Hikma Pharmaceuticals (HIK) will hand more cash back to shareholders via another special dividend - this time worth 4ȼ (2.4p) a share. That follows a strong performance from its injectables business in the US. Global injectables revenue grew 41 per cent in the first six months, with US revenues up 62 per cent to $268m.
Hikma said its track record for quality and high customer service drove demand for its injectable products across the Atlantic. But the Middle East and North Africa reported injectables revenue of $40m - in line with the same period last year.
Even the predicted decline in the generics division was better than expected, with revenue falling just 3 per cent to $128m. As a result, operating profit dipped to $78m, from $82m last year. Hikma expects a slower second half for the generics business, but its plans to mitigate the squeeze on sales include broadening the product portfolio and investing in research and development.
Meanwhile, the branded business only managed to grow revenues by 1 per cent to $259m. Strong growth in Egypt and Saudi Arabia was offset by poor sales in Algeria and Sudan. The ongoing political problems in Iraq and Libya also hindered progress.
Peel Hunt expects full-year pre-tax profits of $341m, giving EPS of 126ȼ.
| HIKMA PHARMACEUTICALS (HIK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,778p | MARKET VALUE: | £3.5bn | |
| TOUCH: | 1,775-1,780p | 12-MONTH HIGH: | 1,835p | LOW: 1,000p |
| DIVIDEND YIELD: | 0.7%** | PE RATIO: | 19 | |
| NET ASSET VALUE: | 579ȼ* | NET DEBT: | 15% | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2013 | 638 | 111 | 37.1 | 7 |
| 2014 | 738 | 219 | 85.4 | 7 |
| % change | +16 | +97 | +130 | - |
Ex-div: 27 Aug Payment: 26 Oct *Includes intangible assets of $444m, or 224ȼ a share **Excludes special dividend of 4ȼ a share £1 = $1.66 | ||||
