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Hikma Pharmaceuticals PLC on Thursday increased its interim dividend following double-digit growth across the business in the first half. The London-based pharmaceutical company said pretax profit jumped 43% to £288 million in the first half that ended June 30 from £202 million in the previous year. Revenue increased 10% to £1.57 billion from £1.43 billion, while cost of sales grew 14% to £813 million from £712 million. Hikma raised it interim dividend by 28% to 32 US cents per share from 25 cents. Total operating expenses reduced 14% to £405 million from £470 million. Chief Executive Officer Riad Mishlawi: ‘All of our businesses contributed to our strong performance, delivering 10% group revenue growth. We launched new products across all regions, entered new markets in Europe, and further strengthened our leadership team.’ Over the six months to June 30, net debt increased 7.1% to $1.28 billion from $1.19 billion. Capital expenditure in the half stood at $69 million, down 18% from $84 million last year. Hikma allocated $19 million towards upgrades and capacity expansion in the US. Elsewhere, in the Middle East & North Africa and Europe, the company invested $32 million and $18 million to strengthen manufacturing capabilties. By year’s end, total capital expenditure is expected between $140 million to $160 milion compared to $169 million in 2023. Furthermore, in June the company announced the acquisition of parts of the US finished dosage form business from Xellia Pharmaceuticals AS for $135 million, plus a contingent consideration of up to $50 million. The transaction will add marketed products, pipeline projects, extensive manufacturing capabilities, and a new research and development centre for the Injectables business. Looking ahead, Hikma revised guidance for the full-year and now expects revenue growth to be between 6% to 8%, up from 4% to 6%. Core operating profit is forecast to be within a $700 million to $730 million range, up from $660 million from $700 million. In 2023, Hikma delivered 14% year-on-year revenue growth and a core operating profit of £707 million. Hikma Pharmaceuticals shares were up 6.4% to 1,958.25 pence each in London on Thursday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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