Tear Sheet: Hikma Pharmaceuticals PLC

This followed disappointing operating performance in 2022, with a decline in sales of 1.4%, mainly owing to tough competition in the generic space, and some cost pressure that translated into margin erosion of 110 basis points (bps) versus 2021 of the company's operating profit. Reported sales increased more than 18% in first-half 2023, although growth was less substantial for injectables (9%) and branded products (11%) than for generics (39%), reflecting the group's six-month exclusivity for the generic of sodium oxybate. Profitability also rose with core operating margins reaching 28.1% from 24.4% in first-half 2022, as inflation impacts eased. Net debt was stable compared to year-end 2022, despite dividend payments of about $80 million and expansion capital expenditure (capex) for the

...December 21, 2023 Hikma Pharmaceuticals PLC (Hikma) posted strong interim first-half results. This followed disappointing operating performance in 2022, with a decline in sales of 1.4%, mainly owing to tough competition in the generic space, and some cost pressure that translated into margin erosion of 110 basis points (bps) versus 2021 of the company's operating profit. Reported sales increased more than 18% in first-half 2023, although growth was less substantial for injectables (9%) and branded products (11%) than for generics (39%), reflecting the group's six-month exclusivity for the generic of sodium oxybate. Profitability also rose with core operating margins reaching 28.1% from 24.4% in first-half 2022, as inflation impacts eased. Net debt was stable compared to year-end 2022, despite dividend payments of about $80 million and expansion capital expenditure (capex) for the injectables business. Our adjusted leverage significantly improved from the 1.7x reported at year-end 2022,...

Full Report