Highlights
• Group revenues up 29% to $580.7 million with 63% of revenues generated in MENA
• Adjusted profit attributable to shareholders up 4.5% to $67.4 million
• Branded revenues up 61% to $321 million reflecting strong organic growth of 22%1
• Injectables revenues up 23% to $149 million, reflecting organic growth of 14%.
Injectables revenues in MENA grew by 43%, and in the US by 29%
• Generics business returned to profit in Q4 2008 following management changes and operational improvements
• Operating cash flow up 41% to $75 million through strong focus on working capital management
• Net debt reduced by 44% to $171 million
Commenting on the 2008 results and outlook, Said Darwazah, Chief Executive of Hikma, said:
“Hikma achieved another year of outstanding growth in its Branded and Injectables businesses, with 63% of Group revenues generated in the Middle East and North Africa. The acquisitions of APM and Hikma Egypt were significant contributors, benefiting from Hikma management and marketing expertise to grow revenues by 38% and 58% respectively.
Following the poor performance of our US Generics business in the first half of 2008, we made a number of management and other changes that returned the business to profitability in the final quarter. We also delivered a 41% increase in operational cash flow from our focus on working capital management.
“Given the prevailing economic conditions in 2009, we are expecting Group revenues to grow by 10-15%, with an improvement in our gross margin of 1-2%. The higher end of these ranges is based on constant exchange rates while the lower end can be expected if the 2009 average exchange rate is at the level prevailing in mid-March. Our solid balance sheet and the improvements we are achieving in operating cash flow will give us the financial flexibility to pursue strategic acquisitions that will enhance our strong organic growth.
“We are confident that the proven strength of Hikma’s business model will enable us to deliver a strong performance in 2009 and the years ahead.”
An interview with Said Darwazah, Chief Executive, is available on http://www.hikma.com and http://www.cantos.com.
There will be an analyst and investor presentation at 09.00hrs which will be webcast on http://www.hikma.com and available through a conference call facility. Participants should dial +44 (0)20 8609 0582.
