LONDON (Alliance News) - Hikma Pharmaceuticals PLC Wednesday proposed a final special dividend and raised its total dividend, as it saw pretax profit jump in 2013.
Pretax profit was USD298 million, up from USD132 million in 2012, as revenue rose to USD1.37 billion from USD1.11 billion.
The company posted a total dividend of 20.0 cents per share, up from 16.0 cents in the previous year. Additionally, Hikma announced a special dividend final dividend of 4.0 cents, bringing its total special dividend for the year to 7.0 cents.
In the company's Branded division, revenue rose to USD554 million in 2013 from USD529 million in 2012. Although the decision to cut low-margin sales hit revenue, it helped to boost profitability. Gross margin rose to 49.8% from 48.6% in the previous year.
In Injectibles, revenue rose to USD536 million from USD470 million in 2012, boosted by price increases, new product launches and shifts in the company's product mix.
Generics revenue rose to USD268 million from USD104 million, boosted by strong sales from antibiotic doxycycline. Doxycycline revenue is expected to decline in 2014, hit by increased competition in the US market. Taking into account this decline, the company expects the segment to post revenue of around USD170 million in 2014.
Hikma posted exceptional costs of USD37 million, largely relating to write downs of inventory and costs relating to compliance work at its Eatontown facility in New Jersey. Eatontown underwent re-mediation work in 2013, the company said, and was re-inspected by the US Food and Drug Administration in February 2014. Hikma said this inspection went well, and it is awaiting formal feedback on the regulatory status of the facility.
The company expressed confidence in 2014, saying it had made a good start to the year. It expects to deliver group revenue growth of 5% in 2014, despite the anticipated reduction in doxycycline sales.
It expects its Branded division to see revenue growth of 10%, and its Injectibles division to see revenue growth of 20% and an improved adjusted operating margin.
"Overall, I am very pleased with the results we achieved in 2013 and confident about the prospects for 2014," said Chief Executive Officer Said Darwazah in a statement.
Hikma promoted Mazen Darwazah to a new position of president and chief executive officer of Middle East and North Africa Region and Emerging Markets. The role was expanded from Darwazah's previous role as chief executive of the MENA region.
Bassam Kanaan was promoted to chief strategy and corporate development officer. Kanaan previously held the position of chief operating officer of the MENA region and the EU regions.
Shares in Hikma were trading up 0.6% at 1,482.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Hikma Pharmaceuticals (HIK)