HIKMA PHARMACEUTICALS PRELIMINARY RESULTS
Hikma delivers a strong performance in Branded and Injectables and makes excellent strategic progress in US Generics, transforming the future prospects of the Group.
Group revenue expected to be in the range of $2.0 billion to $2.1 billion in 2016, with continuing momentum into 2017.
Financial highlights
- Following an exceptionally strong year in 2014, Group revenue was $1,440 million, down 3%, or up 2% in constant currency1
- Group gross margin was in line with 2014 at 8%, reflecting good cost control across all business segments
- Core operating profit2 was $409 million, down 4%, or up 4% in constant currency, with strong profitability in Injectables and Branded offsetting expected declines in Generics
- Strong net operating cash flow of $366 million, despite a lower contribution from specific market opportunities in the Generics business
- Group profit attributable to shareholders was $252 million, down 9%, or up 2% in constant currency
- Proposed final dividend of 21 cents per share (32 cents per share for the full year), in line with the total dividend paid in 2014
- 2016 Group revenue expected to be in the range of $2.0 billion to $2.1 billion in constant currency, reflecting strong growth across all three business segments and the consolidation of ten months of revenue from Roxane
Strategic highlights
- Successful execution of the Group’s growth strategy across all three business segments
- Launched 92 products and received 220 approvals, expanding and enhancing our global product portfolio
- Swift integration of Bedford, delivering new high value products for US Injectables, including three new product launches; on track to achieve target of 20 launches by 2017
- Transformational acquisition of Roxane brings significant scale and growth opportunities to the US business, adding a broad portfolio and large, differentiated pipeline
- Acquisition of EUP strengthens our capabilities in oncology and injectables in Egypt
- Balance sheet strengthened through inaugural bond issue, raising $500 million, and new $1.2 billion revolving credit facility, providing financial flexibility to support future growth
Summary financial results $ million | 2015 | 2014 | Change | Constant currency change |
Revenue | 1,440 | 1,489 | -3% | +2% |
Gross profit | 818 | 851 | -4% | +1% |
Core operating profit2 | 409 | 427 | -4% | +4% |
EBITDA3 | 454 | 474 | -4% | +4% |
Core EBITDA4 | 466 | 485 | -4% | +4% |
Profit attributable to shareholders | 252 | 278 | -9% | +2% |
Coreprofit attributable to shareholders5 | 286 | 299 | -4% | +7% |
Basic earnings per share (cents) | 126.6 | 140.4 | -10% | - |
Core basic earnings per share (cents)5 | 143.7 | 151.0 | -5% | - |
Dividend per share (cents)6 | 32.0 | 32.0 | 0% | - |
Net cash flow from operating activities | 366 | 425 | -14% | - |
Said Darwazah, Chairman and Chief Executive Officer of Hikma, said:
“Following an exceptional 2014, our Branded and Injectables businesses performed strongly in 2015 and we made excellent strategic progress in US Generics, transforming the future prospects of the Group.
Our businesses in MENA are performing very well. We achieved excellent growth in our key markets in 2015 whilst continuing to invest in our pipeline to support future growth. In Europe, we made significant investments in our injectable manufacturing capabilities, utilising equipment transferred from the Ben Venue site. In the US, Bedford is now well integrated and the pace of new injectables launches is accelerating.
The integration of the acquisition of Roxane, which closed at the end of February, will be a key focus this year and will transform our non-injectables business in the US, adding complementary and well differentiated products, an attractive pipeline, proven R&D capabilities and greater overall scale.
We have taken important strategic steps this year. Our focus in the short term will be on integrating Roxane and delivering high value, differentiated product launches. From 2017, we expect the benefits from the investments that we have made in recent years – in R&D, M&A, co-development partnerships and licensing agreements – to accelerate. We have an exciting pipeline across our business segments that will drive accelerated and sustainable future growth.”