Hikma lifts dividend after double-digit growth in 2023

Hikma Pharmaceuticals impressed the market with its annual results on Thursday as it bumped up its dividend by almost a third following double-digit growth in core revenues and profits in 2023.

Full-year revenues totalled $2.88bn, up 14% on 2022, with growth seen across its three main businesses: Injectables, Branded and Generics.

Injectables, which account for 42% of sales, increased revenues by 6%; Branded revenues, which make up a quarter of the business, rose by 3%; but Generics sales jumped 39% which Hikma put down to a good recovery in the base business and a strong contribution from the authorised generic of sodium oxybate, which was launched at the start of 2023.

Core operating profits were up 19% year-on-year at $707m, helped by rising margins and improving profitability in Branded and Generics. Reported operating profit was up 30%, but that reflected higher impairment charges in 2022.

The company raised its final dividend to 47 cents, from 37 cents previously, bringing the total dividend for 2023 to 72 cents, up 29% on 2022.

"Hikma delivered strong growth and made significant progress in 2023," said chief executive Riad Mishlawi, who was appointed as leader in September. "Our results demonstrate momentum across each of our three businesses, with new product launches and partnerships continuing to expand our portfolio, including into more complex areas such as oncology."

Looking ahead, Hikma guided to revenue growth to slow to between 4% and 6% in 2024, with core operating profits in the range of $660m to $700m.

Nevertheless, the share price was up 5.2% at 2,102p by 0838 GMT.