Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF) shares fell 5% in early trading as investors took profits despite the company reporting strong results and an upbeat outlook for 2025.
Revenue for 2024 rose 9% to $3.13 billion (£2.47 billion), while operating profit surged 67% to $612 million (£483 million).
Profit attributable to shareholders almost doubled to $359 million (£284 million), with earnings per share up 88%. Growth was driven by the company’s North American division and recent product launches.
Despite strong revenue figures, core operating profit increased just 2% to $719 million (£568 million) as margins slipped. The generics division, which generated over $1 billion (£790 million) in revenue for the first time, saw profits dip due to higher royalties.
Hikma expects revenue growth of four to six per cent in 2025, with core operating profit between $730 million (£577 million) and $770 million (£608 million).
Chief executive Riad Mishlawi said: “It’s been another strong year for Hikma with double-digit revenue growth, increased profits and a resilient margin.”
Both Stifel and Peel Hunt repeated their 'buy' recommendations in the wake of the results.
"This is a reassuring set of results, in our view," the latter said, setting a 2,290p price target.
The stock fell 128p to 2,168p.