Hikma: Pharma giant starts year strong as new product sales surge in key markets

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The company said that it remained on track to report revenue growth of four per cent to six per cent for the year
The company said that it remained on track to report revenue growth of four per cent to six per cent for the year.

Pharma group Hikma laid out its trading performance in the first half of the year ahead of its AGM later today.

The company said this morning that it remained on track to report revenue growth of four per cent to six per cent for the year, with core operating profit in the range of $660m (£528m) to $700m (£560m).

The group’s three main businesses, branded, generics and injectables all performed well during the period. With the injectables business Hikma said it expected revenue for the year to grow between six per cent and eight per cent. Generics is projected to grow between three per cent and five per cent.

In 2023, the FTSE 100 group became the second-largest pharmaceutical company in Middle East and North Africa by sales. On that basis, Hikma has been building out its presence and capacity in the region.

In today’s update, the company said it had been investing heavily in research and development to launch more complex and first-to-market products. It has also been investing in enhancing its manufacturing capacity and capabilities. The aim is to strengthen its position as a local manufacturer and supplier of high-quality medicines with industry-leading global expertise.

For 2024, the branded business is expected to see revenue growth in the mid-to-high-single digits in constant currency or low-single digits on a reported basis.

Hikma set out plans last year to boost cash returns to shareholders. If approved at today’s AGM, the company will pay a final dividend of 47 cents (37.6p) per share, a full-year dividend of 72 cents (72p) per share for 2023, up 29 per cent on 2022. This is part of the company’s aim to increase its dividend payout ratio to 30 per cent to 40 per cent, up from the historical range of 20 per cent to 30 per cent.

Riad Mishlawi, Hikma’s chief, said: “Hikma has had a strong start to 2024, with continued growth and momentum across the group. Our three businesses are performing well, underpinned by our strong commercial and operational capabilities. We are launching new products and expanding our manufacturing capacity, which will drive sustainable future growth.”