Half Year 2025 Hikma Pharmaceuticals PLC Earnings Call Transcript
Key Points
- Hikma Pharmaceuticals PLC (HKMPF) delivered strong revenue growth of 6% in the first half of 2025, driven by robust volumes across all business segments and regions.
- The company successfully launched new products and completed the integration of the Xellia acquisition, contributing to growth.
- The Injectables segment showed a 12% core revenue growth year-on-year, benefiting from recent launches and the Xellia acquisition.
- Hikma Pharmaceuticals PLC (HKMPF) maintained a robust balance sheet with a leverage ratio of 1.7 times net debt to core EBITDA, reflecting healthy cash levels.
- The company reiterated its full-year 2025 guidance with expected revenue growth of 4% to 6% and core operating profit in the range of $730 million to $770 million.
- Group core operating profit declined by 7% in the first half of 2025 due to regional and product mix, FX headwinds, and strong H1 2024 comparators.
- Core EBITDA and core basic earnings per share both declined by 5% year-on-year in the first half of 2025.
- Operating cash flow decreased to $161 million from $198 million in the comparable period of 2024, primarily due to the timing of tax payments.
- The Injectables segment experienced a decline in core operating margin from 36.3% in H1 2024 to 30% in H1 2025, due to changes in product and geographic mix and increased costs.
- The Rx division faced price erosion in the mid- to high-single digits, leading to an 11% year-on-year contraction in gross profit.
Thank you, everyone, for joining our 2025 half-year results presentation. I'm Riad Mishlawi, CEO of Hikma, and I'm joined here by Khalid Nabilsi, our CFO.
Let me start by saying how pleased I am with the progress we've made in the first half of the year. We've delivered strong revenue growth and built solid momentum across the business.
While operating profit was done against a strong comparator, demand remains robust across our portfolio, and we've successfully launched new products that are already contributing to our growth. We also made significant strides in strengthening our pipeline and enhancing our manufacturing capabilities. This is not just about today's performance but about building for the future.
We've signed new strategic partnerships that will further expand our reach and capabilities, and we've done all this while maintaining healthy profitability, demonstrating the resilience and the agility of our business model. We're executing against our strategic priorities, and this
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
