Hikma Pharmaceuticals achieves solid year-over-year increases in revenue and operating profit

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Hikma Pharmaceuticals PLC (LON:HIK), the multinational pharmaceutical company, has reported its interim results for the six months ended 30 June 2021.

Siggi Olafsson, Chief Executive Officer of Hikma, said: 

“Once again, we have benefited from the resilience of our portfolio and our flexible manufacturing footprint. Our strong performance included solid year-over-year increases in revenue and operating profit, underscoring our ability to generate positive results in challenging market conditions. We are continuing to benefit from investments we have made to build our pipeline of new medicines and our progress in the first half underpins our improved outlook for the full year. Looking ahead, our clear strategy, strong pipeline and agility give us the confidence to drive continued growth and deliver increased value to all our stakeholders.”

Highlights:

Reported results (statutory)$ million H1 2021H1 2020ChangeConstant currency1change
Revenue1,2161,1327%7%
Operating profit32629710%15%
Profit attributable to shareholders24821217%26%
Cashflow from operating activities224292(23)%
Basic earnings per share (cents)2107.487.623%32%
Interim dividend per share (cents)218.016.013%
Core results3 (underlying)$ million H1 2021 H1 2020ChangeConstant currency1change
Core revenue1,2161,1327%7%
Core operating profit3092849%15%
Core profit attributable to shareholders2232059%18%
Core basic earnings per share (cents)296.585.313%23%

Strong first half performance

·  Core Group revenue grew 7% driven by a strong performance in Generics and Branded and the resilience of our Injectables business

·  Core operating profit grew 9% to $309 million and core operating margin reached 25%

·  Generated good cashflow from operating activities of $224 million. The reduction compared to the first half of 2020 reflects the timing of tax payments

·  Maintained low leverage with net debt4 to core EBITDA5 of 0.9x at 30 June 2021 (31 December 2020 0.9x)

Continued revenue growth in all three businesses

·  Generics delivered strong revenue growth and significant margin improvement reflecting good demand for new and recently launched products, a more favourable product mix and lower operating expenses

·  Global Injectables revenue grew modestly, following the exceptionally strong performance in H1 2020, reflecting the resilience of our product portfolio. Injectables operating profit declined in line with expectations, primarily due to a shift in product mix 

·  Branded achieved double digit revenue growth and improved margins, driven by a strong performance across Tier 1 markets

Further progress increasing availability of important medicines

·  Resumed launch of generic Advair Diskus® in April

·  Received approval for and launched 8mg Naloxone nasal spray, demonstrating ability to bring complex generic products to customers and patients

·  Launched 9 injectable products in the US, with further launches expected in the second half

·  Launched our first locally manufactured oral oncology product in Algeria

Improved FY outlook driven by upgraded guidance for Generics

·  Injectables – we continue to expect revenue growth in the mid-single digits, with core operating margin in the range of 37% to 38%

·  Generics – we now expect revenue to be in the range of $810 million to $830 million and core operating margin to be in the range of 22% to 24%

·  Branded – we continue to expect revenue to grow in the mid-single digits in constant currency

Further information:

A recording of the presentation will be available on the Company’s website at www.hikma.com from 8:00am BST. Hikma will also host a webinar with a live Q&A for analysts and investors at 9:30am BST, and a recording will be available on the Company’s website later that day.

Please register your attendance in advance by clicking here: https://hikma.zoom.us/webinar/register/WN_wugtG0VQTwm8c5b5FM8e5A. For further information please contact Tiina Lugmayer – tlugmayer@hikma.com.              

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