Hikma reports strong 2018 interim results and raises full year guidance

Corporate

Hikma reports strong 2018 interim results and raises full year guidance

London, 15 August 2018 – Hikma Pharmaceuticals PLC (Hikma, Group) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY) (rated Ba1 Moody’s / BB+ S&P, both stable), the multinational generic pharmaceutical company, today reports its interim results for the six months ended 30 June 2018.

  • Group revenue of $989 million, up 11% and in constant currency up 10%[1]
  • Operating profit of $174 million, up 54%
  • Core[2] Group operating profit of $214 million, up 22% and up 23% in constant currency
  • Core basic earnings per share of 61.4 cents, up 35% and up 38% in constant currency
  • Basic earnings per share of 44.0 cents, up 53% and up 57% in constant currency
  • Cashflow from operations of $185 million
  • Net debt reduced to $501 million (31 Dec 2017: $546 million) and healthy leverage ratios maintained
  • Interim dividend of 12 cents per share, up from 11 cents per share
  • Guidance raised for Injectables and Generics businesses and reiterated for Branded business

 

 

Siggi Olafsson, Chief Executive Officer of Hikma, said: 

 

“I am pleased with our first half performance, with each of our three business segments achieving revenue and, importantly, profit growth.

 

Our Injectables business continues to demonstrate resilience. Our broad portfolio, extensive manufacturing capabilities and geographic footprint are enabling us to respond quickly to changing market dynamics and grow our market share. In our Generics business, we are successfully driving demand for our more differentiated in-market products and are making progress reducing our cost base.  We achieved good results in the Branded business, taking into consideration the usual seasonality.

 

In the first half, we renewed our focus on advancing our pipeline, enhancing our corporate R&D team and accelerating new projects.  More broadly, we are strengthening key functions across the Group and bringing new capabilities to ensure we have the right teams in place to take the business forward. 

 

Our performance in the first half exceeded our expectations and we are pleased to be able to raise our guidance for both our Injectables and Generics businesses for the full year.

 

The measures we have taken and investments we have made across the Group over the past year are delivering results, but we still have work to do.  Our markets are competitive and we don’t expect the same demand for some of our injectable products to continue into 2019.  This means we must remain focused on strengthening our customer relationships, improving profitability and advancing our pipeline to ensure future growth.”

 

Summary financials

 

Core results[3]

 

H1 2018

$million

Growth

H1 2017

$million

Constant currency

 

$

Core revenue

989

+10%

+11%

895

Core operating profit

214

+23%

+22%

176

Core EBITDA

252

+18%

+17%

215

Core profit attributable to shareholders

148

+39%

+36%

109

Core basic earnings per share (cents)

61.4

+38%

+35%

45.4

                                                    

 

 

Reported results

 

H1 2018

$million

Growth

H1 2017

$million

Constant currency

 

$

Revenue

989

+10%

+11%

895

Operating profit

174

+56%

+54%

113

EBITDA

230

+10%

+9%

211

Profit attributable to shareholders

106

+58%

+54%

69

Basic earnings per share (cents)

44.0

+57%

+53%

28.8

 

[1] Constant currency numbers in 2018 throughout the document represent 2018 numbers re-stated using average exchange rates in H1 2017, excluding price increases in the business which resulted from the devaluation of currencies.

[2] 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 is a non-IFRS measure. See page 13 for reconciliation of core results to reported IFRS results.

[3] Core results are presented to show the underlying performance of the Group, excluding the exceptional items and other adjustments set out in Note 4.  EBITDA is earnings before interest, tax, depreciation, amortisation and impairment charge. Core results and EBITDA are non-IFRS measures. Reconciliation to reported IFRS measures are provided on pages 13 and 14 respectively.

Webcast Link:

http://webcast.openbriefing.com/hikma_interim_results_2018/ 

Conference call Replay information

United Kingdom - 020 3936 3001
United States - 1 845 709 8569

All other locations - + 44 20 3936 3001

Replay code: 338668