(Alliance News) - Hikma Pharmaceuticals PLC on Friday posted a rise in earnings for the first half of 2020, as it revised its full-year guidance amid a positive outlook.
Shares in the FTSE 100 generic pharmaceuticals maker were trading 8.3% higher at 2,335.20 pence each on Friday morning in London.
Hikma said pretax profit for the six months ended June 30 was USD274 million, up 21% year-on-year from USD226 million. This was as revenue rose 7.6% to USD1.13 billion from USD1.05 billion the year prior. Operating margin was 25%, improved from 24%.
An interim dividend of 16.0 cents was declared, up 14% from 14.0 cents.
Hikma said the improved performance reflected growth in all three of its businesses, highlighting a "particularly strong" performance from its Injectables business.
Revenue from the Injectables business grew 13% to USD485 million, driven by increased demand for Covid-19 related products in the US and EU.
Improved performance of the Generic business was supported by better-than-expected performance from new product launches, with the segment bringing in USD369 million in revenue, up from USD368 million the year prior.
Revenue from the Branded business achieved a strong performance in the company's tier one Middle East and North Africa market, recording 14% growth to GBP275 million.
Looking ahead, Hikma revised it guidance for the full year. It now expects Injectables revenue to be between USD950 million to USD980 million, up from USD894 million in 2019. Core operating margin is expected to be in the range of 38% to 40%, up from previous forecasts of 35% and 37%.
Generics revenue is now expected to be in the range of USD720 million to USD760 million, exceeding April's forecasts of between USD700 million to USD750 million. Generics revenue in 2019 was USD719 million. Core operating margin is forecast to be around 21%, up from previous forecasts of between 16% and 18%.
Branded revenue expected to grow in the mid-single digits.
"We have delivered strong first-half results, which are ahead of our initial expectations and reflect good progress in each of our three businesses. Our performance demonstrates the breadth and resilience of our portfolio, as well as the vital role of the generic medicines we supply. We have a positive outlook for each of our three businesses and look forward to the second half with confidence," said Chief Executive Siggi Olafsson.
As at the end of June, Hikma had cash of USD413 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Hikma Pharmaceuticals (HIK)