Hikma Pharmaceuticals (HIK) H2 2024 (Q&A) earnings summary

Executive summary

• Achieved double-digit core revenue growth of 10% to $3,156m, surpassing upgraded expectations, with core operating profit up 2% to $719m and core EBITDA up 2% to $824m compared to 2023.

• Delivered results well ahead of original guidance, with revenue $140M and EBIT $40M above expectations for FY24.

• Achieved strong growth across all divisions, with new management successfully executing strategic initiatives.

• Strategic progress included R&D expansion, new product launches, and acquisitions such as Xellia and Takeda brands.

• Significant investments in R&D, capacity expansion, and technology to support medium- and long-term growth.

Financial highlights

• Injectables revenue grew 10% to $1.3B, with core operating profit of $468M and margins at 35.3%.

• Branded division revenue up 9% in constant currency to $769M, with core EBIT of $182M and 24.6% margin.

• Generics revenue exceeded $1B, with core operating profit of $170M and 16.4% margin, outperforming previous expectations.

• Core gross profit increased 3% to $1,448m; core profit attributable to shareholders rose 1% to $495m.

• Dividend per share increased 11% to 80¢.

Outlook and guidance

• 2025 group revenue growth expected at 4–6%; core operating profit guidance of $730m–$770m.

• Injectables expected to grow 3%-5% organically in 2025 due to tough comps and FX headwinds, but medium-term aspiration remains high single-digit growth.

• Branded division expected to maintain 25% margin and 6%-7% CAGR over the next five years.

• Generics profitability expected to remain strong in 2025, with CMO contracts supporting growth from 2027.

• Biosimilars ustekinumab and denosumab targeted for U.S. launch in 2026.