Hikma Pharmaceuticals (HIK) investor relations material

Executive summary

• Achieved 6% year-over-year revenue growth in H1 2025, driven by strong demand and volume increases across all segments and geographies.

• New product launches, increased R&D investment, and strengthened manufacturing capabilities supported performance.

• Healthy profitability maintained despite margin pressures and a 7% decline in core operating profit, with expectations for a stronger H2.

• Strategic partnerships, successful integration of Xellia, and expansion of the compounding business contributed to growth.

• Significant investments in R&D and capacity expansion, with a $5 billion revenue target by 2030.

Financial highlights

• Group revenue rose 6% to $1,658 million in H1 2025; core revenue was $1,657 million.

• Core operating profit declined 7% to $373 million; reported operating profit fell 26% to $259 million due to a $72 million legal settlement.

• Core EBITDA was $429 million, down 5%; core gross margin contracted to 43.7% from 48.2%.

• Profit attributable to shareholders increased 5% to $238 million; basic EPS up 6% to 108 cents.

• Interim dividend increased 12% to 36 cents per share.

Outlook and guidance

• Full-year 2025 group revenue growth expected at 4% to 6%; core operating profit guidance of $730–$770 million.

• Injectables revenue growth forecast at 7% to 9%, with core margin 32%–33%.

• Branded revenue expected to grow 6% to 7%, with margin near 25%.

• Hikma Rx revenue to remain broadly flat, with core margin around 16%.

• Medium-term guidance: Group revenue CAGR of 6%–8% and core EBIT CAGR of 7%–9% from 2024–2027.