2019 core[1] results summary
- Group core revenue of $2,203 million, up 6%
- Group core operating profit of $508 million, up 10%
- Core basic earnings per share of 150.4 cents, up 9%
2019 reported results summary
- Group revenue of $2,207 million, up 7%
- Group operating profit of $493 million, up 33%
- Basic earnings per share of 200.8 cents, up 72%
- Cashflow from operating activities of $472 million, up 10%
- Net debt reduced to $242 million and low leverage maintained (net debt to core EBITDA[2] ratio 0.4x)
- Full year dividend of 44 cents per share, up from 38 cents per share
2019 highlights
- Injectables core revenue up 7% driven by strong demand for our broad portfolio and recent launches
- Generics core operating profit up 33% reflecting excellent commercial execution and reduced costs
- Branded core revenue up 8% driven by strong demand across most of our MENA markets
- 108 new products launched across all markets, expanding our global product portfolio
- 18 licensing agreements signed for the US and MENA
- Completed a repeat clinical endpoint study for our generic version of Advair Diskus®
- Entered into a long-term supply agreement with Civica Rx to assist in the delivery of essential medicines in short supply to US hospitals
Siggi Olafsson, Chief Executive Officer of Hikma, said:
“2019 was another very good year for Hikma, driven by strong demand for our broad product portfolio, excellent commercial execution and increased operational efficiencies across the organization. During a challenging year for the industry, we delivered strong financial performance and made important progress on our strategic objectives, including strengthening our operations, building our portfolio and pipeline, forming new partnerships, developing our people and attracting new talent across the Group. These actions were reflected in our financial results in 2019, with each of our three businesses delivering good organic growth in revenue and operating profit.
I am proud of what our teams have achieved across the Group, enabling us to provide high-quality medicines to the people that need them most, every day. We remain highly focussed on executing our strategic priorities, which will drive further growth in 2020 and beyond, creating sustainable value for all our stakeholders.”
Core results | 2019 $ million | 2018 $ million | Change | Constant currency[3] change |
Core revenue | 2,203 | 2,076 | 6% | 6% |
Core operating profit | 508 | 460 | 10% | 9% |
Core EBITDA | 593 | 549 | 8% | 6% |
Core profit attributable to shareholders | 364 | 332 | 10% | 7% |
Core basic earnings per share (cents) | 150.4 | 137.8 | 9% | 7% |
Reported results | 2019 $ million | 2018 $ million | Change | Constant currency3 change |
Revenue | 2,207 | 2,070 | 7% | 6% |
Operating profit | 493 | 371 | 33% | 31% |
EBITDA | 592 | 492 | 20% | 19% |
Profit attributable to shareholders | 486 | 282 | 72% | 70% |
Basic earnings per share (cents) | 200.8 | 117.0 | 72% | 69% |
[1] 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 5. Core results are a non-IFRS measure and a reconciliation to reported IFRS measures is provided on page 11
[2] EBITDA is earnings before interest, tax, depreciation, amortisation and impairment charges/reversals. EBITDA is a non-IFRS measure, see page 12 for a reconciliation to reported IFRS results
[3]Constant currency numbers in 2019 throughout the document represent 2019 numbers re-stated using 2018 exchange rates, excluding price increases in the business which resulted from the devaluation of currencies