REG - Hikma Pharmaceutical - Final Results, Share Buyback & Leadership Changes
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RNS Number : 4459U Hikma Pharmaceuticals Plc 26 February 2026
Hikma delivers Group revenue and profit growth and announces share buyback and
leadership changes
This announcement contains inside information.
London, 26 February 2026 - Hikma Pharmaceuticals PLC ('Hikma' or 'Group'), the
multinational pharmaceutical company, today reports its audited results for
the year ended 31 December 2025.
Said Darwazah, Chief Executive Officer (CEO) of Hikma, said:
"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.
The leadership changes that we are announcing today will enable us to execute
the Group strategy with more agility and greater accountability. To support
this, I will relinquish my Executive Chairman responsibilities and focus fully
on being CEO.
We are confident in the guidance we have set for 2026, which assumes continued
strong momentum in Branded and Hikma Rx and increased investment in
Injectables. Looking ahead, our focus is on delivering sustainable profit
growth. I remain optimistic for the future and am committed to returning to
the out-performance we and our shareholders expect. Reflecting this, and our
strong cash flow generation, we have increased our total dividend by 5% and
are announcing a $250 million share buyback, which we will execute over the
course of the year."
Reported results (statutory) 2025 2024 Change Constant currency(( 1 ))
$ million $ million change
Revenue 3,349 3,127 7% 6%
Operating profit 542 612 (11)% (12)%
Profit attributable to shareholders 402 359 12% 13%
Cashflow from operating activities 436 564 (23)% -
Basic earnings per share (cents) 182 162 12% 13%
Total dividend per share (cents) 84 80 5% -
Core results 2 (underlying) 2025 2024 Change Constant currency(1)
$ million $ million change
Core revenue 3,349 3,156 6% 5%
Core operating profit 741 719 3% 3%
Core EBITDA 3 853 824 4% 3%
Core profit attributable to shareholders 503 495 2% 2%
Core basic earnings per share (cents) 228 224 2% 2%
FINANCIAL PERFORMANCE
· Group core revenue growth of 6% to $3,349 million
o Group core revenue up 6%. Reported Group revenue up 7%
o Injectables core revenue up 7% (reported revenue up 9%), Branded core
revenue up 10% (reported revenue up 10%) and Hikma Rx core revenue flat
(reported revenue up 1%)
o Growth in all three geographies - North America, MENA and Europe
· Group core operating profit growth of 3% to $741 million at a
margin of 22.1% (2024: 22.8%)
o Group reported operating profit down 11%, primarily reflecting the impact
of a legal settlement
o Injectables core operating profit down 6% with margin of 31.0% (2024:
35.3%)
o Branded core operating profit up 19% with margin of 26.4% (2024: 24.6%)
o Hikma Rx core operating profit up 5% with margin of 17.3% (2024: 16.4%)
· Cashflow from operating activities of $436 million (2024: $564
million)
o Excluding $186 million 4 in connection with one-off legal settlements,
cashflow from operating activities increased by 10%
· Robust balance sheet and high returns
o Leverage at 1.6x net debt 5 to core EBITDA (31 December 2024: 1.4x)
o Return on average invested capital of 16.0% 6
o Total dividend of 84 cents per share, up 5%
o Upgraded to BBB by S&P and Fitch and successfully refinanced our $500
million Eurobond
STRATEGIC PROGRESS
· Launched 84 products across our markets
· Launched Tyzavan(®) in the US - an IP protected, room
temperature stable, ready-to-use vancomycin bag - used for critical sepsis
treatment in hospitals
· Received approval for and launched our first biosimilar product
in the US - ustekinumab
· Double-digit growth for Europe Injectables, driven by both
established and new markets
· Continued successful roll out of palbociclib tablets and
dapagliflozin tablets in MENA, enhancing our strength in oncology and diabetes
treatments, respectively
· Signed 14 deals in MENA during 2025, with 43 deals signed with 29
partners since 2023
· Announced expanded partnership with Celltrion in MENA for an
additional six biosimilars
BOARD & MANAGEMENT CHANGES
· Said Darwazah, who stepped back in as CEO in December 2025, will
step down as Executive Chairman of the Board to focus exclusively on the CEO
role for the next two years
· Victoria Hull, previously Senior Independent Director (SID), has
been appointed Chair and Douglas Hurt, our Audit Committee Chair, will assume
the SID role
· Mazen Darwazah will become Deputy CEO, MENA, responsible for all
the Group's activities in the MENA region, including MENA Injectables. He will
also maintain his role as Executive Vice Chairman of the Board
· Khalid Nabilsi, who was appointed to the Board of Directors in
December 2025, will become Deputy CEO, North America and Europe and will
oversee all Hikma's activities in North America and Europe. He will step down
as Chief Financial Officer (CFO)
· The Board has initiated a search for a new CFO. While the search
is ongoing, Areb Kurdi, currently VP, Group Financial Controller, will become
Acting CFO
· Hafrun Fridriksdottir, currently President, Hikma Rx, will become
President, US. She will continue to lead the Hikma Rx segment and will now
take responsibility for all Injectables sales in the US, in addition to her
responsibilities as Global Head of R&D
· All leadership and Board changes are effective immediately
SHARE BUYBACK
· Announcing a share buyback programme of up to $250 million to be
executed during 2026
· The buyback reflects the Group's strong cash generation, balance
sheet strength and the Board's confidence in the future growth prospects of
the business
· The buyback has been sized to maintain balance sheet efficiency
whilst leaving significant headroom for continued investment opportunities
2026 GROUP OUTLOOK
· Group revenue growth in the range of 2% to 4%
· Group core operating profit in the range of $720 million to $770
million
2026 SEGMENTAL OUTLOOK
· Injectables revenue growth in the low single digits
· Injectables core operating margin in the range of 27% to 28%
· Branded revenue growth in the range of 6% to 8%
· Branded core operating margin of around 25%
· Hikma Rx revenue to be broadly flat
· Hikma Rx core operating margin close to 20%
All guidance is provided in constant currency. Further detail on the 2026
outlook is provided below.
Further information:
A pre-recorded presentation will be available at www.hikma.com
(http://www.hikma.com) at 07:00am GMT. Hikma will also hold a live Q&A
webinar at 09:30am GMT, and a recording will be made available on the
Company's website.
To join the webinar, please register using the following link:
https://sparklive.lseg.com/HikmaPharmaceuticals/events/8e44521c-bdea-40c6-bffe-52aa5b6c780f
(https://nam04.safelinks.protection.outlook.com/?url=https%3A%2F%2Fsparklive.lseg.com%2FHikmaPharmaceuticals%2Fevents%2F8e44521c-bdea-40c6-bffe-52aa5b6c780f&data=05%7C02%7Cgfeatherstone%40hikma.com%7C124ca9c7f87b4e5c9e9408de581a03b1%7C178c1a723d3c40afbaa754615303bcdc%7C0%7C0%7C639045065960289102%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C4000%7C%7C%7C&sdata=QAdbw8KRSP0ljWcTkC9phshAjIR5%2FJOxnK%2BlAIue0S8%3D&reserved=0)
Hikma (Investors):
Susan Ringdal +44 (0)20 7399 2760/ +44 (0)7776 477050
EVP, Strategic Planning and Global Affairs
Guy Featherstone +44 (0)20 3892 4389/ +44 (0)7795 896738
Director, Investor Relations
FTI Consulting (media):
Ciara Martin +44 (0) 7779 775 979
About Hikma:
Hikma helps put better health within reach every day for millions of people
around the world. For more than 45 years, we've been creating high-quality
medicines and making them accessible to the people who need them.
Headquartered in the UK, we are a global company with a local presence across
North America, the Middle East and North Africa (MENA) and Europe, and we use
our unique insight and expertise to transform cutting-edge science into
innovative solutions that transform people's lives. We're committed to our
customers, and the people they care for, and by thinking creatively and acting
practically, we provide them with a broad range of branded and non-branded
generic medicines. Together, our 9,400 colleagues are helping to shape a
healthier world that enriches all our communities. We are a leading licensing
partner, and through our venture capital arm, are helping bring innovative
health technologies to people around the world. For more information, please
visit: www.hikma.com (http://www.hikma.com)
Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY)
(LEI:549300BNS685UXH4JI75) (rated BBB/stable S&P, BBB/stable Fitch)
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR.
The person responsible for the release of this announcement on behalf of Hikma
is Helen Middlemist (Company Secretary).
STRATEGIC OVERVIEW
On 15 December 2025 it was announced that Said Darwazah had stepped into the
CEO role. Since then, the senior management team, under Said's leadership, has
undertaken a thorough review of the plans and projections for the Group, and
for the Injectables business in particular. This review has been instrumental
in underpinning the 2026 guidance as set out in detail at the end of this
strategic overview. It has also led us to withdraw our medium-term Group
guidance and the Injectables medium-term margin guidance previously set out.
We are very encouraged by the strength of our Branded business and its ability
to continuously deliver strong growth and consistently high margins. At the
same time, we are successfully transforming our Hikma Rx business, adding
resilience and exciting new growth opportunities that will enable us to
maintain attractive margins. In Injectables we are taking the necessary steps
to strengthen the business, accelerating investment and adding capabilities in
sales and marketing, manufacturing, R&D, supply chain and CMO. In doing
this we are aiming to strike the right balance between optimising margins and
pursuing sustainable profit growth.
2025 performance
Group core revenue growth of 6% (7% reported Group revenue growth) and Group
core operating profit of $741 million were in line with our guidance, which
was revised in November 2025. Group reported operating profit was $542
million, impacted primarily by the one-off legal settlement related to sodium
oxybate.
During 2025, we were the seventh largest supplier of generic medicines in the
US 7 , and the third largest supplier of generic injectable products by
volume 8 . During 2025 we also became the largest pharmaceutical company, by
sales, in MENA 9 , up from the second largest in 2024 and the fifth largest as
recently as 2020. In Europe, our highest growth region, our strategy is
focused on supplying critical medicines, and we now have a strong competitive
position in several key critical medicines across our largest European
markets.
Injectables
Our Injectables business, which manufactures and supplies generic injectable
and specialty medicines to hospitals across North America, Europe and MENA,
delivered a strong top-line performance, growing core revenue 7%, with a core
operating margin of 31.0%.
In North America we grew 5%, reflecting a full year contribution from the
Xellia acquisition and good growth in our controlled drugs, where we benefit
from our US manufacturing footprint, which more than offset increased
competition on our base business. In Europe, we grew 23%, with particularly
strong contributions from Germany and France. In MENA, we grew 9%, benefitting
from a strong performance from in-licenced biosimilar and innovative products,
reflecting our position as the partner of choice in the region. As expected,
we saw an acceleration in revenue from contract manufacturing in the second
half of the year.
Injectables core operating profit was down 6%, impacted by both geographic mix
- driven by good growth in MENA, where margins are lower - and product mix,
with a higher percentage of our products produced by external partners. As we
flagged through the course of the year, we saw competition on certain high
value products in the US, including testosterone and calcitonin, while new
revenue came from lower margin out-sourced products from the Xellia
acquisition and partnered products such as liraglutide and biosimilars.
Profits were also negatively affected by the strength of the Euro and by
higher inventory provisions.
We continued to broaden and diversify our portfolio, with 50 injectable
launches globally, including 22 in the US. With our new R&D centre in
Zagreb, we are well positioned to develop more complex products, including
ready-to-use formulations. Today we have 118 products in our pipeline,
including 15 ready-to-use formulations, which will drive growth over the
medium to long term.
Work on our Bedford plant continues at pace, and we continue to expect full
commercial production and associated revenues from bag, liquid and
lyophilisation lines to commence in 2028.
Branded
Our Branded business, which supplies branded generics and in-licensed
IP-protected products across the MENA region, had an excellent year, with
growth across most of our markets. We grew revenue 10% with a core operating
margin of 26.4%.
We have a unique business in the region, leveraging our global expertise to
meet local market needs. Over the past few years, we have been investing in
enhancing our pipeline and portfolio to drive growth and margins, focusing on
launching more complex and first-to-market products that are tailored to local
needs. We continue to make great progress and are gaining market share in key
therapeutic areas. During 2025 we saw noticeably strong performance from
certain oncology and diabetes products, including palbociclib and
dapagliflozin. We are a leader in multiple sclerosis treatments in the region,
and are leveraging partnerships to bring more innovative products, such as
Finjuve(TM) in Saudi Arabia, a novel spray in the dermatology space.
Hikma Rx
Hikma Rx, which supplies oral, respiratory and other generic and specialty
products to the North American retail market, had another good year,
generating over $1 billion in core revenue, flat on 2024, as guided, with core
operating margin ahead of expectations at 17.3%.
We delivered a strong performance from our more complex products, such as
generic Advair Diskus(®) and fluticasone nasal spray, and good demand for
other portfolio products including albuterol and lisdexamfetamine.
We are refocusing our efforts on R&D and submitted nine new filings during
the year. We see significant potential to leverage our respiratory and nasal
development and manufacturing capabilities to build an attractive pipeline for
the future.
Contract manufacturing (CMO) continues to be an important part of our Hikma Rx
business, and we have been making good progress readying our Columbus site for
a significant upcoming contract previously messaged to the market. We will see
revenues linked to this contract in 2026, with the first full year of
commercial production in 2027.
Leadership changes
Following the appointment of Said Darwazah as CEO in December 2025, Said will
now step down as Executive Chairman to ensure he is fully focused on the CEO
role. Victoria Hull will become Chair and Douglas Hurt will become Senior
Independent Director. These changes are effective as at the date of this
announcement.
Several further adjustments to the leadership team are being announced today,
with the aim both to help Said in the day-to-day management of the business
and to ensure that we start moving faster and more effectively.
We have created two new Deputy CEO positions. Mazen Darwazah, Executive Vice
Chairman and President of MENA, has been appointed Executive Vice Chairman and
Deputy CEO, MENA, with responsibility now for all of our activities in MENA,
including MENA Injectables.
Khalid Nabilsi will take on the role of Deputy CEO, North America and Europe,
and will oversee all Hikma's activities in North America and Europe.
Khalid will step down as CFO. The Board has initiated a search for a new CFO.
While the search is ongoing, Areb Kurdi, currently VP, Finance, will become
Acting CFO
Hafrun Fridriksdottir, President, Hikma Rx and Global Head of R&D, will
add management of our Injectables commercial activities in the US to her
responsibilities and will become President, US, in addition to her R&D
role.
2026 Outlook (in constant currency)
We expect Group revenue to grow in the range of 2% to 4%. We expect Group core
operating profit to be in the range of $720 million to $770 million.
We expect Injectables revenue to grow in the low single digits and for core
operating margin to be in the range of 27% to 28%.
Injectables growth will continue to be driven in part by third party
manufactured and partnered products and strong momentum in our MENA
Injectables business, which will have an associated product and geographic mix
impact. We are currently carrying out less high margin CMO work for partners,
as they shift production from our European sites to the US. We will also be
spending more on Injectables R&D and sales and marketing. All these
factors combined account for lower margin guidance for this business.
We expect Branded revenue to grow 6% to 8% and core operating margin to be
around 25%. This business is a market leader and we expect it to continue to
build on its excellent momentum.
We expect Hikma Rx revenue to be broadly flat, with a good performance from
our differentiated products and CMO offering offsetting expected competition
on sodium oxybate as well as usual price erosion. We expect core operating
margin to be close to 20%, as we benefit from improving product mix.
We expect corporate unallocated costs to be around $105 million and for our
'Others' business to break even.
We expect Group core net finance expense to be between $99 million to $103
million. We expect the core effective tax rate to be around 23%. We expect
Group capital expenditure to be in the range of $190 million to $210 million.
FINANCIAL OVERVIEW
The financial review set out below summarises the reported and core 10
performance of the Hikma Group and our three main business segments,
Injectables, Branded and Hikma Rx for the year ended 31 December 2025.
Group
2025 2024 Change Constant currency
$ million $ million change
Revenue 3,349 3,127 7% 6%
Core revenue 3,349 3,156 6% 5%
Gross profit 1,441 1,415 2% 1%
Gross margin 43.0% 45.3% (2.3) pp (2.3) pp
Core gross profit 1,457 1,448 1% 0%
Core gross margin 43.5% 45.9% (2.4) pp (2.5) pp
Operating profit 542 612 (11)% (12)%
Operating margin 16.2% 19.6% (3.4) pp (3.4) pp
Core operating profit 741 719 3% 3%
Core operating margin 22.1% 22.8% (0.7)pp (0.6)pp
Core EBITDA 853 824 4% 3%
Core EBITDA margin 25.5% 26.1% (0.6)pp (0.6)pp
Group core revenue was up 6% reflecting good growth in Injectables and
Branded, while Hikma Rx delivered revenue in line with 2024, as expected.
Group reported revenue was up 7%.
Group core gross profit grew 1% and core gross margin was 43.5% as strong
margin performance in Hikma Rx and Branded was offset by the reduced
Injectables margin.
Group core operating expenses were $716 million (2024: $729 million). Group
reported operating expenses were $899 million (2024: $803 million).
Group core selling, general and administrative (SG&A) expenses were flat
at $566 million (2024: $568 million), reflecting growth in the business,
offset by a reduction in Hikma Rx sales and marketing spend. Reported SG&A
expenses were $743 million (2024: $671 million).
Reported research and development (R&D) expenses were $151 million (2024:
$141 million), representing 4.5% of Group core revenue (2024: 4.5%). Growth
was lower than originally planned due to delays in project starts,
particularly in Injectables. The Group has a strong focus on R&D and
aspires to spend around 5% to 6% of revenue on R&D going forward.
Core other net operating income was $2 million (2024: $18 million expense).
Reported other net operating expense was $4 million (2024: $11 million
income). The change is in part due to reduced foreign exchange losses.
Group core operating profit increased by 3%. Group reported operating profit
was down 11%, primarily reflecting the impact of the legal settlement related
to sodium oxybate.
Group core revenue by business segment
2025 2024
$ million $ million
Injectables 1,423 42.5% 1,324 42.0%
Branded 849 25.4% 769 24.4%
Hikma Rx 1,037 31.0% 1,037 32.9%
Others 40 1.2% 26 0.8%
Total 3,349 3,156
Group core revenue by region
2025 2024
$ million $ million
North America 1,976 59.0% 1,940 61.5%
MENA 1,089 32.5% 985 31.2%
Europe and ROW 284 8.5% 231 7.3%
Total 3,349 3,156
Injectables
2025 2024 Change Constant currency change
$ million $ million
Revenue 1,423 1,306 9% 8%
Core revenue 1,423 1,324 7% 7%
Gross profit 649 668 (3)% (4)%
Gross margin 45.6% 51.1% (5.5)pp (5.5)pp
Core gross profit 665 690 (4)% (4)%
Core gross margin 46.7% 52.1% (5.4)pp (5.3)pp
Operating profit 367 371 (1)% 0%
Operating margin 25.8% 28.4% (2.6)pp (2.1)pp
Core operating profit 441 468 (6)% (5)%
Core operating margin 31.0% 35.3% (4.3)pp (3.8)pp
Injectables core revenue grew 7% in 2025, benefiting from our broad portfolio
across the three geographies, contribution from the Xellia acquisition and
recent launches. Injectables reported revenue grew 9%.
North America sales were up 5%. While we saw competition on certain larger
products, this was more than offset by the contribution from the products
acquired in the Xellia acquisition 11 , as well as new launches.
In Europe and Rest of World (ROW) sales grew 23%. We delivered good growth
across all our established and recently entered markets. Our own products grew
30%, driven by our expanding portfolio and ability to address market
shortages.
In MENA, sales grew 9%, supported by the breadth of the portfolio and a strong
performance from certain products in our biosimilar portfolio.
Injectables core gross profit was down 4% and core gross margin contracted to
46.7% due to product and geographic mix and increased inventory provisions.
Injectables reported gross profit declined 3% with a gross margin of 45.6%. A
decline in sales of certain high-value products in the US was offset by
lower-margin sales of third-party manufactured products and good progress in
MENA, where margins are lower.
Injectables core operating profit was down 6% and core operating margin was
31.0%. This reflects the change in gross profit and higher foreign exchange
related costs due to the strength of the Euro versus the US dollar.
Injectables reported operating profit was flat, with an operating margin of
25.8%. While Injectables has a global supply chain, including products
imported from China to the US which are subject to tariffs, this only had a
minor impact on profit in 2025 of c.$3 million.
Branded
2025 2024 Change Constant currency change
$ million $ million
Revenue 849 769 10% 9%
Core revenue 849 769 10% 9%
Gross profit 445 402 11% 8%
Gross margin 52.4% 52.3% 0.1pp (0.1)pp
Core gross profit 445 402 11% 8%
Core gross margin 52.4% 52.3% 0.1pp (0.1)pp
Operating profit 227 182 25% 21%
Operating margin 26.7% 23.7% 3.0pp 2.8pp
Core operating profit 224 189 19% 15%
Core operating margin 26.4% 24.6% 1.8pp 1.5pp
Branded revenue was up 10%, as we continue to benefit from our leading market
position and a growing and diversified portfolio of oncology products and
medicines used to treat chronic illnesses.
Branded core and reported gross profit grew 11%, with core and reported gross
margins of 52.4%. This reflects our high-quality product mix driven by our
shift towards higher-value medicines.
Branded core operating profit increased 19% and reported operating profit
increased 25%, reflecting the strong revenue performance and a reduction in
foreign exchange related costs when compared to 2024.
Hikma Rx
2025 2024 Change
$ million $ million
Revenue 1,037 1,026 1%
Core revenue 1,037 1,037 0%
Gross profit 343 346 (1)%
Gross margin 33.1% 33.7% (0.6)pp
Core gross profit 343 357 (4)%
Core gross margin 33.1% 34.4% (1.3)pp
Operating profit 124 167 (26)%
Operating margin 12.0% 16.3% (4.3)pp
Core operating profit 179 170 5%
Core operating margin 17.3% 16.4% 0.9pp
Hikma Rx core revenue was flat in 2025, reflecting expected price erosion
across the base portfolio, offset by a strong performance on key in-market
products. Hikma Rx reported revenue grew 1%.
Hikma Rx core gross profit reduced 4%, reflecting an increase in inventory
provisions. Hikma Rx reported gross profit reduced 1%.
Hikma Rx core operating profit increased 5%, with lower sales and marketing
costs more than offsetting the reduction in gross profit. The decline in sales
and marketing spend was driven by a reduction in direct spend on specialty
products. Hikma Rx reported operating profit declined 26% following the
impairment reversal in 2024 related to our complex respiratory portfolio.
Other businesses
Other businesses, which includes our 503B compounding business, our MENA
diagnostics business, as well as Arab Medical Containers (AMC), a manufacturer
of plastic specialised medicinal sterile containers, and International
Pharmaceuticals Research Centre (IPRC), which conducts bio-equivalency
studies, contributed revenue of $40 million in 2025 (2024: $26 million) with
an operating loss of $6 million (2024: $9 million loss).
Research and development
Our investment in R&D of $151 million and our business development
activities enable us to continue expanding the Group's product portfolio. We
spent $9 million more in R&D than in 2024, however this was an underspend
versus our original ambitions, primarily driven by moving R&D activity
from the US to Croatia and delays to project starts in our Injectables
business. We will increase this spend and expect to reach 5% to 6% of revenue
in 2026.
During 2025, we had 84 new launches and received 99 approvals. To ensure the
continuous development of our product pipeline, we submitted 139 regulatory
filings.
2025 submissions 12 2025 approvals(12) 2025 launches(12)
Injectables 48 47 50
North America 10 19 26
MENA 32 10 10
Europe and ROW 6 18 14
Branded 82 45 30
Hikma Rx 9 7 4
Total 139 99 84
Net finance expense
2025 2024 Change Constant currency change
$ million $ million
Finance income 83 8 938% 938%
Finance expense 107 167 (36)% (38)%
Net finance expense 24 159 (85)% (87)%
Core finance income 11 8 38% 38%
Core finance expense 106 93 14% 11%
Core net finance expense 95 85 12% 8%
Reported net finance expense was $24 million, compared with $159 million in
2024. Reported finance income includes $72 million finance income which
primarily resulted from the adjustment of royalty payment arrangements with
certain of the Group's business partners, as well as the revaluation of
liabilities associated with future contingent consideration payments.
Core net finance expense increased to $95 million (2024: $85 million),
primarily reflecting an increase in average borrowing and the impact of the
refinancing of the previous $500 million Eurobond.
We expect core net finance expense to be around $99 million to $103 million in
2026 13 .
Tax
The Group incurred a reported tax expense of $112 million (2024: $93 million)
representing a reported effective tax rate of 21.6% (2024: 20.4%). Excluding
the tax impact of exceptional items and other adjustments, Group core tax
expense was $139 million (2024: $138 million). The core effective tax rate was
21.5% (2024: 21.7%).
We expect the Group core effective tax rate to be around 23% in 2026.
Profit attributable to shareholders and earnings per share
Core profit attributable to shareholders was $503 million (2024: $495
million). Reported profit attributable to shareholders was $402 million (2024:
$359 million).
Core basic earnings per share was 228 cents (2024: 224 cents).
Reported basic earnings per share was 182 cents (2024: 162 cents).
Dividend
The Board is recommending a final dividend of 48 cents per share (2024: 48
cents per share) bringing the total dividend for the full year to 84 cents per
share (2024: 80 cents per share). The proposed dividend will be paid on 30
April 2026 to eligible shareholders on the register at the close of business
on 20 March 2026, subject to approval at the Annual General Meeting on 23
April 2026.
Net cash flow, working capital and net debt
The Group generated operating cash flow of $436 million (2024: $564 million).
This change primarily reflects $186 million in connection with one-off legal
settlements. Of the $186 million, $111 million was placed into restricted cash
at 31 December 2025 and paid in January 2026.
Group working capital days were 245 at 31 December 2025 (31 December 2024: 240
days).
Capital expenditure was $197 million (2024: $165 million). In North America,
$81 million was spent on capacity expansion and upgrades across our Cherry
Hill, Columbus and Beford sites. In MENA, $82 million was spent strengthening
and expanding our local manufacturing capabilities, including for our new
general formulation plant in Tunisia and upgrading our oral oncology plant in
Algeria, as well as adding new lines in Saudi Arabia and Jordan. In Europe, we
spent $34 million adding bag capacity in Portugal and upgrading infrastructure
in Germany and Italy.
We expect Group capital expenditure for 2026 to be in the range of $190
million to $210 million.
The Group's total debt was $1,604 million at 31 December 2025 (31 December
2024: $1,306 million).
The Group's cash balance at 31 December 2025 was $217 million (31 December
2024: $188 million).
The Group's net debt was $1,387 million at 31 December 2025 (31 December 2024:
$1,118 million). We continue to have a healthy balance sheet, with a net debt
to core EBITDA ratio of 1.6x (31 December 2024: 1.4x).
During July 2025, the Group issued a new $500 million five-year Eurobond with
a 5.125% coupon rate to
refinance the previously issued $500 million five-year Eurobond, which had a
3.25% coupon rate and
matured on 9 July 2025.
During July 2025, the Group also signed a $250 million six-year loan agreement
with International Finance
Corporation (IFC), with proceeds used for general corporate purposes.
During November 2025, the Group signed a $400 million three-year syndicated
loan arrangement, with proceeds used for general corporate purposes.
Net assets
Net assets at 31 December 2025 were $2,606 million (31 December 2024: $2,321
million). Net current assets were $1,190 million (31 December 2024: $285
million). The primary reason for the increase in net current assets is due to
the previous $500 million Eurobond having been classified as a current
liability in 2024.
The Board
The Board of Directors that served during the twelve-month period to 31
December 2025 and their respective responsibilities can be found on the
Leadership team section of www.hikma.com (http://www.hikma.com) .
Cautionary statement
This preliminary announcement has been prepared solely to provide additional
information to the shareholders of Hikma and should not be relied on by any
other party or for any other purpose.
Definitions
We use a number of non-IFRS measures to report and monitor the performance of
our business. Management uses these adjusted numbers internally to measure our
progress and for setting performance targets. We also present these numbers,
alongside our reported results, to external audiences to help them understand
the underlying performance of our business. Our core numbers may be calculated
differently to other companies.
Adjusted measures are not substitutable for IFRS results and should not be
considered superior to results presented in accordance with IFRS.
Core results
Reported results represent the Group's overall performance. However, these
results can include one-off or non-cash items which are excluded when
assessing the underlying performance of the Group. To provide a more complete
picture of the Group's performance to external audiences, we provide,
alongside our reported results, core results, which are a non-IFRS measure.
Our core results exclude the exceptional items and other adjustments set out
in Note 5.
Constant currency
As the majority of our business is conducted in the US, we present our results
in US dollars. For both our Branded and Injectables businesses, a proportion
of their sales are denominated in a currency other than the US dollar. In
order to illustrate the underlying performance of these businesses, we include
information on our results in constant currency.
Constant currency changes are derived after reported 2025 numbers are
translated using 2024 exchange rates, excluding price increases in the
business resulting from the devaluation of currencies.
Core EBITDA
Core EBITDA is core operating profit before depreciation and software
amortisation.
2025 2024
$ million $ million
Reported operating profit 542 612
Legal settlements 72 -
Pre-operational costs 16 4
Insurance compensation in relation to the Group's losses in Sudan (14) -
Gain on extinguishment of financial liability (6) -
Reorganisation costs 5 11
Intangible assets amortisation other than software 100 92
Impairment charges on intangible assets, PPE and right-of-use assets 26 31
Impairment reversals on intangible assets and property, plant and equipment - (60)
Provision for rebates adjustment - 29
Core operating profit 741 719
Depreciation of property, plant and equipment 94 87
Depreciation of right-of-use assets 10 10
Software amortisation 8 8
Core EBITDA 853 824
Working capital days
We believe Group working capital days provides a useful measure of the Group's
working capital management and liquidity. Group working capital days are
calculated as Group net receivable days plus Group net inventory days, less
Group payable days. Group receivable days are calculated as Group net trade
receivables x 365, divided by 12 months Group reported revenue. Group
inventory days are calculated as Group net inventory x 365, divided by 12
months Group cost of sales. Group payable days are calculated as Group trade
payables x 365, divided by 12 months Group reported cost of sales.
Group net debt
We believe Group net debt is a useful measure of the strength of the Group
financial position. Group net
debt includes short- and long-term financial debts (Notes 9 and 11), lease
liabilities, net of cash and cash equivalents.
Group net debt 31 Dec 2025 31 Dec 2024
$ million $ million
Short-term financial debts (106) (642)
Short-term leases liabilities (8) (11)
Long-term financial debts (1,445) (607)
Long-term leases liabilities (45) (46)
Total debt (1,604) (1,306)
Cash and cash equivalents 217 188
Net debt (1,387) (1,118)
ROIC
ROIC is calculated as core operating profit after tax divided by the average
invested capital (calculated as the average of the opening and closing total
equity plus net debt). This measures our efficiency in allocating capital to
profitable investments.
ROIC 2025 2024
$ million
Core operating profit 741 719
Tax on core operating profit (145) (158)
Core operating profit after tax 596 561
Net debt 1,387 1,118
Equity 2,606 2,321
Invested capital (at 31 December) 3,993 3,439
Invested capital (at 1 January) 3,439 3,185
Average invested capital 3,716 3,312
ROIC 16.0% 16.9%
Forward looking statements
This announcement contains certain statements which are, or may be deemed to
be, "forward looking statements" which are prospective in nature with respect
to Hikma's expectations and plans, strategy, management objectives, future
developments and performance, costs, revenues and other trend information.
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 "aims", "anticipates",
"believes", "budget", "estimates", "expects", "forecasts", "goals", "intends",
"objectives", "outlook", "plan", "project", "risks", "seek" "scheduled",
"targets" 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 "could", "may", "might", "probably", "should",
"will" or "would" be taken, occur or be achieved.
By their nature, forward looking statements are based on current expectations
and projections about future events and are therefore subject to assumptions,
risks and uncertainties that are beyond Hikma's ability to control or estimate
precisely and which could cause actual results or events to differ materially
from those expressed or implied by the forward looking statements. In
particular, these include statements relating to future actions, product
authorisations, future performance or results of current and anticipated
products, sales efforts, expenses, the outcome of contingencies such as legal
proceedings, dividend payments and financial results. Where included, such
statements have been made by or on behalf of Hikma in good faith based upon
the knowledge and information available to the Directors on the date of this
announcement. Accordingly, no assurance can be given that any particular
expectation will be met and Hikma's shareholders are cautioned not to place
undue reliance on the forward-looking statements. 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.
Other than in accordance with its legal or regulatory obligations (including
under the UK Market Abuse Regulation and the UK Listing Rules and the
Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority), Hikma does not undertake to update the forward looking statements
contained in this announcement to reflect any changes in events, conditions or
circumstances on which any such statement is based 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. Any forward looking
statement above and all subsequent oral or written forward looking statements
attributable to Hikma or any of its members, directors, officers or employees
or any person acting on their behalf are expressly qualified in their entirety
by this cautionary statement. Past share performance cannot be relied on as a
guide to future performance. Nothing in this announcement should be construed
as a profit forecast.
Neither the content of Hikma's website nor any other website accessible by
hyperlinks from Hikma's website are incorporated in, or form part of, this
announcement.
Principal risks and uncertainties
The Group faces risks from a range of sources that could have a material
impact on our financial commitments and ability to trade in the future. The
principal risks are determined via robust assessment considering our risk
context by the Board of Directors with input from executive management. The
principal risks facing the company have not materially changed over the year,
and are set out in the 2025 annual report on pages 84 - 88, which will be
available in March 2026. The Board recognises that certain risk factors that
influence the principal risks are outside of the control of management. The
Board is satisfied that the principal risks are being managed appropriately
and consistently with the target risk appetite. The set of principal risks
should not be considered as an exhaustive list of all the risks the Group
faces.
Hikma Pharmaceuticals PLC
Consolidated income statement
For the year ended 31 December 2025
2025 2025 2025 2024 2024 2024
Core
Exceptional items and other adjustments
Reported
Core
Exceptional items and other
Reported
results
(Note 5)
results
results
adjustments
results
(Note 5)
Note $m $m $m $m $m $m
Revenue 3 3,349 - 3,349 3,156 (29) 3,127
Cost of sales (1,892) (16) (1,908) (1,708) (4) (1,712)
Gross profit/(loss) 1,457 (16) 1,441 1,448 (33) 1,415
Selling, general and administrative expenses (566) (177) (743) (568) (103) (671)
Impairment loss on financial assets, net (1) - (1) (2) - (2)
Research and development expenses (151) - (151) (141) - (141)
Other operating expenses (9) (26) (35) (21) (31) (52)
Other operating income 11 20 31 3 60 63
Total operating expenses (716) (183) (899) (729) (74) (803)
Operating profit/(loss) 4 741 (199) 542 719 (107) 612
Finance income 11 72 83 8 - 8
Finance expense (106) (1) (107) (93) (74) (167)
Gain from investment at fair value through profit or loss (FVTPL) 1 - 1 1 - 1
Group's share of profit of joint venture - - - 1 - 1
Profit/(loss) before tax 647 (128) 519 636 (181) 455
Tax (139) 27 (112) (138) 45 (93)
Profit/(loss) for the year 508 (101) 407 498 (136) 362
Attributable to:
Non-controlling interests 5 - 5 3 - 3
Equity holders of the parent 503 (101) 402 495 (136) 359
Earnings per share (cents)
Basic 6 228 182 224 162
Diluted 6 226 181 221 161
Hikma Pharmaceuticals PLC
Consolidated statement of comprehensive income
For the year ended 31 December 2025
2025 2024
Note $m $m
Profit for the year 407 362
Other comprehensive income/(expense)
Items that may subsequently be reclassified to the consolidated income
statement:
Currency translation movement 94 (55)
Items that will not subsequently be reclassified to the consolidated income
statement:
Change in investments at fair value through other comprehensive income (13) (6)
(FVTOCI)
Remeasurement of post-employment benefit obligations 10 (2) (1)
Total other comprehensive income/(expense) for the year 79 (62)
Total comprehensive income for the year 486 300
Attributable to:
Non-controlling interests 5 3
Equity holders of the parent 481 297
486 300
Hikma Pharmaceuticals PLC
Consolidated balance sheet
At 31 December 2025
2025 2024
Note $m $m
Non-current assets
Goodwill 393 382
Other intangible assets 777 774
Property, plant and equipment 1,404 1,278
Right-of-use assets 44 48
Investment in joint venture 11 11
Deferred tax assets 307 293
Other non-current assets 92 84
3,028 2,870
Current assets
Inventories 1,106 986
Income tax recoverable 18 24
Trade and other receivables 1,061 949
Cash and cash equivalents 217 188
Other current assets 8 241 116
2,643 2,263
Total assets 5,671 5,133
Current liabilities
Short-term financial debts 9 106 642
Lease liabilities 8 11
Trade and other payables 715 650
Income tax payable 74 78
Provisions 10 119 122
Other current liabilities 431 475
1,453 1,978
Net current assets 1,190 285
Non-current liabilities
Long-term financial debts 11 1,445 607
Lease liabilities 45 46
Deferred tax liabilities 16 18
Provisions 10 40 36
Other non-current liabilities 66 127
1,612 834
Total liabilities 3,065 2,812
Net assets 2,606 2,321
Equity
Share capital 40 40
Share premium 282 282
Other reserves (285) (374)
Retained earnings 2,556 2,362
Equity attributable to equity holders of the parent 2,593 2,310
Non-controlling interests 13 11
Total equity 2,606 2,321
Hikma Pharmaceuticals PLC
Consolidated statement of changes in equity
For the year ended 31 December 2025
Other reserves
Share Share Merger and revaluation reserves Translation reserve Capital redemption reserve Employee benefit trust (EBT) reserve Total other reserves Retained earnings Equity attributable to equity holders of the parent Non-controlling interests Total
capital
premium
equity
Note $m $m $m $m $m $m $m $m $m $m $m
Balance at 40 282 35 (319) 2 - (282) 2,158 2,198 11 2,209
1 January 2024
Profit for the year - - - - - - - 359 359 3 362
Change in investments at fair value through other comprehensive income - - - - - - - (6) (6) - (6)
(FVTOCI)
Remeasurement of 10 - - - - - - - (1) (1) - (1)
post-employment benefit obligations
Currency translation movement - - - (55) - - (55) - (55) - (55)
Total comprehensive income for the year - - - (55) - - (55) 352 297 3 300
Cost of equity-settled employee share scheme - - - - - - - 27 27 - 27
Deferred tax on equity-settled employee share scheme - - - - - - - 1 1 - 1
Purchase of shares held in employee benefit trust (EBT) - - - - - (38) (38) - (38) - (38)
Exercise of - - - - - 1 1 (1) - - -
equity-settled employee share scheme
Dividends paid 7 - - - - - - - (175) (175) (3) (178)
Balance at 40 282 35 (374) 2 (37) (374) 2,362 2,310 11 2,321
31 December 2024 and 1 January 2025
Profit for the year - - - - - - - 402 402 5 407
Change in investments at fair value through other comprehensive income - - - - - - - (13) (13) - (13)
(FVTOCI)
Remeasurement of 10 - - - - - - - (2) (2) - (2)
post-employment benefit obligations
Currency translation movement - - - 94 - - 94 - 94 - 94
Total comprehensive income for the year - - - 94 - - 94 387 481 5 486
Cost of equity-settled employee share scheme - - - - - - - 23 23 - 23
Purchase of shares held in employee benefit trust (EBT) - - - - - (36) (36) - (36) - (36)
Exercise of - - - - - 31 31 (31) - - -
equity-settled employee share scheme
Dividends paid 7 - - - - - - - (185) (185) (3) (188)
Balance at 40 282 35 (280) 2 (42) (285) 2,556 2,593 13 2,606
31 December 2025
Hikma Pharmaceuticals PLC
Consolidated cash flow statement
For the year ended 31 December 2025
2025 2024
Note $m $m
Cash flow from operating activities
Profit before tax 519 455
Depreciation, amortisation and impairment 238 168
Finance income and expense 24 159
Cost of equity-settled employee share scheme 23 27
Gain from investment at fair value through profit or loss (FVTPL) (1) (1)
Loss on disposal of property, plant and equipment 1 -
Foreign exchange loss, net 7 16
Group's share of profit of joint venture - (1)
Loss on sale of assets held for sale - 1
Change in other non-current assets (21) -
Change in inventories (86) (112)
Change in trade and other receivables (97) (144)
Change in other current assets (122) 4
Change in trade and other payables 38 78
Change in provisions (3) (1)
Change in other current liabilities 39 36
Change in other non-current liabilities 1 4
Cash generated from operations 560 689
Income taxes paid (126) (125)
Income taxes received 2 -
Net cash inflow from operating activities 436 564
Cash flow from investing activities
Purchase of property, plant and equipment (197) (165)
Purchase of intangible assets (120) (70)
Additions to investments at FVTOCI (3) (2)
Payments of contingent consideration liabilities (75) (12)
Interest income received 6 8
Dividends from joint venture 1 -
Acquisition of business, net of cash acquired - (150)
Cash receipt related to assets held for sale - 10
Net cash outflow from investing activities (388) (381)
Cash flow from financing activities
Proceeds from issue of long-term financial debts 12 2,402 684
Repayment of long-term financial debts 12 (2,093) (536)
Proceeds from short-term financial debts 12 349 387
Repayment of short-term financial debts 12 (357) (411)
Repayment of lease liabilities (11) (21)
Dividends paid 7 (185) (175)
Distributions to non-controlling interests (3) (3)
Interest and bank charges paid (83) (84)
Purchase of shares held in employee benefit trust (EBT) (36) (38)
Upfront fees and Eurobond transaction costs 12 (8) -
Decrease in restricted cash - 10
Payments of co-development and earnout payment agreement - (1)
Net cash outflow from financing activities (25) (188)
Net increase/(decrease) in cash and cash equivalents 23 (5)
Cash and cash equivalents at beginning of year 188 205
Foreign exchange translation movements 6 (12)
Cash and cash equivalents at end of year 217 188
Hikma Pharmaceuticals PLC
Notes to the consolidated financial statements
1. Accounting policies
General information
Hikma Pharmaceuticals PLC is a public limited liability company incorporated
and domiciled in England and Wales under the Companies Act 2006
The Group's principal activities are the development, manufacture and
commercialisation of a broad range of generic, specialty and branded
pharmaceutical products across a range of dosage forms.
Basis of preparation
Hikma Pharmaceuticals PLC's consolidated financial statements have been
prepared in accordance with:
i. UK-adopted International Accounting Standards and with the requirements
of the Companies Act 2006 as applicable to companies reporting under those
standards.
ii. International Financial Reporting Standards as issued by the International
Accounting Standards Board ("IFRS Accounting Standards").
The consolidated financial statements have been prepared under the historical
cost convention, except for the revaluation to fair value of certain financial
assets and liabilities.
The accounting policies included in this note have been applied consistently
other than where new policies have been adopted.
The presentational currency of the Group's consolidated financial statements
is the US dollar, as the majority of the Group's business is conducted in US
dollars.
The financial information does not constitute the Company's statutory accounts
for the years to 31 December 2025 or 2024 but is derived from those accounts.
The auditors have reported on those accounts and their report (i) was
unqualified, (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006 in respect of the accounts for the year to 31 December 2025
or 31 December 2024.
Adoption of new and revised standards
The following amendment to accounting standard has been issued and is
effective for annual periods beginning on 1 January 2025.
IAS 21 (Amendments) Lack of Exchangeability
This amendment had no significant impact on the consolidated
financial statements but may impact the accounting for future transactions
and arrangements.
The following new accounting standards and amendments to accounting standards
that had been issued but were not mandatory for annual reporting periods
ending on 31 December 2025 were not early adopted:
IFRS 9 and IFRS 7 (Amendments) Classification and Measurement of Financial Instruments
Effective 1 January 2026
IFRS 9 and IFRS 7 (Amendments) Contracts referencing Nature-dependent Electricity
Effective 1 January 2026
IAS 21 (Amendments) Translation to a Hyperinflationary Presentation Currency
Effective 1 January 2027
IFRS 19 (Standard) Subsidiaries without Public Accountability: Disclosures
Effective 1 January 2027
IFRS 18 (Standard) Effective 1 January 2027 Presentation and Disclosure in Financial Statements
Annual Improvements to IFRS Accounting Standards-Volume 11 Effective 1 January - IFRS 1 First-time Adoption of International Financial Reporting Standards
2026
- IFRS 7 Financial Instruments: Disclosures
- Guidance on implementing IFRS 7 Financial Instruments: Disclosures
- IFRS 9 Financial Instruments
- IFRS 10 Consolidated Financial Statements
- IAS 7 Statement of Cash Flows
The Group is currently assessing the implications of applying the
new standards and amendments on the Group's consolidated
financial statements.
Revenue recognition
Revenue is recognised in the consolidated income statement when control of the
goods or services are transferred to the customer at an amount that reflects
the consideration to which the Group expects to be entitled in exchange for
those goods or services. The point at which control passes is determined by
each customer arrangement, but generally occurs on delivery to the customer.
The Group has generally concluded that it acts as principal in its revenue
arrangements because it typically controls the goods before the transfer to
the customer.
The Group manufactures certain medicines on behalf of customers. In most
cases, control is transferred to the customer over time, as these medicines
have no alternative use, and the Group has an enforceable right to payment for
performance completed to date. For the majority of these arrangements,
progress towards satisfying the Group's performance obligations is measured
based on the units of product approved by the quality control department.
Revenue represents the amounts receivable after the deduction of discounts,
value added tax, other sales taxes, allowances given, provisions for
chargebacks, accruals for estimated future rebates, returns and price
adjustments. The methodology and assumptions used to estimate rebates and
returns are monitored and adjusted regularly in light of contractual and
historical information.
The Group applies the practical expedient and does not adjust the transaction
price for the effects of a significant financing component when, at contract
inception, the period between the transfer of the promised goods or services
to the customer and payment by the customer is expected to be one year or
less. As the Group does not expect to have contracts where this period exceeds
one year, transaction prices are not adjusted for the time value of money.
Variable consideration
Revenue includes variable consideration arising from chargebacks, returns,
rebates, and other gross to net adjustments, which are estimated at the time
of sale based on contractual terms, historical experience and current market
conditions. Given the inherent uncertainty in the final settlement of these
arrangements, the Group applies a constraint to the estimation of variable
consideration to ensure that revenue is recognised only to the extent that it
is highly probable that a significant reversal will not occur when the
uncertainty is resolved. This is achieved through the use of appropriately
prudent assumptions in estimating the expected deductions
Chargebacks
In the US, the Group sells its products directly to wholesale distributors,
generic distributors, retail pharmacy chains and mail-order pharmacies.
The Group also sells its products indirectly to independent pharmacies,
managed care organisations, hospitals, and group purchasing organisations,
collectively referred to as 'indirect customers'. The Group enters into
agreements with its indirect customers to establish pricing for certain
products. The indirect customers then independently select a wholesaler from
which they purchase the products at agreed-upon prices. The Group will provide
credit to the wholesaler for the difference between the agreed-upon price with
the indirect customer and the wholesaler's invoice price. This credit is
called a chargeback. The provision for chargebacks is based on historical
sell-through levels by the Group's wholesale customers to the indirect
customers, and anticipated future sales trends. As sales are made to large
wholesale customers, the Group continually monitors the provision for
chargebacks and makes adjustments when it believes that actual chargebacks may
differ from estimated reserves.
Returns
The Group has a product return policy that allows customers to return
the product within a specified period prior to and subsequent to the
expiration date. Provisions for returns are recognised as a reduction of
revenue in the period in which the underlying sales are recognised. The Group
estimates its provision for returns based on historical experience,
representing management's best estimate. While such experience has enabled
reasonable estimations in the past, history may not always be an accurate
indicator of future returns. The Group continually monitors the provisions for
returns and makes adjustments when it believes that actual product returns may
differ from established reserves
Rebates
In the US, rebates are granted to wholesaler distributors and direct
customers. Rebates are also granted to healthcare authorities and certain
indirect customers under contractual arrangements. Products sold in the US are
covered by various programmes (such as Medicaid) under which products are sold
at a discount. The Group estimates its provision for rebates based on current
contractual terms and conditions as well as historical experience, changes to
business practices and credit terms. While such experience has enabled
reasonable estimations in the past, history may not always be an accurate
indicator of future rebate liabilities. The Group continually monitors the
provisions for rebates and makes adjustments when it believes that actual
rebates may differ from established reserves.
Performance obligation
Free goods
Free goods are issued to certain customers as an alternative to discounts.
These free goods give rise to a separate performance obligation, which
requires management to allocate the transaction price to the original goods
and the related free goods. Revenue for free goods is recognised when they
are transferred to the customer and a contract liability is recognised when
the free goods are due but not yet transferred to the customer.
Contract manufacturing services
Free goods are issued to certain customers as an alternative to discounts.
These free goods give rise to a separate performance obligation, which
requires management to allocate the transaction price to the original goods
and the related free goods. Revenue for free goods is recognised when they
are transferred to the customer and a contract liability is recognised when
the free goods are due but not yet transferred to the customer.
Exceptional items and other adjustments
We use a number of non-IFRS measures to report and monitor the performance of
our business. Management uses these adjusted numbers internally to measure our
progress and for setting performance targets. We also present these numbers,
alongside our reported results, to external audiences to help them understand
the underlying performance of our business. Our adjusted numbers may be
calculated differently to other companies.
Adjusted measures are not substitutable for IFRS numbers and should not be
considered superior to results presented in accordance with IFRS Accounting
Standards.
Core results
Reported results represent the Group's overall performance. However, these
results can include one-off or non-cash items that mask the underlying
performance of the Group. To provide a more complete picture of the Group's
performance and to improve comparability of our consolidated financial
statements to external audiences, alongside our reported results, we provide
core results, which are a non-IFRS measure. We represent and discuss our Group
and segmental financials reconciled between reported and core results. This
presentation allows for full visibility and transparency of our financials so
that shareholders are able to clearly assess the performance factors of the
Group.
Core results mainly exclude:
- Amortisation of intangible assets other than software
- Impairment charge/reversal of intangible assets, property, plant
and equipment and right-of-use assets
- Finance income and expense resulting from remeasurement and
unwinding of contingent consideration and co-development earnout payment
agreement financial liabilities
- Items which management believes to be exceptional in nature by
virtue of their size or incidence, or have a distortive effect on current
year earnings, including but not limited to costs associated with business
combinations, one-off gains and losses on disposal of businesses, legal
expenses, reorganisation costs and any exceptional items related to tax such
as significant tax benefit/expense associated with previously unrecognised
deferred tax assets/liabilities
Our core results exclude the exceptional items and other adjustments set out
in Note 5.
Impairment of intangible assets and property, plant and equipment
At the same time each year, the Group carries out an impairment review for
goodwill and intangible assets that are not yet ready for use as follows:
(a) Goodwill is allocated to cash-generating units (CGUs). These CGUs are
tested for impairment annually, or more frequently when there is an indication
that the unit may be impaired. If the recoverable amount of the CGU is less
than its carrying amount, the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit and then to the other
assets of the unit pro rata on the basis of the carrying amount of each asset
in the unit. An impairment loss recognised for goodwill is not reversed in
subsequent periods
(b) Intangible assets that are not yet ready for use are not subject to
amortisation and are tested annually for impairment or more frequently if
events or changes in circumstances indicate that they might be impaired
Where applicable, the Group carries forward and uses the most recent detailed
calculation of a cash-generating unit's recoverable amount made in a preceding
period, provided all of the following criteria are met:
- The assets and liabilities making up the unit have not changed
significantly since the last recoverable amount calculation
- The prior calculation indicated that the recoverable amount
exceeded the carrying amount of the unit by a substantial margin, reflecting
significant headroom
- An analysis of events and changes in circumstances since the last
calculation indicates that the likelihood of the current recoverable amount
being lower than the carrying amount is remote
The Group also reviews the carrying amounts of property, plant and equipment
and intangible assets that are subject to depreciation and amortisation to
determine whether there is any indication that those assets are impaired. If
such indication exists, the recoverable amount of the asset is estimated to
determine the extent of the impairment loss (if any).
If the recoverable amount of an asset (or CGU) is lower than its carrying
amount, the asset (or CGU) is written down to its recoverable amount. The
resulting impairment loss is recognised immediately in the consolidated income
statement.
A previously recognised impairment loss is reversed only where there has been
a sustained and discrete change in the assumptions and indicators associated
with previous impairment losses. In such cases, the carrying amount of the
asset is increased to its revised recoverable amount. The reversal is limited
so that the carrying amount does not exceed the carrying amount that would
have been determined had no impairment loss been recognised in prior years.
Any reversal of impairment is recognised immediately in the consolidated
income statement.
The recoverable amount of an asset or a cash-generating unit is the higher of
its fair value less costs of disposal and its value in use.
2. Going concern
The Directors believe that the Group is well diversified due to its geographic
spread, product diversity and large customer and supplier base. Taking into
account the Group's current position and its principal risks for a period
longer than 12 months from the date of signing the consolidated financial
statements, a going concern analysis has been prepared using realistic
scenarios, applying a severe but plausible downside which demonstrates that
the Group would maintain sufficient liquidity headroom. Therefore, the
Directors believe that the Group and its subsidiaries are adequately placed to
manage their business and financing risks successfully, despite the current
uncertain economic outlook. Having assessed the principal risks, the Directors
considered it appropriate to adopt the going concern basis of accounting in
preparing the consolidated financial statements.
Where relevant, covenants on major financial debt arrangements are suspended
while the Group retains its investment grade status from two rating agencies.
During the year ended 31 December 2025, the Group's investment grade rating
was upgraded by S&P and Fitch to BBB.
3. Revenue
Business and geographical markets
The following tables provide an analysis of the Group's reported revenue by
segment and geographical market, irrespective of the origin of the
goods/services:
Injectables Hikma Rx Branded Others Total
Year ended 31 December 2025 $m $m $m $m $m
North America 924 1,037 - 15 1,976
Middle East and North Africa 234 - 839 16 1,089
Europe and rest of the world 251 - 10 9 270
United Kingdom 14 - - - 14
1,423 1,037 849 40 3,349
Injectables Hikma Rx Branded Others Total
Year ended 31 December 2024 $m $m $m $m $m
North America 877 1,026 - 8 1,911
Middle East and North Africa 214 - 759 12 985
Europe and rest of the world 202 - 10 6 218
United Kingdom 13 - - - 13
1,306 1,026 769 26 3,127
The top selling markets are shown below:
2025 2024
$m $m
United States 1,950 1,887
Saudi Arabia 331 301
Algeria 229 213
2,510 2,401
In 2025, included in revenue arising from the Hikma Rx and Injectables
segments are sales the Group made to three wholesalers in the US, each
accounting for equal to or greater than 10% of the Group's revenue,
contributing to $402 million (12%), $391 million (12%) and $354 million (11%).
In 2024, they contributed to $424 million (14%), $364 million (12%) and $307
million (10%), respectively.
The following table provides contract balances related to revenue:
2025 2024
$m $m
Net trade receivables 997 896
Deferred income 113 58
Refund liability 152 151
Indirect rebates and other allowances 188 173
4. Business segments
For management reporting purposes, the Group is organised into three principal
operating divisions - Injectables, Branded and Hikma Rx. These divisions are
the basis on which the Group reports its segmental information.
Core operating profit/(loss), defined as 'segment profit/(loss)', 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:
2025 2025 2025 2024 2024 2024
Core
Exceptional
Reported
Core
Exceptional
Reported
results
items and other adjustments
results
results
items and other
results
(Note 5)
adjustments
(Note 5)
Injectables $m $m $m $m $m $m
Revenue 1,423 - 1,423 1,324 (18) 1,306
Cost of sales (758) (16) (774) (634) (4) (638)
Gross profit/(loss) 665 (16) 649 690 (22) 668
Operating expenses (224) (58) (282) (222) (75) (297)
Segment profit 441 (74) 367 468 (97) 371
Add back: depreciation and amortisation 35 52 87 34 51 85
Add back: impairment charges - 9 9 - 17 17
Segment profit before depreciation, amortisation and impairment 476 (13) 463 502 (29) 473
2025 2025 2025 2024 2024 2024
Core
Exceptional
Reported
Core
Exceptional
Reported
results
items and other adjustments
results
results
items and other
results
(Note 5)
adjustments
(Note 5)
Branded $m $m $m $m $m $m
Revenue 849 - 849 769 - 769
Cost of sales (404) - (404) (367) - (367)
Gross profit 445 - 445 402 - 402
Operating expenses (221) 3 (218) (213) (7) (220)
Segment profit 224 3 227 189 (7) 182
Add back: depreciation and amortisation 34 10 44 30 6 36
Add back: impairment charges - 1 1 - 1 1
Segment profit before depreciation, amortisation and impairment 258 14 272 219 - 219
2025 2025 2025 2024 2024 2024
Core
Exceptional
Reported
Core
Exceptional
Reported
results
items and other adjustments
results
results
items and other
results
(Note 5)
adjustments
(Note 5)
Hikma Rx $m $m $m $m $m $m
Revenue 1,037 - 1,037 1,037 (11) 1,026
Cost of sales (694) - (694) (680) - (680)
Gross profit/(loss) 343 - 343 357 (11) 346
Operating expenses (164) (55) (219) (187) 8 (179)
Segment profit 179 (55) 124 170 (3) 167
Add back: depreciation and amortisation 31 38 69 29 35 64
Add back: impairment charges/(reversal) - 15 15 - (47) (47)
Segment profit before depreciation, amortisation and impairment 210 (2) 208 199 (15) 184
2025 2025 2025 2024 2024 2024
Core
Exceptional
Reported
Core
Exceptional
Reported
results
items and other adjustments
results
results
items and other
results
(Note 5)
adjustments
(Note 5)
Others¹ $m $m $m $m $m $m
Revenue 40 - 40 26 - 26
Cost of sales (36) - (36) (27) - (27)
Gross profit/(loss) 4 - 4 (1) - (1)
Operating expenses (10) - (10) (8) - (8)
Segment loss (6) - (6) (9) - (9)
Add back: depreciation and amortisation 5 - 5 4 - 4
Segment loss before depreciation, amortisation and impairment (1) - (1) (5) - (5)
1. Includes the 503B compounding business, the MENA diagnostics business, as
well as Arab Medical Containers (AMC), a manufacturer of plastic specialised
medicinal sterile containers, and International Pharmaceuticals Research
Centre (IPRC), which conducts bio-equivalency studies.
2025 2025 2025 2024 2024 2024
Core
Exceptional items and other adjustments
Reported
Core
Exceptional
Reported
results
(Note 5)
results
results
items and other
results
adjustments
(Note 5)
Group $m $m $m $m $m $m
Segments' profit/(loss) 838 (126) 712 818 (107) 711
Add back: segments' depreciation, amortisation 105 125 230 97 63 160
and impairment
Segments' profit/(loss) before depreciation, amortisation and impairment 943 (1) 942 915 (44) 871
Unallocated expenses (excluding depreciation, amortisation and impairment)1 (90) (72) (162) (91) - (91)
Operating profit/(loss) before depreciation, amortisation and impairment 853 (73) 780 824 (44) 780
Segments' depreciation, amortisation and impairment (105) (125) (230) (97) (63) (160)
Unallocated depreciation and amortisation (7) - (7) (8) - (8)
Unallocated impairment charges - (1) (1) - - -
Operating profit/(loss) 741 (199) 542 719 (107) 612
Finance income 11 72 83 8 - 8
Finance expense (106) (1) (107) (93) (74) (167)
Gain from investment at fair value through profit or loss (FVTPL) 1 - 1 1 - 1
Group's share of profit of joint venture - - - 1 - 1
Profit/(loss) before tax 647 (128) 519 636 (181) 455
Tax (139) 27 (112) (138) 45 (93)
Profit/(loss) for the year 508 (101) 407 498 (136) 362
Attributable to:
Non-controlling interests 5 - 5 3 - 3
Equity holders of the parent 503 (101) 402 495 (136) 359
1. Unallocated expenses (excluding depreciation,
amortisation and impairment) primarily comprise employee costs, legal
settlements (Note 5), professional fees and IT expenses. The increase compared
to the prior year is mainly attributable to legal settlements (Note 5).
The following table provides an analysis of the Group's non-current assets2 by
geographic area:
2025 2024
$m $m
North America
US 1,470 1,518
Canada 29 30
1,499 1,548
Middle East and North Africa
Jordan 336 344
Algeria 148 125
Morocco 103 92
United Arab Emirates 99 21
Saudi Arabia 87 75
Others 85 72
858 729
Europe and rest of the world
Portugal 180 147
Germany 48 40
Italy 33 24
Others 35 17
296 228
United Kingdom 3 7
2,656 2,512
2. Non-current assets exclude deferred tax assets,
investments at FVTOCI and other financial assets
5. Exceptional items and other adjustments
Exceptional items and other adjustments are disclosed separately in the
consolidated income statement to assist in the understanding of the
Group's core performance. Exceptional items and other adjustments have been
recognised in accordance with our accounting policy outlined in Note 1; the
details are presented below:
Injectables Branded Hikma Rx Unallocated Total Tax effect Impact on profit for the year
2025 $m $m $m $m $m $m $m
Legal settlements SG&A - - - (72) (72) 17 (55)
Pre-operational costs Cost of sales (16) - - - (16) 4 (12)
Insurance compensation in relation to the Group's losses in Sudan Other operating income - 14 - - 14 (3) 11
Gain on extinguishment of financial liability Other operating income 6 - - - 6 (1) 5
Reorganisation costs SG&A (3) - (2) - (5) 1 (4)
Intangible assets amortisation other than software SG&A (52) (10) (38) - (100) 20 (80)
Impairment charges on intangible assets, property, plant and equipment and Other operating (9) (1) (15) (1) (26) 6 (20)
right-of-use assets
expenses
Remeasurement of contingent consideration liabilities Finance income - - - 72 72 (17) 55
Unwinding of contingent consideration liability Finance expense - - - (1) (1) - (1)
Exceptional items and other adjustments (74) 3 (55) (2) (128) 27 (101)
- Legal settlements: The Group reached an agreement to resolve all
antitrust lawsuits brought against Hikma Pharmaceuticals USA Inc. by
third-parties in the US who have purchased or been billed for Xyrem® (Sodium
Oxybate). The agreed-upon settlement is not an admission of wrongdoing or
legal liability. The Group settled a total of approximately $72 million to
cover for all related cases in July 2025. These matters have been previously
disclosed as contingent liabilities
- Pre-operational costs: $16 million related to the manufacturing
plant acquired through the Xellia business combination in September 2024.
These costs are incurred during the pre-operational phase and primarily relate
to operational readiness, routine maintenance, and the recruitment and
training of personnel. These activities are projected to conclude at the end
of 2027, at which point the facility is expected to be fully operational. The
estimated cost for 2026 is approximately $18 million. Commissioning and
refurbishment activities are ongoing, and costs that are directly attributable
to bringing the plant to the condition necessary for its intended use are
capitalised in accordance with IAS 16.
- Insurance compensation in relation to the Group's losses in Sudan
of $14 million
- Gain on extinguishment of financial liability: $6 million
resulting from a settlement agreement that reduced a financial liability
related to the acquisition of a product-related intangible asset that was
previously impaired
- Reorganisation costs: $5 million of reorganisation costs related
to a global restructuring program that started in 2024. This program delivers
efficiencies across various Group functions, including R&D, benefitting
from the integration of the Xellia business
- Intangible assets amortisation other than software of $100 million
- Impairment charges: $26 million of which $15 million are related
to intangible assets which mainly comprised $13 million of product-related
intangible assets following the discontinuation of pipeline products, $10
million related to property, plant and equipment associated with discontinued
projects and $1 million related to right-of-use assets
- Remeasurement of contingent considerations liabilities: $72
million represents finance income which primarily resulted from the adjustment
of royalty payment arrangements with certain of the Group's business
partners, as well as the revaluation of liabilities associated with future
contingent consideration payments recognised through business combinations
- Unwinding of contingent consideration liability: $1 million
represents the finance expense resulting from the unwinding of contingent
consideration liability recognised through business combinations
Tax effect
- This represents the tax effect on pre-tax exceptional items and
other adjustments which is calculated based on the applicable tax rate in each
applicable jurisdiction
In the previous year, exceptional items and other adjustments were related to
the following:
Injectables Branded Hikma Rx Unallocated Total Tax effect Impact on profit for the year
2024 $m $m $m $m $m $m $m
Provision for rebates adjustment Revenue (18) - (11) - (29) 7 (22)
Pre-operational costs Cost of sales (4) - - - (4) 1 (3)
Reorganisation costs SG&A (7) - (4) - (11) 2 (9)
Intangible assets amortisation other than software SG&A (51) (6) (35) - (92) 25 (67)
Impairment reversals on intangible assets and property, plant and equipment Other operating income - - 60 - 60 (14) 46
Impairment charges on intangible assets and property, plant and equipment Other operating expenses (17) (1) (13) - (31) 7 (24)
Remeasurement of contingent consideration and other financial liability Finance expense - - - (71) (71) 16 (55)
Unwinding of contingent consideration Finance expense - - - (3) (3) 1 (2)
and other financial liability
Exceptional items and other adjustments (97) (7) (3) (74) (181) 45 (136)
- Provision for rebates adjustment: $29 million represents a change
in historical estimates in relation to prior years rebates
- Pre-operational costs: $4 million of costs incurred during the
pre-operational phase of the manufacturing plant acquired through the Xellia
business combination.
- Reorganisation costs: $11 million of reorganisation costs related
to a global restructuring program. This program will improve efficiencies
across various Group functions, including R&D activities benefitting from
the integration of the Xellia business
- Intangible assets amortisation other than software of $92 million
- Impairment reversals: $60 million related to complex respiratory
CGU, primarily driven by improved performance and sustained forecasted
profitability. Of this amount, $44 million was allocated to intangible assets
and $16 million to property, plant and equipment
- Impairment charges: $22 million impairment on intangible assets
mainly comprises $14 million related to marketing rights following the
termination of business development contracts and $8 million related to a
product-related intangible asset due to the discontinuation of a pipeline
product. Additionally, there were impairment charges on property, plant and
equipment of $9 million mainly related to machinery and equipment associated
with discontinued projects
- Remeasurement of contingent consideration and other financial
liability: $71 million represents the finance expense resulting from the
valuation of the liabilities associated with the future contingent payments in
respect of contingent consideration recognised through business combinations
- Unwinding of contingent consideration and other financial
liability: $3 million represents the finance expense resulting from the
unwinding of contingent consideration recognised through business
combinations
6. Earnings per share (EPS)
Basic EPS is calculated by dividing the profit attributable to equity holders
of the parent by the weighted average number of Ordinary Shares in free issue
during the year after deducting Treasury shares and shares held in the
employee benefit trust (EBT). Treasury shares have no right to receive
dividends, and the employee benefit trust (EBT) has waived its entitlement to
dividends. However, while the voting rights attached to treasury shares are
not exercisable, shares in the EBT retain their voting rights.
Diluted EPS is calculated after adjusting the weighted average number of
Ordinary Shares used in the basic EPS calculation for the conversion of all
potentially dilutive Ordinary Shares.
Core basic and diluted EPS are intended to highlight the core results of the
Group before exceptional items and other adjustments.
2025 2025 2025 2024 2024 2024
Core
Exceptional items and other adjustments
Reported
Core
Exceptional items and other
Reported
results
(Note 5)
results
results
adjustments
results
(Note 5)
$m $m $m $m $m $m
Profit attributable to equity holders of the parent 503 (101) 402 495 (136) 359
The weighted average number of ordinary shares in free issue used in
calculating basic and diluted EPS is shown below:
2025 2024
Number Number
Basic EPS 220,587,683 221,333,249
Effect of potentially dilutive Ordinary Shares from share-based awards 2,096,488 2,160,072
Diluted EPS 222,684,171 223,493,321
The basic and diluted EPS are as follows:
2025 2025 2024 2024
Core
Reported
Core
Reported
Cents Cents Cents Cents
Basic EPS 228 182 224 162
Diluted EPS 226 181 221 161
7. Dividends
The amounts recognised as distributions to equity holders in the year were as
follows:
Paid in Paid in
2025
2024
$m $m
Final dividend for the year ended 31 December 2024 of 48 cents (31 December 106 104
2023: 47 cents) per share
Interim dividend during the year ended 31 December 2025 of 36 cents (31 79 71
December 2024: 32 cents) per share
185 175
The proposed final dividend for the year ended 31 December 2025 is 48 cents
(2024: 48 cents).
The proposed final dividend is subject to approval by shareholders at the
Annual General Meeting on 23 April 2026 and has not been included as a
liability in these consolidated financial statements. Based on the number of
shares in free issue at 31 December 2025 (220,106,915), the final dividend
would be $106 million.
8. Other current assets
As at 31 December
2025 2024
$m $m
Restricted cash 111 -
Prepayments 87 73
Investment at FVTPL 26 25
Others 17 18
241 116
Restricted cash represents cash held in restricted accounts for legal
settlements, with a corresponding provision at 31 December 2025 (Note 10). Of
this amount, a total of $110 million was subsequently paid in January 2026.
Investment at FVTPL comprise a portfolio of debt instruments that are managed
by an asset manager and which the Group designated as measured at fair value
through profit or loss. These assets are classified as level 1 as they are
based on quoted prices in active markets.
Others mainly represent compensation due from suppliers in relation to
inventory price adjustments.
9. Short-term financial debts
As at 31 December
2025 2024
$m $m
Short-term borrowings 14 21
Current portion of long-term borrowings (Note 11) 92 621
106 642
In 2025, the weighted average interest rate incurred for short-term borrowings
was 11.1% (2024: 9.1%).
In 2024, the current portion of long-term borrowings comprised the previous
Eurobond, which matured and was repaid in July 2025. Subsequently, a new
Eurobond was issued in July 2025 with a maturity date of July 2030. This new
Eurobond is presented under long-term borrowings as at 31 December 2025 (Note
11).
10. Provisions
Provision for end of service indemnity Provision for legal settlements Total
$m $m $m
Balance at 1 January 2024 30 129 159
Additions 3 - 3
Remeasurement of post-employment benefit obligations1 1 - 1
Settlements (5) - (5)
Balance at 31 December 2024 and 1 January 2025 29 129 158
Additions 5 72 77
Unwinding of post-employment benefit obligations 1 - 1
Remeasurement of post-employment benefit obligations1 2 - 2
Settlements (4) (75) (79)
Balance at 31 December 2025 33 126 159
1. The remeasurement is due to actuarial valuations
and changes in actuarial assumptions and is recognised in other comprehensive
expense.
2025 2024
$m $m
Due within one year 119 122
Due after more than one year 40 36
159 158
Provisions are often subject to uncertainty regarding the timing and
settlement amounts. When a settlement is reached and the uncertainty is
resolved, these amounts are not classified to trade and other payables and
remain classified within provisions. This is to provide more transparent
disclosure of subsequent movements. The remaining balance at 31 December 2025
includes $111 million that was placed into restricted cash, of which a total
of $110 million was agreed for settlement and subsequently paid in January
2026 (Note 8).
The addition of $72 million in the provision for legal settlements is related
to an agreement reached to settle all antitrust lawsuits brought against Hikma
Pharmaceuticals USA Inc. by third-parties in the US who have purchased or been
billed for Xyrem® (Sodium Oxybate). The agreed-upon settlement is not an
admission of wrongdoing or legal liability the Sodium Oxybate settlement. This
provision was settled during the year (Note 5).
Provision for end of service indemnity relates to employees of certain Group
subsidiaries and includes immaterial amounts for defined benefit plans. This
provision is calculated based on relevant laws in the countries where each
Group company operates, in addition to their own policies.
11. Long-term financial debts
As at 31 December
2025 2024
$m $m
Long-term borrowings 1,537 1,228
Less: current portion (Note 9) (92) (621)
1,445 607
Breakdown by maturity:
Within one year 92 621
In the second year 125 118
In the third year 561 129
In the fourth year 157 117
In the fifth year 554 242
In the sixth year 48 1
1,537 1,228
Breakdown by currency:
US dollar 1,440 1,156
Algerian dinar 45 31
Jordanian dinar 24 7
Moroccan dirham 21 23
Tunisian dinar 6 2
Euro 1 9
1,537 1,228
In 2025, the weighted average interest rate incurred for long-term borrowings
was 5.1% (2024: 5.1%).
The financial debts are held at amortised cost. Major financial debt
arrangements include:
a) A $1,150 million syndicated revolving credit facility that matures on 4
January 2029. At 31 December 2025, the facility had a carrying value of
$100 million (2024: $240 million) and a fair value of $100 million (2024:
$240 million) and an unutilised amount of $1,050 million (2024: $910 million).
The facility can be used for general corporate purposes
b) A new $500 million 5.125%, five-year Eurobond with a rating of BBB (S&P
& Fitch) that matures on 8 July 2030. At 31 December 2025, the facility
had a carrying value of $495 million and a fair value of $505 million. This
bond was issued to refinance the previous $500 million, 3.25% Eurobond that
matured in July 2025
c A new $400 million three-year syndicated loan facility that matures on 6
November 2028. At 31 December 2025, the facility had a carrying value of $398
million and a fair value of $398 million. The proceeds were partially used to
settle the previous $400 million five-year syndicated loan facility,
which had an outstanding balance of $162 million at 31 December 2024, the
remaining proceeds were used for general corporate purposes
d) A new $250 million six-year loan facility from the International Finance
Corporation that matures on 15 July 2031. At 31 December 2025, the facility
had a carrying value of $247 million and a fair value of $247 million. The
proceeds were used for general corporate purposes
e) A $200 million eight-year loan facility from the International Finance
Corporation and Managed Co-lending Portfolio program that matures on
15 September 2028. At 31 December 2025, the facility had a carrying value of
$153 million (2024: $185 million) and a fair value of $153 million
(2024: $185 million). The proceeds were used for general corporate purposes
f) A $150 million ten-year loan facility from the International Finance
Corporation that matures on 15 December 2027. At 31 December 2025,
the facility had a carrying value of $43 million (2024: $63 million) and a
fair value of $41 million (2024: $61 million). The proceeds were used for
general corporate purposes
Where relevant, covenants on major financial debt arrangements are suspended
while the Group retains its investment-grade status. As of 31 December 2025,
the carrying value of long-term debt subject to covenants was immaterial, and
the Group was in full compliance with those respective covenants. Covenants
that must be complied with after the reporting date do not affect the
classification of the related borrowings as current or non-current.
Accordingly, all such borrowings remain classified as non-current liabilities.
12. Reconciliation of movement in net debt
2025 2024
$m $m
Interest-bearing loans and borrowings (Notes 9 and 11)
Balance at 1 January 1,249 1,125
Proceeds from issue of long-term financial debts 2,402 684
Proceeds from issue of short-term financial debts 349 387
Repayment of long-term financial debts (2,093) (536)
Repayment of short-term financial debts (357) (411)
Upfront fees and Eurobond transaction costs (8) -
Amortisation of upfront fees 3 3
Foreign exchange translation movements 6 (3)
Balance at 31 December 1,551 1,249
Lease liabilities
Balance at 1 January 57 66
Additions 8 11
Business combination - 2
Accretion of interest 3 3
Retirements (1) (1)
Repayment of lease liabilities (14) (24)
Balance at 31 December 53 57
Total Debt 1,604 1,306
Less: cash and cash equivalents (217) (188)
Net debt1 1,387 1,118
1. Net debt includes long and short-term financial
debts and lease liabilities, net of cash and cash equivalents. Net debt
excludes acquired contingent liability and contingent consideration liability
13. Contingent liabilities
Standby letters of credit and letters of guarantees
A contingent liability existed at the balance sheet date in respect of standby
letters of credit and letters of guarantees totalling $42 million
(2024: $49 million) arising in the normal course of business. No provision
for these liabilities has been made in these consolidated financial
statements.
A contingent liability existed at the balance sheet date for standby letters
of credit totalling $10 million (2024: $14 million) for potential stamp duty
obligations that may arise from the repayment of loans by intercompany
guarantors. It's not probable that any repayment will be made by the
intercompany guarantors.
Legal proceedings
The Group is often involved in a number of legal proceedings in the ordinary
course of its business, including litigation relating to employment matters,
product liability, commercial disputes, pricing, sales and marketing
practices, infringement of IP rights, the validity of certain patents and
competition laws.
Most of the claims involve highly complex issues. Often these issues are
subject to substantial uncertainties and, therefore, the probability of a loss
being sustained and/or an estimate of the amount of any loss is impracticable
to ascertain. It is the Group's policy to provide for amounts related to these
legal matters if it is probable that a liability has been incurred and an
amount is reasonably estimable.
In the proceedings noted herein, the Group currently believes it has
meritorious defences and intends to vigorously defend itself. From time to
time, however, the Group may settle or otherwise resolve these matters on
terms and conditions that it believes to be in its best interest. Litigation
outcomes and contingencies are unpredictable and excessive verdicts can occur.
Any legal proceeding, regardless of the merits, might result in substantial
costs to defend or settle or otherwise negatively affect our business.
- In Re Generic Pharmaceuticals Pricing Antitrust Litigation.
Starting in 2016, more than 30 complaints have been filed against Group
entities in the United States on behalf of putative classes of direct and
indirect purchasers of generic drug products, as well as several individual
direct action retailer and third-party payor plaintiffs. These complaints
allege that more than forty generic pharmaceutical defendants, including the
Group entities, engaged in conspiracies to fix, increase, maintain and/or
stabilise the prices and market shares of certain generic drug products during
the periods of approximately 2010 to 2016. The plaintiffs seek unspecified
treble monetary damages, which can be imposed jointly and severally with other
defendants and can be significantly higher than the profits Hikma made on the
alleged drug products, and equitable injunctive relief under federal and state
antitrust and consumer protection laws. The lawsuits have been consolidated in
a multidistrict litigation (MDL) in the United States District Court for the
Eastern District of Pennsylvania (In re Generic Pharmaceuticals Pricing
Antitrust Litigation, No. 2724, (E.D. Pa.)). Hikma is one of nineteen
defendants in a bellwether trial scheduled for September 2026. At this point
in the proceedings, the Group does not believe sufficient evidence exists and
is impracticable to make a reasonable estimate of any potential liability.
- Amarin Pharma Inc. v. Hikma Pharmaceuticals PLC. In November 2020,
Amarin Pharmaceuticals filed a patent infringement lawsuit against certain
Group entities in the United States District Court for the District of
Delaware (No. 20-cv-1630) alleging that Hikma's sales, distribution
and marketing of its generic icosapent ethyl product infringe three Amarin
patents that describe certain methods of using icosapent ethyl. Amarin sought
an injunction barring Hikma from selling its generic product as well as
unspecified damages. Hikma's product is not approved for the alleged patented
methods but rather is approved only for a different indication not covered by
any valid patents. In January 2022 the district court dismissed the lawsuit,
and Amarin appealed the court's ruling to the United States Court of Appeals
for the Federal Circuit. On 25 June 2024, the Federal Circuit reversed the
district court's decision, held that Amarin has plausibly pleaded a potential
claim for induced infringement, and remanded the case for further proceedings
at the district court. A trial in the district court was scheduled to begin on
8 September 2026, but on 16 January 2026, the United States Supreme Court
accepted Hikma's petition to consider whether the case should have been
dismissed. Accordingly, further proceedings in the trial court have been
stayed pending the outcome of the Supreme Court case. At this point, the Group
does not believe sufficient evidence exists and is impracticable to make a
reasonable estimate of any potential liability.
14. Subsequent event
Share buyback
On 26 February 2026, Hikma announced a share buyback programme of up to $250
million to be executed during 2026. The buyback has been sized to maintain
balance sheet efficiency whilst leaving significant headroom for continued
investment opportunities.
1 Constant currency changes are derived after reported 2025 numbers
translated using 2024 exchange rates, excluding price increases in the
business resulting from the devaluation of currencies
2 Core results throughout the document are presented to show the underlying
performance of the Group, excluding exceptional items and other adjustments
set out in Note 5 of this release. Core results are a non-IFRS measure. See
page 15 for a reconciliation to reported IFRS results
3 Core EBITDA is core operating profit before depreciation and software
amortisation
4 Of the $186 million, $111 million was placed into restricted cash at 31
December 2025 and paid in January 2026 (refer to Notes 8 and 10)
5 Group net debt is a non-IFRS measure that includes short- and long-term
financial debts (Notes 9 and 11), lease liabilities, net of cash and cash
equivalents. See page 16 for a reconciliation of Group net debt
6 Refer to page 16 for reconciliation
7 IQVIA MAT November 2025, includes all generic injectable and generic
non-injectable products by sales
8 IQVIA MAT November 2025, generic injectable volumes by eaches, excluding
branded generics and Becton Dickinson
9 Based on internal analysis using data from the following source: IQVIA
MIDAS® Monthly Value Sales data for Algeria, Egypt, Jordan, Kuwait, Lebanon,
Morocco, Saudi Arabia, Tunisia and UAE, for the period: MAT December 2025,
reflecting estimates of real-world activity. Copyright IQVIA. All rights
reserved
10 Core results throughout the document are presented to show the underlying
performance of the Group, excluding exceptional items and other adjustments
set out in Note 5 of the consolidated financial statements set out in this
release. Core results are a non-IFRS measure
11 Products acquired through the Xellia acquisition, which closed on 10
September 2024, contributed $86 million of revenue to Injectables
12 Pipeline projects submitted, approved and launched by country in 2025.
MENA numbers include only the five major markets (Algeria, KSA,
Egypt, Morocco and Jordan)
13 Based on the composition of the Group's net debt portfolio as at 31
December 2025, a one percentage point increase/decrease in interest rates
would result in a $8 million increase/decrease in net finance cost per year
(2024: $6 million increase/decrease)
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