11th Mar 2015 07:26
LONDON (Alliance News) - Hikma Pharmaceuticals PLC Wednesday posted a rise in pretax profit for 2014, as strong growth in its injectibles business helped offset declines in its branded and generics businesses, and it forecast revenue growth of 6% at constant currency for 2015.
Hikma proposed a final dividend of 15.0 cents per share, and a special dividend of 6.0 cents, taking its total dividend for 2014 to 32.0 cents, up 19% from 27.0 cents in 2013.
The pharmaceutical company posted a pretax profit of USD362 million, up from USD298 million a year before, on a rise in revenue to USD1.49 billion from USD1.37 billion.
Revenue declined in its branded business by 1%, as new products and strong growth in most markets were offset by lower sales in Algeria due to restructuring, and by political disruptions in Iraq and Libya.
Generics revenue fell to USD216 million from USD268 million in 2013, as increased competition hit some products, Hikma said, although this was partly offset by the re-launch of legacy products.
Its injectibles business saw revenue rise 33%, driven by a strong performance in the US, which offset declines in Europe, and the Middle East and North Africa.
Hikma said it has made a good start to 2015, and expects revenue growth of around 6% for the full year at constant currency. It cautioned however, that the strength of the dollar since the beginning of 2015 could reduce revenue by around 3%, or USD45 million, if current exchange rates continue.
It expects its branded business to deliver revenue growth in the low-teens on a constant currency basis, citing growth in underlying markets, improved sales in Algeria and a stronger sales and marketing teams. At actual exchange rates, it expects the business to report revenue growth in the high-single digits, and a slight improvement in adjusted operating margin.
Hikma expects its injectibles business to achieve revenue at a similar level to 2014 in 2015, and it expects its generics business to deliver around USD200 million in revenue in 2015, as new product launches partly offset the continue decline of some market opportunities.
Hikma said it is continuing to develop its generic portfolio through reintroducing products, investing in its pipeline and targeted mergers and acquisitions.
Hikma cited its "very strong balance sheet", which it said will allow it to pursue acquisition opportunities.
Hikma is currently listed on the FTSE 250, but will be promoted to the FTSE 100 from March 23.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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