Hikma Pharmaceuticals Interim Results

Hikma Pharmaceuticals Interim Results

Hikma delivers a strong first half performance and remains on track to deliver revenue growth of 20% for the full year

London, 16 August 2012 – Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ DUBAI: HIK), the fast growing global pharmaceutical group, today reports its interim results for the six months ended 30 June 2012.

Group financial highlights

Summary P&L
$ million
H1 2012 H1 2011 Change
Revenue 532.3 394.8 +34.8%
Gross profit 234.1 172.6 +35.6%
Gross margin 44.0% 43.7% +0.3
Operating profit 75.1 49.0 +53.1%
Adjusted operating profit1 82.1 59.7 +37.4%
Adjusted operating margin 15.4% 15.1% +0.3
EBITDA2 103.7 70.5 +47.1%
Profit attributable to shareholders 40.4 33.1 +22.0%
Adjusted profit attributable to shareholders3 46.0 40.7 +12.9%
Earnings per share (diluted) (cents) 20.4 16.7 +22.2%
Dividend per share (cents) 6.0 5.5 +9.1%
Net cash flow from operating activities 47.1 19.2 +144.9%

  • Group revenue increased by 34.8% to $532.3 million, with organic4 revenue up 7.6%
  • Branded revenue growth of 24.6% reflects strong demand across our MENA markets, with organic5 growth of 12.8%. The Branded business remains on track for around 20% full year revenue growth, with gross and adjusted operating margins broadly in line with 2011
  • Excellent performance in global Injectables delivered 94.0% revenue growth, with organic6 revenue growth of 25.7%, and adjusted operating margin of 22.0%
  • Generics revenue decreased by 27.0% to $55.8 million, reflecting the impact of additional compliance work at the Eatontown facility and increased pricing pressure. Full year revenue guidance is revised to around $115 million
  • Significant increase in Injectables margins more than offsets lower margins in the Generics business, with Group adjusted operating margin of 15.4%, compared to 15.1% in the first half of 2011
  • Profit attributable to shareholders up 22.0% to $40.4 million. On an adjusted basis, profit attributable to shareholders is up 12.9% to $46.0 million
  • Net cash flow from operating activities up $27.9 million to $47.1 million, reflecting growth in profitability and an ongoing focus on working capital management
  • Continued new product delivery across all countries and markets – launched 37 products and received 33 product approvals – and enhancement of the portfolio through product acquisitions
  • Increase in the interim dividend to 6.0 cents per share, up from 5.5 cents for the first half of last year

1Before the amortisation of intangible assets (excluding software) and exceptional items (including acquisition and integration related expenses of $0.6 million (H1 2011: $6.7 million))
2Earnings before interest, tax, depreciation and amortisation
3Before the amortisation of intangible assets (excluding software) and exceptional items
4Before the consolidation of the Multi-Source Injectables, Promopharm and Savanna businesses
5Before the consolidation of the Promopharm and Savanna businesses
6Before the consolidation of the Multi-Source Injectables and Promopharm businesses

Said Darwazah, Chief Executive Officer of Hikma, said:

"We have had a strong start to the year in our Branded and Injectables businesses. I am pleased with the growth we have achieved in our key MENA markets this year. Our global Injectables business continues to deliver extremely strong growth, as we benefit from our increased scale and continued investment in quality and products. In our Generics business, where operations have been disrupted by additional compliance work, we expect sales to gradually improve in the second half.

Overall, the Group is performing well and the outlook is positive for the second half. I am pleased to be able to reiterate our Group guidance of around 20% revenue growth for the full year."

Hikma Pharmaceuticals PLC +44 (0)20 7399 2760
Susan Ringdal, Investor Relations Director
FTI Consulting +44 (0)20 7831 3113
Julia Phillips/Jonathan Birt/Matthew Cole

About Hikma
Hikma Pharmaceuticals PLC is a fast growing global pharmaceutical group focused on developing, manufacturing and marketing a broad range of both branded and non‐branded generic and in‐licensed products. Hikma's operations are conducted through three businesses: "Branded", "Injectables" and "Generics" based primarily in the Middle East and North Africa ("MENA") region, where it is a market leader, the United States and Europe. In 2011, Hikma achieved revenues of $918.0 million and profit attributable to shareholders of $80.1 million.