Currency issues hit Hikma’s 2015 profit

Fluctuations in the Algerian dinar, Moroccan dirham, Tunisian dinar, Egyptian pound and Sudanese pound against the US dollar resulted into a 4 per cent drop in Hikma's core operating profit.

Currency fluctuations in key markets caused operating pro­fit at Hikma Pharmaceuticals to fall last year.

The London-listed company reported a 4 per cent drop, compared with a year earlier, in core operating profit to US$409 million because of fluctuations in the Algerian dinar, Moroccan dirham, Tunisian dinar, Egyptian pound and Sudanese pound against the US dollar.

Declines in the generics segment owing to increased competition were offset by the business in branded and injectables drugs.

Its gross profit decreased by 4 per cent to $818m last year, compared with $851m in 2014, while revenue declined by 3 per cent to $1.44 billion.

This year, the London-based company expects to lift the group revenue to between $2bn to $2.1bn in constant currency.

Group revenues from the in­ject­ables segment touched $710m last year, marginally down from $713m in 2014. Revenue from the branded business rose to $570m, from $551m in 2014. In the generics segment, revenue fell 40 per cent to $151m compared with 2014.

Last year, Hikma launched 92 products.

The Jordanian company has also made a series of acquisitions, starting with Bedford Laboratories of the US in 2014 for $300m, which is expected to drive growth of its inject­ables business by next year. It snapped up Roxane, a US generics company, in July for $1.6bn. It also acquired EIMC United Pharmaceuticals, with interests in oncology and injectables, in Egypt last year.

“The integration of the acquisition of Roxane, which closed at the end of February, will be a key focus this year,” said Said Darwazah, Hikma’s chief executive.

The US market generated $697m in group revenues, down from $763m last year. The Mena region generated $656m, up from $633m. Algeria, Egypt, the Arabian Gulf and Morocco are among its top markets.

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