings before interest, tax, depreciation, amortisation and impairment charges. EBITDA is a non-IFRS measure, see page 13 for a reconciliation to reported IFRS results