Hikma Pharma ups dividend as generics generate generous cash - UPDATE

- Revenue and EPS up 23 and 111 per cent- Final and special dividend of 13c and 4c - Growth expected in 2014 despite pullback in genericsPowerful revenue growth from its generic drugs and solid growth elsewhere helped Hikma Pharmaceutical post impressive results for 2013. Group revenue increased 23% to $1,365m and a 30% strenghtening of operating margins from improvements in the Generics and Injectables businesses helped group profits soar 112% to $212m.Basic earnings per share similarly leapt 111% to 107.6c per share. As said Chief Executive Said Darwazah: "The group had an excellent year, with all of our businesses delivering a strong performance and improved profitability."Net cash flow from operating activities increased by $153m to $337m, as the Generics business delivered 158% revenue growth, primarily from expanding sales of antibiotic doxycycline, and threw off cash as it reversed the previous year's loss with a $127m profit. Darwazah explained: "This enabled us to cover the costs of remediating our Eatontown facility and further strengthen the group balance sheet as we continue to look at acquisition opportunities across our businesses."The swollen cash coffers also led to a proposed final dividend of 13c per share, plus a special dividend of 4.0c per share, making a full year dividend of 20.0c per share and a total special dividend for the year of 7.0c per share.Darwazah added that the FTSE 250 company continued to invest in its product pipeline and focus on operational excellence which he expects will help to sustain future growth.In the Middle East and North Africa (MENA) region, a focus on improving the product mix, enhancing sales activities and driving manufacturing efficiencies delivered good growth and better profitability. Of the two largest businesses, Branded business, which is centred the on MENA, grew revenues 5%, while the global Injectables business lifted revenues 14% and continued to perform well, particularly in the US, where Hikma is looking to maximise the potential of its portfolio and further improve margins. The group reported a good start to 2014 and said it expected to deliver group revenue growth of around 5% this year, despite the anticipated reduction in doxycycline sales hitting anticiptated Generics revenue. Branded should benefit from strong market fundamentals in MENA and investment in the portfolio, while Injectables is expected to accelerate due to its higher value product mix.Analyst Savvas Neophytou at Panmure Gordon said that uncertainty over the doxycycline franchise implied 2014 will be flat at best. "That said, other parts of the business are doing exceptionally well, with Injectables now guided to grow up to 20%," he added, while downgrading the stock from 'buy' to 'hold' on valuation grounds. Shares in Hikma steadily climbed 3.4% to 1523.5p by 12:30 on Wednesday. OH