Hikma Pharmaceuticals (HIK) H1 2024 (Q&A) earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in H1 2024 to $1,569m, with all business segments contributing positively and core EBITDA of $453m at a 29% margin.

• Launched 59 new products, expanded the pipeline to over 300, and entered new European markets.

• Strengthened leadership team and announced the strategic acquisition of Xellia, including products, manufacturing, and R&D assets, pending regulatory approval.

• Continued investment in R&D, manufacturing capacity, and major plant expansions in Algeria and Morocco.

• All three business segments—Injectables, Branded, and Generics—delivered growth, supported by new launches and portfolio expansion.

Financial highlights

• H1 2024 revenue: $1,569m (up 10% year-over-year); core EBITDA $453m (margin 28.9%–29%); core operating profit $402m; reported operating profit up 43% to $351m.

• Interim dividend per share increased 28% to 32¢.

• Operating cash flow at $198m, down from $222m in 1H23, reflecting higher working capital investment.

• Core basic EPS at 128¢ (down 1%); basic EPS 102¢ (up 73%).

• Profit attributable to shareholders: $226m (up 73%); core profit attributable: $283m (flat year-over-year).

Outlook and guidance

• Upgraded 2024 group revenue growth guidance to 6–8% (previously 4–6%) and core operating profit to $700–730m (previously $660–700m).

• Injectables: revenue growth 6–8%, core margin 36–37%.

• Branded: high single-digit revenue growth in constant currency, core margin around 25%.

• Generics: revenue growth 5–7%, core margin 16–17%, with higher R&D spend and increased competition expected in H2.

• Capex expected at $140–160m; core effective tax rate 22–23%.