These full-year figures were hit by a regulatory shutdown at Jordan-based Hikma Pharmaceuticals' (HIK) US generics manufacturing business - the resulting second-half slowdown meant organic sales growth fell to 5.2 per cent from 7.6 per cent in 2011. However, a lower tax charge and higher volumes in Hikma's injectables division helped group operating profit grow 33 per cent to $48m (£32.2m) - although management is contemplating selling the division.
Indeed, the injectables division is now the focus of takeover speculation after Hikma announced a strategic review and received several expressions of interest. The division's operating performance underlines its attraction for potential buyers - boosted by a full contribution from Hikma's MSI acquisition, underlying revenue here grew 22.3 per cent to $237.5m, with product launches helping to more than double the division's adjusted operating profit to $123m.
The generics business, meanwhile, struggled with the shutdown of the US factory. So sales there fell 33 per cent to $103.7m and the division generated a $20.9m operating loss - production has since restarted. Meanwhile, a return to a degree of stability in the Middle East has benefited the branded medicines business and revenues there jumped 23 per cent to $529m - although regional cost inflation meant profits grew by a lower 17.6 per cent to $123.6m.
Broker Panmure Gordon forecasts adjusted EPS for 2013 of 72.8¢ (from 61.4¢ in 2012).
HIKMA PHARMACEUTICALS (HIK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 960p | MARKET VALUE: | £1.89bn | |
| TOUCH: | 959-960p | 12-MONTH HIGH: | 980p | LOW: 599p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 28 | |
| NET ASSET VALUE: | 423¢* | NET DEBT: | 48% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 581 | 64.0 | 30.4 | 7.50 |
| 2009 | 636 | 95.0 | 40.9 | 11.0 |
| 2010 | 730 | 121 | 51.4 | 13.0 |
| 2011 | 918 | 93.9 | 41.3 | 13.0 |
| 2012 | 1,108 | 132 | 51.1 | 16.0 |
| % change | +21 | +41 | +24 | +23 |
Ex-div: 17 Apr Payment: 23 May *Includes intangible assets of $433m, or 220¢ a share £1=$1.49 | ||||
