Hikma delivers strong first half results and raises full year guidance

Corporate

Hikma delivers strong first half results and raises full year guidance

London, 9 August 2019 – Hikma Pharmaceuticals PLC (Hikma, Group) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY) (LEI: 549300BNS685UXH4JI75) (rated Ba1/stable Moody’s and BB+/positive S&P), the multinational pharmaceutical company, today reports its interim results for the six months ended 30 June 2019.

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