Hikma Pharmaceuticals Plc is recommending an interim dividend of 19 cents per share (approximately 16 pence per share) (H1 2021: 18 cents per share). The interim dividend will be paid on 19 September 2022 to eligible shareholders on the register at the close of business on 19 August 2022.
Other Financial Highlight:
Resilient first half performance
Group revenue flat - strong performance in Injectables and Branded offseting impact of weaker pricing in Generics
Stable reported gross margin of 50.4%, reflecting positive product mix
Core operating profit down 4% to $296 million reflecting lower profit in Generics. Reported operating profit down 27%, primarily reflecting a high comparative in H1 2021 due to an impairment reversal
Good cashflow from operating activities of $169 million while maintaining healthy inventory to ensure continuity of supply
Maintained comfortable leverage with net debt5 to EBITDA of 1.7x at 30 June 2022 (31 December 2021 0.6x), having completed the acquisitions of Custopharm and the Canadian assets of Teligent and a buyback of $300 million shares during the period
Strong performance in Injectables and Branded partially offsets decline in Generics
Global Injectables revenue grew strongly, up 9%, driven by the US base business, the Custopharm and Teligent acquisitions, and a good performance in Europe. Injectables core operating profit increased by 12% and core operating margin expanded to 38.8%
Branded achieved good growth in several key markets, with revenue up 6%. An improved product mix drove growth in core operating profit of 16% and core operating margin of 21.8%
Generics was impacted by the highly competitive environment in the US and slower than expected ramp up of recent launches, resulting in an 18% fall in revenue and core operating margin of 17.6%
Strategic progress positions business for future growth
Successfullly completed the acquisitions of Custopharm and Teligent's Canadian assets
Expanded European footprint through entry into the French injectables market
Investing in local injectables manufacturing in MENA to support growing product portfolio
Benefited from strong demand for oncology products in Algeria supported by continued investment in local manufacturing
Strong contribution from chronic medications - driving 80% of Branded revenue growth in H1
Continued investment in commercial capabilities to support development of growing speciality portfolio and more resilient growth opportunities in Generics
