Hikma’s profit jumps as demand for generic medicines booms
Hikma Pharmaceuticals reported a strong financial performance for 2024, with revenue rising nine per cent to $3.13bn (£2.47bn) and operating profit up 67 per cent to $612m (£483m).
Profit attributable to shareholders nearly doubled, reaching $359m (£284m), while earnings per share rose 88 per cent.
The multinational pharmaceutical company that develops, manufactures, and markets a broad range of generic, branded, and speciality medicines said the bulk of its growth came from its North American arm as well as recent product launches.
The company remained the seventh-largest supplier of generic medicines in the US and the third-largest supplier of generic injectable products by volume.
Despite the strong revenue figures, core operating profit edged up just two per cent to $719m (£568m), with the core margin falling to 22.8 per cent from 24.6 per cent in 2023.
While Injectables and Branded saw core operating profit growth of five per cent and 11 per cent respectively, Generics’ core operating profit fell 11 per cent due to higher royalties for Hikma’s authorised generic of sodium oxybate.
The acquisition of Xellia Pharmaceuticals’ US finished dosage form business diversified and enriched its injectables portfolio. The company broadened its portfolio with 89 new launches, including 12 in the US.
Generics generated over $1bn (£790m) in revenue for the first time as the group’s market share increased in sodium oxybate, and the nasal spray franchise performed well. Core operating profit declined due to increased royalties on its authorised generic of sodium oxybate.
Cash flow from operating activities reached $564m (£446m). However, this represented a seven per cent decline from the previous year due to increased trade receivables from strong year-end sales.
Hikma’s leverage stood at 1.4 times net debt to core earnings before interest, tax, depreciation, and amortisation (EBITDA) at the end of the year, while return on invested capital reached 16.9 per cent.
Hikma said it expected another year of growth in 2025, with revenue growth of four to six per cent and core operating profit between $730m (£577m) and $770m (£608m). R&D investment was set to increase by 20 per cent across all three segments.
Riad Mishlawi, chief executive officer of Hikma, said: “It’s been another strong year for Hikma with double digit revenue growth, increased profits and a resilient margin.”
“We continued to invest in the business to support our future progress, with a strategic acquisition alongside new partnerships and agreements. This momentum combined with our diversified portfolio, leading market positions and increasing investment in R&D, underpin our positive outlook for 2025 and confidence in the future.”