Trading Statement (7130M)
August 19 2011 - 9:21AM
UK Regulatory
TIDMHIK
RNS Number : 7130M
Hikma Pharmaceuticals Plc
19 August 2011
Trading update
London, 19 August, 2011: Hikma Pharmaceuticals PLC (LSE: HIK)
(NASDAQ Dubai: HIK) ("Hikma"), the global pharmaceutical group, is
today providing the following update on trading.
Since the beginning of the year, the overall performance of the
Group has been good and the Group remains on track to deliver
around 7% organic revenue growth for the full year, with a gross
margin of around 47%.
In the Branded business, our team in the MENA region has done an
excellent job managing unprecedented disruptions in certain markets
and has strengthened our sales and manufacturing operations. We are
on track to deliver our forecast for the first half, in line with
market expectations, driven by a recovery in Egypt and Tunisia and
double-digit growth in most other markets. While sales activities
in Libya and Yemen remain limited and in certain markets ACTOS(R)
sales have been suspended or negatively impacted by more
restrictive labeling, we continue to expect the Branded business to
deliver around 7% revenue growth for the full year, with operating
margins of around 23%.
In the US, our team has gone a long way towards off-setting lost
sales from the discontinuation of colchicine and we continue to
expect Generics revenues of around $160 million for the full year.
Given investments we have made to strengthen the senior management
team, we expect operating margin for the full year to be in the
low-teens.
Our legacy Injectables business is having an excellent year and
is delivering on our strategy of building scale through strong
organic growth. We expect this strong performance to continue in
the second half and expect significant operating margin expansion
for the full year.
Due to the significant delay in the closing the MSI transaction,
caused by an extended FTC review, we incurred higher than expected
integration and transaction costs of $5.4 million, which have
resulted in a net loss from MSI of around $5.0 million for the two
months to 30 June, taking into consideration financing costs. Since
closing on 2 May 2011, the integration process has proceeded apace.
We have identified opportunities for cost savings, operational
synergies and portfolio optimization and are well advanced in the
implementation of our restructuring plans. We expect the MSI
business will break even for the second half of the year. For 2012,
we expect MSI to contribute revenues of at least $180 million and
EBITDA margin of at least 10%.
Negative movements in the Sudanese Pound, the Egyptian Pound,
the Japanese Yen and the Euro relative to the dollar are also
having a material impact on our results. We now expect reported net
income for the Group to be in the range of $85 million to $90
million for the full year, including one-time transaction and
integration costs and assuming current exchange rates. In constant
currency, however, we expect Group net income to be in the range of
$95 million to $100 million, including one-time transaction and
integration costs.
We will announce our interim results for the six months to 30
June on 25 August 2011.
----- ENDS -----
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal, Investor Relations Director +44 (0)20 7399
2760/07776 477 050
Financial Dynamics +44 (0)20 7831 3113
Ben Atwell /Julia Phillips/Jonathan Birt/Matthew Cole
About Hikma
Hikma Pharmaceuticals PLC is a fast growing multinational
pharmaceutical group focused on developing, manufacturing and
marketing a broad range of both branded and non-branded generic and
in-licensed products. Hikma's operations are conducted through
three businesses: "Branded", "Injectables" and "Generics" based
principally in the Middle East and North Africa ("MENA") region,
where it is a market leader, the United States and Europe. In 2010,
Hikma achieved revenues of $731 million and profit attributable to
shareholders of $99 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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