25th Feb 2021 08:38
(Alliance News) - Hikma Pharmaceuticals PLC on Thursday raised its annual dividend as its reported higher pretax profit, with growth from all three of its businesses, though profit attributable to shareholders declined.
Shares in Hikma were down 5.0% at 2,297.00 pence in London on Thursday morning,
The drug maker's pretax profit increased 14% to USD558 million in 2020 from USD491 million in 2019 as revenue rose 6% to USD2.34 billion from USD2.21 billion.
However, profit attributable to shareholders fell to USD431 million from USD486 million, which Hikma said "reflects the utilisation in 2019 of previously unrecognised tax losses and deferred tax benefits". Core profit attributable to shareholders was 12% higher at USD408 million.
Injectables revenue grew 9% to USD977 million in 2020 with a core operating margin of 38.6% versus 38.0% in 2019.
Generics revenue grew 3% to USD744 million with a core operating margin of 21.6%, improved from 17.2%, while Branded revenue grew 5% at constant currency to USD613 million with the core operating margin weakening to 20.6% from 22.1%.
The firm declared a full-year dividend of 50 US cents per share, up 14% from 44 cents in 2019.
For 2021, Hikma expects Injectables revenue to grow in the mid-single digits with a core operating margin in the range of 37% to 38%. Generics revenue is seen around USD770 million to USD810 million and a core operating margin around 20%. Branded revenue is expected to grow in the mid-single digits in constant currency.
Chief Executive Siggi Olafsson said: "Our response to the pandemic demonstrates the resilience of our business, which enabled us to deliver a strong financial performance and continued progress against our longer-term strategic objectives.
"We achieved good revenue growth in all our businesses and an improvement in core profitability. We expanded our portfolio with successful new launches and new partnership agreements, enhanced our manufacturing capabilities and continued to focus on the development of a more diverse, energised and engaged workforce. These achievements leave us well positioned for future growth and we look forward to continued success in 2021."
By Anna Farley; [email protected]
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