(Alliance News) - Shares in Hikma Pharmaceuticals PLC jumped on Thursday after it lifted the dividend by 29% amid better-than-expected annual profit.
In early exchanges on Thursday, shares in Hikma traded 4.0% higher at 2,078.00 pence each in London.
The London-based pharmaceutical company reported that operating profit in 2023 rose by 30% to USD367 million from USD282 million the year prior.
Revenue climbed by 14% to USD2.88 billion from USD2.52 billion.
Core operating profit increased by 19% to USD707 million from USD596 million.
Liberum analyst Seb Jantet said this profit growth, ahead of the USD689 million market consensus, was primarily driven by better than expected margins in the group's Branded and Generic divisions.
Basic earnings per share edged up by 2% to USD0.86 from USD0.84.
The improved financial performance was reflected in a bumper increase to the dividend, with more rises pledged.
Hikma lifted the annual payout by 29% to USD0.76 per share from USD0.56 in 2022.
Hikma said it intends to progressively increase the dividend, with a payout ratio in the range of 30% to 40% reflecting confidence in the long-term growth prospects.
Chief Executive Riad Mishlawi said that 2023 had been a year of "significant progress," with growth in three of the company's businesses.
Injectables revenue rose 6% with a core operating margin of 36.9%, slightly lower than 2022's 38.3%.
Branded revenue improved by 3% reflecting a good performance across the majority of its markets, offsetting the impact of halting our operations in Sudan, Hikma said. The core operating margin of 23.8% advanced from 21.1% in 2022.
In Generics, revenue leapt by 39% with a core operating margin of 20.5%, improving from 15.3% in 2022.
This reflected a good recovery in the base business and a strong contribution from the authorised generic of sodium oxybate.
For 2024, Hikma forecast revenue growth in the range of 4% to 6% and core operating profit in the range of USD660 million to USD700 million.
By Jeremy Cutler, Alliance News reporter
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Hikma Pharmaceuticals (HIK)