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Hikma Pharmaceuticals PLC (LSE:HIK) has reported financial results for the first half of 2024. The company’s pretax profit increased by 43%, reaching £288 million, compared to £202 million in the same period last year. Revenue grew by 10%, totaling £1.57 billion, up from £1.43 billion. This revenue increase occurred alongside a 14% rise in the cost of sales, which reached £813 million. Despite the higher costs, total operating expenses decreased by 14%, falling to £405 million from £470 million.
Dividend Increase
In response to the positive financial performance, Hikma Pharmaceuticals has raised its interim dividend by 28%, increasing it to 32 US cents per share from 25 cents. This adjustment reflects the company's financial results and its approach to shareholder returns.
Capital Expenditure and Debt
Net debt for Hikma Pharmaceuticals rose by 7.1% to $1.28 billion from $1.19 billion during the six-month period. Capital expenditure was reported at $69 million, a decrease of 18% from $84 million in the previous year. Investments during this period focused on upgrading and expanding manufacturing capabilities, with allocations including $19 million for the US, $32 million for the Middle East & North Africa, and $18 million for Europe.
Acquisition and Expansion
In June 2024, Hikma completed the acquisition of parts of the US finished dosage form business from Xellia Pharmaceuticals AS for $135 million, with an additional contingent consideration of up to $50 million. This acquisition is expected to enhance Hikma’s portfolio with new products, pipeline projects, and additional manufacturing and research capabilities in the Injectables sector.
Updated Full-Year Guidance
Hikma Pharmaceuticals has revised its full-year guidance based on its recent performance. The company now projects revenue growth between 6% and 8%, an increase from the previous estimate of 4% to 6%. Core operating profit is anticipated to be between $700 million and $730 million, up from the earlier forecast of $660 million to $700 million. In the previous year, Hikma achieved a 14% increase in revenue and a core operating profit of £707 million.
