Hikma Pharmaceuticals (HIK) H2 2023 earnings summary

Executive summary

• 2023 core revenue rose 14% to $2.875bn; core operating profit increased 19% to $707m and core EBITDA rose 17% to $811m.

• Core EBITDA margin was 28%; operating cash flow reached $608m, while reported operating profit was $367m.

• Growth across Injectables, Branded and Generics was supported by launches, portfolio breadth and commercial execution.

Financial highlights

• Core gross profit increased 11% to $1,407m; core profit attributable to shareholders rose 21% to $492m.

• Core basic EPS grew 23% to 223 cents; dividend per share increased 29% to 72 cents.

• Reported revenue rose 14% to $2,875m; reported gross profit was $1,390m, up 12%.

• Reported profit attributable to shareholders increased 1% to $190m; reported basic EPS was 86 cents, up 2%.

Outlook and guidance

• FY2024 revenue growth guidance: 4%–6%; core operating profit guidance: $660m–$700m.

• Injectables revenue growth guidance is 6%–8%, with a core operating margin of 36%–37%.

• Branded revenue growth guidance is mid- to high-single digits in constant currency or low-single digits reported; margin broadly in line with 2023.

• Generics revenue growth guidance is 3%–5%, with a mid-teens core operating margin.

• FY2024 net finance expense guidance is $91m; capital expenditure $160m–$180m; core effective tax rate 22%–23%.