Hikma Pharmaceuticals Plc · LSE:HIK
Hikma Pharmaceuticals — H1 2023 Earnings Presentation
26 slides from Hikma Pharmaceuticals's earnings presentation, 2023
Slide 1: Hikma Pharmaceuticals PLC 2023 Interim Results
Better health. Within reach. Every day. Hikma Pharmaceuticals PLC 2023 Interim Results
Slide 2: Disclaimer
Disclaimer Save to the extent required by law, neither Hikma Pharmaceuticals PLC nor any of its affiliates (Hikma), nor any other party, is under any duty to update or inform you of any changes to such information. In particular, it should be noted that the financial information relating to Hikma co
Slide 3: Delivering a strong first half performance with growth in all three businesses
Delivering a strong first half performance with growth in all three businesses $1,427m $401m $451m $222m 128.5¢ Core1 Core Core Operating Core basic revenue operating profit EBITDA2 cash flow earnings per share 1 Core results are presented to show the underlying performance of the Group, excluding e
Slide 4: Injectables
Injectables
Slide 5: Benefitting from a growing portfolio in the US and investing for the future
Benefitting from a growing portfolio in the US and investing for the future US generic injectables Benefitting from an Expanding capacity Enhancing pipeline market share by volume1 expanding portfolio Top three manufacturers make up Investing in new high-speed Differentiated 46% filling lines in Che
Slide 6: Strengthening foothold in Europe and expanding into new markets
Strengthening foothold in Europe and expanding into new markets Good progress building our EU Injectables 1H23 sales by country presence in new markets • Agile and short supply chain enabling us to respond to market Germany shortages 48% • Expanding our sales channels France • eight employees into n
Slide 7: Leveraging established presence and strong commercial capabilities in MENA
Leveraging established presence and strong commercial capabilities in MENA Revenue drivers in 1H 2023 Biosimilars (existing portfolio): • Grew our market share in immunology and oncology in private and public sector 2022 Reported 76 in some of our largest markets • Pull-forward in revenue due to tim
Slide 8: Branded
Branded
Slide 9: Benefitting from a strong market position and growing contribution from chronic medications
Benefitting from a strong market position and growing contribution from chronic medications Our strong Hikma is the 3rd largest supplier of Medicines in MENA market with a growing market share1 position Oncology Central Nervous System Chronic Oncology Our Acute 2% 5% Gastrointestinal Acute Central 1
Slide 10: Case study: increasing access to oncology medications in the MENA region
Case study: increasing access to oncology medications in the MENA region Investing in capacity to help increase access – only local oral oncology plants • Hosted our 5th annual cancer network – 170 KOLs specializing in Algeria and Egypt in hematology and oncology attended from across MENA • 12 inter
Slide 11: Generics
Generics
Slide 12: Improving industry dynamics after a challenging 2022
Improving industry dynamics after a challenging 2022 Generic retail Rx volume has recovered Significant decline in US-manufactured solid oral volume1 and surpassed pre-Covid levels3 30 India N. America/EU 340 25 320 20 300 15 280 10 260 5 240 0 J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J
Slide 13: Strong commercial and operational capabilities enabling us to capture market opportunities
Strong commercial and operational capabilities enabling us to capture market opportunities Generics foundation showed its strength in H1 Quality / service Leveraging / expanding Improving pricing Expand level customer partnerships, including CMO environment relationship Cost Our Expanding into speci
Slide 14: Finance
Finance Khalid Nabilsi, Chief Financial Officer
Slide 15: Group financial highlights
Group financial highlights 1H22 1H23 % change Core revenue $1,213 million $1,427 million +18% Core1 gross profit $623 million $733 million +18% Core operating profit $296 million $401 million +35% Core EBITDA2 $346 million $451 million +30% Core profit attributable to shareholders $209 million $284
Slide 16: Injectables
Injectables Revenue Core operating profit Revenue (million) (million) $700 ● Constant currency $250 ● Constant currency Good growth in North America, reflecting contribution 3% from Custopharm and Teligent more than offsetting $585 $200 increased competition $600 $214 9% $209 2% $538 9% $94 $150 Goo
Slide 17: Branded
Branded Revenue Core operating profit Revenue (million) (million) ● Constant currency ● Constant currency Good growth across most markets $450 $120 $400 $100 Pull-forward of tenders in our larger markets 51% $104 15% $80 $350 11% $375 41% Benefitting from our oncology portfolio and focus $74 on chro
Slide 18: Generics
Generics Revenue Core operating profit Revenue (million) (million) Strong performance from the base business with $460 $120 improving volumes and lower price erosion levels $400 39% 122 Slower than expected ramp of recent launches $100 110% Benefitting from the launch of the authorised generic $80 o
Slide 19: Expanding and enhancing our product pipeline
Expanding and enhancing our product pipeline Core R&D (million) $70 $69 $60 $64 $50 4.5% $40 $30 of Group core revenue invested in core R&D $20 Continue to invest in building a $10 pipeline of differentiated products. Expect increased spend in H2 $0 1H22 1H23 Hikma Pharmaceuticals PLC 19
Slide 20: Continuing to invest in the maintenance, upgrade and expansion of our facilities across the Group
Continuing to invest in the maintenance, upgrade and expansion of our facilities across the Group Capex by region ($ million) $200 20% $180 $172m $160 $145m 15% $138m $140 $119m $120 $107m US MENA $100 $84m 10% Europe $80 Capex/revenue (%) $60 5% $40 $20 $0 0% 2018 2019 2020 2021 2022 1H23 Hikma Pha
Slide 21: Cash flow and balance sheet
Cash flow and balance sheet Debt and leverage (millions) 1283 1312 Operating cash flow 932 Jun-22 Jun-23 846 1.5x Operating cash flow $169 million $222 million 637 1.3x 685 0.9x 0.7x Operating cash flow/revenue 14% 16% 0.4x 1013 1040 0.6x 605 361 420 242 2018 2019 2020 2021 2022 1H23 Net debt Total
Slide 22: 2023 full year guidance
2023 full year guidance Injectables Branded Generics ● Revenue growth: ● Revenue growth: ● Revenue growth : 7% to 9% Mid to high single digits in close to 30% ● Core operating margin: constant currency ● Core operating margin: 36% to 37% 18% to 20% Net finance Capital Tax expense expenditure Core ef
Slide 23: Slide 23
Slide 24: A strong investment case
A strong investment case Platform for future growth and a track record of success A solid platform Increasingly diverse Excellent financial A proven track record for growth across portfolio and discipline with a strong of delivering value for all three pipeline balance sheet and shareholders and bus
Slide 25: Appendix
Appendix
Slide 26: Group financial highlights
Group financial highlights 1H22 1H23 % change Revenue $1,213 million $1,427 million +18% Gross profit $611 million $715 million +17% Operating profit $239 million $245 million +3% EBITDA2 $346 million $387 million +12% Profit attributable to shareholders $173 million $131 million (24)% Basic earning
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