Hikma revenue lifted by strong injectables performance

20th Aug 2014 09:11

A strong performance by its injectables business helped drive first half revenue growth of 16% at pharmaceuticals manufacturer Hikma. The business delivered a 41% jump in turnover, lifting group revenue from $638m to $738m and the gross margin from 55.3% to 59.8%. A good performance was seen across most of its markets within the branded division, with strong growth in key markets such as Egypt and Saudi Arabia. However, sales were lower than expected in Algeria due to restructuring and in Sudan, Iraq and Libya due to escalating political disruptions. Branded revenue grew by 1% and adjusted operating profit decreased by 9%.Generics benefited from market opportunities and the re-introduction of certain products, which limited the decline in revenue to $128m. The group's chief executive, Said Darwazah, described himself as being "very pleased" with the results, which he said reflected strong underlying performances and "success in capturing a number of specific market opportunities". "In the Middle East and North Africa region, our focus on new, higher value products is delivering good results in key markets. Whilst this is being offset by weakness in other markets this year, our businesses across the region remain well positioned to drive future growth." Earnings before interest, tax, depreciation and amortisation (EBITDA) rose from $182m to $269m, while pre-tax profit rose from $111m to $219m. Basic earnings per share soared to 85.4 cents from 37.1 cents in the comparative period. The dividend was maintained a 7.0 cents per share, in line with the same period in 2013, but declared a special dividend of 4.0 cents (2013 H1: 3.0 cents), which it said reflected "reflecting the exceptionally strong market opportunities captured by our US businesses in the first half of 2014". The value of the stock has risen 47.88% in the year-to-date, but dropped 1.66% to 1,774p on Wednesday morning. NR