London, 11 March 2015 – Hikma Pharmaceuticals PLC (“Hikma”, “Group”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today reports its preliminary results for the year ended 31 December 2014.
2014 highlights
Group
• Group revenue increased by 9% to $1,489 million, driven by strong growth in Injectables
• Profit attributable to shareholders increased by 31% to $278 million. On an adjusted basis, profit attributable to shareholders rose 9% to $299 million
• Basic EPS increased 30% to 140.4 cents per share and adjusted EPS increased by 9% to 151.0 cents per share • Net cash flow from operating activities increased by $88 million to $425 million
• Proposed final dividend of 15.0 cents per share (22.0 cents per share for the full year), plus a special dividend of 6.0 cents per share (10.0 cents per share for the full year), making a total combined dividend for the year of 32.0 cents per share
• Expecting 2015 Group revenue growth of around 6% in constant currency
• Adverse exchange rate movements since the beginning of 2015[1] could impact full year Group revenue by around 3%, or
$45 million, should current exchange rates prevail
Branded
• Branded revenue of $551 million, in line with 2013 and up 1% in constant currency
• Good performance across most MENA markets was offset by restructuring in Algeria and political disruptions in Iraq and Libya
• Branded adjusted operating profit decreased by 18% to $111 million, with an adjusted operating margin of 20.1%, reflecting the impact from disrupted markets and foreign exchange losses
• Expecting 2015 Branded revenue growth in the low-teens and an improvement in adjusted operating margin of around 200 basis points, on a constant currency basis
Injectables
• Global Injectables revenue increased by 33% to $713 million
• Excellent performance in the US, with revenue up 51%, driven by strong underlying growth enhanced by specific market opportunities
• Adjusted operating margin of 37.2%, up from 31.0% in 2013, reflecting a good performance from higher value products and operational efficiencies
• Acquisition of assets of Bedford Laboratories and Ben Venue significantly strengthens our global Injectables business
• Following the extremely strong performance in 2014, expecting to maintain Injectables revenue at the same level in 2015, with a robust adjusted operating margin of around 35%
Generics
• Generics revenue of $216 million, down 19%, reflecting strong underlying growth from the re-launch of legacy products and the expected decline in sales from specific market opportunities
• Generics adjusted operating profit of $113 million, compared with $166 million in 2013, with an adjusted operating margin of 52.3%, compared with 61.9% in 2013
• Expecting Generics revenue of around $200 million in 2015, reflecting the continued decline in certain market opportunities, largely offset by a strong contribution from new product launches
Said Darwazah, Chairman and Chief Executive Officer of Hikma, said:
“The Group delivered an excellent performance in 2014. During the year, we achieved strong underlying growth, enhanced by specific market opportunities. With the acquisition of the Bedford and Ben Venue assets, continued new product launches and our strong market positions in the US, MENA and Europe, Hikma remains well placed for future growth.
Our global Injectables business was the key growth driver this year, demonstrating the attractiveness of our product portfolio in the US, the strength of our sales team and the benefits of our flexible manufacturing capabilities. We are excited to have completed the Bedford acquisition and we are rapidly integrating the Bedford assets, which will be a key contributor to sustainable long term growth for the Injectables business.
We performed well in most of our MENA businesses this year and we are confident that the Branded business can deliver a much stronger performance in 2015. Our Generics business continues to perform well and the investments we are making to launch new products and develop our future pipeline will help to sustain this performance.
I am pleased with the results we achieved in 2014 and I am confident in the outlook for 2015 and beyond.”
Summary P&L $ million | 2014
| 2013
| Change |
Revenue | 1,489 | 1,365 | +9% |
| | | |
Gross profit | 851 | 764 | +11% |
Gross margin | 57.2% | 56.0% | +1.2 |
| | | |
Operating profit | 402 | 352 | +14% |
Adjusted operating profit[2] | 427 | 413 | +3% |
Adjusted operating margin | 28.7% | 30.3% | -1.6 |
| | | |
EBITDA[3] | 474 | 427 | +11% |
Adjusted EBITDA2.3 | 485 | 463 | +5% |
| | | |
Profit attributable to shareholders | 278 | 212 | +31% |
| | | |
Adjusted profit attributable to shareholders1 | 299 | 274 | +9% |
Adjusted profit attributable to shareholders margin1 | 20.1% | 20.1% | - |
| | | |
Basic earnings per share (cents) | 140.4 | 107.6 | +30% |
Adjusted basic earnings per share (cents) 1 | 151.0 | 139.1 | +9% |
| | | |
Dividend per share (cents) | 22.0 | 20.0 | +10% |
Special dividend per share (cents) | 10.0 | 7.0 | +43% |
Total dividend per share (cents) | 32.0 | 27.0 | +19% |
| | | |
Net cash flow from operating activities | 425 | 337 | +26% |
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal, VP Corporate Strategy and Director of Investor Relations +44 (0)20 7399 2760/ +44 7776 477050
Lucinda Baker, Deputy Director of Investor Relations +44 (0)20 7399 2765/ +44 7818 060211
Zeena Murad, Investor Relations Manager +44 (0) 207 399 2768/ +44 7771 665277
FTI Consulting
Ben Atwell/ Matthew Cole +44 (0)20 3727 1000
About Hikma
Hikma Pharmaceuticals PLC is a fast growing pharmaceutical group focused on developing, manufacturing and marketing a broad range of both branded and non-branded generic and in-licensed products. Hikma’s operations are conducted through three businesses: “Branded”, “Injectables” and “Generics” based primarily in the Middle East and North Africa (“MENA”) region, where it is a market leader, the United States and Europe. In 2014, Hikma achieved revenues of $1,489 million and profit attributable to shareholders of $278 million.
A presentation for analysts and investors will be held today at 09:30 UK time at FTI Consulting, 200 Aldersgate, Aldersgate Street, London EC1A 4HD. To join via conference call please dial: +44 (0) 203 003 2666 or 0808 109 0700 (UK toll free). Alternatively you can listen live via our website at www.hikma.com. A recording of both the meeting and the call will be available on the Hikma website. A video interview of Khalid Nabilsi, CFO is available at www.hikma.com. The contents of the website do not form part of this preliminary results announcement.
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