TIDMHIK
RNS Number : 9654H
Hikma Pharmaceuticals Plc
24 August 2016
PRESS RELEASE
Hikma delivers solid first half performance and reiterates full
year revenue guidance of $2.0 billion to $2.1 billion
London, 24 August 2016 - Hikma Pharmaceuticals PLC (Hikma,
Group) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY) (rated Ba1
Moody's / BB+ S&P , both stable), the fast growing
multinational pharmaceutical group, today reports its interim
results for the six months ended 30 June 2016. The financial
results include the consolidation of four months of Roxane
Laboratories (now West-Ward Columbus).
H1 2016 highlights
Core results Growth
-------------------------- ---------- ----------------- ----------
Constant
H1 2016 currency H1 2015
$million $ $million
-------------------------- ---------- ---------- ----- ----------
Core revenue 882 +28% +24% 709
-------------------------- ---------- ---------- ----- ----------
Core operating profit(1) 176 -3% -14% 204
-------------------------- ---------- ---------- ----- ----------
Core EBITDA(2) 211 - -9% 231
-------------------------- ---------- ---------- ----- ----------
Core basic earnings
per share (cents)(3) 48.2 -21% -32% 71.4
-------------------------- ---------- ---------- ----- ----------
Total results Growth
-------------------------- ---------- ----------------- ----------
Constant
H1 2016 currency H1 2015
$million $ $million
-------------------------- ---------- ---------- ----- ----------
Revenue 882 +28% +24% 709
-------------------------- ---------- ---------- ----- ----------
Operating profit 121 -27% -38% 194
-------------------------- ---------- ---------- ----- ----------
EBITDA(4) 194 -5% -15% 227
-------------------------- ---------- ---------- ----- ----------
Basic earnings per share
(cents) 25.7 -49% -62% 67.3
-------------------------- ---------- ---------- ----- ----------
-- Group revenue of $882 million, up 24% in H1 2016 and up 28% in constant currency(5)
-- Completed West-Ward Columbus acquisition, making significant
progress with integration and on track to deliver cost
synergies
-- Group core operating profit of $176 million, down 14% and
down 3% in constant currency, due to a lower contribution from
specific market opportunities for the Generics business compared
with the first half of 2015
-- Group core basic earnings per share of 48.2 cents, down 32% and down 21% in constant currency
-- Launched 44 products and received 182 approvals, expanding
and enhancing our global product portfolio
-- Launched 3 Bedford products in the year to-date and on track
to achieve our target of 20 Bedford launches by the end of 2017
-- Interim dividend of 11.0 cents per share, in line with the interim dividend for H1 2015
-- The guidance published in the trading update on 3 August 2016 is unchanged
-- Continue to expect 2016 Group revenue in the range of $2.0
billion to $2.1 billion in constant currency, driven by strong
growth in Injectables and Branded and the consolidation of ten
months of revenue from West-Ward Columbus
Said Darwazah, Chairman and Chief Executive Officer of Hikma,
said:
"Hikma has delivered a solid first half performance in a
transitional year. Our global Injectables business is performing
well, with revenue growth and strong profitability driven by a
favourable product mix. We continue to successfully transfer the
Bedford products to our injectables facilities. By re-introducing
these products to the market and increasing our investment in
R&D, we are building a strong pipeline to support future
growth.
We are making excellent progress integrating the West-Ward
Columbus operations, although as previously announced, we had
slower than expected approvals for certain products in the first
half. These products have now been approved but their delay had an
impact on expected revenue and profit in 2016. We remain on track
to achieve the revenue growth and cost synergy targets that we have
set ourselves for West-Ward Columbus in 2017 and beyond. In MENA,
our focus on higher value products and tight cost control is
delivering a continued improvement in profitability, despite the
significant currency headwinds in the region.
Overall, the Group is well positioned across our markets and we
are confident that we have the regulatory, R&D and commercial
capabilities to realise the full potential of our pipeline
opportunities over the coming years."
Enquiries
Hikma Pharmaceuticals PLC
VP Corporate Strategy
and Director of Investor +44 (0)20 7399 2760/
Susan Ringdal Relations +44 7776 477050
Lucinda Deputy Director of Investor +44 (0)20 7399 2765/
Baker Relations +44 7818 060211
+44 (0)207 399 2768/
Zeena Murad Investor Relations Manager +44 7771 665277
FTI Consulting
Ben Atwell/ Matthew Cole/
Julia Phillips +44 (0)20 3727 1000
About Hikma
Hikma Pharmaceuticals PLC is a fast growing 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 primarily in the
Middle East and North Africa ("MENA") region, where it is a market
leader, the United States and Europe. In 2015, Hikma achieved
revenues of $1,440 million and profit attributable to shareholders
of $252 million.
A presentation for analysts and investors will be held today at
09:30 UK time at FTI Consulting, 200 Aldersgate, Aldersgate Street,
London EC1A 4HD. To join via conference call please dial: +44 (0)
203 003 2666 or 0808 109 0700 (UK toll free). Alternatively you can
listen live via our website at www.hikma.com. A recording of both
the meeting and the call will be available on the Hikma website.
The contents of the website do not form part of this interim
management report.
Business and financial review
The business and financial review set out below summarises the
performance of Hikma's three main business segments, Injectables,
Generics and Branded, for the six months ended 30 June 2016.
Group revenue by business segment
$ million H1 2016 H1 2015
------------- ---------- ----------
Branded 264 30% 282 40%
------------- ---- ---- ---- ----
Injectables 357 40% 344 48%
------------- ---- ---- ---- ----
Generics 257 30% 79 11%
------------- ---- ---- ---- ----
Others 4 - 4 1%
------------- ---- ---- ---- ----
Group revenue by region
$ million H1 2016 H1 2015
------------ ---------- ----------
MENA 304 34% 322 45%
------------ ---- ---- ---- ----
US 529 60% 344 49%
------------ ---- ---- ---- ----
Europe and
ROW 49 6% 43 6%
------------ ---- ---- ---- ----
Injectables
H1 2016 highlights:
-- Global Injectables revenue of $357 million, up 4% from H1 2015 and up 5% in constant currency
-- Strong core operating margin of 40.9%, even with a significant increase in R&D investment
-- Launched 3 Bedford products in the year to-date and on target
to launch a total of 20 Bedford products by the end of 2017
-- Continue to expect mid to high-single digit revenue growth
and core operating margin of around 38% for the full year
$ million H1 2016 H1 2015 Change Constant
currency
change
-------------------------- -------- -------- ------- ----------
Revenue 357 344 +4% +5%
-------------------------- -------- -------- ------- ----------
Gross profit 225 215 +5% +6%
-------------------------- -------- -------- ------- ----------
Gross margin 63.0% 62.5% +0.5pp +0.8pp
-------------------------- -------- -------- ------- ----------
Core operating profit(6) 146 146 - +2%
-------------------------- -------- -------- ------- ----------
Core operating margin(6) 40.9% 42.4% -1.5pp -1.0pp
-------------------------- -------- -------- ------- ----------
Injectables revenue by region
H1 2016 H1 2015
------------ ---------- ----------
US 272 76% 266 77%
------------ ---- ---- ---- ----
MENA 43 12% 43 13%
------------ ---- ---- ---- ----
Europe and
ROW 42 12% 35 10%
------------ ---- ---- ---- ----
Total 357 344
------------ ---- ---- ---- ----
In H1 2016, global Injectables revenue grew by 4% to $357
million. In constant currency, global Injectables revenue increased
by 5%.
Of this total, US Injectables revenue was $272 million, up 2%
from $266 million in H1 2015. We continued to generate strong
revenue from specific market opportunities, which as expected, were
lower than in H1 2015. This was more than offset by good demand
across our broad portfolio and new product launches, including the
former Bedford products. We expect new product launches to drive
stronger revenue growth in the second half of 2016.
During the period, MENA Injectables revenue was in line with H1
2015 at $43 million and in constant currency increased by 7%. Lower
revenue in Algeria was more than offset by growth in Egypt, where
we completed the acquisition of EIMC United Pharmaceuticals (EUP)
in February, adding a local injectables manufacturing facility and
enabling us to launch three products in the first half. We expect
MENA Injectables to grow more strongly in the second half of 2016
driven by new product launches and higher oncology sales.
European Injectables revenue was $42 million in H1 2016, an
increase of 20% on both a reported and constant currency basis.
This strong growth reflected good demand for key products and
contract manufacturing services.
Injectables gross profit increased to $225 million in H1 2016,
compared with $215 million in H1 2015. Gross margin increased to
63.0%, compared with 62.5% in H1 2015. The continued strong gross
margin reflects a favourable product mix in the US due to the
contribution from specific market opportunities and other higher
value products, including the higher margin Bedford products that
have been re-introduced to the market.
Core operating profit, which excludes the amortisation of
intangible assets other than software and exceptional items, was
$146 million in H1 2016, in line with H1 2015. Core operating
margin was 40.9%, compared with 42.4% in H1 2015. The continued
strength of the core operating margin reflects the strong gross
margin and was achieved even with a significant increase in R&D
expense compared with H1 2015 related to new product development as
we invest in building our pipeline.
During H1 2016, the Injectables business launched a total of 29
products across all markets, including 4 new products. The
Injectables business also received a total of 70 regulatory
approvals across all regions and markets, 31 in MENA, 23 in Europe
and 16 in the US.
We continue to expect Injectables revenue growth to be in the
mid to high-single digits in 2016, with competition on marketed
products being more than offset by new product launches from our
R&D, business development and Bedford pipelines. Due to a
favourable product mix, we expect core operating margin to be
around 38%. If certain specific market opportunities for our US
Injectables business continue through the remainder of the year,
there may be scope to increase our full year guidance for 2016.
Generics
H1 2016 highlights:
-- Generics revenue of $257 million, compared with $79 million
in H1 2015, primarily reflecting the consolidation of four months
of revenue from West-Ward Columbus
-- Generics core operating profit of $8 million, with a core
operating margin of 3.1%, reflecting the product mix and high
operating costs
-- Continue to expect full year revenue in the range of $640
million to $670 million in 2016, including ten months of West-Ward
Columbus
-- Continue to expect core Generics operating profit in the
range of $30 million to $40 million in 2016
-- Continue to expect 2017 West-Ward Columbus revenue in the
range of $700 million to $750 million and West-Ward Columbus EBITDA
margin of around 35% over the medium term
$ million H1 2016 H1 2015 Change
-------------------------- -------- -------- --------
Revenue 257 79 +225%
-------------------------- -------- -------- --------
Gross profit 65 48 +35%
-------------------------- -------- -------- --------
Gross margin 25.3% 60.8% -35.5pp
-------------------------- -------- -------- --------
Core operating profit(6) 8 33 -76%
-------------------------- -------- -------- --------
Core operating margin(6) 3.1% 41.8% -38.7pp
-------------------------- -------- -------- --------
Generics revenue was $257 million in the first half of 2016. Our
legacy Generics business contributed revenue of $64 million
compared with $79 million in H1 2015. This reflected lower revenue
from specific market opportunities, as expected and the required
divestment of certain legacy products, partially offset by steady
growth in colchicine sales. Following completion of the acquisition
on 29 February 2016, West-Ward Columbus contributed revenue of $193
million in the first half. West-Ward Columbus' marketed portfolio
performed in line with our expectations. However, as previously
disclosed, overall revenue was lower than our expectations in the
first half due to slower approvals for certain new products.
Although these pipeline products have now been approved, their
delay had an impact on expected revenue. We remain confident that
new product launches from West-Ward Columbus' large and
differentiated pipeline will drive strong growth in 2017.
Generics gross profit was $65 million in H1 2016, compared with
$48 million in H1 2015. Excluding the impact of the inventory
related adjustments and other costs related to the West-Ward
Columbus acquisition, core gross profit was $89 million. Gross
margin was 25.3%, and core gross margin was 34.6%, compared with
60.8% in H1 2015. This reflects the lower contribution from
specific market opportunities in H1 2016 and the consolidation of
West-Ward Columbus.
Core Generics operating profit was $8 million in H1 2016,
compared with $33 million in H1 2015, reflecting the product mix
and the high operating costs of the West-Ward Columbus business.
After taking account of a number of adjustments related to the
West-Ward Columbus acquisition including intangible amortisation of
$8 million, inventory related adjustments of $20 million,
integration and other costs of $7 million and the net gain from the
divestment of certain legacy Generics products of $18 million, the
Generics business had an operating loss of $9 million. Core
operating margin was 3.1%, compared with 41.8% in H1 2015. We
expect increased colchicine sales, the launch of higher value
products from the West-Ward Columbus pipeline and the
implementation of identified cost saving opportunities within the
West-Ward Columbus business to drive an improvement in Generics
operating margin during the second half of 2016 and in 2017.
During H1 2016, the Generics business launched 1 new product and
received 9 product approvals. The Generics business also signed new
licensing agreements for 4 new products.
We continue to expect revenue for the combined Generics business
in 2016 to be in the range of $640 million to $670 million,
including ten months of contribution from West-Ward Columbus and
taking into account the divestiture of certain legacy products. We
expect the revenue shortfall from delays in new product launches to
be largely offset by an increase in lower margin contract
manufacturing revenue. The change in the mix of revenue will have
an adverse impact on profitability in 2016, which will also be
impacted by higher than expected costs resulting from the
acceleration in timing of certain pipeline-related litigation. As a
result, we expect core Generics operating profit to be in the range
of $30 million to $40 million for the full year.
We continue to expect West-Ward Columbus revenue to increase to
between $700 million to $750 million in 2017 as new product
launches accelerate. We continue to expect an increase in West-Ward
Columbus' EBITDA margin to around 35% over the medium term. This
high level of profitability will be achieved through new product
launches from West-Ward Columbus' differentiated pipeline and the
delivery of cost savings. We have made good initial progress since
closing the acquisition and we continue to expect to achieve cost
savings in the range of $35 million to $45 million by the end of
2017.
Branded
H1 2016 highlights:
-- Branded revenue of $264 million, down 6% and up 1% in constant currency
-- Branded core operating profit of $55 million, down 5% and up 28% in constant currency
-- Branded core operating margin was 20.8% and 26.1% in constant currency
-- Continue to expect Branded revenue growth in 2016 to be in
line with historical trends, on a constant currency basis
-- Continue to expect an improvement in Branded core operating
margin as a result of revenue growth, a focus on higher margin
products and increased efficiencies
$ million H1 2016 H1 2015 Change Constant
currency
change
-------------------------- -------- -------- ------- ----------
Revenue 264 282 -6% +1%
-------------------------- -------- -------- ------- ----------
Gross profit 134 136 -1% +12%
-------------------------- -------- -------- ------- ----------
Gross margin 50.8% 48.2% +2.6pp +5.3pp
-------------------------- -------- -------- ------- ----------
Core operating profit(6) 55 58 -5% +28%
-------------------------- -------- -------- ------- ----------
Core operating margin(6) 20.8% 20.6% +0.2pp +5.5pp
-------------------------- -------- -------- ------- ----------
Branded revenue increased by 1% in H1 2016, before the impact of
adverse movements in the Algerian dinar, Egyptian pound, Sudanese
pound, Moroccan dirham and Tunisian dinar against the US dollar. On
a reported basis, Branded revenue decreased by 6% to $264 million,
compared with $282 million in H1 2015. The growth on a constant
currency basis reflected our continued focus on higher value
products which more than offset lost revenue from discontinued tail
products.
In the key markets of Algeria and Egypt, our businesses
performed extremely well, delivering double-digit constant currency
growth in the first half. In the Gulf Cooperation Council (GCC),
which includes Saudi Arabia and the UAE, revenue declined compared
with the first half of 2015 primarily due to a reduction in tender
sales, a slowdown in demand for certain products and delays in
product launches. We expect some improvement in the GCC in the
second half driven by the timing of shipments and new product
launches.
During H1 2016, the Branded business launched a total of 14
products across all markets, including 1 new product. The Branded
business also received 103 regulatory approvals across the
region.
Revenue from in-licensed products represented 38% of Branded
revenue, compared with 40% in H1 2015. We launched two new
in-licensed respiratory products during H1 2016, which will help us
to grow our portfolio of higher value products in key therapeutic
categories.
On a reported basis, Branded gross profit decreased by 1% to
$134 million in H1 2016 and gross margin was 50.8%, compared with
48.2% in H1 2015. In constant currency, gross profit increased by
$16 million, or 12% and gross margin increased to 53.5%. This
reflects an improvement in the mix of sales through our focus on
higher value products and the discontinuation of certain tail
products.
Core operating profit, which excludes the amortisation of
intangibles of $4 million, decreased by 5% to $55 million and core
operating margin was 20.8%, up from 20.6% in H1 2015. In constant
currency, core operating profit increased by 28% and core operating
margin increased to 26.1%. This significant expansion in operating
margin is primarily due to the improvement in gross margin, as well
as continued tight control of operating expenses during the period
and the benefit of restructuring measures undertaken in recent
years.
For the full year in 2016, we continue to expect the Branded
business to perform in line with historical trends on a constant
currency basis. We expect revenue growth to be driven by our focus
on strategic products and the strength of our sales and marketing
teams. We continue to expect an improvement in Branded core
operating margin as a result of revenue growth, a focus on higher
margin products and increased efficiencies.
Other businesses
Other businesses, which primarily comprise Arab Medical
Containers, a manufacturer of plastic specialised medicinal sterile
containers, International Pharmaceuticals Research Centre, which
conducts bio-equivalency studies, and the API manufacturing
division of Hikma Pharmaceuticals Limited Jordan, contributed
revenue of $4 million in H1 2016, in line with H1 2015. These other
businesses were breakeven in H1 2016, compared with an operating
loss of $3 million in H1 2015.
Group
Group revenue increased from $709 million in H1 2015 to $882
million in H1 2016 after the consolidation of four months of
revenue from West-Ward Columbus. Group gross profit was $425
million in H1 2016. Excluding exceptional items related to the
West-Ward Columbus acquisition comprising inventory related
adjustments of $20 million and other costs of $4 million, core
gross profit was $449 million, up from $400 million in H1 2015.
Group gross margin was 48.2% and core gross margin was 50.9%,
compared with 56.4% in H1 2015.
Group operating expenses increased by 48% to $304 million,
compared with $206 million in H1 2015, largely as a result of the
consolidation of West-Ward Columbus and the associated acquisition
and integration costs. Core Group operating expenses, excluding the
amortisation of intangible assets other than software and
exceptional items, increased by 39% to $273 million compared with
$196 million in H1 2015. In H1 2016, amortisation of intangible
assets other than software was $18 million, compared with $6
million in H1 2015. The increase primarily resulted from the
acquisition of West-Ward Columbus. Exceptional items included
within operating expenses were $13 million, compared with $4
million in H1 2015. In H1 2016, exceptional items comprised
acquisition and integration related costs of $35 million, the net
gain on divestment of certain legacy Generics products of $18
million and the release of a contingent liability of $4 million.
The paragraphs below address the Group's main operating expenses in
turn.
Sales and marketing expenses were $106 million compared with $81
million H1 2015. Excluding the amortisation of intangible assets
other than software, sales and marketing expenses were $88 million,
or 10% of revenue compared with $75 million, or 11% of revenue in
H1 2015. The increase of $13 million was primarily due to the
consolidation of West-Ward Columbus and the increased sales and
promotional costs related to the branded salesforce we established
in the US from July 2015.
General and administrative expenses increased by $44 million
from $86 million in H1 2015 to $130 million in H1 2016. Excluding
exceptional items related to the acquisition and integration costs,
G&A expenses increased by $15 million, or 19%, primarily due to
the consolidation of West-Ward Columbus.
We have significantly increased our R&D investment from $20
million in H1 2015 to $57 million in H1 2016. Around $29 million of
the Group's R&D expense was incurred by West-Ward Columbus and
we expect this spend to be higher in the second half as we continue
to develop our differentiated pipeline. R&D spend for the
Injectables business was also higher in H1 2016 due to our
increased investment in new product development. An additional $12
million of product-related investment was capitalised on the
balance sheet in H1 2016. This related to the transfer of the
Bedford products to our facilities and to product development
investments with third party partners, primarily in the US. The
combined R&D expense and product-related investment for the
Group was $69 million (8% of Group revenue) compared with $31
million (4% of Group revenue) in H1 2015. We continue to expect
Group R&D expense to be around $150 million for the full year
in 2016.
Other net operating expenses were $11 million in H1 2016,
compared with $19 million in H1 2015. Excluding exceptional items
of $22 million related to the divestment of certain products and
the release of a contingent liability, these expenses were $33
million in H1 2016, up from $21 million in H1 2015. This is
primarily due to the consolidation of the West-Ward Columbus
business.
Group operating profit decreased by 38% from $194 million to
$121 million in H1 2016. Excluding the impact of amortisation and
exceptional items, core Group operating profit decreased by 14% to
$176 million and core operating margin was 20.0% compared with
28.8% in H1 2015. This primarily reflects the lower contribution
from specific market opportunities in the Generics business and the
consolidation of West-Ward Columbus.
Research & Development(7)
The Group's product portfolio continues to grow as a result of
our product development efforts. During H1 2016, we launched 5 new
compounds. The Group's portfolio now stands at 674 compounds in
1,975 dosage forms and strengths.(8) We manufacture and/or sell 76
of these compounds under licence from the licensor.
Across all businesses and markets, a total of 44 products were
launched during H1 2016. In addition, the Group received 182
approvals.
To ensure the continuous development of our product pipeline, we
submitted 120 regulatory filings in H1 2016 across all regions and
markets. As of 30 June 2016, we had a total of 1,315 pending
approvals across all regions and markets. At 30 June 2016, we had a
total of 255 new products under development.
Products
pending
approval
Products as at
Total marketed Products launched approved 30 June
products in H1 2016 in 2016 2016
------------- ------------------------- -------------------------------------------- ------------- -------------
Total
Total Total pending
Dosage New dosage launches approvals approvals
forms forms across across across
and and all all all
Compounds strengths New compounds strengths countries(9) countries(9) countries(9)
------------- ---------- ------------- -------------- ------------- ------------- ------------- -------------
Branded 378 1,126 1 1 14 103 519
Injectables 189 492 4 4 29 70 671
Generics 107 357 - 1 1 9 125
Group 674 1,975 5 6 44 182 1,315
Net finance expense
In H1 2016, net finance expense was $38 million. Excluding
non-cash expenses resulting from the remeasurement of contingent
liabilities, net finance expense was $29 million, up from $22
million in H1 2015. This reflects the increased interest and
financing fees as a result of the West-Ward Columbus acquisition
which was completed in February 2016 as well as the interest paid
on the $500 million 4.25% Eurobond which was issued in April 2015.
For the full year in 2016, we continue to expect the Group's net
finance expense to be around $62 million. In addition, we expect
non-cash expenses resulting from the remeasurement of contingent
liabilities to be around $17 million for the full year in 2016.
Profit before tax
Profit before tax for the Group was $83 million in H1 2016, down
from $170 million in H1 2015. Core profit before tax was $147
million, down 18% from $180 million in H1 2015.
Tax
The Group incurred a tax expense of $24 million, compared with
$35 million in H1 2015. Excluding the tax impact of exceptional
items, core Group tax expense was $37 million in H1 2016, in line
with $37 million in H1 2015. The core effective tax rate was 25.2%,
compared with 20.6% in H1 2015. The increase is due to the
increased earnings in higher tax jurisdictions H1 2016. We continue
to expect the core effective tax rate for the full year in 2016 to
be around 25% and to return to closer to 2014 levels over the
medium term.
Profit attributable to shareholders
Profit attributable to shareholders decreased by 57% to $58
million, compared with $134 million in H1 2015. Core profit
attributable to shareholders decreased by 23% to $109 million,
compared with $142 million in H1 2015.
Earnings per share
Earnings per share was impacted by the issuance of 40 million
new shares to Boeringher Ingelheim on 29 February 2016 as part of
the consideration for the West-Ward Columbus acquisition, as well
as the reduction in profit attributable to shareholders in H1 2016
compared with H1 2015. Basic earnings per share decreased by 62% to
25.7 cents in H1 2016, compared to 67.3 cents in H1 2015. Core
basic earnings per share decreased by 32% to 48.2 cents, compared
with 71.4 cents in H1 2015. Core diluted earnings per share
decreased by 33% to 47.8 cents, compared with 71.0 cents in H1
2015.
Dividend
The Board has declared an interim dividend of 11.0 cents per
share (approximately 8.4 pence per share) for H1 2016, in line with
the interim dividend of 11.0 cents per share in H1 2015. The
interim dividend will be paid on 30 September 2016 to eligible
shareholders on the register at the close of business on 2
September 2016. The ex-dividend date is 1 September 2016 and the
final date for currency elections is 16 September 2016.
Net cash flow, working capital and net debt
The Group generated operating cash flow of $99 million in H1
2016. Excluding the acquisition and integration costs related to
the West-Ward Columbus acquisition of $35 million, Group operating
cash flow was $134 million in H1 2016, an increase of 7% from $125
million in H1 2015. Improved cash collection in MENA more than
offset the lower contribution from specific market opportunities
for the Generics business. Group working capital days were 211 days
at June 2016, up from 192 days at June 2015.(10) This primarily
reflects an increase in inventory days in the US and MENA due to
these businesses building inventory levels in anticipation of
stronger sales in the second half.
Capital expenditure was $55 million, compared with $37 million
in H1 2015. Of this, around $32 million was spent in the US to
expand the manufacturing capacity and capabilities of our
Injectables and Generics businesses. In MENA, around $17 million
was spent to maintain our equipment and facilities across a number
of markets. The remaining $6 million was spent in Europe, expanding
our Injectables manufacturing capacity for lyophilised and oncology
products. We expect Group capital expenditure to be around $150
million for the full year in 2016, including West-Ward
Columbus.
The Group's net debt(11) (excluding co-development agreements
and contingent liabilities) stood at $819 million at the end of
June 2016, compared with $135 million at the end of December 2015.
On 29 February 2016, we completed the acquisition of West-Ward
Columbus and the net cash consideration of $575 million (net of
certain working capital and other adjustments) was paid to
Boehringer Ingelheim. In addition, 40 million new shares were
issued to Boehringer Ingelheim at a price of 1881p, bringing the
combined net consideration paid at closing to $1.6 billion, using
the US:GBP exchange rate of 1.3879:1. Post completion, further
adjustments to the cash consideration have been made which reduced
the total consideration to $1.5 billion. Should certain further
targets be met, further payments could be triggered.(12) The cash
consideration was funded through a combination of cash and the
utilisation of the Group's existing debt facilities.
Balance sheet
Net assets at 30 June 2016 totalled $2,400 million, compared to
$1,352 million at 31 December 2015. The significant increase in net
assets reflects the consolidation of the West-Ward Columbus
business. Net current assets were $701 million, compared to $768
million at 31 December 2015.
During the period, shareholder equity was negatively impacted by
an unrealised foreign exchange translation loss of $16 million,
primarily reflecting movements in the Algerian dinar, Moroccan
dirham, Egyptian pound, the Sudanese pound and the Tunisian dinar
against the US dollar and the translation of net assets denominated
in these currencies.
Summary and outlook
The Group delivered a solid performance in the first half of
2016 whilst completing the transformational acquisition of
West-Ward Columbus and rapidly progressing with the
integration.
Our global Injectables business is performing well in 2016 and
we expect stronger revenue growth in the second half as revenue
from the re-introduction of the Bedford products increases. We
continue to expect revenue to be in the mid to high-single digits
for the full year in 2016, with competition on marketed products
being more than offset by new product launches from our R&D,
business development and Bedford pipelines. Due to a favourable
product mix, we expect core operating margin for this business to
be around 38% for the full year.
We continue to expect revenue for the combined Generics business
to be in the range of $640 million to $670 million, including ten
months of contribution from the West-Ward Columbus business and
taking into account the divestiture of certain legacy products. As
previously disclosed, due to a change in the product mix, with the
revenue shortfall from delayed product launches being largely
offset by higher contract manufacturing revenue, we expect core
Generics operating profit to be in the range of $30 million to $40
million.
We continue to expect West-Ward Columbus revenue to increase to
between $700 million to $750 million in 2017 as new product
launches accelerate. We continue to expect an increase in West-Ward
Columbus' EBITDA margin to around 35% over the medium term. This
high level of profitability will be achieved through new product
launches from West-Ward Columbus' differentiated pipeline and the
delivery of planned cost savings. We have made good initial
progress since closing the acquisition and we continue to expect to
achieve cost savings in the range of $35 million to $45 million by
the end of 2017.
The Branded business is successfully executing its strategy of
focusing on higher value products and tight cost control,
delivering continued growth in profitability. The business
continues to be impacted by adverse currency movements against the
US dollar. On a constant currency basis, we continue to expect the
Branded business to perform in line with historical trends for the
full year in 2016, driven by strong underlying market growth, our
focus on strategic products and the strength of our sales and
marketing teams. We expect an improvement in Branded core operating
margin to be driven by revenue growth, a focus on higher margin
products and increased efficiencies.
For the overall Group, we continue to expect revenue in 2016 to
be in the range of $2.0 billion to $2.1 billion in constant
currency, including the contribution of ten months of revenue from
West-Ward Columbus, with continuing momentum into 2017.
As previously disclosed, our full year reported results will be
impacted by a number of exceptional, non-cash and other charges
including the amortisation of intangible assets, inventory-related
adjustments, acquisition, integration and other costs, the release
of a contingent liability and the gain on sale from divestiture of
certain products. In aggregate, the net impact of these items on
operating profit is now estimated at around $88 million. After the
tax effect and the remeasurement of contingent liabilities included
within net finance, the net impact of these items on profit
attributable to shareholders is now estimated at around $83
million.
Overall, Hikma is well positioned across our markets and we
remain confident in our enhanced prospects for growth. Pipeline
execution remains a key growth driver, particularly the
differentiated West-Ward Columbus and Bedford pipelines and we are
expecting these to deliver stronger growth in the second half of
2016 and in 2017.
Going concern statement
As set out in note 2 to the condensed financial statements, the
Directors considered it appropriate to prepare the financial
statements on the going concern basis as explained in the basis of
preparation.
Responsibility statement
The Board confirms to the best of its knowledge:
a) The condensed set of financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting' gives a
true and fair view of the assets and liabilities, financial
position and profit or loss of the issuer, or the undertakings
included in the consolidation as a whole as required by DTR
4.2.4R;
b) The interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months including their impact on the financial
statements and description of principal risks and uncertainties for
the remaining six months of the year); and
c) The interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein which have had or could have a
material financial effect on the financial position of the Group
during the period).
By order of the Board
Said Darwazah Khalid Nabilsi
Chief Executive Officer Chief Financial
Officer
23 August 2016
Cautionary statement
This interim management report has been prepared solely to
provide additional information to shareholders to assess the
Group's strategies and the potential for those strategies to
succeed. It should not be relied on by any other party or for any
other purpose.
Forward looking statements
This announcement may contain statements which are, or may be
deemed to be, "forward looking statements" which are prospective in
nature. All statements other than statements of historical fact may
be forward-looking statements. Often, but not always,
forward-looking statements can be identified by the use of forward
looking words such as "intends", "believes", "anticipates",
"expects", "estimates", "forecasts", "targets", "aims", "budget",
"scheduled" or words or terms of similar substance or the negative
thereof, as well as variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"should", "would", "might" or "will" be taken, occur or be
achieved.
Where included, such statements have been made by Hikma in good
faith based on the information available to it up to the time of
the approval of this announcement. By their nature, forward looking
statements are based on current expectations, assumptions and
projections about future events and therefore involve inherent
risks and uncertainties that could cause actual results or events
to differ materially from those expressed or implied by the
forward-looking statements, and should be treated with caution.
These risks, uncertainties or assumptions could adversely affect
the outcome and financial effects of the plans and events described
in this announcement. Forward looking statements contained in this
announcement regarding past trends or activities should not be
taken as a representation that such trends or activities will
continue in the future and a variety of factors, many of which are
beyond Hikma's control, could cause actual results to differ
materially from those projected or implied in any forward-looking
statements. You should not place undue reliance on forward-looking
statements, which speak as only of the date of the approval of this
announcement.
Except as required by law, Hikma is under no obligation to
update or keep current the forward looking statements contained in
this announcement or to correct any inaccuracies which may become
apparent in such forward looking statements. Except as expressly
provided in this announcement, no forward looking or other
statements have been reviewed by the auditors of Hikma. All
subsequent oral or written forward looking statements attributable
to the Hikma or any of its members, directors, officers or
employees or any person acting on their behalf are expressly
qualified in their entirety by the cautionary statement above.
Principal risks and uncertainties
As part of Hikma's Enterprise Risk Management Framework, the
Board conducted a detailed review of all of the existing and
emerging principal risks in the businesses during the year and
detailed these principal risks on pages 52 to 56 of the Annual
Report of Hikma Pharmaceuticals PLC for the year ended 31 December
2015. The Board has reviewed those principal risks and
uncertainties and concluded that no substantial changes need to be
made. It is not anticipated that the nature of the principal risks
and uncertainties will change in the second six months of this
financial year.
In summary, the principal risks and uncertainties affecting the
Group are those described in the table below.
Risk Description
---------------- ------------------------------------------------------------------
Product Manufacturing pharmaceutical products exposes
quality Hikma to the risk that products or manufacturing
processes may not meet required quality standards,
potentially leading to:
* Harm to end users, manufacturing personnel and the
environment, resulting in liability and reputational
issues
* Regulatory action that could result in the closure of
facilities and consequential loss of opportunity and
potential failure to supply obligations
* Delayed or denied approvals for new products
* Product recalls
---------------- ------------------------------------------------------------------
API sourcing API and raw materials represent one of the
Group's largest cost components. As is typical
in the pharmaceuticals industry, a significant
proportion of the Group's API requirements
is provided by a small number of API suppliers.
Regulatory approval and qualification of
new suppliers can be lengthy and supplies
may be disrupted if the Group is forced to
replace a terminated supplier or one which
may have failed to meet applicable regulatory
standards.
With increased regulatory scrutiny on API
suppliers globally, there will always be
a risk that the Group cannot secure and maintain
the required levels of API supplies.
---------------- ------------------------------------------------------------------
MENA & Hikma operates in MENA and emerging markets
emerging which have high levels of political and social
markets instability as well as economic and regulatory
fluctuations that can result in a wide variety
of business disruptions in those markets
for a substantial period of time.
---------------- ------------------------------------------------------------------
New product Broadening our product range and entering
pipeline new therapeutic areas is a medium term priority
for the Group, but carries a risk of over-investing
and not getting the anticipated economic
return. Successful execution and launch,
including timely approval by regulators of
new products, continues to be an inherent
risk.
---------------- ------------------------------------------------------------------
Industry The dynamics of the generic pharmaceutical
earnings industry includes numerous volatile elements,
such as regulatory interventions, drug approval
patterns, competitor strategies, pricing
and political and economic pressures that
are difficult to anticipate and may affect
profitability.
---------------- ------------------------------------------------------------------
Acquisitions The Group strategy is to pursue value adding
acquisitions to expand the product portfolio,
acquire manufacturing capabilities and expand
in existing and emerging markets. There is
a risk of misjudging key elements of an acquisition
or failing to integrate, particularly when
the acquisition is of a distressed asset.
In addition, a large scale acquisition may
entail finance-related risks and operating
expenses.
---------------- ------------------------------------------------------------------
Compliance The global pharmaceutical industry is considered
to be at a higher risk in relation to sales
practices. Improper conduct by employees
could damage the reputation and licence to
do business.
---------------- ------------------------------------------------------------------
Financial The Group is exposed to a variety of financial
risks similar to most major international
manufacturers such as liquidity, exchange
rates, tax uncertainty and debtor default.
---------------- ------------------------------------------------------------------
Legal, The Group is exposed to a variety of legal,
intellectual IP and regulatory risks similar to those
property faced by the industry, both on an international
and regulatory and national level, such as litigation, investigations,
sanctions and potential business disruptions.
---------------- ------------------------------------------------------------------
Information If information and data are not adequately
technology secured and protected, this could result
in:
* Increased internal/ external security threats
* Compliance and reputational damage
* Regulatory and legal litigation in case of failure to
manage personal data
* Reduced information accountability due to limited
sensitive data access controls
* Data loss and business disruptions
---------------- ------------------------------------------------------------------
Organisational The fast growing pace of the organisation
growth carries the inherent risk of not being able
to maintain adequate talent acquisition strategies,
organisational structure and or/management
processes that serve the changing needs of
the organisation. In turn, this may affect
other risks within the Group.
---------------- ------------------------------------------------------------------
Reputational Reputational risk inescapably arises as a
by-product of other risk and from taking
intricate business decisions. However, we
view our reputation as one of our most valuable
assets, as risks facing our reputation may
affect our ability to conduct core business
operations.
---------------- ------------------------------------------------------------------
(1) Before the amortisation of intangible assets other than
software and the exceptional items included in operating profit set
out in note 4 to the set of financial statements. We believe core
operating profit better represents the underlying performance of
the Group as it removes the impact of certain non-cash items and
items that are one-off in nature
2 Before the exceptional items included in operating profit set
out in note 4 to the set of financial statements. We believe core
EBITDA better represents the underlying performance of the Group as
it excludes one-off items, non-cash items and items below operating
profit
3 Before the amortisation of intangible assets other than
software and the exceptional items included in profit set out in
note 4 to the set of financial statements. We believe core basic
EPS better represents underlying earnings per share as it excludes
certain non-cash items and items that are one-off in nature
(4) Earnings before interest, tax, depreciation and
amortisation. EBITDA is stated before impairment charges,
loss/impairment of associates and inventory related adjustments in
respect of the West-Ward Columbus acquisition. We use EBITDA to
evaluate the operational performance of the Group excluding
non-cash items and items below operating profit
5 Constant currency numbers in H1 2016 represent reported H1
2016 numbers re-stated using average exchange rates in H1 2015. We
believe constant currency numbers better represent the underlying
performance of the businesses within the Group that have a
functional currency that is subject to significant fluctuations
against the US dollar
6 Before the amortisation of intangible assets other than
software and exceptional items, as set out in note 3 to the set of
financial statements
7 Products are defined as pharmaceutical compounds sold by the
Group. New compounds are defined as pharmaceutical compounds being
introduced for the first time during the period and existing
compounds being introduced into a new segment. We are presenting
details of the Group's product portfolio and pipeline to provide
additional information in respect of the size and make-up of the
marketed portfolio which is generating revenue and the pipeline
opportunity which will drive future revenue growth
8 Totals include 71 dermatological and cosmetic compounds in 282
dosage forms and strengths that are only sold in Morocco
9 Totals include all compounds and formulations that are either
launched or approved or pending approval across all markets, as
relevant
10 Group working capital days are calculated as Group receivable
days plus Group inventory days, less Group payable days. Group
receivable days are calculated as Group trade receivables x 365,
divided by trailing 12 months Group revenue. Group inventory days
are calculated as Group inventory x 365, divided by trailing 12
months Group cost of sales. Group payable days are calculated as
Group trade payables x 365, divided by trailing 12 months Group
cost of sales. We believe Group working capital days provides a
useful measure of the Group's working capital management and
liquidity
11 Group net debt is calculated as Group total debt less Group
total cash. Group total debt excludes co-development agreements and
contingent liabilities. We believe Group net debt is a useful
measure of the strength of the Group's financing position
12 Further detail regarding the West-Ward Columbus acquisition
is provided in note 21 to the set of financial statements
INDEPENT REVIEW REPORT TO HIKMA PHARMACEUTICALS PLC
Report on the consolidated interim financial statements
Our conclusion
We have reviewed Hikma Pharmaceuticals plc's condensed interim
financial statements (the "interim financial statements") in the
Press Release of Hikma Pharmaceuticals plc for the 6 month period
ended 30 June 2016. Based on our review, nothing has come to our
attention that causes us to believe that the interim financial
statements are not prepared, in all material respects, in
accordance with International Accounting Standard 34, 'Interim
Financial Reporting' ("IAS 34") as adopted by the European Union
and the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
Separate conclusion in relation to IFRS as issued by the
IASB
As explained in note 2 to the interim financial statements, the
Group, in addition to applying IAS 34 as adopted by the European
Union, has also applied IAS 34 as issued by the International
Accounting Standards Board ("IASB"). Based on our review, nothing
has come to our attention that causes us to believe that the
interim financial statements are not prepared, in all material
respects, in accordance with IAS 34 as issued by the IASB.
What we have reviewed
The interim financial statements comprise:
-the consolidated balance sheet as at 30 June 2016;
-the consolidated income statement and consolidated statement of
comprehensive income for the period then ended;
-the consolidated cash flow statement for the period then
ended;
-the consolidated statement of changes in equity for the period
then ended; and
-the explanatory notes to the interim financial statements.
The interim financial statements included in the Press Release
have been prepared in accordance with IAS 34, as adopted by the
European Union and as issued by the IASB and the Disclosure Rules
and Transparency Rules of the United Kingdom's Financial Conduct
Authority.
As disclosed in note 2 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Group is
applicable law and International Financial Reporting Standards as
adopted by the European Union and as issued by the IASB.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The Press Release, including the interim financial statements,
is the responsibility of, and has been approved by, the directors.
The directors are responsible for preparing the Press Release in
accordance with the Disclosure Rules and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
Our responsibility is to express a conclusion on the interim
financial statements in the Press Release based on our review. This
report, including the conclusion, has been prepared for and only
for the company for the purpose of complying with the Disclosure
Rules and Transparency Rules of the United Kingdom's Financial
Conduct Authority and for no other purpose.We do not, in giving
this conclusion, accept or assume responsibility for any other
purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior
consent in writing.
INDEPENT REVIEW REPORT TO HIKMA PHARMACEUTICALS PLC
What a review of interim financial statements involves
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK and
Ireland) and, consequently, does not enable us to obtain assurance
that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
We have read the other information contained in the Press
Release and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
London
23 August 2016
a) The maintenance and integrity of the Hikma Pharmaceuticals
PLC website is the responsibility of the directors; the work
carried out by the auditors does not involve consideration of these
matters and, accordingly, the auditors accept no responsibility for
any changes that may have occurred to the interim financial
statements since they were initially presented on the website.
b) Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Hikma Pharmaceuticals PLC
Consolidated Income Statement
H1 2016 H1 2016 H1 2016 H1 2015 H1 2015 H1 2015 FY 2015 FY 2015 FY 2015
Core Exceptional Reported Core Exceptional Reported Core Exceptional Reported
results items and results results items and results results items and results
other other other
adjustments adjustments adjustments
(note 4) (note 4) (note 4)
$m $m $m $m $m $m $m $m $m
Note (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) (Audited)
------------ ------------ ------------ ------------ ------------ ------------ ---------- ------------ ----------
Continuing
operations
Revenue 3 882 - 882 709 - 709 1,440 - 1,440
Cost of sales 3 (433) (24) (457) (309) - (309) (622) - (622)
------------ ------------ ------------ ------------ ------------ ---------- ----------
Gross profit 3 449 (24) 425 400 - 400 818 - 818
------------ ------------ ------------ ------------ ------------ ------------ ---------- ------------ ----------
Sales and
marketing
expenses (88) (18) (106) (75) (6) (81) (156) (16) (172)
General and
administrative
expenses (95) (35) (130) (80) (6) (86) (180) (20) (200)
Research and
development
expenses (57) - (57) (20) - (20) (36) - (36)
Other operating
expenses (net) (33) 22 (11) (21) 2 (19) (37) 8 (29)
------------ ------------ ------------ ------------ ------------ ------------ ---------- ------------ ----------
Total operating
expenses (273) (31) (304) (196) (10) (206) (409) (28) (437)
------------ ------------ ------------ ------------ ------------ ------------ ---------- ------------ ----------
Operating profit 3 176 (55) 121 204 (10) 194 409 (28) 381
Loss/impairment
of associates 8 - - - (2) - (2) (2) (7) (9)
Finance income 2 - 2 1 - 1 3 - 3
Finance expense (31) (9) (40) (23) - (23) (55) (2) (57)
------------ ------------ ------------ ------------ ------------ ------------ ---------- ------------ ----------
Profit before
tax 147 (64) 83 180 (10) 170 355 (37) 318
Tax 5 (37) 13 (24) (37) 2 (35) (67) 3 (64)
Profit for the
period/year 110 (51) 59 143 (8) 135 288 (34) 254
============ ============ ============ ============ ============ ============ ========== ============ ==========
Attributable to:
Non-controlling
interests 1 - 1 1 - 1 2 - 2
Equity holders
of the parent 109 (51) 58 142 (8) 134 286 (34) 252
------------ ------------ ------------ ------------ ------------ ------------ ---------- ------------ ----------
110 (51) 59 143 (8) 135 288 (34) 254
============ ============ ============ ============ ============ ============ ========== ============ ==========
Earnings per
share (cents)
Basic 7 48.2 25.7 71.4 67.3 143.7 126.6
Diluted 7 47.8 25.4 71.0 67.0 142.3 125.4
On this page and throughout this interim financial information
"H1 2016" refers to the six months ended 30 June 2016, "H1 2015"
refers to the six months ended 30 June 2015 and "FY 2015" refers to
the year ended 31 December 2015
Consolidated statement of
comprehensive income
H1 H1 FY
2016 2015 2015
$m (Unaudited) $m (Unaudited) $m (Audited)
--------------- --------------- -------------
Profit for the period/year 59 135 254
Other Comprehensive Income
Items that may be reclassified
subsequently to income statement
, net of tax:
Cumulative effect of change
in fair value of available
for sale investments 1 - -
Exchange difference on translation
of foreign operations (16) (40) (67)
Total comprehensive income
for the period/year 44 95 187
=============== =============== =============
Attributable to:
Non-controlling interests - 1 (2)
Equity holders of the parent 44 94 189
--------------- --------------- -------------
44 95 187
=============== =============== =============
Consolidated Balance Sheet
Note 30 June 30 June 31 December
2016 2015 2015
$m $m $m
(Unaudited) (Unaudited) (Audited)
------------- ------------- ------------
Non-current assets
Intangible assets 1,759 585 607
Property, plant and equipment 982 504 507
Investment in associates and joint ventures 8 7 14 7
Deferred tax assets 128 64 70
Financial and other non-current assets 60 43 46
2,936 1,210 1,237
------------- ------------- ------------
Current assets
Inventories 9 496 280 251
Income tax asset 8 16 3
Trade and other receivables 10 671 484 488
Collateralised and restricted cash 6 5 40
Cash and cash equivalents 247 490 553
Other current assets 11 139 22 25
1,567 1,297 1,360
------------- ------------- ------------
Total assets 4,503 2,507 2,597
============= ============= ============
Current liabilities
Bank overdrafts and loans 14 158 165 115
Obligations under finance leases 1 1 1
Trade and other payables 12 322 234 276
Income tax provision 86 64 75
Other provisions 28 25 28
Other current liabilities 13 271 107 97
866 596 592
------------- ------------- ------------
Net current assets 701 701 768
------------- ------------- ------------
Non-current liabilities
Long-term financial debts 14 892 589 590
Obligations under finance leases 21 23 22
Deferred tax liabilities 34 23 21
Derivative financial instruments - 1 -
Other non-current liabilities 15 290 1 20
1,237 637 653
------------- ------------- ------------
Total liabilities 2,103 1,233 1,245
============= ============= ============
Net assets 2,400 1,274 1,352
============= ============= ============
Equity
Share capital 16 40 35 35
Share premium 282 281 282
Own shares (1) (1) (1)
Other reserves 2,064 941 1,021
------------- ------------- ------------
Equity attributable to equity holders of the parent 2,385 1,256 1,337
Non-controlling interests 15 18 15
------------- ------------- ------------
Total equity 2,400 1,274 1,352
============= ============= ============
Statement of Change in Equity
Total
equity
attributable
Merger to equity
and shareholders
Revaluation Translation Retained Total Share Share Own of the Non-controlling Total
reserves reserves earnings reserves capital premium shares parent interests equity
$m $m $m $m $m $m $m $m $m $m
Balance at 1
January
2015
(Audited) 38 (98) 942 882 35 281 (1) 1,197 19 1,216
Profit for the
period - - 134 134 - - - 134 1 135
Currency
translation
loss - (40) - (40) - - - (40) - (40)
------------ ------------ --------- --------- -------- -------- ------- ------------- ---------------- -------
Total
comprehensive
income for
the
period - (40) 134 94 - - - 94 1 95
------------ ------------ --------- --------- -------- -------- ------- ------------- ---------------- -------
Total
transactions
with owners,
recognised
directly in
equity
Cost of equity
settled
employee
share schemes - - 7 7 - - - 7 - 7
Dividends on
ordinary
shares (note
6) - - (42) (42) - - - (42) (2) (44)
---------
Balance at 30
June 2015
(Unaudited) 38 (138) 1,041 941 35 281 (1) 1,256 18 1,274
============ ============ ========= ========= ======== ======== ======= ============= ================ =======
Balance at 1
January
2015
(Audited) 38 (98) 942 882 35 281 (1) 1,197 19 1,216
Profit for the
year - - 252 252 - - - 252 2 254
Currency
translation
loss - (63) - (63) - - - (63) (4) (67)
Total
comprehensive
income for
the
year - (63) 252 189 - - - 189 (2) 187
Total
transactions
with owners,
recognised
directly in
equity
Issue of
equity
shares - - - - - 1 - 1 - 1
Cost of equity
settled
employee
share schemes - - 15 15 - - - 15 - 15
Deferred tax
arising
on share
based
payments - - (1) (1) - - - (1) - (1)
Dividends on
ordinary
shares (note
6) - - (64) (64) - - - (64) (2) (66)
Balance at 31
December 2015
(Audited) 38 (161) 1,144 1,021 35 282 (1) 1,337 15 1,352
============ ============ ========= ========= ======== ======== ======= ============= ================ =======
Profit for the
period - - 58 58 - - - 58 1 59
Cumulative
effect
of change in
fair
value of
available
for sale
investments - - 1 1 - - - 1 - 1
Currency
translation
loss - (15) - (15) - - - (15) (1) (16)
Total
comprehensive
income for
the
period - (15) 59 44 - - - 44 - 44
Total
transactions
with owners,
recognised
directly in
equity
Issue of
equity
shares 1,039 - - 1,039 5 - - 1,044 - 1,044
Cost of equity
settled
employee
share schemes - - 10 10 - - - 10 - 10
Dividends on
ordinary
shares (note
6) - - (50) (50) - - - (50) (1) (51)
Acquisition of
subsidiaries - - - - - - - - 1 1
Balance at 30
June 2016
(Unaudited) 1,077 (176) 1,163 2,064 40 282 (1) 2,385 15 2,400
============ ============ ========= ========= ======== ======== ======= ============= ================ =======
Consolidated Statement of Cash
Flow
H1 H1 FY
Note 2016 2015 2015
$m $m
$m (Unaudited) (Unaudited) (Audited)
--------------- ------------- -----------
Net cash from operating activities 17 99 125 366
Investing activities
Purchases of property, plant and equipment (55) (37) (82)
Proceeds from disposal of property, plant and equipment - 2 31
Purchase of intangible assets (42) (16) (55)
Proceeds from disposal of intangible assets 23 - -
Investment in financial and other non-current assets (11) - -
Available for sale investments - - (1)
Investments measured at fair value - (20) (20)
Acquisition of subsidiary undertakings, net of cash
acquired (597) - -
Finance income 1 1 3
Acquisition related amounts held in escrow account - - (38)
--------------- ------------- -----------
Net cash used in investing activities (681) (70) (162)
Financing activities
Increase in collateralised and restricted cash 1 3 6
Proceeds from issue of long term financial debts 334 505 529
Repayment of long-term financial debts (24) (65) (91)
Increase/(decrease) in short-term borrowings 47 (222) (270)
Dividends paid (50) (42) (64)
Dividends paid to non-controlling shareholders of
subsidiaries (1) (2) (2)
Interest paid (30) (18) (49)
Proceeds from issue of new shares - - 1
Proceeds from co-development and earnout payment
agreement, net 3 - 17
Net cash generated from financing activities 280 159 77
Net (decrease)/increase in cash and cash equivalents (302) 214 281
Cash and cash equivalents at beginning of period/year 553 280 280
Foreign exchange translation movements (4) (4) (8)
Cash and cash equivalents at end of period/year 247 490 553
=============== ============= ===========
Notes to the Interim Financial Statements
1. General information
These condensed interim financial statements do not comprise
statutory accounts within the meaning of section 434 of the
Companies Act 2006. Statutory accounts for the year ended 31
December 2015, which were prepared under International Financial
Reporting Standards (IFRSs) issued by the International Accounting
Standards Board and IFRS as adopted by the EU, have been filed with
the Registrar of Companies. The auditor's report on those accounts
was unqualified, did not draw attention to any matters by way of
emphasis and did not contain any statement under Section 498 (2) or
(3) of the Companies Act 2006.
The condensed interim financial statements for the six months to
30 June 2016, with comparative figures for the six months to 30
June 2015, is unaudited and does not constitute statutory accounts.
However, the auditor, PricewaterhouseCoopers LLP who was appointed
on 12 May 2016, has carried out a review of the condensed interim
financial statements and their report in respect of the six months
to 30 June 2016 is set out in the Independent review report. The
comparative figures for the year to 31 December 2015 do not
constitute the Company's statutory accounts for the year. Those
accounts have been reported on by the Company's previous auditors,
Deloitte LLP, and delivered to the Registrar of Companies. The
report of the previous auditor was unqualified, did not include a
reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report and did not contain
statements under Section 498 (2) or (3) of the Companies Act
2006.
2. Accounting policies
The unaudited condensed interim financial statements for the six
months ended 30 June 2016 has been prepared using the same
accounting policies and on a basis consistent with the audited
financial statements of Hikma Pharmaceuticals PLC (the 'Group') for
the year ended 31 December 2015.
Adoption of new and revised standards
The following new and revised Standards and Interpretations have
been adopted in the current year. Their adoption has not had any
significant impact on the amounts reported in these financial
statements, however, may impact the accounting for future
transactions and arrangements.
Amendments to IAS
19 Defined benefit plans
-------------------- ----------------------------------
Joint arrangements on acquisition
Amendments to IFRS of an interest in a joint
11 operation
-------------------- ----------------------------------
Property, plant and equipment'
Amendments to IAS and Intangible assets,
16 and IAS38 on depreciation and amortisation
-------------------- ----------------------------------
Property, plant and equipment
Amendments to IAS and Agriculture, regarding
16 and IAS41 bearer plants
-------------------- ----------------------------------
IFRS 14 Regulatory deferral accounts
-------------------- ----------------------------------
Amendments to IAS Separate financial statements
27 on the equity method
-------------------- ----------------------------------
Amendments to IAS Investment entities applying
10 and IAS28 the consolidation exception
-------------------- ----------------------------------
Presentation of financial
Amendments to IAS statements on the disclosure
1 initiative
-------------------- ----------------------------------
Annual improvements
2012
-------------------- ----------------------------------
Annual improvements
2014
At the date of authorisation of these interim financial
statements, the following Standards and Interpretations which have
not been applied in these financial statements were in issue but
not yet effective:
IFRS 10 and Consolidated financial statements
IAS28 (amendments) and Investments in associates
and joint ventures
-------------------- ----------------------------------
IFRS 15 Revenue from contracts with
customers
-------------------- ----------------------------------
IFRS 9 Financial Instruments
-------------------- ----------------------------------
Basis of preparation
The currency used in the preparation of the accompanying
condensed interim financial statements is the US Dollar ($) as the
majority of the Group's business is conducted in US Dollars.
These condensed interim financial statements for the six months
ended 30 June 2016 have been prepared in accordance with the
Disclosure and Transparency Rules of the Financial Conduct
Authority and with IAS 34, "Interim financial reporting", as
adopted by the European Union and as issued by the International
Accounting Standards Board (IASB). The condensed interim financial
statements should be read in conjunction with the annual financial
statements for the year ended 31 December 2015, which have been
prepared in accordance with IFRSs issued by the International
Accounting Standards Board (IASB) and the IFRSs adopted by the
European Union.
Taxes on income for interim periods are accrued using the
effective tax rate that would be applicable to expected total
annual earnings.
The same accounting policies, presentation and method of
computation are followed in the condensed interim financial
statements as has been applied in the Group's latest annual audited
financial statements.
There have been no changes to the accounting standards in the
current year that have materially impacted the Group financial
statements.
Accounting Estimates
The preparation of the interim financial statements requires
management to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates.
In preparing these condensed interim financial statements, the
significant judgments made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were the same as those that applied to the consolidated financial
statements for the year ended 31 December 2015, except as discussed
below.
Business combinations
Due to the acquisition of the West-Ward Columbus business in the
first half of 2016, the use of the acquisition method of accounting
had a significant impact on the Group's consolidated interim
financial statements (which are disclosed as provisional as allowed
under IFRS 3 (R)). The Group's consolidated interim financial
statements reflect the acquired business from the date the
acquisition has been completed, 29 February 2016. Using the
acquisition method of accounting requires the acquired assets and
assumed liabilities to be recorded as of the acquisition date at
their respective fair values. Any excess of the purchase
consideration over the estimated fair values of acquired net
identified assets is recorded as goodwill in the balance sheet and
is allocated to an appropriate cash-generating unit. The fair value
of acquired assets and assumed liabilities is determined using
valuation techniques. Estimating the fair value assigned to each
class of acquired assets and assumed liabilities is based on
expectations and assumptions, in particular in relation to the
expected cash flows of products already being marketed, the cash
flows and probability of success of products currently being
developed, potential market participant synergies, the discount
rate and the remaining useful life of those assets identified. Some
elements of the consideration are contingent based upon assumptions
and estimations of future sales and probability of success. The
assumptions used have been deemed reasonable by management.
Going concern
The Directors have considered the going concern position of the
Company during the period and the period end as they have in
previous years. The Directors believe that the Group is well
diversified due to its geographic spread, product diversity and
large customer and supplier base. The Group operates in the
relatively defensive generic pharmaceuticals industry which the
Directors expect to be less affected by economic downturns compared
to other industries.
The Group's overall net debt position was $819 million (30 June
2015: $283 million and 31 December 2015: $135 million). Net cash
from operating activities in H1 2016 was $99 million (H1 2015: $125
million and FY 2015: $366 million). The Group has $1,015 million
(30 June 2015: $824 million and 31 December 2015: $1,374 million)
of undrawn short term and long term banking facilities, in addition
to $173 million (30 June 2015: $170 million and 31 December 2015:
$205 million) of unutilised import and export financing limits.
These facilities are well diversified across the subsidiaries of
the Group and are with a number of financial institutions. The
Group's forecasts, taking into account reasonable possible changes
in trading performance, facility renewal sensitivities, maturities
of long-term debt and the purchase of West-Ward Columbus, show that
the Group should be able to operate well within the levels of its
facilities and their related covenants. The Group closed the
acquisition of West-Ward Columbus on 29 February 2016, with a total
consideration of $1,725 million (note 21).
After making enquiries, the Directors believe that the Group is
adequately placed to manage its business and financing risks
successfully despite the current uncertain economic and political
outlook. Having reassessed the principal risks, the directors
considered it appropriate to adopt the going concern basis of
accounting in preparing the interim financial information.
3. Business and geographical segments
For management purposes, the Group is currently organised into
three principal operating divisions - Branded, Injectables and
Generics. These divisions are the basis on which the Group reports
its segmental information.
Operating profit, defined as segment result, is the principal
measure used in the decision-making and resource allocation process
of the chief operating decision maker, who is the Group's Chief
Executive Officer.
Information regarding the Group's operating segments is reported
below.
The following is an analysis of the Group's revenue and results
by reportable segment for the period ended 30 June 2016:
Six months ended
30 June 2016 (Unaudited)
Branded Injectables Generics Others Group
$m $m $m $m $m
-------- ------------ --------- ------- ------
Revenue 264 357 257 4 882
Cost of sales (130) (132) (192) (3) (457)
-------- ------------ --------- ------- ------
Gross profit 134 225 65 1 425
-------- ------------ --------- ------- ------
Core segment
result 55 146 8 - 209
Exceptional items:
- Integration
and other costs - - (7) - (7)
- Gain from
sale of assets,
net - - 18 - 18
- Inventory
related adjustments - - (20) - (20)
- Release of
contingent liability - 4 - - 4
Intangible amortisation
other than software (4) (6) (8) - (18)
--------------------------- -------- ------------ --------- ------- ------
Segment result 51 144 (9) - 186
-------- ------------ --------- ------- ------
Core Unallocated
corporate expenses (33)
Exceptional items:
- Acquisition
related costs (32)
--------------------------- -------- ------------ --------- ------- ------
Unallocated corporate
expenses (65)
------
Core operating
profit 176
--------------------------- -------- ------------ --------- ------- ------
Operating profit 121
------
Finance income 2
Finance expense (40)
------
Profit before
tax 83
Tax (24)
------
Profit for the
period 59
======
Attributable
to:
Non-controlling
interest 1
Equity holders
of the parent 58
59
======
Generics segment includes West-Ward Columbus results and
Injectables segment include EUP results.
"Others" mainly comprise Arab Medical Containers LLC,
International Pharmaceutical Research Center LLC and the chemicals
division of Hikma Pharmaceuticals LLC (Jordan).
Unallocated corporate expenses are primarily made up of employee
costs, professional and consultation fees.
Segment assets
and liabilities
30 June 2016 (Unaudited) Branded Injectables Generics Corporate and Others Group
$m $m $m $m $m
-------- ------------ --------- --------------------- ------
Additions to property, plant and
equipment (cost) 9 20 19 1 49
Acquisition of business property,plant
and equipment (net book value) (note 21) - 11 453 - 464
Additions to intangible assets (cost) 1 15 14 4 34
Intangible assets arising on acquisition
(note 21) - 34 1,120 - 1,154
Total property, plant and equipment and
intangible assets (net book value) 459 598 1,648 36 2,741
Depreciation 11 9 11 1 32
Amortisation (including software) 4 8 9 - 21
Investment in associates and joint
ventures - - - 7 7
Balance sheet
Total assets 1,123 947 2,279 154 4,503
======== ============ ========= ===================== ======
Total liabilities 519 434 998 152 2,103
======== ============ ========= ===================== ======
Six months ended
30 June 2015
(Unaudited)
Branded Injectables Generics Others Group
$m $m $m $m $m
--------- ------------- ---------- -------- -------
Revenue 282 344 79 4 709
Cost of sales (146) (129) (31) (3) (309)
Gross profit 136 215 48 1 400
--------- ------------- ---------- -------- -------
Core segment
result 58 146 33 (3) 234
Exceptional
items:
- Severance
costs (5) - - - (5)
- Proceeds
from legal claims - 2 - - 2
Intangible amortisation
other than software (4) (2) - - (6)
-------------------------- --------- ------------- ---------- -------- -------
Segment result 49 146 33 (3) 225
--------- ------------- ---------- -------- -------
Core Unallocated corporate
expenses (30)
Exceptional
items:
-- Acquisition
related costs (1)
-------------------------- --------- ------------- ---------- -------- -------
Unallocated
corporate expenses (31)
-------
Core operating
profit 204
-------------------------- --------- ------------- ---------- -------- -------
Operating profit 194
-------
Loss of associates (2)
Finance income 1
Finance expense (23)
-------
Profit before
tax 170
Tax (35)
-------
Profit for the
period 135
=======
Attributable
to:
Non-controlling
interest 1
Equity holders
of the parent 134
-------
135
=======
"Others" mainly comprise Arab Medical Containers LLC,
International Pharmaceutical Research Center LLC and the chemicals
division of Hikma Pharmaceuticals LLC (Jordan).
Unallocated corporate expenses are primarily made up of employee
costs, professional fees, and travel expenses.
Segment assets Corporate
and liabilities and
30 June 2015 (Unaudited) Branded Injectables Generics Others Group
$m $m $m $m $m
-------- ------------ --------- ---------- -------
Additions to property,
plant and equipment
(cost) 15 4 5 - 31
Remeasurement
of property,
plant and equipment
* - (1) - - (1)
Additions to
intangible assets
(cost) 2 9 3 2 16
Remeasurement
of Intangible
assets * - (8) - - (8)
Total property,
plant and equipment
and intangible
assets (net
book value) 491 511 80 7 1,089
Depreciation 12 8 4 1 25
Amortisation
(including software) 4 4 - - 8
Investment in
associates and
joint ventures - - - 14 14
Balance sheet
Total assets 1,173 832 159 343 2,507
======== ============ ========= ========== =======
Total liabilities 494 389 79 271 1,233
======== ============ ========= ========== =======
* Further to Bedford Laboratories ("Bedford") acquisition in
2014, a reduction of $8 million was made to the provisional
goodwill recognised on the acquisition of Bedford as a result of
the adjustment to inventory, property plant and equipment and
deferred tax made prior to the end of the measurement period on 15
July 2015.
Year ended
31 December
2015 (Audited) Branded Injectables Generics Others Group
$m $m $m $m $m
--------- ------------- ---------- -------- -------
Revenue 570 710 151 9 1,440
Cost of sales (293) (261) (62) (6) (622)
Gross profit 277 449 89 3 818
--------- ------------- ---------- -------- -------
Core segment
result 118 312 46 (5) 471
Exceptional
items:
- Integration
costs - - (2) - (2)
- Severance
costs (5) (1) - - (6)
- Proceeds
from legal claims - 2 - - 2
- Gain from
sale of assets,net - 6 - - 6
Intangible amortisation
other than software (8) (8) - - (16)
-------------------------- --------- ------------- ---------- -------- -------
Segment result 105 311 44 (5) 455
--------- ------------- ---------- -------- -------
Core Unallocated
corporate expenses (62)
Exceptional
items:
- Acquisition
related costs (12)
-------------------------- --------- ------------- ---------- -------- -------
Unallocated
corporate expenses (74)
-------
Core operating
profit 409
-------------------------- --------- ------------- ---------- -------- -------
Operating profit 381
-------
Loss/impairment
of associates (9)
Finance income 3
Finance expense (57)
-------
Profit before
tax 318
Tax (64)
-------
Profit for the
year 254
=======
Attributable
to:
Non-controlling
interest 2
Equity holders
of the parent 252
254
=======
"Others" mainly comprise Arab Medical Containers LLC,
International Pharmaceutical Research Center LLC and the chemicals
division of Hikma Pharmaceuticals LLC (Jordan).
Unallocated corporate expenses are primarily made up of employee
costs, professional fees, travel expenses and donations.
Segment assets and liabilities
31 December 2015 (Audited)
Branded Injectables Generics Corporate and Others Group
$m $m $m $m $m
-------- ------------ --------- --------------------- ------
Additions to property, plant and
equipment (cost) 24 39 15 7 85
Remeasurement of property, plant and
equipment * - (1) - - (1)
Additions to intangible assets 5 41 8 2 56
Remeasurement of Intangible assets * - (8) - - (8)
Total property, plant and equipment and
intangible assets (net book value) 478 532 81 23 1,114
Depreciation and impairment 22 19 8 2 51
Amortisation and impairment (including
software) 9 11 1 1 22
Investment in associates and joint
ventures - - - 7 7
Balance sheet
Total assets 1,108 829 165 495 2,597
======== ============ ========= ===================== ======
Total liabilities 453 397 309 86 1,245
======== ============ ========= ===================== ======
* Further to Bedford Laboratories ("Bedford") acquisition in
2014, a reduction of $8 million was made to the provisional
goodwill recognised on the acquisition of Bedford as a result of
the adjustment to inventory, property, plant and equipment and
deferred tax made prior to the end of the measurement period on 15
July 2015.
The following table provides an analysis of the Group's sales by
geographical market, irrespective of the origin of the
goods/services:
H1 2016 H1 2015 FY 2015
$m $m $m
------------ ------------ ----------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ----------
Middle East and North Africa 304 322 656
United States 529 344 697
Europe and Rest of the World 47 40 82
United Kingdom 2 3 5
------------ ------------ ----------
882 709 1,440
============ ============ ==========
The top selling markets were as below:
H1 2016 H1 2015 FY 2015
$m $m $m
------------ ------------ ----------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ----------
United States 529 344 697
Saudi Arabia 64 80 162
Algeria 57 58 113
650 482 972
============ ============ ==========
Included in revenues arising from the Generics and Injectables
segments are revenues of approximately $123 million (H1 2015: $86
million and FY 2015: $173 million) which arose from the Group's
largest customer which is located in the United States.
4. Exceptional items and other adjustments
Exceptional items are disclosed separately in the consolidated
income statement to assist in the understanding of the Group's core
performance.
H1 2016 H1 2015 FY 2015
$m $m $m
------------ ------------ ----------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ----------
Exceptional items
Acquisition, integration
and other costs (39) (1) (14)
Gain from sale of assets,
net 18 - 6
Inventory related adjustments
(note 21) (20) - -
Release of contingent
liability 4 - -
Severance costs - (5) (6)
Proceeds from legal
claims - 2 2
------------ ------------ ----------
Exceptional items included
in operating profit (37) (4) (12)
Impairment of investment
in associates - - (7)
------------ ------------ ----------
Exceptional items included
in profit (37) (4) (19)
Other adjustments
Intangible amortisation
other than software (18) (6) (16)
Remeasurement of contingent
liabilities, net (notes,15,19,21) (9) - (2)
------------ ------------ ----------
Exceptional items and
intangible amortisation (64) (10) (37)
Tax effect 13 2 3
------------ ------------ ----------
Impact on profit for
the period/ year (51) (8) (34)
============ ============ ==========
Exceptional items:
-Acquisition, integration and other related costs were incurred
in relation to the acquisition of West-Ward Columbus which was
closed on 29 February 2016. Acquisition related expenses are
included in the unallocated corporate expenses, while integration
and other expenses are included in the segment results. Acquisition
related expenses mainly comprise third party consulting services,
legal and professional fees, other costs represent severance and
retention payments paid.
-Gain from sale of assets related to the divestiture of certain
products.
-Inventory related adjustments reflect the amortisation of the
fair value uplift of the inventory acquired as part of West-Ward
Columbus acquisition.
-Release of contingent liability, is due to not achieving
certain performance-related milestones in respect of a previous
acquisition.
Other Adjustments:
-- Remeasurement of contingent liabilities represent the net
difference resulting from the valuation of the liabilities
associated with the future contingent payments.
.
In previous periods exceptional items and other adjustments are
related to the following:
-Acquisition and integration related costs are incurred in
relation to the acquisition of West-Ward Columbus which was closed
on 29 February 2016. Acquisition related expenses are included in
the unallocated corporate expenses, while integration related
expenses are included in segment results. Acquisition related
expenses mainly comprise third party consulting services, legal and
professional fees.
-Gain from sale of the assets related to the sale of Bedford
manufacturing facilities to Xellia Pharmaceuticals for a cash
consideration of $30 million. The gain is net of hibernation costs
related to the assets.
-Severance costs in 2015 related to restructuring of management
teams mainly in MENA.
-Proceeds from legal claims refers to cash received in
settlement of an indemnification claim in the US.
-Impairment of investment in associates represents the
impairment of the remaining investment balance related to Unimark
limited. Hikma's share in Unimark Remedies Limited has been
divested during 2016 for minimal value.
-Remeasurement of contingent liabilities represent the
difference resulting from the valuation of the liability associated
with the future earnout payments to be made in relation to the
co-development and earnout payment agreement (note 15).
5. Tax
H1 2016 H1 2015 FY 2015
$m $m $m
------------ ------------ ----------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ----------
Current tax:
Foreign tax 34 28 68
Adjustments to prior
years 2 3 1
Deferred tax (12) 4 (5)
24 35 64
============ ============ ==========
Tax for the six month period is charged at 28.9% (H1 2015:
20.6%; FY 2015: 20.1%).
The application of tax law and practice is subject to some
uncertainty and amounts are provided where the likelihood of a cash
outflow is probable.
The effective tax rate for H1 2016 is higher than it was at H1
2015 predominantly due to the effect of the West-Ward Columbus
acquisition, which resulted in a change in the weighing of the
profit mix to jurisdictions with a higher statutory tax rate. We
expect our full year effective tax rate to be in the region of
25%.
6.Dividends
FY
H1 2016 H1 2015 2015
$m $m $m
------------ ------------ ----------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ----------
Amounts recognised as distributions
to equity holders in the
period/years:
Final dividend for the year
ended 31 December 2015 of
21.0 cents
(2014: 15.0 cents) per share 50 30 30
Interim dividend for the
year ended 31 December 2015
of 11.0 cents per share - - 22
Special final dividend for
the year ended 31 December
2014 of 6.0 cents per share - 12 12
50 42 64
============ ============ ==========
The proposed interim dividend for the period ended 30 June 2016
is 11.0 cents (30 June 2015: 11.0 cents, and 31 December 2015: 21.0
cents) per share.
Based on the number of shares in issue at 30 June 2016 of
(239,923,850), the unrecognised liability is $26 million.
7.Earnings per share
Earnings per share is calculated by dividing the profit
attributable to equity holders of the parent by the weighted
average number of ordinary shares. The number of ordinary shares
used for the basic and diluted calculations is shown in the table
below. Core basic earnings per share and Core diluted earnings per
share are intended to highlight the Core results of the Group
before exceptional items and other adjustments. A reconciliation of
the reported and core earnings used is also set out below:
H1 2016 H1 2015 FY 2015
$m $m $m
------------ ------------ -------------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ -------------------
Earnings for the purposes
of basic and diluted
earnings per share being
net profit attributable
to equity holders of
the parent 58 134 252
============ ============ ===================
Exceptional items (note
4) 37 4 19
Other adjustments:
- Intangible amortisation
other than software
(note 4) 18 6 16
- Remeasurement of contingent
liabilities, net (note
4) 9 - 2
Tax effect of adjustments (13) (2) (3)
Core earnings for the
purposes of Core basic
and diluted earnings
per share being adjusted
net profit attributable
to equity holders of
the parent 109 142 286
============ ============ ===================
Number Number Number
Number of shares: 'm 'm 'm
Weighted average number
of Ordinary Shares for
the purposes of basic
earnings per share 226 199 199
Effect of dilutive potential
Ordinary Shares :
Share-based awards 2 1 2
------------ ------------ -------------------
Weighted average number
of Ordinary Shares for
the purposes of diluted
earnings per share 228 200 201
============ ============ ===================
H1 2016 H1 2015 FY 2015
Earnings Earnings
per share per share Earnings per share
Cents Cents Cents
------------ ------------ -------------------
Basic 25.7 67.3 126.6
------------ ------------ -------------------
Diluted 25.4 67.0 125.4
------------ ------------ -------------------
Core basic 48.2 71.4 143.7
------------ ------------ -------------------
Core diluted 47.8 71.0 142.3
------------ ------------ -------------------
8. Investments in associates and joint ventures
A loss of $nil representing the Group share of the result of
Hubei Haosun Pharmaceutical Co., Ltd (Share of the result of
Unimark Remedies Limited and Hubei Haosun Pharmaceutical Co., Ltd
during H1 2015: $2 million, FY 2015: $2 million). During 2015, the
Group impaired the remaining investment balance related to Unimark
Remedies Limited of $7 million which was due to the continuous
financial difficulties. Hikma's share in Unimark Remedies Limited
has been divested during 2016 for minimal value.
The below represents the Group's share of the result and the
impairment of Unimark Remedies Limited and Hubei Haosun
Pharmaceutical Co. Ltd. Both are included in the consolidated
income statement.
For the period ended 30 June For the period ended 30 June For the year ended 31
2016 2015 December 2015
Joint Joint Joint
Ventures Associates Total Ventures Associates Total Ventures Associates Total
$m $m $m $m $m $m $m $m $m
--------- ----------- ------ --------- ----------- ------ --------- ----------- ------
Balance at
1 January 3 4 7 3 13 16 3 13 16
Share of
loss - - - - (2) (2) - (2) (2)
Impairment
of
investment
(see note
4) - - - - - - - (7) (7)
Balance at
end of
period/year 3 4 7 3 11 14 3 4 7
========= =========== ====== ========= =========== ====== ========= =========== ======
9. Inventories
30 June 30 June 31 December
2016 2015 2015
$m $m $m
------------ ------------ ------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ------------
Finished goods 158 50 55
Work-in-progress 63 36 33
Raw and packing
materials 256 158 152
Goods in transit 19 36 11
496 280 251
============ ============ ============
Goods in transit includes inventory held at third parties whilst
in transit between Group companies.
10. Trade and other receivables
30 June 30 June 31 December
2016 2015 2015
$m $m $m
------------ ------------ ------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ------------
Trade receivables 590 421 432
Prepayments 68 46 39
VAT and sales tax
recoverable 10 14 15
Employee advances 3 3 2
671 484 488
============ ============ ============
11. Other current assets
30 June 30 June 31 December
2016 2015 2015
$m $m $m
------------ ------------ ------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ------------
Price adjustment
receivable (note
21) 113 - -
Investment measured
at fair value 21 20 20
Others 5 2 5
139 22 25
============ ============ ============
Investment measured at fair value: represents the agreement the
Group entered in 2015 with an asset management firm to manage a $20
million equity portfolio. This investment is measured at fair value
and any changes in fair value go through other comprehensive
income.
The fair value of financial assets and liabilities is included
at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced
or liquidation sale. Management classifies items that are
recognised at fair value based on the level of inputs used in their
fair value determination.
This asset is classified as level 1 "quoted prices in active
markets".
12. Trade and other payables
30 June 30 June 31 December
2016 2015 2015
$m $m $m
------------ ------------ ------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ------------
Trade payables 180 126 139
Accrued expenses 127 94 122
Other payables 15 14 15
322 234 276
============ ============ ============
Other payables mainly include employees' provident fund
liability of $6 million (30 June 2015: $ 4 million, 31 December
2015: $5 million),which mainly represents the outstanding
contributions to the Hikma Pharmaceuticals Ltd (Jordan) retirement
benefit plan, on which the fund receives 5% interest.
13. Other current liabilities
30 June 30 June 31 December
2016 2015 2015
$m $m $m
(Unaudited) (Unaudited) (Audited)
Deferred revenue 13 26 16
Return and free goods provision 112 50 49
Co-development and earnout payment (note 15) 8 - 3
Contingent consideration and liability (note 21) 66 - -
Others* 72 31 29
271 107 97
*The others balance above includes indirect rebate liabilities
across the Group.
14. Current and Non-current financial debts
Short-term financial debts
30 June 30 June 31 December
2016 2015 2015
$m $m $m
(Unaudited) (Unaudited) (Audited)
Bank overdrafts 15 12 8
Import and export financing 83 110 58
Short-term loans 5 3 4
Current portion of long-term loans 55 40 45
158 165 115
Import and export financing represents short-term financing for
the ordinary trading activities of the business.
Long-term financial debts
30 June 30 June 31 December
2016 2015 2015
$m $m $m
(Unaudited) (Unaudited) (Audited)
Long-term loans 452 135 141
Long-term borrowings (Eurobond) 495 494 494
Less: current portion of loans (55) (40) (45)
Long-term financial loans 892 589 590
Breakdown by maturity:
Within one year 55 40 45
In the second year 39 39 35
In the third year 314 22 20
In the fourth year 528 13 17
In the fifth year 10 511 513
Thereafter 1 4 5
947 629 635
The loans are held at amortised cost.
Included in the table above are the following major arrangements
entered into by the Group:
a) A US$500 million (with fair value of $494 million) 4.25%
Eurobond due in April 2020 with the rating of (BB+/Ba1). The
proceeds were used to refinance existing debt and for general
corporate purposes.
b) A three-year $1,175 million Revolving Credit Facility (RCF)
loan with a one year extension option from a syndicate of banks led
by Citibank International Limited was entered into on 27 October
2015. The loan has an outstanding balance of $285 million and a
$890 million unutilised available limit. The RCF has been used for
the first time to finance the most recent acquisition of West-Ward
Columbus which closed on 29 February 2016.
c) A nine-year $110 million loan from the International Finance
Corporation (IFC) was entered into on 19 December 2011. The loan
has an outstanding balance of $86 million (with a fair value of $86
million) and no unutilised limit. Quarterly equal repayments of the
term loan commenced on 15 November 2013 and will continue until 15
August 2020. The loan has been used to finance acquisitions in the
MENA region and MENA's capital expenditure.
15. Other non-current liabilities
30 June 30 June 31 December
2016 2015 2015
$m $m $m
----------- ----------- -----------
(Unaudited) (Unaudited) (Audited)
Contingent consideration and liability (note 21) 252 - -
Co-development and earnout payment 17 - 18
Others 21 1 2
290 1 20
Co-development and earnout payment agreement: The liability
mainly relates to the present value of future payments on a
co-development and earnout agreement. Through this agreement,
milestone payments dependent on successful clinical development of
defined products are received by the Group. In return of receiving
such milestone payments, the Group has agreed to pay the
contracting party a certain percentage of future sales of those
products. As at 30 June 2016 and 31 December 2015, the liability
associated with these earnout payments was adjusted to reflect the
present value of the expected future cash outflows and the
difference is presented as a financing cost.
16. Share Capital
Issued and fully paid - included in
shareholders' equity:
H1 2016 (Unaudited) H1 2015 (Unaudited) FY 2015 (Audited)
Number 'm $m Number 'm $m Number 'm $m
At 1 January 200 35 199 35 199 35
Issues of ordinary shares during the
period/year
Exercise of share-based payments 1 - - - 1 -
Acquisition of subsidiary 40 5 - - - -
At end of period/year 241 40 199 35 200 35
17. Net cash from operating activities
H1 H1 FY
2016 2015 2015
$m $m $m
(Unaudited) (Unaudited) (Audited)
Profit before tax 83 170 318
Adjustments for:
Depreciation, amortisation and impairment of:
Property, plant and equipment 32 25 51
Intangible assets 21 8 22
Investment in associate - - 7
Gain on disposal of property, plant and equipment - - (11)
Gain on disposal of intangible assets (note 4) (17) - -
Movement on provisions - 1 3
Cost of equity-settled employee share schemes 10 7 15
Finance income (2) (1) (3)
Interest and bank charges 40 23 57
Results from associates - 2 2
Cash flow before working capital 167 235 461
Change in trade and other receivables (26) (57) (78)
Change in other current assets (2) 1 (1)
Change in inventories (55) (12) 4
Change in trade and other payables 20 (6) 28
Change in other current liabilities 25 2 3
Cash generated by operations 129 163 417
Income tax paid (30) (38) (51)
Net cash from operating activities 99 125 366
18. Contingent Liabilities
A contingent liability existed at the balance sheet date in
respect of external guarantees and letters of credit totalling $54
million (30 June 2015(*) : $50 million, 31 December 2015: $50
million).
Other contingent liabilities:
The integrated nature of the Group's worldwide operations,
involving significant investment in research and manufacturing at a
number of locations, with consequential cross-border supply routes
into our end-markets, can potentially give rise to complexity and
delay in negotiations with taxation authorities as to the profits
on which individual Group companies are liable to tax.
Disagreements with, and between, taxation authorities as to
intra-Group transactions, in particular the price at which goods
and services should be transferred between Group companies in
different tax jurisdictions, have the potential to produce
conflicting claims from taxation authorities as to the profits to
be taxed in individual territories.
The promotion, marketing and sale of pharmaceutical products and
medical devices is highly regulated and the operations of market
participants, such as Hikma, are closely supervised by regulatory
authorities and law enforcement agencies, including the FDA and the
US Department of Justice. As a result, the Group is subject to
certain investigations by governmental agencies, as well as other
various legal proceedings considered typical to its business
relating to employment, product liability and commercial
disputes.
* 30 June 2015 figure was restated.
19. Fair value of financial assets and liabilities
The fair value of financial assets and liabilities is included
at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced
or liquidation sale. Management classifies items that are
recognised at fair value based on the level of inputs used in their
fair value determination as described below:
-- Level 1: Quoted prices in active markets for identical assets
or liabilities
-- Level 2: Inputs that are observable for the asset or
liability
-- Level 3: Inputs that are not based on observable market
data
The Group has the following Level 1 financial assets and
liabilities;
-- Investment designated at fair value (note 11).
-- A US$500 million Eurobond (note 14).
The following table presents the changes in Level 3 items for
the period ended 30 June 2016, 30 June 2015, and the year ended 31
December 2015:
Contingent Consideration
$m
Balance at 1 January 2015 (Audited) 4
Acquisitions -
Remeasurement through income statement -
Balance at 30 June 2015 (Unaudited) 4
Balance at 1 January 2015 (Audited) 4
Additions -
Remeasurement through income statement -
Balance at 31 December 2015 (Audited) 4
Balance at 31 December 2015 (Audited) 4
Additions -
Release (note 4) (4)
Settlement (20)
Acquisitions (note 21) 220
Remeasurement through income statement (note 4) 8
Balance at 30 June 2016 (Unaudited) 208
The main level 3 inputs used by the Group are derived and
evaluated as follows:
- The key input of the contingent considerations related to the
expected cash inflows, milestones, and approvals of certain
products discounted using a Monte Carlo analysis. If expected cash
flows were 10% higher or lower, the fair value will
increase/decrease by $ 12 million.
20. Related party balances
Transactions between the Company and its subsidiaries have been
eliminated on consolidation and are not disclosed in this note.
Transactions between the Group and its associate and other related
parties are disclosed below.
Trading transactions:
During the period, Group companies entered into the following
transactions with related parties:
Darhold Limited: is a related party of the Group because it is
considered one of the major shareholders of Hikma Pharmaceuticals
PLC with an ownership percentage of 24.38% at 30 June 2016 (30 June
2015: 28.7% and 31 December 2015: 29.06%).
Other than dividends (as paid to all shareholders), there were
no transactions between the Group and Darhold Limited during the
period.
Capital Bank - Jordan: is a related party of the Group because
two Hikma Pharmaceuticals PLC board members are also board members
of Capital Bank - Jordan. Additionally, a senior member of Hikma
management team is a board member of one company owned by Capital
Bank - Jordan. Total cash balance at Capital Bank - Jordan as of 30
June 2016 was $10 million (30 June 2015 $4.4 million and 31
December 2015: $9.4 million). Utilisation of facilities granted by
Capital Bank- Jordan to the Group amounted to $4 million at 30 June
2016 (30 June 2015: $nil and 31 December 2015: $nil). Interest
income/expense is within market rates.
Jordan International Insurance Company: is a related party of
the Group because one board member of the Company is also a board
member of Hikma Pharmaceuticals PLC. The Group's insurance expense
for Jordan International Insurance Company contracts during the
period was $0.5 million (H1 2015: $0.2 million and FY 2015: $0.5
million). The amounts due from Jordan International Insurance
Company at 30 June 2016 were $0.2 million (The amounts due to
Jordan International Insurance Company at 30 June 2015: $0.1
million and 31 December 2015: $0.4 million).
Labatec Pharma: is a related party of the Group because it is
owned by the Darwazah family. During the period, the Group total
sales to Labatec Pharma amounted to $0.8 million (H1 2015: $0.3
million and FY 2015: $0.9 million). At 30 June 2016, the amount
owed from Labatec Pharma to the Group was $0.4 million (30 June
2015: $nil and 31 December 2015: $0.2 million).
Arab Bank: is a related party of the Group because a senior
member of Hikma management team is also a board member of Arab Bank
PLC. Total cash balances at Arab Bank were $55 million (30 June
2015: $95 million and 31 December 2015: $55.7 million). Utilisation
of facilities granted by Arab Bank to the Group amounted to $73
million (30 June 2015: $80.5 million and 31 December 2015: $56.6
million). Interest expense/income is within market rates.
American University of Beirut: is a related party of the Group
because one board member of the Group is also a trustee of the
University. During the period, fees of $0.1 million (H1 2015: $0.1
million and FY 2015: $0.2 million) were paid. At 30 June 2016, the
amount owed to American University of Beirut from the Group
amounted to $nil (30 June 2015: $nil and 31 December 2015:
$nil).
Boehringer: During the period the Group total sales to BI
amounted to $35.3 million and the Group total purchases from BI
amounted to $1.1 million. At 30 June 2016 the amount owed from BI
to the Group was $27.1 million. In addition, balances arising from
the acquisition in respect of contingent consideration are
disclosed in note 19 and purchase price adjustments which are
outstanding are disclosed note 21.
HikmaCure: The Group holds a 50:50 joint venture ("JV")
agreement with MIDROC Pharmaceuticals Limited. The JV is called
HikmaCure. Hikma and MIDROC invested in HikmaCure in equal
proportions and have committed to provide up to $22 million each in
cash of which $2.5 million has been paid in previous periods.
Unimark: During 2015, the Group has impaired the remaining
investment balance related to Unimark Remedies Limited. The
exceptional impairment of investment was $7 million. Hikma's share
in Unimark Remedies Limited has been divested during 2016 for
minimal value.
Haosun: The Group held a non-controlling interest of 30.1% in
Hubei Haosun Pharmaceutical Co., Ltd ("Haosun") at 30 June 2016 (30
June 2015: 30.1% and 31 December 2015: 30.1%). During the period,
total purchases from Haosun were $nil (H1 2015: $0.6 million and FY
2015: $0.6 million).
21. Acquisition of businesses
During the year, Hikma acquired two businesses: West-Ward
Columbus and EUP.
West-Ward Columbus
On 28 July 2015 Hikma announced that it has agreed to acquire
West-Ward Columbus, from Boehringer Ingelheim
(Boehringer).West-Ward Columbus is a well-established US specialty
generics company with a highly differentiated product portfolio and
best-in-class R&D capabilities.
On 29 February 2016, Hikma completed the acquisition of
West-Ward Columbus where the total fair value of the consideration
is deemed to be $1,725 million consists of net cash consideration
of $575 million (net of certain working capital and other
adjustments), 40 million Ordinary Shares were issued to Boehringer
based on Hikma's share price of GBP18.81 and the US: GBP exchange
rate of 1.3879:1 (representing an estimated 16.71 per cent. of
Hikma issued share capital immediately following the issuance), a
contingent consideration of $224 million based on future
performance, in addition to purchase price adjustment of $118
million reflecting further working capital adjustments as well as
amounts receivable from Boehringer in respect of milestones and
other conditions.
The goodwill arising represents primarily the ability of the
business to develop future products as well as the work force.
The net assets acquired in the transaction and the provisional
goodwill arising have been valued by a third party expert as set
out below. These amounts are provisional and subject to change.
Net assets acquired Fair Value
$m
Trade and other receivables 169 a
Inventories 197 b
Intangible assets 731 c
Property, plant and equipment 453 d
Deferred tax assets 58 e
Trade and other payables (32)
Other current liabilities (81)
Deferred tax liabilities (20) e
Other non current liabilities (139) f
Net assets acquired 1,336
Goodwill 389
Total consideration 1,725
Discharged by:
Cash consideration 575
Issuance of shares 1,044
Contingent consideration 224 g
Adjustment to purchase price (118)
1,725
Cash consideration 575
Cash and cash equivalents acquired -
Net cash outflow arising on acquisition 575
a. Trade and other receivables include a prepayment related to
the Transitional Service Agreement between the Group and
Boehringer.
The fair value of trade and other receivables is $169 million
and includes trade receivables with a fair value of $158 million.
The gross contractual amount for trade receivables due is $158
million.
b. Inventories have been valued as follows:
- Raw materials at the current replacement cost.
- Finished goods and work in process at the estimated selling
prices less a cost to dispose of and complete, less a reasonable
profit attributable to the selling effort.
c. Intangible assets represent:
- Fair value of marketed products which present the outcome of
the R&D efforts, material and formulas. The Multi Period Excess
Earnings Method ("MEEM") of the Income Approach has been used to
value those products. Useful lives of 9 -14 years have been
determined.
- Fair value of products in various stages of development
("Pipeline Products"). The Multi Period Excess Earnings Method
("MEEM") of the Income Approach has been used to value those
products. Useful lives of 7 -15 years have been determined.
d. The Property, plant and equipment acquired have been valued
by a third party expert at current market values on the basis of
Fair Value as defined in IFRS 13 and in accordance with IFRS 3
Business Combinations.
e. Taxable temporary differences have been identified by
reference to IAS 12 "income tax".
f. As part of the acquisition of West-Ward Columbus, Hikma
assumed a contingent liability related to the co-development with a
third party of two specific products that includes payments for
milestones and royalties dependent on the net sales. These
contingent liabilities were recorded as opening balance sheet
liabilities based on a probability weighted present value amount at
the time of the acquisition. Subsequent to the acquisition, $10
million of such milestones were paid. In addition, concurrent with
the acquisition, Hikma entered into supply and manufacturing
contracts with Boehringer.
g. As part of the acquisition of West-Ward Columbus, Hikma
agreed to pay to Boehringer contingent consideration of $220
million representing a probability weighted present value of
potential liabilities related to two specific products subject to
the achievement of certain US FDA approval milestones, royalties
dependent on the net sales for a period of ten years from the first
commercial sale of each product, in addition to exclusivity
payments for each calendar quarter in the first year that certain
conditions exist.
Goodwill recognised is expected to be non-deductible for income
tax purposes.
The revenue and core operating profit (excluding acquisition,
integration, and other costs amounting to $39 million, the
amortisation of the fair value uplift of the inventory of $20
million, and the intangible amortisation of $8 million) of
West-Ward Columbus from the date of the acquisition, that is
included in the Group's consolidated statement of comprehensive
income for the year amounted to $193 million and $4 million,
respectively.
EUP
On 8 September 2015 Hikma announced that it has agreed to
acquire 97.73% of the share capital of EUP from a consortium of
shareholders. EUP is a pharmaceutical manufacturing company
specialising in oncology products. The acquisition of EUP will
strengthen Hikma's position in the large and fast growing Egyptian
market, add an attractive portfolio and pipeline in the key
strategic areas of oncology and injectables, add a manufacturing
facility in Egypt, with both oral and injectable lines, and
leverage Hikma's established market position in Egypt and strong
sales and marketing team.
On closing the transaction on Feb 17(th) 2016, the total fair
value of the consideration is deemed to be $38 million. $34 million
is cash consideration and the balance of $4 million has been
treated as a financial liability and deemed consideration in
accordance with IAS 32 Financial Instruments: Presentation and IFRS
3 revised (2008): Business Combinations.
The goodwill arising represents the synergies that will be
obtained by integrating EUP into the existing business.
The net assets acquired in the transaction and the provisional
goodwill arising have been valued by a third party expert as set
out below. These amounts are provisional and subject to change.
Net assets acquired Fair Value
$m
Cash and cash equivalents 1
Inventories 1
Intangible Assets 21 a
Property, plant and equipment 11 b
Financial debt (1)
Income tax provision (1)
Other current liabilities (2)
Deferred tax liability (6) c
Net assets acquired 24
Non-controlling interest 1 d
Goodwill 13
Total consideration 38
Discharged by:
Cash 34
Deferred consideration 4
38
Cash consideration 34
Cash and cash equivalents acquired (1)
Net cash outflow arising on acquisition 33
a. Product rights relating to product licenses and approvals
have been valued based on the type of rights acquired. A discounted
cash flow approach has been taken based on excess earnings by
product group, applying a discount rate applicable for any market
participant. The product rights have been valued using a model that
reflects a market participant point of view, where assumptions were
built based on the expected market performance for these products
irrespective of the acquirer's identity.
b. The property, plant and equipment acquired have been valued
by a third party expert at current market value.
c. Taxable temporary differences have been identified by
reference to IAS 12 "income tax".
d. The non-controlling interests have been recognised as a
proportion of net assets acquired.
Goodwill recognised is expected to be non-deductible for income
tax purposes.
The revenue and core operating loss of EUP from the date of the
acquisition that is included in the Group's consolidated statement
of comprehensive income for the year amounted to $1 million and $1
million, respectively.
Full period impact of acquisitions:
If the acquisition of West-Ward Columbus and EUP had been
completed on the first day of the financial year, the Group's
revenues for the period would have been approximately $989 million
and the Group's profit attributable to equity holders of the parent
would have been approximately $58 million. The appropriate
additional contribution by entity for the period from the beginning
of the year up to the acquisition date is illustrated in the table
below:
Effect on Group's revenues Effect on Group's profit/(loss)
$m $m
West-Ward Columbus 107 1
EUP - (1)
107 -
22. Foreign exchange rates
Period end rates Average rates
30 June 2016 30 June 2015 31 December 2015 H1 2016 H1 2015 FY 2015
USD/EUR 0.9005 0.9011 0.9168 0.8955 0.8949 0.9006
USD/Sudanese Pound 11.2740 6.3171 9.6600 11.2740 6.3171 9.6600
USD/Algerian Dinar 110.3681 98.9472 107.1317 108.0838 95.7360 100.4033
USD/Saudi Riyal 3.7495 3.7495 3.7495 3.7495 3.7495 3.7495
USD/British Pound 0.7467 0.6361 0.6754 0.6976 0.6562 0.6540
USD/Jordanian Dinar 0.7090 0.7090 0.7090 0.7090 0.7090 0.7090
USD/Egyptian Pound 8.8810 7.6278 7.8309 8.4602 7.5700 7.7160
USD/Japanese Yen 103.1779 122.7400 120.3800 111.4201 120.2700 121.0700
USD/Moroccan Dirham 9.7393 9.7228 9.8476 9.7860 9.3910 9.8008
USD/Tunisian Dinar 2.1925 1.9406 2.0321 2.0530 1.9380 1.9623
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GDGDIIBDBGLS
(END) Dow Jones Newswires
August 24, 2016 02:01 ET (06:01 GMT)
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