Hikma Pharmaceuticals PLC (Hikma, Group) (LON:HIK) (NASDAQ:HIK) (OTCMKTS:HKMPY) (rated Ba1 Moody’s / BB+ S&P, both stable), the fast-growing multinational pharmaceutical group, today reported its preliminary results for the year ended 31 December 2016. The financial results include the consolidation of ten months of Roxane Laboratories (now West-Ward Columbus).
2016 financial highlights
· Group revenue of $1,950 million, up 35% and up 39% in constant currency1
· Group core2 operating profit of $419 million, up 2% and up 14% in constant currency, reflecting strong growth in Injectables and Branded profitability, partially offset by a lower contribution from the Generics business and a step-up in R&D investment across the Group to support sustainable growth
· Group reported operating profit of $302 million, down 21% and down 9% in constant currency, reflecting a significant increase in intangible amortisation and exceptional items in 2016
· Group core basic earnings per share of 118.5 cents, down 18% and down 5% in constant currency following the issuance of 40 million additional shares in February 2016 in relation to the West-Ward Columbus acquisition
· Proposed final dividend of 22 cents per share, and full year dividend of 33 cents per share, up from 32 cents per share for the full year in 2015
· Group revenue in 2017 expected to be around $2.2 billion in constant currency
2016 strategic highlights
· Completed West-Ward Columbus acquisition, making significant progress with integration and cost synergies
· Completed acquisition of EUP, strengthening our position in the fast-growing Egyptian market
· Launched 206 products in different dosages and strengths and received 343 approvals for products in different dosage forms and strengths, expanding and enhancing our global product portfolio
· Launched 9 Bedford products by the end of 2016 and on track to achieve our target of 20 Bedford launches by the end of 2017
Said Darwazah, Chairman and Chief Executive Officer of Hikma Pharmaceuticals, said: “We made significant strategic progress in 2016. The acquisition of West-Ward Columbus is transforming our Generics business and the Group as a whole. This is our largest acquisition to date and the integration process has been both challenging and exciting. We expect the Generics business to achieve significant growth in revenue and profitability in the coming years as we focus on pipeline execution and portfolio optimisation.
Our global Injectables business delivered excellent growth in revenue and operating profit in 2016, at the same time as we more than doubled our R&D investment to underpin the long-term growth potential for this business. In the MENA, our reported results were impacted by the devaluation of the Egyptian pound in November 2016. However, our strategic focus on higher value products, combined with tight cost control, drove significant growth in operating profit in constant currency and a meaningful margin expansion.
Our business today is stronger than ever. We are well positioned across our markets, with a large and differentiated portfolio and pipeline and we are confident in the future prospects of the Group.”
