Hikma hurt by Middle East conflict

16th Mar 2011 07:39

Shares of Jordan-based Hikma Pharmaceuticals fell as it warned recent events in the Middle East and North Africa region, particularly in Egypt, Libya and Tunisia will result in slower growth in its key branded business in 2011."We started 2011 with double digit growth expectations for our Branded business. Recent events in the MENA region... now require us to be more cautious in our ability to achieve this. To date, we have experienced disruptions in manufacturing, sales and distribution," Hikma said in a company statement. The group, which makes around 60% of its revenue from the MENA region, said overall group revenue is expected to grow around 7% in 2011.Looking longer term Hikma said it remains "very optimistic" about opportunities that economic reform can bring to the MENA region. "We continue to believe in the excellent long-term growth potential of the MENA region and will continue to invest in building our unique local presence, both organically and through acquisitions," it said. Group operating profit rose to $135.1m for the year ended 31 December 2010 from $107.3m the year earlier. Revenue rose to a better than expected $730.9m during the year from $636.9m before. The board has recommended a final dividend of 7.5 cents per share, which will make a dividend for the full year of 13 cents per share, up from 11 cents per share in 2009.