Hikma Pharmaceuticals Plc · LSE:HIK
Hikma Pharmaceuticals — FY2023 Earnings Presentation
30 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 2023 Full Year 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: Our strategy for growth
Our strategy for growth operational efficiencies and embrace new technologies, maintaining our high-quality levels our broad portfolio and strong commercial capabilities a more differentiated pipeline into adjacent businesses and geographies our people and cultivate a unified culture responsibly acr
Slide 4: Hikma today
Hikma today $2.9bn 28% 760+ 29 in sales Core Products Manufacturing EBITDA1 plants globally margin $608m Leading market positions Operating cash flow 8th largest in the US and 2nd largest in MENA 1 Core EBTIDA is earnings before interest, tax, depreciation, amortisation, impairment charges and unwin
Slide 5: A well diversified, global generic pharmaceutical business with strong platform for growth
A well diversified, global generic pharmaceutical business with strong platform for growth 42% of 2023 Revenue 55% of 2023 Core operating profit1 25% of 2023 Revenue 21% of 2023 Core operating profit1 33% of 2023 Revenue 24% of 2023 Core operating profit1 Hikma Pharmaceuticals PLC 1. In 2023, core o
Slide 6: Injectables
Injectables
Slide 7: Injectables - benefitting from a growing portfolio in the US
Injectables - benefitting from a growing portfolio in the US and investing for the future Benefitting from Expanding capacity to Enhancing an expanding portfolio capture growth opportunities pipeline Products launched since 2016 17 contribute 40% of 2023 US Injectables revenue launches 75 Projects D
Slide 8: Injectables - strengthening foothold in Europe and expanding into new markets
Injectables - strengthening foothold in Europe and expanding into new markets Revenue from own products1 Number of launches by country +20% Belgium Netherlands 2 6 +2 Other UK approvals approvals Germany France Portugal 11 +4 13 +5 approvals approvals France Austria Italy 8 +5 7 +3 approvals approva
Slide 9: Injectables - growing our market share in MENA and improving access to important medicines
Injectables - growing our market share in MENA and improving access to important medicines MENA Injectables total revenue Contribution from new launches +9% Base business: Overall growth • Launching new products, including anti-infective, blood management and oncology Products launched products in 2
Slide 10: Branded
Branded
Slide 11: Branded - strong market position and growing portfolio of chronic medications
Branded - strong market position and growing portfolio of chronic medications 11% 7% 13% 9% Gaining market share 49% (1)% (8)% (5)% $714 $691 (21)% Growth is driven by high value medications 2nd including chronic treatments 2023 3rd 2022 ONCO CVD IMM GI CNS RESP PAIN AI Others 2023 2022 Moved in ran
Slide 12: Branded - delivering growth supported by our strong commercial capabilities and new launches
Branded - delivering growth supported by our strong commercial capabilities and new launches Revenue drivers What drove our business Base business: 2022 691 • Benefitting from our broad product portfolio and strong commercial capabilities Base business 13% • Strong performance in most of our 17 mark
Slide 13: Generics
Generics
Slide 14: Generics - strong commercial and operational capabilities enabling us to capture market opportunities
Generics - strong commercial and operational capabilities enabling us to capture market opportunities Captured market opportunities supported by broad portfolio and flexible manufacturing capabilities Benefitted from volume growth and an improving pricing environment Launched new products, including
Slide 15: Generics - world-class infrastructure supporting development and manufacturing
Generics - world-class infrastructure supporting development and manufacturing Differentiated local manufacturing capabilities State-of-the-art manufacturing facility in Columbus Ohio U.S. (Columbus, OH) FDA/EMA-licensed facility with ability to ship internationally Development On-site product and a
Slide 16: Generics - building a diversified portfolio while leveraging manufacturing strength
Generics - building a diversified portfolio while leveraging manufacturing strength to improve business resilience Research Grow Maximise Leverage Columbus for & Development our specialty portfolio our base business contract manufacturing ER Oral Solid Nasal 12% 12% Respiratory 12% 12% 45% 4% Liquid
Slide 17: Finance
Finance Khalid Nabilsi, Chief Financial Officer
Slide 18: Group financial highlights
Group financial highlights 2022 2023 % change Core1 revenue $2,517 million $2,875 million 14% Core gross profit $1,265 million $1,407 million 11% Core operating profit $596 million $707 million 19% Core EBITDA2 $695 million $811 million 17% Core profit attributable to shareholders $406 million $492
Slide 19: 2023 exceptional items and other adjustments
2023 exceptional items and other adjustments Bridge between 2023 core and reported operating profit Key items: ($million) (340) 707 129 Reached an agreement Halted operations in 83 in principle to resolve Sudan, which 88 the vast majority of represented less than 8 opioid related cases 3% of Group r
Slide 20: Injectables
Injectables Core revenue and core operating Core revenue and core operating profit performance over 10 years profit performance for 2023 100.0% 1200 Revenue Core revenue 90.0% 2023 revenue Benefitting from good demand for our portfolio in North Core operating profit 80.0% $1,203m America, recent lau
Slide 21: Branded
Branded Core revenue and core operating Core revenue and core operating profit performance over 10 years profit performance for 2023 100.0% Core revenue 714 Revenue Core operating profit 669 691 90.0% 2023 revenue Core operating margin 613 $714m Good growth across most markets 80.0% 583 554 551 570
Slide 22: Generics
Generics Core revenue and core operating profit performance since Core revenue and core operating Columbus acquisition profit performance for 2023 000 100.0% 900 Core revenue 90.0% Revenue Core operating profit 2023 revenue Core operating margin 800 80.0% $937m Good performance from the base busines
Slide 23: Expanding and enhancing our product pipeline
Expanding and enhancing our product pipeline R&D spend (million) $140 $149 $144 $120 $100 5% $80 $60 of Group core revenue invested in R&D $40 Continue to invest in building a pipeline of differentiated $20 products. $0 2022 2023 Hikma Pharmaceuticals PLC 23
Slide 24: Continuing to invest in the maintenance, upgrade and expansion of our facilities across the Group
Continuing to invest in the maintenance, upgrade and expansion of our facilities across the Group Capex by region ($ million) $200 20% $180 $172m $169m $160 $145m 15% $138m $140 $119m $120 $107m US MENA $100 10% Europe $80 Capex/revenue (%) $60 5% $40 $20 $0 0% 2018 2019 2020 2021 2022 2023 Hikma Ph
Slide 25: Cash flow and balance sheet
Cash flow and balance sheet Debt and leverage (millions) 1283 1191 Operating cash flow 932 2022 2023 846 1.5x 1.2 Operating cash flow 530 608 637 685 0.7x 0.9x 0.6x Operating cash flow/revenue 21% 21% 0.4x 1013 976 605 361 420 242 2018 2019 2020 2021 2022 2023 Net debt Total debt Net debt/core EBITD
Slide 26: 2024 full year guidance
2024 full year guidance GROUP Revenue growth: Core operating profit 4% to 6% $660 million to $700 million Injectables Branded Generics ● Revenue growth: ● Revenue growth: ● Revenue growth : 6% to 8% mid to high-single digits in 3% to 5% ● Core operating margin: constant or low-single digits on repor
Slide 27: Slide 27
Slide 28: A year of strong growth
Double-digit revenue and Continued investment operating profit growth for future growth A year of strong growth New product launches Impressive core and and partnerships EBITDA margin of 28% significant expanding portfolio progress Strong progress in Positive all three businesses 2024 outlook Hikma
Slide 29: Appendix
Appendix
Slide 30: Group reported financial highlights
Group reported financial highlights 2022 2023 % change Revenue $2,517 million $2,875 million 14% Gross profit $1,238 million $1,390 million 12% Operating profit $282 million $367 million 30% Profit attributable to shareholders $188 million $190 million 1% Basic earnings per share 84 cents 86 cents 2