Investing.com -- Shares of Hikma Pharmaceuticals (LON:HIK) jumped on Thursday after the company raised its full-year guidance, buoyed by robust performance in its Branded and Generics divisions.
At 5:18 am (0918 GMT), Hikma Pharmaceuticals was trading 7.3% higher at £1,975.
“The H1 beat was driven by stronger than anticipated performance from the Branded and Generics divisions, reflected in upgrades to FY guidance ranges for both, while Injectables guidance has been maintained as the company expects an H2 weighting for this division,” analysts at RBC (TSX:RY) said in a note.
Hikma has revised its FY guidance upwards, now forecasting a revenue growth of 6-8%, compared to the previous guidance of 4-6%. Core operating profit guidance has been raised to $700-730 million from $660-700 million.
The Branded and Generics divisions have also seen their guidance increased, while expectations for the Injectables division remain unchanged.
The company reported a 10% year-on-year increase in core revenue to $1,569 million, driven by good results in both the Branded and Generics divisions.
The company's core operating profit for H1 reached $402 million, reflecting a 25.6% margin, and was 15% above expectations.
Hikma's H1 core revenue was 4% higher than consensus expectations, with notable contributions from the Branded division (up 13% YoY at CER) and the Generics division (up 15% YoY).
These results were buoyed by strong demand in diabetes and oncology markets, as well as significant volume growth in the US. However, the Injectables division saw a 5% YoY increase in sales, slightly below expectations due to declines in Europe and the Rest of the World, with a H2 weighting anticipated.
The company's H1 core operating income was $402 million, reflecting a margin of 25.6%, exceeding consensus estimates.
This was driven by stronger-than-expected margins in the Branded and Generics divisions, which reported margins of 30.8% and 19.7%, respectively. Core net income of $283 million was also above consensus expectations.