Hikma Pharmaceuticals Strong 2024 performance and a positive outlook for 2025

London, 26 February 2025 – Hikma Pharmaceuticals PLC (‘Hikma’ or ‘Group’), the multinational pharmaceutical company, today reports its audited results for the year ended 31 December 2024.

Riad Mishlawi, Chief Executive Officer of Hikma, said: 

“It’s been another strong year for Hikma with double digit revenue growth, increased profits and a resilient margin. We continued to invest in the business to support our future progress, with a strategic acquisition alongside new partnerships and agreements. This momentum combined with our diversified portfolio, leading market positions and increasing investment in R&D, underpin our positive outlook for 2025 and confidence in the future.” 

 

Reported results (statutory)	2024 $ million	2023 $ million	Change	Constant currency[1] change
Revenue	3,127	2,875	9%	9%
Operating profit	612	367	67%	71%
Profit attributable to shareholders	359	190	89%	98%
Cashflow from operating activities	564	608	(7)%	-
Basic earnings per share (cents)	162	86	88%	98%
Total dividend per share (cents)	80	72	11%	-

 

Core results[2] (underlying)	2024 $ million	2023 $ million	Change	Constant currency1 change
Core revenue	3,156	2,875	10%	10%
Core operating profit	719	707	2%	4%
Core EBITDA2	824	810	2%	4%
Core profit attributable to shareholders	495	492	1%	5%
Core basic earnings per share (cents)	224	223	0%	4%

 

STRONG FINANCIAL PERFORMANCE

• Double-digit Group core revenue growth, ahead of expectations
• Group core revenue up 10%, including contribution from Xellia acquisition (9% organic). Reported Group revenue up 9%
• Core revenue up in all three business segments – Injectables up 10%, Branded up 8% and Generics up 11%, supported by breadth of portfolio and recent launches
• Growth in all regions, led by North America

• Core Group operating profit up 2% to $719 million at a margin of 22.8% (2023: 24.6%)
• Injectables core operating profit up 5% with margin of 35.3% (2023: 36.9%). Excluding Xellia, Injectables core operating margin was 35.7%. Branded core operating profit up 11% with margin of 24.6% (2023: 23.8%)
• Generics core operating profit down 11% with margin of 16.4% (2023: 20.5%), reflecting the expected higher royalties for our authorised generic of sodium oxybate
• Group reported operating profit up 67%, reflecting an impairment reversal in our Generics business and lower operating profit in the previous year resulting from the impairment of our Sudan business and a legal settlement provision

• Strong cashflow from operating activities of $564 million (2023: $608 million)
• Good operating performance slightly offset by increased trade receivables reflecting strong sales towards the end of the year

• Robust balance sheet and high returns
• Leverage at 1.4x net debt^[3] to core EBITDA (31 December 2023: 1.2x)
• Return on average invested capital of 16.9%^[4]
• Full-year dividend of 80 cents per share, up 11%, reflecting confidence in our future prospects

CONTINUED STRATEGIC PROGRESS TO DRIVE FUTURE GROWTH  

• Invested to further expand and diversify portfolio 
• Acquired Xellia Pharmaceuticals’ US finished dosage form business, further strengthening the Injectables business
• Agreed to acquire 17 Takeda brands licensed to Hikma, enhancing future Branded profitability
• Strengthened R&D, manufacturing and commercial capabilities

• Signed new agreements and partnerships
• Expanded our Generics contract manufacturing (CMO) business with a significant agreement with a global pharmaceutical company. Expected to start contributing meaningfully in 2027 
• Entered into exclusive commercial partnership with Emergent BioSolutions in January 2025 for Kloxxado^® (naloxone HCl 8mg) in the US to increase patient access to this lifesaving medicine

• Strong pipeline supporting consistency of new launches
• 132 new product launches across the business
• Launched liraglutide injection in the US, the first approved ANDA for a generic GLP-1 referencing Victoza^®, helping improve patient access to this class of medications

STRONG 2025 GROUP OUTLOOK

• Group revenue growth of 4% to 6%
• Group core operating profit in the range of $730 million to $770 million, after an increase in investment in R&D of around 20% in 2025

Further information:

A pre-recorded presentation will be available at www.hikma.com at 07:00am GMT. Hikma will also hold a live Q&A webinar at 9:00am GMT, and a recording will be made available on the Company’s website.

To join via conference call please dial:

United Kingdom (Local): +44 20 3936 2999

United Kingdom (Toll-Free): +44 800 358 1035

United States (Local): +1 845 213 3398

United States (Toll-Free): +1 855 9796 654

Access Code: 292359

For further information please contact Deepa Jadeja – djadeja@hikma.com.

Hikma (Investors):                                   

Susan Ringdal EVP, Strategic Planning and Global Affairs	+44 (0)20 7399 2760/ +44 (0)7776 477050
Guy Featherstone Director, Investor Relations	+44 (0)20 3892 4389/ +44 (0)7795 896738
Layan Kalisse Senior Associate, Investor Relations	+44 (0)20 7399 2788/ +44 (0)7970 709912

 

FTI Consulting (media):

Ciara Martin

+44 (0) 7779 775 979

 

About Hikma:

Hikma helps put better health within reach every day for millions of people around the world. For more than 45 years, we've been creating high-quality medicines and making them accessible to the people who need them. Headquartered in the UK, we are a global company with a local presence across North America, the Middle East and North Africa (MENA) and Europe, and we use our unique insight and expertise to transform cutting-edge science into innovative solutions that transform people's lives. We're committed to our customers, and the people they care for, and by thinking creatively and acting practically, we provide them with a broad range of branded and non-branded generic medicines. Together, our 9,500 colleagues are helping to shape a healthier world that enriches all our communities. We are a leading licensing partner, and through our venture capital arm, are helping bring innovative health technologies to people around the world. For more information, please visit: www.hikma.com

Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY) (LEI:549300BNS685UXH4JI75) (rated BBB-/stable S&P, BBB-/positive Fitch)

STRATEGIC REVIEW

It has been another strong year for Hikma.  Group core revenue growth of 10% (9% reported Group revenue growth) was ahead of our upgraded expectations and Group core operating profit of $719 million was in line with upgraded guidance.

We are the seventh largest supplier of generic medicines in the US^[5], and the third largest supplier of generic injectable products by volume in that market^[6].  We also maintained our position as the second largest pharmaceutical company, by sales, in the MENA region^[7]. 

We made excellent strategic progress during the year, with momentum building across our three businesses. Continued investment in R&D and business development is strengthening our differentiated pipeline and we are enhancing our manufacturing offering and commercial presence.

We also remain focused on the sustainability topics that are most material to our business, as well as those that are most relevant to our stakeholders. During 2024 we conducted a double materiality assessment, which will inform future updates to our sustainability framework and strategy. 

Injectables

Our Injectables business, which manufactures and supplies generic injectable and specialty medicines to hospitals across North America, Europe and MENA, had another successful year.  We delivered an impressive top-line performance, with strong revenue growth in each of our three geographies, and core operating profit growth for the division of 5%. 

During the year we were successful in acquiring the US finished dosage form business of Xellia Pharmaceuticals. This acquisition will diversify and enrich our injectables portfolio and pipeline, expand our US-based manufacturing capacity, bringing complex manufacturing technologies, and support the long-term growth of the Injectables business.

We continued to broaden and diversify our portfolio, with 89 new launches across the business, including 12 in the US.  On top of this, we added products through the Xellia acquisition, which also enhanced our pipeline.  With our new R&D centre in Zagreb complementing our existing footprint, we are well positioned to develop more complex products over the medium term.  We are also enhancing our differentiation through partnership, one example in 2024 being the launch of our first GLP-1 product in December, liraglutide.

Our MENA Injectables business remains a solid contributor to growth, with both biosimilars and our own portfolio of medicines contributing to the strong performance.  In Europe, our own products grew 20% in 2024. We benefitted from our recent entries into France, the UK and Spain and our growing portfolio of products, which enabled us to respond to market shortages. We also had a strong year for new product submissions and approvals, supporting future growth. Our CMO business performed in line with expectations, accelerating in the second half of 2024. We will continue to pursue CMO opportunities where we see value for both us and our strategic partners.

Branded

Our Branded business, which supplies branded generics and in-licensed patented products across the MENA region, had another very strong year with good growth across most of our markets. We grew revenue 8% with a strong core operating margin of 24.6%.

We have a unique business in the region, leveraging our global expertise to meet local market needs. Over the past few years, we have been investing in enhancing our pipeline and portfolio, focusing on launching more complex and first-to-market products that are tailored to local needs, such as oncology products and medicines used to treat chronic illnesses. This has been driving our growth and supporting our strong margins. We continue to make great progress and we are gaining market share in key therapeutic areas, including in diabetes and multiple sclerosis.

Generics

Generics, which supplies oral, respiratory and other generic and specialty products to the North American retail market, had an excellent year, generating over $1 billion in revenue for the first time, with margins in line with our expectations. We are delivering growth in our more complex products, we increased our market share in sodium oxybate, and our leading nasal spray franchise performed well in 2024.

Generics core operating profit was lower than the exceptionally strong result we delivered in 2023 due to the expected increase in royalties on our authorised generic of sodium oxybate.

We have strengthened our teams across this business, including the appointment of Hafrun Fridriksdottir, our new President of Generics, and a new head of Generics R&D with significant respiratory experience.  With their expertise, we are sharpening our focus on R&D to ensure we are investing in the right products and executing projects effectively.

We are also working to maintain and enhance our manufacturing strength.  Importantly, we are delivering our strategy to grow our CMO offering for this business. We signed a new contract in 2024 with a global pharmaceutical company, which we expect to start contributing meaningfully in 2027. This will help support medium-term revenue growth and profitability for Generics, while improving utilisation of our Columbus, Ohio facility.  

We have also focused on maximising the potential of our specialty products and post-year end, signed a partnership agreement with Emergent BioSolutions to market our Kloxxado^® naloxone nasal spray. This partnership combines Hikma’s excellent nasal spray manufacturing capabilities with Emergent’s well-established naloxone HCl nasal spray commercial expertise and strong stakeholder engagement.

2025 Outlook

We are confident that we are well placed to deliver another year of growth in 2025.

We expect Group revenue to grow in the range of 4% to 6%.  We expect core operating profit to be in the range of $730 million to $770 million, after an increase in investment in R&D of around 20% in 2025 across our three segments to support the development of our global pipeline, underpinning medium to long term growth.

We expect Injectables revenue to grow in the range of 7% to 9% and for core operating margin to be in the mid-30s, reflecting the full year impact of the Xellia acquisition and our evolving product and geographic mix. We will continue to launch new products, leverage our high-quality manufacturing capabilities and expand in recently entered markets.

We expect Branded revenue to grow 6% to 7% in constant currency. We expect core operating margin to be close to 25%. We remain focused on growth across the MENA region and will continue to launch products and sign partnerships, bringing more chronic medications to patients.

We expect Generics revenue to be broadly flat, with a good performance from some of our more differentiated products offsetting price erosion on the base business.  We will be investing more into R&D during 2025 to ensure the pipeline is well placed to support medium to long term growth and are pleased to be able to guide to core operating margin for Generics to be around 16%.

We expect Group core net finance expense to be between $90 million to $95 million, reflecting the current interest rate environment and an increase in borrowing related to the Xellia acquisition. 

We expect the core effective tax rate to be around 22%.

We expect Group capital expenditure to be in the range of $170 million to $190 million.

 

[1] Constant currency numbers in 2024 represent reported 2024 numbers translated using 2023 exchange rates, excluding price increases in the business resulting from the devaluation of currencies

[2] Core results throughout the document are presented to show the underlying performance of the Group, excluding exceptional items and other adjustments set out in Note 5 of this release. Core results are a non-IFRS measure. See page 14 for a reconciliation to reported IFRS results

[3] Group net debt is calculated as Group total debt less Group total cash. Group net debt is a non-IFRS measure that includes short and long-term financial debts (Notes 10 and 13), lease liabilities, net of cash and cash equivalents and restricted cash, if any. See page 15 for a reconciliation of Group net debt

[4] Refer to page 15 for reconciliation

[5] IQVIA MAT November 2024, includes all generic injectable and generic non-injectable products by sales

[6] IQVIA MAT November 2024, generic injectable volumes by eaches, excluding branded generics and Becton Dickinson

[7] Based on internal analysis by using data from the following source: IQVIA MIDAS® Monthly Value Sales data for Algeria, Egypt, Jordan, Kuwait, Lebanon, Morocco, Saudi Arabia, Tunisia and UAE, for the period: calendar year 2024, reflecting estimates of real-world activity. Copyright IQVIA. All rights reserved.