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Hikma Pharmaceuticals Plc

Hikma Pharmaceuticals PLC (LON:HIK) Revenue and profitability significantly ahead of expectations

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.”

 

Hikma Pharmaceuticals PLC (LON:HIK), the multinational pharmaceutical company, today reported its preliminary audited results for the year ended 31 December 2018. 

 

2018 core1 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.”

 

Core results

 

 2018

$ million

2017

$ million

Change

Constant currency2

change

Core revenue

2,076

1,936

7%

8%

Core operating profit

460

386

19%

24%

Core EBITDA3

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