Corporate

Hikma delivers solid first half performance and reiterates full year revenue guidance of $2.0 billion to $2.1 billion

London, 24 August 2016 – Hikma Pharmaceuticals PLC (Hikma, Group) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY) (rated Ba1 Moody’s / BB+ S&P , both stable), the fast growing multinational pharmaceutical group, today reports its interim results for the six months ended 30 June 2016. The financial results include the consolidation of four months of Roxane Laboratories (now West-Ward Columbus).

H1 2016 highlights

Core results

 

H1 2016 

$million 

Growth

H1 2015

$million 

Constant currency

$

Core revenue

882

+28%

+24%

709

Core operating profit[1]

176

-3%

-14%

204

Core EBITDA[2]

211

-

-9%

231

Core basic earnings per share (cents)[3]

48.2

-21%

-32%

71.4

 

Total results

 

H1 2016 

$million 

Growth

H1 2015

$million

Constant currency

$

Revenue

882

+28%

+24%

709

Operating profit

121

-27%

-38%

194

EBITDA[4]

194

-5%

-15%

227

Basic earnings per share (cents)

25.7

-49%

-62%

67.3

 

·     Group revenue of $882 million, up 24% in H1 2016 and up 28% in constant currency[5]

·     Completed West-Ward Columbus acquisition, making significant progress with integration and on track to deliver cost synergies 

·     Group core operating profit of $176 million, down 14% and down 3% in constant currency, due to a lower contribution from specific market opportunities for the Generics business compared with the first half of 2015

·     Group core basic earnings per share of 48.2 cents, down 32% and down 21% in constant currency

·     Launched 44 products and received 182 approvals, expanding and enhancing our global product portfolio

·     Launched 3 Bedford products in the year to-date and on track to achieve our target of 20 Bedford launches by the end of 2017

·     Interim dividend of 11.0 cents per share, in line with the interim dividend for H1 2015

·     The guidance published in the trading update on 3 August 2016 is unchanged

·     Continue to expect 2016 Group revenue in the range of $2.0 billion to $2.1 billion in constant currency, driven by strong growth in Injectables and Branded and the consolidation of ten months of revenue from West-Ward Columbus

Said Darwazah, Chairman and Chief Executive Officer of Hikma, said: 

“Hikma has delivered a solid first half performance in a transitional year.  Our global Injectables business is performing well, with revenue growth and strong profitability driven by a favourable product mix.  We continue to successfully transfer the Bedford products to our injectables facilities.  By re-introducing these products to the market and increasing our investment in R&D, we are building a strong pipeline to support future growth. 

We are making excellent progress integrating the West-Ward Columbus operations, although as previously announced, we had slower than expected approvals for certain products in the first half.  These products have now been approved but their delay had an impact on expected revenue and profit in 2016.  We remain on track to achieve the revenue growth and cost synergy targets that we have set ourselves for West-Ward Columbus in 2017 and beyond.  In MENA, our focus on higher value products and tight cost control is delivering a continued improvement in profitability, despite the significant currency headwinds in the region. 

Overall, the Group is well positioned across our markets and we are confident that we have the regulatory, R&D and commercial capabilities to realise the full potential of our pipeline opportunities over the coming years.”