Hikma Pharmaceuticals PLC (AIM:HIK, OTC:HKMPF) reported “solid growth” for 2021, with sales rising 9% on the back of a good performance in all its three businesses.
The multinational pharmaceutical company also announced plans to return US$300mln to shareholders via a share buyback.
Revenue amounted to US$2.55bn in the year to 31 December 2021, up from US$2.34bn in the previous year, the company said in a statement.
Core operating profits were 12% higher at US$632mln, but pre-tax profits fell to US$544mln from US$558mln.
"Hikma delivered strong financial results in 2021, marking another successful year of solid growth and continued strategic momentum,” said chief executive Siggi Olafsson.
The injectables business saw good revenue growth across all three geographies, including in the US following a strong 2020, with core operating profit rising 5%, Hikma said.
The Generics division reported 10% revenue growth and core operating margin improvement of 300 basis points to 24.6%, while in the Branded business revenue grew 9%, reflecting a good contribution from products used to treat chronic illnesses.
“Looking at 2022, the business is well positioned to continue to grow, benefitting from our broad portfolio and pipeline, as well as our high-quality operations,” said Olafsson.
Injectables revenues are expected to grow in the low to mid-single digits in 2022, supported by new product launches, with core operating margin predicted to be in the range of 35%-37%.
In Generics, revenue is expected to show 8%-10% growth with the core operating margin being in the range of 24%-25%, reflecting a good contribution from new and recent launches. The Generics revenue forecast was well below market consensus forecasts for 17% growth.
The Branded division is forecast to grow revenues in the mid-single digits.
Hikma announced a full-year dividend of 54 cents per share, up from 50 cents in 2020.
Net debt stood at US$420mln at the year-end.
Shares slumped 8.79% to 1,835.97p in early afternoon trade.