Hikma Pharmaceuticals PLC: FY2025 Results – Revenue Up, Outlook for 2026
Hikma Pharmaceuticals PLC, a multinational pharmaceutical company, has reported its audited results for the year ended . The results reveal overall revenue and profit growth, alongside strategic shifts within the company, particularly concerning its injectables business.
According to the company’s report, Group core revenue grew by 6% to $3,349 million. Reported Group revenue increased by 7%. This growth was observed across all three of Hikma’s geographic regions: North America, the Middle East and North Africa (MENA), and Europe. Specifically, injectables core revenue rose by 7% (9% reported), branded core revenue increased by 10% (10% reported), and Hikma Rx core revenue remained flat (1% reported).
However, while revenue increased, Group core operating profit saw a more modest growth of 3% to $741 million, representing a margin of 22.1% compared to 22.8% in . Reported operating profit decreased by 11%, largely due to the impact of a legal settlement. The injectables core operating profit experienced a 6% decline, with a margin of 31.0% (down from 35.3% in ). Conversely, branded core operating profit increased by 19%, achieving a margin of 26.4%, and Hikma Rx core operating profit rose by 5%, with a margin of 17.3%.
Cash flow from operating activities totaled $436 million, a decrease from $564 million in the previous year. Excluding $186 million related to one-off legal settlements, operating cash flow increased by 10%.
Said Darwazah, Chief Executive Officer (CEO) of Hikma, stated, “Strong momentum in our Branded and Hikma Rx businesses and growth in all our geographies enabled us to deliver Group revenue and profit growth in line with guidance, and resilient margins. While our Injectables business has experienced some challenges, we are taking clear steps to address these and we are confident in the longer-term prospects for this business.”
Strategic Initiatives and Leadership Changes
Hikma has been actively pursuing strategic initiatives, including the launch of 84 products across its markets. Notable launches include Tyzavan® in the US – a room temperature stable, ready-to-use vancomycin bag for sepsis treatment – and the company’s first biosimilar product in the US, ustekinumab. The company also reported double-digit growth in Europe Injectables and continued success with palbociclib and dapagliflozin tablets in the MENA region.
Alongside the financial results, Hikma announced significant changes to its leadership structure. Said Darwazah will relinquish his Executive Chairman responsibilities to focus solely on the role of CEO for the next two years. Victoria Hull, previously Senior Independent Director, has been appointed Chair, and Douglas Hurt, the Audit Committee Chair, will assume the role of Senior Independent Director.
Further changes include the appointment of Mazen Darwazah as Deputy CEO, MENA, overseeing all Group activities in the region. Khalid Nabilsi will become Deputy CEO, North America and Europe, responsible for all activities in those regions, and will step down as Chief Financial Officer (CFO). A search for a new CFO is underway, with Areb Kurdi, currently VP, Group Financial Controller, serving as Acting CFO in the interim. Hafrun Fridriksdottir, currently President, Hikma Rx, will become President, US, taking on responsibility for all Injectables sales in the US in addition to her existing role as Global Head of R&D.
Financial Strength and Share Buyback
Hikma maintains a robust balance sheet with a leverage ratio of 1.6x net debt to core EBITDA. The company’s return on average invested capital is 16.0%. The total dividend per share has been increased by 5% to 84 cents. Hikma has announced a share buyback program of up to $250 million to be executed in , reflecting the company’s strong cash generation and confidence in future growth.
Outlook for 2026
Hikma’s guidance for projects Group revenue growth in the range of 2% to 4%. Group core operating profit is expected to be between $720 million and $770 million. Specifically, the company anticipates low single-digit growth in injectables revenue, with a core operating margin of 27% to 28%. Branded revenue is projected to grow by 6% to 8%, with a core operating margin of around 25%. Hikma Rx revenue is expected to be broadly flat, with a core operating margin close to 20%.
The company acknowledges challenges within its injectables business, but expresses confidence in addressing them and returning to out-performance. The leadership changes and strategic investments are intended to support this goal and deliver sustainable profit growth.