24th Aug 2016 09:10
(Correcting Hikma's interim dividend level.)
LONDON (Alliance News) - Hikma Pharmaceuticals PLC Wednesday reiterated its full year guidance for 2016 as it reported a fall in pretax profit for its first half, and maintained its interim dividend level.
For the first half of 2016 the FTSE 100-listed pharmaceuticals company reported a pretax profit of USD83 million, down from USD170 million the previous year, on revenue of USD882 million, up from USD709 million. This was mostly due to costs related to its West-Ward Columbus acquisition, which drove up operating expenses, as well higher research and development investment in the half.
Excluding exceptional items related to its West-Ward Columbus acquisition, as well as other costs related to inventory adjustments, core gross profit for the half was USD449 million, up from USD400 million the prior year.
Earlier this month Hikma had warned that it expects operating profit for its Generics division to be hit due to changes in revenue mix, now expecting core operating profit in this division to come in within the range of USD30.0 million and USD40.0 million in 2016, down from USD46.0 million the previous year. However, it reiterated expectations for full year revenue to be between USD2.00 billion and USD2.10 billion.
Hikma reiterated this guidance Wednesday. It proposed an interim dividend of 11.0 cents per share, in line with the previous year.
The company said it is making "excellent progress" integrating its West-Ward Columbus acquisition, although reiterated that it had seen slower than expected approvals for some products in the first half. Although these products have now been approved, their delay "had an impact on expected revenue and profit in 2016".
"Hikma has delivered a solid first half performance in a transitional year. Our global Injectables business is performing well, with revenue growth and strong profitability driven by a favourable product mix," Chairman and Chief Executive Officer Said Darwazah said in a statement.
"Overall, the group is well positioned across our markets and we are confident that we have the regulatory, R&D and commercial capabilities to realise the full potential of our pipeline opportunities over the coming years," Darwazah added.
Shares in Hikma were up 0.2% at 2,308.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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