The bosses at generics business Hikma Pharmaceuticals (HIK) just keep on giving. The Jordanian group has confirmed another special dividend - this time worth 10ȼ a share - taking the full-year dividend up to 32ȼ. That's emblematic of another successful year for the group, after a strong performance from the injectables business drove a 9 per cent improvement in sales. With margins stable, operating profits rose 14 per cent to $402m.
The injectables division - which now makes more than three-quarters of its revenues in the US - is the jewel in Hikma's crown. Adjusted operating margins rose to 37.2 per cent last year (from 31 per cent in 2013), boosting operating profits by 68 per cent to $260m.
Meanwhile, the generics and branded businesses remain under pressure. Generics revenues dropped 19 per cent last year as a result of intense market competition and tough 2013 comparative figures. The branded business blamed stagnant revenue growth on a restructuring programme in Algeria and political disruption in Iraq and Libya.
Analysts at Peel Hunt expect pre-tax profits of $406m this year, giving EPS of 149ȼ. This is up from $393m and down from 150ȼ in 2014.
| HIKMA PHARMACEUTICALS (HIK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,330p | MARKET VALUE: | £4.63bn | |
| TOUCH: | 2,318-2,338p | 12-MONTH HIGH: | 2,617p | LOW: 1,456p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 603ȼ* | NET DEBT: | 23% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2010 | 0.73 | 121 | 51 | 13 |
| 2011 | 0.92 | 94 | 41 | 13 |
| 2012 | 1.11 | 132 | 51 | 16 |
| 2013 | 1.37 | 298 | 108 | 20 |
| 2014 | 1.49 | 362 | 140 | 22** |
| % change | +9 | +21 | +30 | +10 |
Ex-div: 16 Apr Payment: 21 May *Includes intangible assets of $602m, or 303ȼ a share **Does not include full-year special dividend of 10ȼ a share £1 = $1.51 | ||||
