Three FTSE 100 Stocks Under Spotlight: Hikma Pharmaceuticals PLC, Hiscox Ltd and SSE PLC

Hikma Pharmaceuticals PLC

The United Kingdom-based Hikma Pharmaceuticals Plc (HIK) is a pharmaceuticals and biotechnology company, and it specializes in the business of developing, manufacturing, and marketing of a portfolio of branded and non-branded generic medicines. The group has more than 650 products in about 50 countries.

HIK-Trading statement (as on 7th November 2019)

All three businesses of the company continued to be profitable and deliver good organic growth, in line with the management’s expectations.  The company is benefitting from differentiated and diverse product portfolios, strong commercial capabilities and cost optimisations. The company expects revenue from global injectables to be in the range of $870 million-$900 million for the fiscal year 2019 and the core operating margin expected bracket is of 36%-38%. The revenue from the Generics is supposed to be in the bracket of $690 million-$720 million, and the core operating margin expected bracket is 16%-18%. The company shall announce full year results on 27th February 2020.

HIK-Financial highlights for H1 FY19

(Source: LSE)

On a core results basis, the company’s revenue increased by 7 per cent to $1,043 million as compared with the corresponding period of the last year, due to the strong sales of the new product launches and in-market products. Core operating profit surged by 15 per cent to $246 million against the $214 million in H1 FY18, due to robust improvement in the profitability of the Generics business. Core operating margin stood at 23.6 per cent (H1 FY18: 21.9 per cent). Core EBITDA was $288 million, an increase of 14 per cent from the previous year same period data. Core basic earnings per share increased by 18 per cent to 72.7 cents against the 61.4 cents in H1 FY18.

On a reported results basis, revenue increased by 7 per cent to $1,047 million as compared to $979 million in H1 FY18, while revenue surged by 8 per cent at constant currency basis. Reported operating profit rose by 37 per cent to $238 million as compared with the corresponding period of the last year. Reported EBITDA climbed by 29 per cent (actual basis) to $297 million against the $230 million in H1 FY18, while EBITDA surged by 30 per cent at constant currency basis. Basic earnings per share stood at 76.4 cents, an increase of 74 per cent against the 44 cents in H1 FY18. Basic EPS surged by 75 per cent at constant currency basis.

HIK-Share price performance

(Source: Thomson Reuters)

While writing (as on 08th November 2019, at 12:38 PM GMT), Hikma Pharmaceuticals Plc shares were trading at GBX 1,888 per share. The company’s market capitalisation was around £4.72 billion.

HIK shares have clocked a high of GBX 2,212.00 and a low of GBX 1,491.50 in the past year.

In the past 1 month, HIK shares have delivered a negative return of 7.17 per cent. Also, on a YTD (Year-to-Date) time interval, the stock surged by approximately 13.17 per cent and was up by 7.59 per cent in the last three months.

Hiscox Ltd

Hiscox Ltd (HSX) is an international insurance group headquartered in Bermuda. The company is known for its strong brand recognition. The company is presently operating in 14 countries having 34 offices with an employee base of 3,300 professionals. The company, through its subsidiaries, operates in the geographical regions of the United States, Asia, Europe, the United Kingdom and Bermuda. The company’s business has been divided into four reportable segments being Hiscox London Market, Hiscox Re, Hiscox Retail and Corporate Centre.

HSX-Trading Update

On 4th November 2019, Hiscox Ltd announced its nine months trading update ending 30th September 2019. The company’s gross written premiums surged by 7.3 per cent on CER (constant exchange rate) basis from $3,044.6 million for 9M FY2018 to $3,212.6 million for 9M FY2019. The increase was driven by growth in all reportable segments.

HSX- Financial Highlights for H1 FY19 

(Source: LSE)

In the first half of the financial year 2019, the company’s gross premium written surged to $2,337.5 million as against $2,228.8 million in H1 FY2018. The net premium earned increased to $1,313.8 million in H1 FY2019 from $1,277.9 million in H1 FY2018. In H1 FY2019, the company’s operating profit stood at $186.2 million versus $178.3 million in H1 FY2018. The PBT (Profit before tax) increased to $168 million in H1 FY2019 from $162.70 million in H1 FY2018. The company’s profit for the period (attributable to shareholders) was at $145.1 million in H1 FY2019 versus $148 million in H1 FY2018. The company’s basic earnings per share for H1 FY2019 was at 51.2 cents versus 52.2 cents in H1 FY2018. The company’s diluted earnings per share for H1 FY2019 was at 50.2 cents versus 50.8 cents in H1 FY2018.

The company’s financial performance improved marginally over the last year. The company was able to reduce its operating costs for the current period. The company’s bottom-line performance declined slightly for the period. In the Q3 FY2019, natural catastrophes impacted the market, and the company witnessed active claims environment.

HSX-Share price performance

(Source: Thomson Reuters)

While writing (as on 08th November 2019, at 12:40 PM GMT), Hiscox Ltd shares were trading at GBX 1,276 per share. The company’s market capitalisation was around £3.63 billion.

HSX shares have clocked a high of GBX 1,795.00 and a low of GBX 1,140.00 in the past year.

In the past 1 month, HSX shares have delivered a negative return of 21.77 per cent. Also, on a YTD (Year-to-Date) time interval, the stock plunged by approximately 22.64 per cent and was down by 20.93 per cent in the last three months.

SSE PLC

SSE Plc (SSE) is a Perth, the United Kingdom-headquartered integrated energy utility company, with operations and investments across the UK and Ireland, including regulated electricity networks and renewable sources of energy.

SSE- Financial Highlights for FY19

(Source: LSE)

For the financial year ending 31st March 2019, driven by poor performance by the wholesale business, the company’s revenue declined by 73 per cent to £7,331.6 million as against £27,250.4 million in FY2018. The company’s total gross profit stood at £1,545 million in FY2019 versus £2,276.8 million in FY2018. The company’s underlying operating profit (continuing operations) in FY2019 was at £979.5 million versus £1,400.2 million in FY2018. The company’s reported operating profit (continuing operations) in FY2019 was at £1,692.2 million versus £1,157.4 million in FY2018. The company’s adjusted PBT (profit before tax) stood at £725.7 million in FY2019 and declined by 38 per cent.

The company’s reported PBT (profit before tax) was at £1,370.6 million in FY2019 versus £864.4 million in FY2018. The company’s statutory PAT (profit after tax) from continuing and discontinued operations was at £1,455.7 million in FY2019 versus £920.1 million in FY2018. The company’s Underlying earnings per share were at 67.1 pence per share and declined by 32 per cent.

SSE-Share price performance

 (Source: Thomson Reuters)

While writing (as on 08th November 2019, at 12:43 PM GMT), SSE Plc shares were trading at GBX 1,253.60 per share. The company’s market capitalisation was around £12.96 billion.

SSE shares have clocked a high of GBX 1,331.00 and a low of GBX 997.80 in the past year.

In the past 1 month, SSE shares have delivered a negative return of 0.76 per cent. Also, on a YTD (Year-to-Date) time interval, the stock surged by approximately 15.35 per cent and was up by 15.14 per cent in the last three months.