Hikma Pharmaceutical PLC on Thursday reported full-year revenue growth on a ‘strong’ performance by its three business segments and lifted its shareholder payout.

Shares were trading 7.7% lower at 1,857.54 pence each on Thursday morning in London.

Hikma posted revenue of $2.55 billion in 2021, up 9.0% from $2.34 billion in 2020, though pretax profit edged down 2.5% to $544 million from $558 million.

The generic drugmaker said the lower profit reflected a 74% increase in the amortisation of intangibles to $73 million from $42 million, due to new product launches.

Core pretax profit, however, grew 11% year-on-year to $578 million from $522 million, reflected by the ‘strong’ performance of its business segments.

Hikma declared a final dividend of 36 cents, a 5.9% boost from a shareholder payout of 34 cents the year before. Its full-year dividend amounted to 54 US cents, up 8% from 50 cents.

It also launched a share buyback of up to $300 million, saying this reflects its strong cash generation, balance sheet strength, and confidence in future growth prospects.

Looking ahead, Hikma expects Injectables division revenue growth in the low to mid-single digits, with core operating margin in the range of 35% to 37%.

Generics revenue growth is forecast in the range of 8% to 10% and core operating margin in the range of 24% to 25%.

‘Hikma delivered strong financial results in 2021, marking another successful year of solid growth and continued strategic momentum,’ Chief Executive Siggi Olafsson said.

‘As we look to 2022 and beyond, I am most excited about how we are continuing to build and evolve our portfolio with important investments and new partnerships.’

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