Hikma trades higher as strong branded growth drives solid H1 performance

(Sharecast News) - Drugmaker Hikma Pharmaceuticals turned in a solid first half on Thursday, with group revenues rising 4% to $1.73bn, driven by a strong performance in its branded unit and stable contributions from both injectables and Hikma Rx.

Hikma said branded revenue jumped 15% to $502m, while injectables and Hikma Rx were broadly flat year-on-year at $685m and $520m, respectively.

As a result, core operating profits increased 9% to $405m, giving a margin of 23.4%. Branded was the standout performer, with core operating profit up 23% and margins rising to 32.5%. Hikma Rx posted 16% growth with a 20.6% margin, while injectables saw an 8% decline in core operating profit and a margin of 27.6%. Reported operating profits rose 30% to $336m, reflecting a lower comparator after last year's noncore legal settlement.

Cashflow from operating activities strengthened to $214m, up from $161m, while net debt increased to 1.9x core EBITDA following investment and the firm's ongoing $250m share buyback - of which it has now purchased $227m.

The FTSE 250-listed firm also lifted its interim dividend by 6% to $0.38 per share.

Looking ahead, Hikma reiterated its fullyear guidance for 2% to 4% constantcurrency revenue growth and core operating profits of $720m to $770m, supported by momentum in branded and improving margins across its portfolio.

As of 0950 BST, Hikma shares were up 9.36% at 1,718p.

Reporting by Iain Gilbert at Sharecast.com

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