Hikma Pharmaceuticals PLC (LON:HIK), and its subsidiaries, the multinational pharmaceutical company, has reported its Interim Results for the six months ended 30 June 2025.
Riad Mishlawi, Chief Executive Officer of Hikma Pharmaceuticals , said:
“In the first half of 2025, the strategic changes and renewed focus we put in place have started to deliver tangible results. We achieved strong revenue growth and built solid momentum across the business. While core operating profit was lower due to a strong comparator in 2024 and a change in product mix, we expect a return to growth in the second half and are pleased to reiterate our full-year 2025 guidance for the Group.
Demand across our portfolio remains robust, we are successfully launching new products, strengthening our manufacturing capabilities, and securing key strategic partnerships. We are also making significant strides in advancing our pipeline and increasing our investment in R&D. With this foundation, we are well-positioned for the future and I look forward to sharing more updates on our continued growth.”
Group H1 highlights:
| Reported results$ million | H1 20251 | H1 2024 | Change | Constant currencychange |
| Revenue | 1,658 | 1,569 | 6% | 5% |
| Operating profit | 259 | 351 | (26)% | (25)% |
| Profit attributable to shareholders | 238 | 226 | 5% | 6% |
| Cashflow from operating activities | 161 | 198 | (19)% | – |
| Basic earnings per share (cents) | 108 | 102 | 6% | 7% |
| Interim dividend per share (cents) | 36 | 32 | 12% | – |
| Core results3$ million | H1 2025 | H1 2024 | Change | Constant currencychange |
| Core revenue | 1,657 | 1,569 | 6% | 5% |
| Core operating profit | 373 | 402 | (7)% | (6)% |
| Core EBITDA4 | 429 | 453 | (5)% | (5)% |
| Core profit attributable to shareholders | 270 | 283 | (5)% | (4)% |
| Core basic earnings per share (cents) | 122 | 128 | (5)% | (3)% |
H1 FINANCIAL HIGHLIGHTS
· Group revenue up 6% driven by robust volumes across all segments and geographies
o Injectables revenue up 12% driven by good performances in Europe (up 26%), MENA (up 16%) and North America (up 8%), supported by recent launches and the Xellia portfolio
o Branded revenue up 4% as we continue to increase market share across MENA
o Hikma Rx5 revenue down 1%, as expected, with differentiated portfolio performing well
· Group core operating profit down 7% but continue to expect strong growth in H2
o Injectables core operating profit down 7% (down 4% in constant currency) and core operating margin of 30.0%, reflecting evolving product mix and appreciation of the Euro
o Hikma Rx core operating profit down 12% vs strong H1 2024, with 17.6% core operating margin
o Branded core operating profit up 3% (up 1% in constant currency), with core operating margin of 30.4%, reflecting the usual weighting of costs to the second half of the year
o Reported Group operating profit of $259 million, down 26%, impacted by the non-core legal settlement related to sodium oxybate
· Robust balance sheet, cashflow and dividend growth
o Cashflow from operating activities of $161 million (H1 2024: $198 million)
o Net debt6 to core EBITDA7 of 1.7x at 30 June 2025 (31 December 2024: 1.4x)
o Interim dividend of 36 cents per share, up 12%
STRATEGIC PROGRESS
· Increasing investment to support growth
o 20% increase in R&D investment vs H1 2024, as we invest to accelerate pipeline growth
· Successful integration of Xellia to strengthen Injectables and Hikma Rx
o Zagreb R&D centre, with over 80 employees now contributing to both Injectables and Hikma Rx
o Upgrade of Bedford, Ohio Injectables facility on track
· Broadening and enhancing portfolio through approvals and launches
o Received US FDA approval for TYZAVANTM, a novel ready-to-use formulation of vancomycin injection, and ustekinumab, a biosimilar referencing Stelara®
o Expanded oral oncology portfolio in MENA with the launch of palbociclib (Papillio) and improved market share for key therapies in diabetes, multiple sclerosis and respiratory
o Launched the first generic of mercaptopurine oral suspension in the US, with FDA Competitive Generic Therapy designation
· Strengthening the pipeline through strategic partnerships and agreements
o Signed seven partnerships across all three businesses, including an exclusive licensing agreement with pharmaand GmbH (pharma&) to commercialise rucaparib, an innovative oral oncology therapy, across MENA
o Acquired the FDA-approved Abbreviated New Drug Application (ANDA) for trametinib tablets from Novugen
MAINTAINING STRONG 2025 GROUP OUTLOOK
· 2025 Group revenue growth of 4% to 6%
· 2025 Group core operating profit of $730 million to $770 million
INTERNATIONAL TRADE POLICIES AND US DOMESTIC MANUFACTURING
· The US administration’s trade strategy involving the introduction of tariffs on direct US imports is being closely monitored. The situation remains dynamic and Hikma continues to assess the situation and take mitigating actions where appropriate
· The full year 2025 outlook for the Group takes into account an impact from tariffs as implemented at the date of this release, and related inflationary pressures
· During the first half, Hikma announced it will invest $1 billion by 2030 to further expand its US manufacturing and R&D capabilities
· Hikma has a long history of consistently expanding its US manufacturing capabilities and volume capacity, and is uniquely positioned as a large domestic manufacturer of generic medicines needed by the US healthcare system to treat patients nationwide
Further information:
A pre-recorded presentation will be available at www.hikma.com at 07:00 BST. Hikma will also hold a live Q&A conference call at 09:00am BST, and a recording will be made available on the Company’s website.
To join via conference call please dial:
United Kingdom (toll free): +44 808 189 0158
United Kingdom (local): +44 20 3936 2999
Access code: 358168
