Hikma reiterates guidance as currency headwinds weigh on interims

19th Aug 2015 08:03

(ShareCast News) - Hikma Pharmaceuticals reiterated its full-year guidance, although strong currency headwinds weighed on its interim pre-tax profit.The FTSE 100 group said it expected full-year revenue to grow approximately 6% year-on-year at constant currency or around 2% at actual exchange rates.In the six months to 30 June, the London-listed group posted a 22.3% year-on-year decline in pre-tax profit to $170m while revenue slid 3.9% to $709m. Analysts mostly seemed satisfied that results were in line, with Merrill Lynch saying operating profit was 20% ahead of its number.Hikma said revenue in its generics division tumbled 38.2% year-on-year to $128m, due to higher competition in the period and its "exceptionally" strong performance in the first quarter of 2014.Gross margin in the business fell to 60.8% from 74.2%, the group said, adding it expects the division to deliver revenue of between $175m and $200m for the full year.The sluggish performance in its generics division offset a 9% year-on-year growth in the branded arm, which was boosted by new product launches and a focus on higher-value items."We have taken important strategic steps this year and we are very excited about the opportunities these bring to the group," said group chief executive Said Darwazah."Across our geographies, we have strong market positions, we are executing well and we are very confident in the outlook for 2015 and beyond."Hikma has proposed an interim dividend of 11.0 cents per share, in line with last year's payment.Hikma shares were up 2.67% to 2,464.00p at 0849 BST on Wednesday