Hikma Pharmaceuticals (HIK) H1 2024 earnings summary

Executive summary

• Achieved 10% group revenue growth in H1 2024 to $1,569m, with all business segments contributing and strong branded and injectables performance.

• Core operating profit was $402m, flat year-over-year, with core EBITDA at $453m and a 29% margin.

• Strategic progress included portfolio expansion, manufacturing investments, and the announced Xellia acquisition to enhance US injectables and R&D capabilities.

• Launched new products across all regions, expanded into new European markets, and strengthened leadership.

• Maintained a strong balance sheet and robust cash generation, supporting future growth initiatives.

Financial highlights

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

• Core EPS for H1 2024 was 128¢; interim dividend increased to 32¢ per share (up 28%).

• Operating cash flow was $198m, reflecting increased working capital investment.

• Net debt to core EBITDA ratio at 1.3x; net debt at $1,040m as of June 2024; total debt at $1.3bn.

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

Outlook and guidance

• Upgraded 2024 guidance: group revenue expected to grow 6%-8%, core operating profit $700-$730m.

• Injectables revenue to grow 6%-8%, margin 36%-37%; Branded revenue to grow high single digits, margin ~25%.

• Generics revenue to grow 5%-7%, margin 16%-17%; group capex expected at $140-$160m.

• Group core net finance expense expected at $91m; effective tax rate 22%-23%.

• Upgraded guidance reflects strong H1 performance and new product launches.