Hikma Pharmaceuticals Plc · LSE:HIK
Hikma Pharmaceuticals — H1 2024 Earnings Presentation
23 slides from Hikma Pharmaceuticals's earnings presentation, 2024
Slide 1: Better health. Within reach. Every day.
Better health. Within reach. Every day. Hikma Pharmaceuticals PLC 2024 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: Strategic overview
Strategic overview Riad Mishlawi, Chief Executive Officer
Slide 4: Delivering a strong first half performance
Delivering a strong first half performance $1,569m $402m $453m Revenue Core1 operating profit Core EBITDA2 $198m 128¢ Operating cash flow Core basic earnings per share 1. Core results are presented to show the underlying performance of the Group, excluding exceptional items and other adjustments set
Slide 5: Executing on four pillars of value creation
Executing on four pillars of value creation Increasingly A solid platform diverse portfolio with a unique and pipeline business model A proven track Strong financial position record and a clear underpins growth ambition strategy for growth Hikma Pharmaceuticals PLC 5
Slide 6: A solid platform with a unique business model
Executing on four pillars of value creation A solid platform with a unique business model Leading Large and Expansive market positions growing portfolio manufacturing footprint 5th largest in the US1 +760 products 29 plants 2nd largest in MENA2 • Expanded market reach in Europe • Launched 59 product
Slide 7: Adding to the strength of our base business through the Xellia acquisition
Executing on four pillars of value creation A solid platform with a unique business model Adding to the strength of our base business through the Xellia acquisition1 8 approved and marketed products and Cleveland site offers end-to-end manufacturing 11 pipeline products capabilities and adds complex
Slide 8: Increasingly diverse portfolio and pipeline
Executing on four pillars of value creation Increasingly diverse portfolio and pipeline >300 6%-7% Across the Group we are looking at: Increasing the complexity of Improving the quality of our Utilising our internal API products target spend of our pipeline through filings for higher rate of first c
Slide 9: A proven track record and clear strategy for growth
Executing on four pillars of value creation A proven track record and clear strategy for growth Consistently delivering Our clear path to continue delivering Strong strong growth consistent and profitable growth 2024 guidance 5-year Revenue revenue CAGR growth: +5% 6% CAGR to 8% 5-year Core core EBI
Slide 10: Strong financial position underpins growth ambition
Executing on four pillars of value creation Strong financial position underpins growth ambition Consistently delivering industry-leading Strong balance sheet enabling EBITDA margins and strong cash generation capital deployment to augment growth $811 $674 $727 $695 Net debt/core EBITDA 1.3x $593 27%
Slide 11: Finance
Finance Khalid Nabilsi, Chief Financial Officer
Slide 12: Group financial highlights
Group financial highlights 1H23 1H24 % change Core1 revenue $1,427 million $1,569 million +10% Core gross profit $733 million $756 million +3% Core operating profit $401 million $402 million 0% Core EBITDA2 $451 million $453 million 0% Core profit attributable to shareholders $284 million $283 milli
Slide 13: Injectables
Injectables Core revenue and core operating Core revenue and core operating profit performance over 10 years profit performance for 1H 2024 100.0% 1200 Revenue Core revenue 90.0% 1H 2024 revenue Good demand in North America for base portfolio and recent 1000 Core operating profit Core operating marg
Slide 14: Branded
Branded Core revenue and core operating Core revenue and core operating profit performance over 10 years profit performance for 1H 2024 100.0% Core revenue 714 Revenue Core operating profit 669 691 90.0% 1H 2024 revenue Core operating margin 613 $419m Strong growth across all markets 80.0% 583 554 5
Slide 15: Generics
Generics Core revenue and core operating profit performance since Core revenue and core operating Columbus acquisition profit performance for 1H 2024 000 100.0% 900 Core revenue 90.0% Revenue Core operating profit 1H 2024 revenue Core operating margin 800 80.0% $528m Strong performance from the base
Slide 16: Expanding and enhancing our product pipeline
Expanding and enhancing our product pipeline R&D spend (million) $80 $60 $64 $61 4% $40 of Group core revenue invested in R&D $20 Continue to invest in building a pipeline of differentiated products. $0 1H23 1H24 Hikma Pharmaceuticals PLC 16
Slide 17: Continuing to invest in the maintenance, upgrade and expansion of our facilities
Continuing to invest in the maintenance, upgrade and expansion of our facilities across the Group Capex by region ($ million) $200 20% $180 $172m $169m $160 $145m 15% $138m $140 $119m $120 US MENA $100 10% Europe $80 $69m Capex/revenue (%) $60 5% $40 $20 $0 0% 2019 2020 2021 2022 2023 1H24 Hikma Pha
Slide 18: Cash flow and balance sheet
Cash flow and balance sheet Debt and leverage (millions) 1283 1276 1191 Operating cash flow 932 June 2023 June 2024 846 1.5x 1.2x 1.3x Operating cash flow 222 198 685 0.9x 0.6x 1040 Operating cash flow/revenue 16% 13% 0.4x 1013 976 605 420 242 2019 2020 2021 2022 2023 1H24 Net debt Total debt Net de
Slide 19: Upgraded 2024 full year guidance
Upgraded 2024 full year guidance GROUP Revenue growth: Core operating profit: 6% to 8% $700 million to $730 million Injectables Branded Generics ● Revenue growth: ● Revenue growth: ● Revenue growth : 6% to 8% high-single digits in constant 5% to 7% ● Core operating margin: or 6% to 8% on reported ba
Slide 20: Wrap-up
Wrap-up
Slide 21: H1 2024: Six months of strong growth
H1 2024 Continued investment Strong H1 performance for future growth Six months of strong growth New product launches Impressive core and and partnerships EBITDA margin of 29% significant expanding portfolio progress Strong progress in Positive all three businesses 2024 outlook Hikma Pharmaceuticals
Slide 22: Appendix
Appendix
Slide 23: Group reported financial highlights
Group reported financial highlights 1H 2023 1H 2024 % change Revenue $1,427 million $1,569 million +10% Gross profit $715 million $756 million +6% Operating profit $245 million $351 million +43% Profit attributable to shareholders $131 million $226 million +73% Basic earnings per share 59 cents 102
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