Half Year 2026 Hikma Pharmaceuticals PLC Earnings Call Transcript
Key Points
- Strong financial results in H1 2026 with growth in revenue, operating profit, EBITDA, and core EPS, in line with expectations.
- Branded business delivered excellent performance with revenue up 15% and core operating profit up 23%, driven by strong demand in chronic therapies.
- Increased investment in R&D (up 18%) and commercial capabilities, positioning the company for future growth.
- Successful launch of 43 products and signing of 10 new partnerships in MENA, expanding the pipeline and portfolio.
- Tyzavan transition progressing well with 80% of eligible customers converted, supporting confidence in injectables growth.
- Injectables revenue was broadly flat with an expected decline in core operating margin due to transition costs and supply disruptions.
- Sodium oxybate faces increasing competition in H2 2026, which may pressure market share and profitability.
- Branded business performance is heavily weighted to H1, with H2 expected to be significantly lower due to tender timing and geopolitical uncertainty.
- Net debt increased to 1.9 times core EBITDA due to higher capex and share buyback, reducing financial flexibility.
- The 503B compounding business is being divested after being loss-making, indicating a strategic setback.
Good morning, everyone, and thank you for joining us to discuss our results for the first half of '26. Today, I am pleased to report that our first half performance was in line with our expectations and demonstrates that we are delivering against the commitments we have made.
Over the last six months, the management team has spent considerable time meeting colleagues across our sites globally. What we have seen is a business with tremendous talent and growing momentum.
Through the actions we are taking, we are returning to being a more agile organization with faster decision making, clearer accountability, and greater empowerment, helping us make good progress against our strategic priorities while maintaining the stability and resilience that underpin the business. There are five key messages I would like you to take away from today's results.
First, we have delivered strong financial results in line with the expectations.
Second, we have delivered these results while increasing
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