H1 2019 core[1] results summary
- Group core revenue of $1,043 million, up 7%
- Group core operating profit of $246 million, up 15%
- Core basic earnings per share of 72.7 cents, up 18%
- Raising full year expectations for Generics and now expect Injectables to be towards the higher end of our previous full year guidance range
H1 2019 reported results summary
- Group revenue of $1,047 million, up 7%
- Group operating profit of $238 million, up 37%
- Cashflow from operating activities of $187 million (H1 2018: $185 million)
- Net debt of $361 million (December 2018: $361 million) and low leverage ratios maintained
- Basic earnings per share of 76.4 cents, up 74%
- Interim dividend increased 17% to 14 cents per share
Strategic highlights
- Appointed new Chief Scientific Officer, strengthening our R&D capabilities
- Launched 37 new products across all markets, expanding our global product portfolio
- Signed 7 product licensing agreements for the US and MENA
- Entered into long-term supply agreement with Civica Rx for essential injectable products
Siggi Olafsson, Chief Executive Officer of Hikma, said:
“All of our businesses are performing well. We are delivering more from our unique and diversified business model, leading market positions and high-quality operations to drive strong organic growth. Our good half-year financial results demonstrate the breadth and resilience of our marketed portfolio, successful pipeline launches and actions we’ve taken to reduce costs and increase efficiencies. During the first half, we continued to focus on pipeline development. We increased investment in our R&D programmes, added new products through partnerships and strengthened our R&D team.
I am very pleased with our first half performance, and the increase in our full year guidance reflects our confidence for the remainder of the year.”
Summary financials
Core results
| H1 2019 $million | H1 2018 $million | Change | Constant currency change |
Core revenue | 1,043 | 979 | 7% | 7% |
Core operating profit | 246 | 214 | 15% | 15% |
Core EBITDA[2] | 288 | 252 | 14% | 14% |
Core profit attributable to shareholders | 176 | 148 | 19% | 20% |
Core basic earnings per share (cents) | 72.7 | 61.4 | 18% | 19% |
Reported results
| H1 2019 $million | H1 2018 $million | Change | Constant currency change |
Revenue | 1,047 | 979 | 7% | 8% |
Operating profit | 238 | 174 | 37% | 37% |
EBITDA | 297 | 230 | 29% | 30% |
Profit attributable to shareholders | 185 | 106 | 75% | 75% |
Basic earnings per share (cents) | 76.4 | 44.0 | 74% | 75% |
[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 4. Core results are a non-IFRS measure and a reconciliation to reported IFRS measures is provided on page 12
[2] EBITDA is earnings before interest, tax, depreciation, amortisation and impairment charge; EBITDA is a non-IFRS measure and a reconciliation to reported IFRS measures is provided on page 13