might be impaired. Other intangible assets are tested for
Inventories are stated at the lower of cost and net realisable value.
present location and condition. The costs of own-manufactured
inventories to their present location and condition. In the consolidated
determine the cost of sales in the consolidated income statement. Net
course of business, less all estimated costs necessary to make the sale.
lower than cost, and for slow moving and short dated inventory.
changes in value. These would typically have maturities within three
other purposes. Cash equivalents include time deposits and money
market deposits.
contractual provisions of the instrument.
financial assets at FVTPL and are stated at fair value. Gains and losses
de-recognition. Investments in unlisted shares are measured at cost
same issuer under level 3 valuation. For investments in listed shares,
classified as \u2018financial assets at amortised cost\u2019. These financial assets
less any impairment. Interest income is recognised by applying the
principal and interest (SPPI) on the principal amount outstanding. This
instrument level.
it manages its financial assets in order to generate cash flows. The
collecting contractual cash flows, selling the financial assets, or both.
order to collect contractual cash flows.
relevant period. The effective interest rate is the rate that exactly
period, to the net carrying amount on initial recognition.
other than those financial assets classified as at FVTPL.
simplified approach in calculating expected credit loss. Therefore, the
reporting date. The Group has established a provision matrix that is
looking factors specific to the debtors and the economic environment.
Financial liabilities are classified in two categories: financial liabilities at
FVTPL or financial debts representing loans and borrowings. The
liabilities and is determined at the time of initial recognition.
development milestones. In return for receiving such milestone
\n
\n\n
Financial liabilities at FVTPL are revalued at the end of each reporting
\n
period to represent the value of expected future cash outflows and the
\n
difference is presented as finance cost/income. These financial
\n
liabilities are currently booked under other non-current liabilities and
\n
other current liabilities in the consolidated balance sheet. (Notes 27
\n
and 30)
\n
(ii) Financial debts
\n
Financial debts are initially measured at fair value, net of transaction
\n
costs and subsequently measured at amortised cost using the effective
\n
interest method, with interest expense recognised on an effective
\n
interest method.
\n
The effective interest method is used for calculating the amortised cost
\n
of a financial liability and of allocating interest expense over the
\n
relevant period. The calculation of effective interest rate is the rate that
\n
exactly discounts estimated future cash payments through the
\n
expected life of the financial liability, or, where appropriate, a shorter
\n
period, to the net carrying amount on initial recognition.
\n
A financial liability is derecognised when the obligation under the
\n
liability is discharged or cancelled or expires. When an existing financial
\n
liability is replaced by another from the same lender on substantially
\n
different terms, or the terms of an existing liability are substantially
\n
modified, such an exchange or modification is treated as the
\n
derecognition of the original liability and the recognition of a new
\n
liability. The difference in the respective carrying amounts is recognised
\n
in the consolidated income statement.
\n
Provisions
\n
Provisions are recognised when the Group has a present obligation
\n
(legal or constructive) as a result of a past event, it is probable that an
\n
outflow of resources will be required to settle the obligations and a
\n
reliable estimate can be made of the amount of the obligation.
\n
Treasury shares
\n
Treasury shares and any direct expenses associated with them are
\n
recognised at cost and deducted from equity. No gain or loss is
\n
recognised in the consolidated income statement on the purchase,
\n
sale, issue or cancellation of the Group\u2019s own equity instruments.
\n
(Note 31)
\n
Cash dividend
\n
The Company recognises a liability to pay a dividend when the
\n
distribution is authorised and no longer at the discretion of the
\n
Company. In accordance with the laws of the United Kingdom, a final
\n
dividend is recognised when it is approved by the majority of
\n
shareholders and an interim dividend is recognised when it is paid.
\n
Equity instruments
\n
Equity instruments issued by the Group are recorded at the proceeds
\nreceived, net of direct issue costs.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17273": {
"value": "General information
Hikma Pharmaceuticals PLC is a public limited liability company
\n
incorporated and domiciled in United Kingdom under the Companies
\n
Act 2006. The address of the registered office is given on page 201.
\n
The Group\u2019s principal activities are the development, manufacturing,
\n
marketing and selling of a broad range of generic, branded and in-
\n
licensed pharmaceutical products in solid, semi-solid, liquid and
\ninjectable final dosage forms.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17276": {
"value": "Hikma Pharmaceuticals PLC",
"dimensions": {
"concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17277": {
"value": "public limited liability company",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17279": {
"value": "United Kingdom",
"dimensions": {
"concept": "ifrs-full:PrincipalPlaceOfBusiness",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17280": {
"value": "United Kingdom",
"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17281": {
"value": "United Kingdom",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17284": {
"value": "The Group\u2019s principal activities are the development, manufacturing,
marketing and selling of a broad range of generic, branded and in-
\n
licensed pharmaceutical products in solid, semi-solid, liquid and
injectable final dosage forms.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17292": {
"value": "Basis of preparation
Hikma Pharmaceuticals PLC\u2019s consolidated financial statements have
\n
been prepared in accordance with:
\n
(i)
UK-adopted International Accounting Standards and with the
\n
requirements of the Companies Act 2006 as applicable to
\n
companies reporting under those standards.
\n
(ii) IFRS as issued by the International Accounting Standards Board
\n
(IASB)
\n
The consolidated financial statements have been prepared under the
\n
historical cost convention, except for the revaluation to fair value of
\n
certain financial assets and liabilities.
\n
The accounting policies included in this note have been applied
\n
consistently other than where new policies have been adopted.
\n
The Group\u2019s previously published consolidated financial statements
\n
were also prepared in accordance with UK-adopted international
\n
accounting standards, the requirements of the Companies Act 2006,
\n
and the IFRS as issued by the IASB.
\n
The presentational and functional currency of Hikma Pharmaceuticals
\n
PLC is the US dollar as the majority of the Company\u2019s business is
\nconducted in US dollars.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17316": {
"value": "Going concern
The Directors believe that the Group is well diversified due to its
\n
geographic spread, product diversity and large customer and supplier
\n
base. Taking into account the Group\u2019s current position and its principal
\n
risks for a period longer than 12 months from the date of signing the
\n
consolidated financial statement, a going concern analysis has been
\n
prepared using realistic scenarios applying a severe but plausible
\n
downside which shows sufficient liquidity headroom. Therefore, the
\n
Directors believe that the Group and its subsidiaries are adequately
\n
placed to manage its business and financing risks successfully, despite
\n
the current uncertain economic outlook. Having assessed the principal
\n
risks, the Directors considered it appropriate to adopt the going
\n
concern basis of accounting in preparing the consolidated financial
\n
statements. (See page 67).
\n
Financial covenants are suspended while the Group retains its
\n
investment grade status from two rating agencies
\n
1
\n
. Nevertheless,
\n
the covenants are monitored and the Group was in compliance at
\n
31 December 2022. The Group expects to remain in compliance with
\n
those covenants for the going concern analysis period even in the
\n
severe but plausible downside scenarios. As of 31 December 2022,
\n
the Group\u2019s investment grade rating was affirmed by S&P and Fitch.
\n
1.
Rating agencies: means each of Fitch, Moody\u2019s and S&P or any of their affiliates or successors ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoingConcernExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17339": {
"value": "2022-12-31",
"dimensions": {
"concept": "ifrs-full:DateOfEndOfReportingPeriod2013",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17345": {
"value": "Basis of consolidation
The consolidated financial statements incorporate the results of Hikma
\n
Pharmaceuticals PLC (the Company) and entities controlled by the
\n
Company (together the Group). Control is achieved when the Group
\n
has power over the investee, exposure, or rights, to variable returns
\n
from its involvement with the investee and has the ability to affect
\n
those returns through its power.
\n
The consolidated financial statements include:
\n
\u2013
the assets and liabilities, results and cash flows of the Company and
\n
its subsidiaries (entities that are controlled by the Group)
\n
\u2013
the Group\u2019s share of the results and net assets of joint ventures
\n
All subsidiaries and the Company financial statements consolidated
\n
are made up to 31 December each year.
\n
Interests acquired in entities are consolidated from the date the Group
\n
acquires control and interests sold are de-consolidated from the date
\n
control ceases.
\n
Goodwill is capitalised as a separate item in the case of subsidiaries and as
\n
part of the cost of investment in the case of joint ventures and associates.
\n
Transactions and balances between subsidiaries are eliminated and no
\n
profit before tax is taken on sales between subsidiaries until the
\n
products are sold to customers outside the Group.
\n
Transactions with non-controlling interests are recorded directly in equity.
\n
Deferred tax relief on unrealised intra-Group profit is accounted for
\nonly to the extent that it is considered recoverable. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17402": {
"value": "Business combinations
The acquisition of subsidiaries is accounted for using the acquisition
\n
method. All identifiable assets, liabilities and contingent liabilities
\n
acquired are measured at fair value on the acquisition date. All
\n
acquisition related costs are recognised in the consolidated income
\n
statement as incurred.
\n
The consideration is measured at the aggregate fair values of assets
\n
given, liabilities incurred or assumed, and equity instruments issued by
\n
the Group in exchange for control of the acquiree, at the acquisition date.
\n
Where applicable, this consideration may include the fair value of assets
\n
or liabilities resulting from a contingent consideration arrangement.
\n
Contingent consideration classified as an asset or liability is a financial
\n
instrument and, within the scope of IFRS 9 \u2018Financial Instruments\u2019, is
\n
measured at fair value, with changes in fair value recognised in the
\n
consolidated income statement in line with IFRS 9.
\n
Subsequent changes to those fair values can only affect the
\n
measurement of goodwill, where they occur during the \u2018measurement
\n
period\u2019 and are as a result of additional information becoming available
\n
about facts and circumstances that existed at the acquisition date. All
\n
other changes are dealt with in accordance with relevant IFRSs. This
\n
will usually mean that changes in the fair value of consideration are
\n
recognised in the consolidated income statement.
\n
Goodwill arising on acquisition is recognised as an asset and initially
\n
measured at cost, being the excess of the aggregate of consideration,
\n
non-controlling interest and any fair value of previously held equity
\n
interest over the fair values of the identifiable net assets acquired. If,
\n
after reassessment, the Group\u2019s interest in the net fair value of the
\n
acquiree\u2019s identifiable assets, liabilities and acquired contingent
\n
liabilities exceeds the cost of the consideration, the gain is recognised
\n
immediately in the consolidated income statement.
\n
The non-controlling interest in the acquiree is initially measured at the
\n
non-controlling interest\u2019s proportion of the net fair value of the assets,
\n
liabilities and acquired contingent liabilities recognised.
\n
If the initial accounting for a business combination is incomplete by the
\n
end of the reporting period in which the combination occurs, the Group
\n
reports provisional amounts for the items for which the accounting is
\n
incomplete. Those provisional amounts are adjusted during the
\n
measurement period, or additional assets or liabilities are recognised,
\n
to reflect new information obtained about facts and circumstances that
\n
existed as of the acquisition date that, if known, would have affected
\n
the amounts recognised as of that date.
\n
The measurement period is the period from the date of acquisition to
\n
the date the Group obtains complete information about facts and
\n
circumstances that existed as of the acquisition date and is subject to a
\nmaximum of one year.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17450": {
"value": "Investments in joint ventures
Joint ventures are entities that the Group has the ability to exercise
\n
joint control over their economic activities and net assets.
\n
The results and assets and liabilities of joint ventures are incorporated
\n
in these consolidated financial statements using the equity method of
\n
accounting, where the investments are carried in the consolidated
\n
balance sheet at cost as adjusted for post-acquisition changes in the
\n
Group\u2019s share of the net assets of the joint venture, less any
\n
impairment in the value of individual investments. Losses of a joint
\n
venture in excess of the Group\u2019s interest in that joint venture (which
\n
includes any long-term interests that, in substance, form part of the
\n
Group\u2019s net investment in the joint venture) are recognised only to the
\n
extent that the Group has incurred legal or constructive obligations or
\n
made payments on behalf of the joint venture.
\n
Any excess of the cost of acquisition over the Group\u2019s share of the net
\n
fair value of the identifiable assets, liabilities and acquired contingent
\n
liabilities of the joint venture recognised at the date of acquisition is
\n
recognised as goodwill. The goodwill is included within the carrying
\n
amount of the investment and is assessed for impairment as part of
\n
that investment. Any impairment charges are recognised immediately
\n
in the consolidated income statement.
\n
The aggregate of the Group\u2019s share of profit or losses after tax of joint
\n
ventures is shown on the face of the consolidated income statement
\nbelow operating profit.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17477": {
"value": "Foreign currencies
Foreign currency transactions, being transactions denominated in a
\n
currency other than an individual Group entity\u2019s functional currency, are
\n
translated into the relevant functional currencies of individual Group
\n
entities at the rates of the transactions dates. Monetary assets and
\n
liabilities arising from foreign currency transactions are retranslated at
\n
exchange rates prevailing at the reporting date. Exchange gains and
\n
losses on loans and on short-term foreign currency borrowings are
\n
included within finance income and expense. Exchange differences on all
\n
other foreign currency transactions are recognised in operating profit in
\n
the individual Group entity\u2019s accounting records. Non-monetary items
\n
arising from foreign currency transactions are not retranslated in the
\n
individual Group entity\u2019s accounting records.
\n
In the Consolidated Financial Statements, income and expense items
\n
for Group entities with a functional currency other than US dollars are
\n
translated into US dollars at average exchange rates, which approximate
\n
to actual rates, for the relevant accounting periods. Assets and liabilities are
\n
translated at the US dollar exchange rates prevailing at the reporting date.
\n
Exchange differences arising on consolidation are recognised in the
\n
consolidated statement of other comprehensive income. On the
\n
disposal of foreign operation entities, the accumulated foreign
\n
exchange gains/losses are reclassified from OCI to the consolidated
\nincome statement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17503": {
"value": "Hyperinflationary economies
In hyperinflationary economies, when translating the results of
\n
operations into US dollars, assets, liabilities, income statement and
\n
equity accounts are translated at the rate prevailing on the balance
\n
sheet date. In territories where there are restrictions on the free access
\n
to foreign currency or multiple exchange rates, the applicable rates of
\n
exchange are regularly reviewed. Lebanon and Sudan were considered
\n
to be hyperinflationary economies in the year ended 31 December
\n
2022. At 31 December 2022, the prevailing rate for Sudanese pound
\n
was 583.34 per US dollar (2021: 436.28). For Lebanon, the Group
\n
disposed of the subsidiary Hikma Liban S.A.R.L. on 8 November 2022
\n
using the prevailing rate at that date which was 30,300 Lebanese
\n
pound per US dollar (2021: 1,507.5).
\n
Any gain or loss on net monetary assets and liabilities is recognised in
\n
the consolidated income statement. The effect of hyperinflation on
\n
non-monetary assets and liabilities is recognised in other
\ncomprehensive income within equity.",
"dimensions": {
"concept": "hik:DescriptionOfAccountingPolicyForHyperinflationaryEconomiesExplanatoryPolicyTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17544": {
"value": "Revenue recognition
Under IFRS 15 revenue is recognised in the consolidated income
\n
statement when control of the goods or services are transferred to the
\n
customer at an amount that reflects the consideration to which the
\n
Group expects to be entitled in exchange for those goods and services.
\n
The point at which control passes is determined by each customer
\n
arrangement, but generally occurs on delivery to the customer.
\n
The Group manufactures certain medicines on behalf of some
\n
customers. The revenue from providing contract manufacturing
\n
services is recognised when these medicines are approved by the
\n
quality control department, there is no alternative use of these
\n
medicines and the Group has enforceable right to payments once
\n
these medicines are quality approved.
\n
The Group has generally concluded that it acts as principal in its
\n
revenue arrangements because it typically controls the goods before
\n
the transfer to the customer.
\n
Revenue represents the amounts receivable after the deduction of
\n
discounts, value added tax, other sales taxes, allowances given,
\n
provisions for chargebacks and accruals for estimated future rebates,
\n
returns and price adjustments. The methodology and assumptions
\n
used to estimate rebates and returns are monitored and adjusted
\n
regularly in light of contractual and historical information.
\n
The Group does not expect to have any contracts where the period
\n
between the transfer of the promised goods or services to the
\n
customer and payment by the customer exceeds one year. As a
\n
consequence, the Group does not adjust any of the transaction prices
\n
for the time value of money.
\n
Variable consideration
\n
The ultimate net selling price is calculated using variable consideration
\nestimates for certain gross to net adjustments. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17577": {
"value": "Chargebacks
In the US, the Group sells its products directly to wholesale distributors,
\n
generic distributors, retail pharmacy chains and mail-order
\n
pharmacies. The Group also sells its products indirectly to independent
\n
pharmacies, managed care organisations, hospitals, and group
\n
purchasing organisations, collectively referred to as \u2018indirect
\n
customers\u2019. The Group enters into agreements with its indirect
\n
customers to establish pricing for certain products. The indirect
\n
customers then independently select a wholesaler from which they
\n
purchase the products at agreed-upon prices. The Group will provide
\n
credit to the wholesaler for the difference between the agreed-upon
\n
price with the indirect customer and the wholesaler\u2019s invoice price. This
\n
credit is called a chargeback. The provision for chargebacks is based on
\n
historical sell-through levels by the Group\u2019s wholesale customers to the
\n
indirect customers, and estimated wholesaler inventory levels. As sales
\n
are made to large wholesale customers, the Group continually monitors
\n
the reserve for chargebacks and makes adjustments when it believes
\nthat actual chargebacks may differ from estimated reserves. ",
"dimensions": {
"concept": "hik:DescriptionOfAccountingPolicyForChargebacksExplanatoryPolicyTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17598": {
"value": "Returns
The Group has a product return policy that allows customers to return
\n
the product within a specified period prior to and subsequent to the
\n
expiration date. Provisions for returns are recognised as a reduction of
\n
revenue in the period in which the underlying sales are recognised.
\n
The Group estimates its provision for returns based on historical
\n
experience, representing management\u2019s best estimate. While such
\n
experience has enabled reasonable estimations in the past, history
\n
may not always be an accurate indicator of future returns. The Group
\n
continually monitors the provisions for returns and makes adjustments
\n
when it believes that actual product returns may differ from established
\nreserves (see Note 27 for return sensitivity analysis).",
"dimensions": {
"concept": "hik:DescriptionOfAccountingPolicyForReturnsExplanatoryPolicyTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17613": {
"value": "Rebates
In the US, rebates are granted to wholesaler distributors and direct
\n
customers. Rebates are also granted to healthcare authorities and
\n
under contractual arrangements with certain indirect customers.
\n
Products sold in the US are covered by various programmes (such as
\n
Medicaid) under which products are sold at a discount.
\n
The Group estimates its provision for rebates based on current
\n
contractual terms and conditions as well as historical experience,
\n
changes to business practices and credit terms. While such experience
\n
has enabled reasonable estimations in the past, history may not always
\n
be an accurate indicator of future rebate liabilities. The Group
\n
continually monitors the provisions for rebates and makes adjustments
\n
when it believes that actual rebates may differ from established
\n
reserves. All rebates are recognised in the period in which the
\n
underlying sales are recognised as a reduction of revenue (see Notes 21
\n
and 27 for rebates sensitivity analysis).
\n
Performance obligation
\n
Free goods
\n
Free goods are issued to certain customers as an alternative to
\n
discounts. Under IFRS 15 these free goods give rise to a separate
\n
performance obligation, which requires management to allocate the
\n
transaction price to the original goods and the related free goods.
\n
Revenue for free goods is recognised when they are transferred to the
\n
customer and a contract liability is recognised when the free goods are
\ndue but not yet transferred to the customer.",
"dimensions": {
"concept": "hik:DescriptionOfAccountingPolicyForRebatesExplanatoryPolicyTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17641": {
"value": "Share-based payments
At the Company\u2019s discretion and subject to the achievement of Group
\n
and personal performance criteria in the prior year, employees
\n
(including Executive Directors) of the Group receive performance
\n
based remuneration in the form of share-based payments, whereby
\n
employees render their services in exchange for shares or rights over
\n
shares (equity-settled transactions) under either the 2014 Executive
\n
Incentive Plans (EIP) or the 2009 and 2018 Management Incentive Plan
\n
(MIP). Refer to Note 38 for more details.
\n
IFRS 2 \u2018Share-Based Payments\u2019 requires an expense to be recognised
\n
when the Group buys goods or services in exchange for shares or rights
\n
over shares (share-based payments) or in exchange for other
\n
equivalent assets.
\n
The cost of share-based payments\u2019 transactions with employees is
\n
measured by reference to the fair value at the date at which the share-
\n
based payments are granted. The fair value of the EIP and MIP are
\n
determined based on Black-Scholes methodology for nil-cost options
\n
using the share price as at the date of grant discounted by dividend
\n
yield. No account is taken of any performance conditions.
\n
\n
\n\n
The cost of share-based payments is recognised, together with a
\n
corresponding increase in equity, on a straight-line basis over the year
\n
of performance and the vesting period after the grant date based on
\n
the Group\u2019s estimate of cost of equity instruments that will eventually
\n
vest. The Group revises its estimate of the number of equity
\n
instruments expected to vest and the impact of the revision of the
\n
original estimates, if any, is recognised in the consolidated income
\n
statement, such that the cumulative expense reflects the revised
\n
estimate, with a corresponding adjustment to equity reserves.
\n
The dilutive effect of outstanding share-based payments is reflected as
\nadditional share dilution in the computation of diluted earnings per share.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17706": {
"value": "Retirement benefit costs
\u2013
Payments made to defined contribution retirement benefit schemes
\n
are charged as an expense as they fall due. Payments made to state-
\n
managed retirement benefit schemes are dealt with as payments to
\n
defined contribution schemes where the Group\u2019s obligations under
\n
the schemes are equivalent to those arising in a defined contribution
\n
retirement benefit scheme. (Note 41)
\n
\u2013
In certain countries and entities, the Group has post-employment
\n
defined benefit plans. Accordingly, valuations of the obligations
\n
under those plans are carried out and any changes in net liability
\n
due to actuarial valuations and changes in assumptions are taken
\n
as re-measurement gains or losses in other comprehensive income.
\n
Changes in the present value of the defined benefit obligations
\n
resulting from plan amendments or curtailments are recognised
\n
immediately in the consolidated income statement as past
\n
service costs
\n
\u2013
End of service payments are provided for based on employees\u2019 final
\n
salaries and allowances and their cumulative years of service.
\n(Note 26) ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17731": {
"value": "Dividend income
Income from investments is recognised when the shareholders\u2019 rights
\nto receive payment have been established.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17737": {
"value": "Leases
In accordance with IFRS 16, the Group applies a single recognition and
\n
measurement approach for all leases, except for short-term leases and
\n
leases of low-value assets. The Group recognises lease liabilities to
\n
make lease payments and right-of-use assets representing the right to
\n
use the underlying assets:
\n
\u2013
Right-of-use assets: The Group recognises right-of-use assets at the
\n
commencement date of the lease (i.e. the date the underlying asset
\n
is available for use). Right-of-use assets are measured at cost, less
\n
any accumulated depreciation and impairment losses, and adjusted
\n
for any remeasurement of lease liabilities. The cost of right-of-use
\n
assets includes the amount of lease liabilities recognised, initial
\n
direct costs incurred, and lease payments made at or before the
\n
commencement date less any lease incentives received. Unless the
\n
Group is reasonably certain of obtaining ownership of a leased asset
\n
at the end of the lease term, the recognised right-of-use assets are
\n
depreciated on a straight-line basis over the shorter of its estimated
\n
useful life and the lease term
\n
\u2013
Lease liabilities: at the commencement date of the lease, the Group
\n
recognises lease liabilities measured at the present value of lease
\n
payments to be made over the lease term. The lease payments
\n
include fixed payments (including in-substance fixed payments),
\n
less any lease incentives receivable, variable lease payments that
\n
depend on an index or a rate, and amounts expected to be paid
\n
under residual value guarantees. The lease payments also include
\n
the exercise price of a purchase option, payments for optional
\n
extension periods and payments of penalties for terminating a lease
\n
when these options are reasonably certain to be exercised by the
\n
Group. The discount rate used to calculate the lease liabilities is the
\n
incremental borrowing rate (IBR). The Group estimates the IBR using
\n
observable inputs (such as market interest rates) when available and
\n
is required to make certain entity-specific estimates (such as the
\n
subsidiary\u2019s stand-alone credit profile)
\n
\u2013
Short-term leases and leases of low-value assets: the Group applies
\n
the short-term lease recognition exemption to its short-term leases
\n
of machinery and equipment (i.e. those leases that have a lease term
\n
of 12 months or less from the commencement date and do not
\n
contain a purchase option). It also applies the lease of low-value
\n
assets recognition exemption to leases of office equipment that are
\n
considered of low value (i.e. below $5,000). Lease payments on
\n
short-term leases and leases of low-value assets are recognised as
\nan expense on a straight-line basis over the lease term",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17785": {
"value": "Taxes
The Group provides for income tax according to the laws and
\n
regulations prevailing in the countries where the Group operates.
\n
Furthermore, the Group computes and records deferred tax assets and
\n
liabilities according to IAS 12 \u2018Income Taxes\u2019.
\n
The tax expense represents the sum of the current tax in the current
\n
period and deferred tax.
\n
Current Income Tax
\n
Current income tax assets and liabilities are measured at the amount
\n
expected to be recovered from or paid to the taxation authorities within
\n
one year.
\n
The current tax incurred in the period is based on taxable profit for the
\n
year and prior year movement accounted for in the current year.
\n
Taxable profit differs from net profit as reported in the consolidated
\n
income statement because it excludes items of income or expense that
\n
are taxable or deductible in other years and it further excludes items
\n
that are never taxable or deductible. The Group\u2019s tax incurred is
\n
calculated using tax rates that have been enacted or substantively
\n
enacted by the consolidated balance sheet date.
\n
Deferred tax
\n
Deferred tax is the tax expected to be payable or recoverable on
\n
differences between the carrying amounts of assets and liabilities in the
\n
consolidated financial statements and the corresponding tax bases used
\n
in the computation of taxable profit and is accounted for using the
\n
consolidated balance sheet liability method. Deferred tax liabilities are
\n
generally recognised for all taxable temporary differences and deferred
\n
tax assets are recognised to the extent that it is probable that taxable
\n
profits will be available against which deductible temporary differences
\n
will reverse. To the extent the temporary difference arises from goodwill
\n
or from the initial recognition (other than in a business combination) of
\n
other assets and liabilities in a transaction that affects neither the taxable
\n
profit nor the accounting profit, no deferred tax is provided.
\n
\n
Deferred tax liabilities are recognised for taxable temporary differences
\n
arising on investments in subsidiaries, and interests in joint ventures,
\n
except where the Group is able to control the reversal of the temporary
\n
difference and it is probable that the temporary difference will not
\n
reverse in the foreseeable future.
\n
Deferred tax is calculated at the tax rates that are expected to apply in
\n
the period when the liability is settled, or the asset is realised. Deferred
\n
tax is charged or credited in the consolidated income statement,
\n
except when it relates to items charged or credited directly to equity, in
\n
which case the deferred tax is also dealt within equity.
\n
Deferred tax assets and liabilities are offset when there is a legally
\n
enforceable right to offset current tax assets against current tax
\n
liabilities and when they relate to income taxes levied by the same
\n
taxation authority and the Group intends to settle its current tax assets
\n
and liabilities on a net basis.
\n
The carrying amount of deferred tax assets is reviewed at each
\n
consolidated balance sheet date and reduced to the extent that it is no
\n
longer probable that sufficient taxable profits will be available to allow
\n
all or part of the asset to be recovered.
\n
Uncertain tax position
\n
In line with IFRIC 23, if it is considered probable that a tax authority will
\n
accept an uncertain tax treatment, the tax charge should be calculated
\n
on that basis. If it is not considered probable, the effect of the uncertainty
\n
should be estimated and reflected in the tax charge. In assessing the
\n
uncertainty, it is assumed that the tax authority will have full knowledge
\nof all information related to the matter.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17806": {
"value": "Deferred tax
Deferred tax is the tax expected to be payable or recoverable on
\n
differences between the carrying amounts of assets and liabilities in the
\n
consolidated financial statements and the corresponding tax bases used
\n
in the computation of taxable profit and is accounted for using the
\n
consolidated balance sheet liability method. Deferred tax liabilities are
\n
generally recognised for all taxable temporary differences and deferred
\n
tax assets are recognised to the extent that it is probable that taxable
\n
profits will be available against which deductible temporary differences
\n
will reverse. To the extent the temporary difference arises from goodwill
\n
or from the initial recognition (other than in a business combination) of
\n
other assets and liabilities in a transaction that affects neither the taxable
\n
profit nor the accounting profit, no deferred tax is provided.
\n
\n
Deferred tax liabilities are recognised for taxable temporary differences
\n
arising on investments in subsidiaries, and interests in joint ventures,
\n
except where the Group is able to control the reversal of the temporary
\n
difference and it is probable that the temporary difference will not
\n
reverse in the foreseeable future.
\n
Deferred tax is calculated at the tax rates that are expected to apply in
\n
the period when the liability is settled, or the asset is realised. Deferred
\n
tax is charged or credited in the consolidated income statement,
\n
except when it relates to items charged or credited directly to equity, in
\n
which case the deferred tax is also dealt within equity.
\n
Deferred tax assets and liabilities are offset when there is a legally
\n
enforceable right to offset current tax assets against current tax
\n
liabilities and when they relate to income taxes levied by the same
\n
taxation authority and the Group intends to settle its current tax assets
\n
and liabilities on a net basis.
\n
The carrying amount of deferred tax assets is reviewed at each
\n
consolidated balance sheet date and reduced to the extent that it is no
\n
longer probable that sufficient taxable profits will be available to allow
\nall or part of the asset to be recovered.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17878": {
"value": "Exceptional items and other adjustments
We use a number of non-IFRS measures to report and monitor the
\n
performance of our business. Management uses these adjusted
\n
numbers internally to measure our progress and for setting
\n
performance targets. We also present these numbers, alongside our
\n
reported results, to external audiences to help them understand the
\n
underlying performance of our business. Our adjusted numbers may
\n
be calculated differently to other companies.
\n
Adjusted measures are not substitutable for IFRS numbers and should
\nnot be considered superior to results presented in accordance with IFRS.",
"dimensions": {
"concept": "hik:DescriptionOfAccountingPolicyForExceptionalItemsAndOtherAdjustmentsExplanatoryPolicyTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17891": {
"value": "Core results
Reported results represent the Group\u2019s overall performance. However,
\n
these results can include one-off or non-cash items that mask the
\n
underlying performance of the Group. To provide a more complete
\n
picture of the Group\u2019s performance and to improve comparability of
\n
our consolidated financial statements to external audiences, we
\n
provide, alongside our reported results, core results, which are a non-
\n
IFRS measure. We represent and discuss our Group and segmental
\n
financials reconciled between reported and core results. This
\n
presentation allows for full visibility and transparency of our financials
\n
so that shareholders are able to clearly assess the performance factors
\n
of the Group.
\n
Exceptional items and other adjustments
\n
Core results mainly exclude:
\n
\u2013
Amortisation of intangible assets other than software
\n
\u2013
Impairment charge/reversal of intangible assets and property, plant
\n
and equipment
\n
\u2013
Finance income and expense resulting from remeasurement,
\n
unwinding of contingent consideration and co-development earnout
\n
payment agreement financial liabilities
\n
\u2013
Exceptional items which management believes to be exceptional in
\n
nature by virtue of their size or incidence, or have a distortive effect
\n
on current year earnings, such as costs associated with business
\n
combinations, one-off gains and losses on disposal of businesses
\n
assets, reorganisation costs and any exceptional items related to tax
\n
such as significant tax benefit/expense associated with previously
\n
unrecognised deferred tax assets/liabilities
\n
Our core results exclude the exceptional items and other adjustments
\nset out in Note 6 in the Notes to the consolidated financial statements.",
"dimensions": {
"concept": "hik:DescriptionOfAccountingPolicyForCoreResultsExplanatoryPolicyTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17926": {
"value": "
Intangible assets
\n
An intangible asset is recognised if all the below conditions are met:
\n
\u2013
it is identifiable
\n
\u2013
it is probable that the expected future economic benefits that are
\n
attributable to the asset will flow to the Group
\n
\u2013
the cost of the asset can be measured reliably
\n
The probability of expected future economic benefits is assessed using
\n
reasonable and supportable assumptions that represent
\n
management\u2019s best estimate of the set of economic conditions that will
\n
exist over the useful life of the asset. The assets are amortised on a
\n
straight-line basis and the amortisation is recognised in the selling,
\n
general and administrative expenses.
\n
Judgement is used to assess the degree of certainty attached to the
\n
flow of future economic benefits that are attributable to the use of the
\n
asset on the basis of the evidence available at the time of initial
\n
recognition, giving greater weight to external evidence.
\n
Expenditures on research and development activities are charged to
\n
the consolidated income statement, except only when the criteria for
\n
recognising an internally generated intangible asset is met, which is
\n
usually when approval from the relevant regulatory authority is
\n
considered probable.
\n
Also, the Group engages with third-party research and development
\n
companies to develop products on its behalf. Substantial payments
\n
made to such third parties to fund research and development efforts
\n
are recognised as intangible assets if the capitalisation criteria for an
\n
intangible asset are met, which typically are when licences are acquired
\n
and certain milestones are met, all other expenditures are charged to
\n
the consolidated income statement.
\n
Intangible assets are measured at cost, less any accumulated
\n
amortisation and impairment losses.
Principal intangible assets are:
(b)
Product related intangibles:
\n
(i) Product files and in-licensed products recognised through
\n
acquisitions and partnerships are amortised over their useful
\n
economic lives once the asset is ready for use
\n
(ii) In process product files recognised on acquisition are amortised
\n
over the useful economic life once the asset is ready for use
\n
(c)
Purchased software:
is amortised over the useful economic life
\n
when the asset is ready for use
\n
Other identified intangibles are:
\n
(d)
Customer relationships:
represent the value attributed to the long-
\n
term relationships held with existing customers that the Group
\n
acquired on business combinations. Customer relationships are
\n
amortised over their useful economic lives
\n
(e)
Trade names:
are amortised over their useful lives from the date of
\n
acquisition
\n
(f)
Marketing rights:
are amortised over their useful lives commencing
\n
in the year in which the rights first generate sales
\n
Details of the intangible assets useful lives are included in Note 16.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17927": {
"value": "
Intangible assets
\n
An intangible asset is recognised if all the below conditions are met:
\n
\u2013
it is identifiable
\n
\u2013
it is probable that the expected future economic benefits that are
\n
attributable to the asset will flow to the Group
\n
\u2013
the cost of the asset can be measured reliably
\n
The probability of expected future economic benefits is assessed using
\n
reasonable and supportable assumptions that represent
\n
management\u2019s best estimate of the set of economic conditions that will
\n
exist over the useful life of the asset. The assets are amortised on a
\n
straight-line basis and the amortisation is recognised in the selling,
\n
general and administrative expenses.
\n
Judgement is used to assess the degree of certainty attached to the
\n
flow of future economic benefits that are attributable to the use of the
\n
asset on the basis of the evidence available at the time of initial
\n
recognition, giving greater weight to external evidence.
\n
Expenditures on research and development activities are charged to
\n
the consolidated income statement, except only when the criteria for
\n
recognising an internally generated intangible asset is met, which is
\n
usually when approval from the relevant regulatory authority is
\n
considered probable.
\n
Also, the Group engages with third-party research and development
\n
companies to develop products on its behalf. Substantial payments
\n
made to such third parties to fund research and development efforts
\n
are recognised as intangible assets if the capitalisation criteria for an
\n
intangible asset are met, which typically are when licences are acquired
\n
and certain milestones are met, all other expenditures are charged to
\n
the consolidated income statement.
\n
Intangible assets are measured at cost, less any accumulated
\n
amortisation and impairment losses.
Principal intangible assets are:
\n
(a)
Goodwill:
arising in a business combination and is recognised as an
\n
asset at the date that control is acquired (the acquisition date).
\n
Goodwill is measured as the excess of the sum of the consideration
\n
transferred, the amount of any non-controlling interest in the
\n
acquiree and the fair value of the acquirer\u2019s previously held equity
\n
interest (if any) in the entity over the net of the acquisition-date fair
\n
value of the identifiable assets, liabilities and acquired contingent
\n
liabilities. If, after reassessment, the Group\u2019s interest in the fair value
\n
of the acquiree\u2019s identifiable net assets exceeds the sum of the
\n
consideration transferred, the amount of any non-controlling
\n
interest in the acquiree and the fair value of the acquirer\u2019s
\n
previously held equity interest in the acquiree (if any), the excess is
\n
recognised immediately in the consolidated income statement as a
\n
bargain purchase gain. On disposal of a subsidiary, the attributable
\n
amount of goodwill is included in the determination of any profit or
\n
loss on disposal in the consolidated income statement
\n
(b)
Product related intangibles:
\n
(i) Product files and in-licensed products recognised through
\n
acquisitions and partnerships are amortised over their useful
\n
economic lives once the asset is ready for use
\n
(ii) In process product files recognised on acquisition are amortised
\n
over the useful economic life once the asset is ready for use
\n
(c)
Purchased software:
is amortised over the useful economic life
\n
when the asset is ready for use
\n
Other identified intangibles are:
\n
(d)
Customer relationships:
represent the value attributed to the long-
\n
term relationships held with existing customers that the Group
\n
acquired on business combinations. Customer relationships are
\n
amortised over their useful economic lives
\n
(e)
Trade names:
are amortised over their useful lives from the date of
\n
acquisition
\n
(f)
Marketing rights:
are amortised over their useful lives commencing
\n
in the year in which the rights first generate sales
\n
Details of the intangible assets useful lives are included in Note 16.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17993": {
"value": "(a)
Goodwill:
arising in a business combination and is recognised as an
\n
asset at the date that control is acquired (the acquisition date).
\n
Goodwill is measured as the excess of the sum of the consideration
\n
transferred, the amount of any non-controlling interest in the
\n
acquiree and the fair value of the acquirer\u2019s previously held equity
\n
interest (if any) in the entity over the net of the acquisition-date fair
\n
value of the identifiable assets, liabilities and acquired contingent
\n
liabilities. If, after reassessment, the Group\u2019s interest in the fair value
\n
of the acquiree\u2019s identifiable net assets exceeds the sum of the
\n
consideration transferred, the amount of any non-controlling
\n
interest in the acquiree and the fair value of the acquirer\u2019s
\n
previously held equity interest in the acquiree (if any), the excess is
\n
recognised immediately in the consolidated income statement as a
\n
bargain purchase gain. On disposal of a subsidiary, the attributable
\n
amount of goodwill is included in the determination of any profit or
\nloss on disposal in the consolidated income statement",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18042": {
"value": "Property, plant and equipment
Property, plant and equipment have been stated at cost on acquisition
\n
and are depreciated on a straight-line basis except for land.
\n
The normal expected useful lives of the major categories of Property,
\n
plant and equipment are:
\n
Buildings
20 to 50 years
\n
Machinery and equipment
3 to 20 years
\n
Vehicles, fixtures and equipment
3 to 13 years
\n
A unit of production method of depreciation is applied to operations in
\n
their start-up phase, as this reflects the expected pattern of
\n
consumption of the future economic benefits embodied in the assets.
\n
When these assets are fully utilised, a straight-line method of
\n
depreciation is applied.
\n
Projects under construction are not depreciated until construction has
\n
been completed and assets are considered ready for use.
\n
Any additional costs that extend the useful life of property, plant and
\n
equipment are capitalised.
\n
Whenever the recoverable amount of an asset is impaired, the carrying
\n
value is reduced to the recoverable amount and the impairment loss is
\n
taken to the consolidated income statement. Projects under
\n
construction are carried at cost, less any recognised impairment loss.
\n
Depreciation of these assets, on the same basis as other property,
\n
plant and equipment assets, commences when the assets are ready for
\n
their intended use.
\n
The gain or loss arising on the disposal or retirement of an asset is
\n
determined as the difference between the sales proceeds and the
\n
carrying amount of the asset and is recognised in the consolidated
\nincome statement. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18045": {
"value": "Property, plant and equipment have been stated at cost on acquisition
and are depreciated on a straight-line basis except for land.
\n
The normal expected useful lives of the major categories of Property,
\n
plant and equipment are:
\n
Buildings
20 to 50 years
\n
Machinery and equipment
3 to 20 years
\n
Vehicles, fixtures and equipment
3 to 13 years
\n
A unit of production method of depreciation is applied to operations in
\n
their start-up phase, as this reflects the expected pattern of
\n
consumption of the future economic benefits embodied in the assets.
\n
When these assets are fully utilised, a straight-line method of
\ndepreciation is applied.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18079": {
"value": "Impairment of property, plant and equipment and
intangible assets
\n
At the same time each year, the Group carries out an impairment
\n
review for goodwill and intangible assets that are not yet ready for use.
\n
At the year-end, the Group reviews the carrying amounts of its
\n
property, plant and equipment and intangible assets that are subject to
\n
depreciation and amortisation to determine whether there is any
\n
indication that those assets have suffered an impairment loss. If any
\n
such indication exists, the recoverable amount of the asset is estimated
\n
to determine the extent of the impairment loss (if any).
\n
The recoverable amount is the higher of fair value less costs of disposal
\n
(FVLCD) and value in use (VIU). The FVLCD valuation uses inputs that
\n
are not based on observable market data, and therefore falls under
\n
level 3 fair valuation. This valuation calculation is measured by
\n
discounting post-tax projected cash flows of the relevant asset or cash
\n
generating unit (CGU), applying a post-tax discount rate adjusted
\n
where appropriate for specific asset related or market risk.
\n
In assessing VIU, the estimated future cash flows are discounted to
\n
their present value using a pre-tax discount rate that reflects current
\n
market assessments of the time value of money and the risks specific
\n
to the asset for which the estimates of future cash flows have not been
\n
adjusted.
\n
If the recoverable amount of an asset (or CGU) is estimated to be less
\n
than its carrying amount, the carrying amount of the asset (or CGU) is
\n
reduced to its recoverable amount. An impairment loss is recognised
\n
immediately in the consolidated income statement.
\n
When an impairment loss for the asset, other than goodwill,
\n
subsequently reverses, the carrying amount of the asset is increased to
\n
the revised estimate of its recoverable amount. However, the increased
\n
carrying amount should not exceed the carrying amount that would
\n
have been determined had there been no impairment in prior years.
\n
A reversal of an impairment loss is recognised immediately in the
\n
consolidated income statement.
\n
The Group\u2019s goodwill and intangible assets are tested as follows:
\n
(a) Goodwill is allocated to each of the Group\u2019s cash-generating units.
\n
These cash-generating units are tested for impairment annually, or
\n
more frequently when there is an indication that the unit may be
\n
impaired. If the recoverable amount of the cash-generating unit is
\n
less than the carrying amount of the unit, the impairment loss is
\n
allocated first to reduce the carrying amount of any goodwill
\n
allocated to the unit and then to the other assets of the unit pro-
\n
rata on the basis of the carrying amount of each asset in the unit.
\n
An impairment loss recognised for goodwill is not reversed in a
\n
subsequent period.
\n
\n
The assumptions used and sensitivity analysis in the impairment tests
\n
are set out in Note 16
\n
(b) Intangible assets that are not yet ready for use are not subject to
\n
amortisation and are tested annually for impairment or more
\n
frequently if events or changes in circumstances indicate that they
\n
might be impaired. Other intangible assets are tested for
\n
impairment whenever events or changes in circumstances indicate
\nthat the carrying amount may not be recoverable",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18159": {
"value": "Inventories
Inventories are stated at the lower of cost and net realisable value.
\n
Purchased products are stated at acquisition cost including all
\n
additional attributable costs incurred in bringing each product to its
\n
present location and condition. The costs of own-manufactured
\n
products comprise direct materials and, where applicable, direct labour
\n
costs and any overheads that have been incurred in bringing the
\n
inventories to their present location and condition. In the consolidated
\n
balance sheet, inventory is primarily valued at historical cost
\n
determined on a moving average basis, and this value is used to
\n
determine the cost of sales in the consolidated income statement. Net
\n
realisable value represents the estimated selling price in the ordinary
\n
course of business, less all estimated costs necessary to make the sale.
\n
Inventory related provisions are made when net realisable value is
\nlower than cost, and for slow moving and short dated inventory.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18177": {
"value": "Cash and cash equivalents
Cash and cash equivalents comprise cash at banks and on hand, short-
\n
term highly liquid investments that are readily convertible to known
\n
amounts of cash and which are subject to an insignificant risk of
\n
changes in value. These would typically have maturities within three
\n
months or less from date of acquisition and are held for the purpose of
\n
meeting short-term cash commitments rather than for investment or
\n
other purposes. Cash equivalents include time deposits and money
\nmarket deposits.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18189": {
"value": "Financial instruments
Financial assets and financial liabilities are recognised on the Group\u2019s
\n
consolidated balance sheet when the Group becomes a party to the
\n
contractual provisions of the instrument.
\n
Financial assets
\n
The Group classifies its financial assets in the following measurement
\n
categories:
\n
(i) Financial assets at FVTPL
\n
Listed shares, debt instruments and investment portfolios held by the
\n
Group that are traded in an active market are classified as being
\n
financial assets at FVTPL and are stated at fair value. Gains and losses
\n
arising from changes in fair value are recognised in the consolidated
\n
Income Statement, see Note 23
\n
(ii) Financial assets at FVTOCI
\n
The Group\u2019s investments held by its venture capital subsidiaries are
\n
stated at FVTOCI with no recycling of cumulative gains or losses upon
\n
de-recognition. Investments in unlisted shares are measured at cost
\n
minus any impairment and adjusted for observable price changes in
\n
orderly transactions for the identical or a similar investment of the
\n
same issuer under level 3 valuation. For investments in listed shares,
\n
fair value is readily determinable under level 1 valuation, see Notes 19
\n
and 29
\n
(iii) Financial assets at amortised cost
\n
Trade receivables, loans, and other receivables that have fixed or
\n
determinable payments that are not quoted in an active market are
\n
classified as \u2018financial assets at amortised cost\u2019. These financial assets
\n
are measured at amortised cost using the effective interest method,
\n
less any impairment. Interest income is recognised by applying the
\n
effective interest rate, except for short-term receivables when the
\n
recognition of interest would be immaterial
\n
In order for a financial asset to be classified and measured at amortised
\n
cost, it needs to give rise to cash flows that are solely payments of
\n
principal and interest (SPPI) on the principal amount outstanding. This
\n
assessment is referred to as the SPPI test and is performed at an
\n
instrument level.
\n
The Group\u2019s business model for managing financial assets refers to how
\n
it manages its financial assets in order to generate cash flows. The
\n
business model determines whether cash flows will result from
\n
collecting contractual cash flows, selling the financial assets, or both.
\n
Financial assets classified and measured at amortised cost are held
\n
within a business model with the objective to hold financial assets in
\n
order to collect contractual cash flows.
\n
The effective interest method is a method of calculating the amortised
\n
cost of a debt instrument and of allocating interest income over the
\n
relevant period. The effective interest rate is the rate that exactly
\n
discounts estimated future cash receipts (including all fees and points
\n
paid or received that form an integral part of the effective interest rate,
\n
transaction costs and other premiums or discounts) through the
\n
expected life of the debt instrument, or, where appropriate, a shorter
\n
period, to the net carrying amount on initial recognition.
\n
Income is recognised on an effective interest basis for debt instruments
\n
other than those financial assets classified as at FVTPL.
\n
For trade receivables and contract assets, the Group applies a
\n
simplified approach in calculating expected credit loss. Therefore, the
\n
Group does not track changes in credit risk, but instead recognises a
\n
loss allowance based on lifetime expected credit losses at each
\n
reporting date. The Group has established a provision matrix that is
\n
based on its historical credit loss experience, adjusted for forward-
\n
looking factors specific to the debtors and the economic environment.
\n
Financial liabilities
\n
Financial liabilities are classified in two categories: financial liabilities at
\n
FVTPL or financial debts representing loans and borrowings. The
\n
classification depends on the nature and purpose of the financial
\n
liabilities and is determined at the time of initial recognition.
\n
(i) Financial liabilities at FVTPL
\n
The Group currently has two financial liabilities at FVTPL as below:
\n
\u2013
co-development and earn out payment agreements with third
\n
parties where the Group received payments on certain research and
\n
development milestones. In return for receiving such milestone
\n
payments, the Group has agreed to pay the contracting parties a
\n
certain percentage of future sales of those products
\n
\u2013
contingent consideration arising from the Columbus business
\n
acquisition represent contractual liabilities to make payments to
\n
third parties in the form of milestone payments that are dependent
\n
on the achievement of certain US FDA approval milestones; and
\n
payments based on future sales of certain products
\n
\n
\n\n
Financial liabilities at FVTPL are revalued at the end of each reporting
\n
period to represent the value of expected future cash outflows and the
\n
difference is presented as finance cost/income. These financial
\n
liabilities are currently booked under other non-current liabilities and
\n
other current liabilities in the consolidated balance sheet. (Notes 27
\n
and 30)
\n
(ii) Financial debts
\n
Financial debts are initially measured at fair value, net of transaction
\n
costs and subsequently measured at amortised cost using the effective
\n
interest method, with interest expense recognised on an effective
\n
interest method.
\n
The effective interest method is used for calculating the amortised cost
\n
of a financial liability and of allocating interest expense over the
\n
relevant period. The calculation of effective interest rate is the rate that
\n
exactly discounts estimated future cash payments through the
\n
expected life of the financial liability, or, where appropriate, a shorter
\n
period, to the net carrying amount on initial recognition.
\n
A financial liability is derecognised when the obligation under the
\n
liability is discharged or cancelled or expires. When an existing financial
\n
liability is replaced by another from the same lender on substantially
\n
different terms, or the terms of an existing liability are substantially
\n
modified, such an exchange or modification is treated as the
\n
derecognition of the original liability and the recognition of a new
\n
liability. The difference in the respective carrying amounts is recognised
\nin the consolidated income statement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18195": {
"value": "Financial assets
The Group classifies its financial assets in the following measurement
\n
categories:
\n
(i) Financial assets at FVTPL
\n
Listed shares, debt instruments and investment portfolios held by the
\n
Group that are traded in an active market are classified as being
\n
financial assets at FVTPL and are stated at fair value. Gains and losses
\n
arising from changes in fair value are recognised in the consolidated
\n
Income Statement, see Note 23
\n
(ii) Financial assets at FVTOCI
\n
The Group\u2019s investments held by its venture capital subsidiaries are
\n
stated at FVTOCI with no recycling of cumulative gains or losses upon
\n
de-recognition. Investments in unlisted shares are measured at cost
\n
minus any impairment and adjusted for observable price changes in
\n
orderly transactions for the identical or a similar investment of the
\n
same issuer under level 3 valuation. For investments in listed shares,
\n
fair value is readily determinable under level 1 valuation, see Notes 19
\n
and 29
\n
(iii) Financial assets at amortised cost
\n
Trade receivables, loans, and other receivables that have fixed or
\n
determinable payments that are not quoted in an active market are
\n
classified as \u2018financial assets at amortised cost\u2019. These financial assets
\n
are measured at amortised cost using the effective interest method,
\n
less any impairment. Interest income is recognised by applying the
\n
effective interest rate, except for short-term receivables when the
\n
recognition of interest would be immaterial
\n
In order for a financial asset to be classified and measured at amortised
\n
cost, it needs to give rise to cash flows that are solely payments of
\n
principal and interest (SPPI) on the principal amount outstanding. This
\n
assessment is referred to as the SPPI test and is performed at an
\n
instrument level.
\n
The Group\u2019s business model for managing financial assets refers to how
\n
it manages its financial assets in order to generate cash flows. The
\n
business model determines whether cash flows will result from
\n
collecting contractual cash flows, selling the financial assets, or both.
\n
Financial assets classified and measured at amortised cost are held
\n
within a business model with the objective to hold financial assets in
\n
order to collect contractual cash flows.
\n
The effective interest method is a method of calculating the amortised
\n
cost of a debt instrument and of allocating interest income over the
\n
relevant period. The effective interest rate is the rate that exactly
\n
discounts estimated future cash receipts (including all fees and points
\n
paid or received that form an integral part of the effective interest rate,
\n
transaction costs and other premiums or discounts) through the
\n
expected life of the debt instrument, or, where appropriate, a shorter
\n
period, to the net carrying amount on initial recognition.
\n
Income is recognised on an effective interest basis for debt instruments
\n
other than those financial assets classified as at FVTPL.
\n
For trade receivables and contract assets, the Group applies a
\n
simplified approach in calculating expected credit loss. Therefore, the
\n
Group does not track changes in credit risk, but instead recognises a
\n
loss allowance based on lifetime expected credit losses at each
\n
reporting date. The Group has established a provision matrix that is
\n
based on its historical credit loss experience, adjusted for forward-
\nlooking factors specific to the debtors and the economic environment.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18199": {
"value": "
(i) Financial assets at FVTPL
\n
Listed shares, debt instruments and investment portfolios held by the
\n
Group that are traded in an active market are classified as being
\n
financial assets at FVTPL and are stated at fair value. Gains and losses
\n
arising from changes in fair value are recognised in the consolidated
\n
Income Statement, see Note 23
(i) Financial liabilities at FVTPL
\n
The Group currently has two financial liabilities at FVTPL as below:
\n
\u2013
co-development and earn out payment agreements with third
\n
parties where the Group received payments on certain research and
\n
development milestones. In return for receiving such milestone
\n
payments, the Group has agreed to pay the contracting parties a
\n
certain percentage of future sales of those products
\n
\u2013
contingent consideration arising from the Columbus business
\n
acquisition represent contractual liabilities to make payments to
\n
third parties in the form of milestone payments that are dependent
\n
on the achievement of certain US FDA approval milestones; and
\n
payments based on future sales of certain products
Financial liabilities at FVTPL are revalued at the end of each reporting
\n
period to represent the value of expected future cash outflows and the
\n
difference is presented as finance cost/income. These financial
\n
liabilities are currently booked under other non-current liabilities and
\n
other current liabilities in the consolidated balance sheet. (Notes 27
\n
and 30)
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18254": {
"value": "Financial liabilities
Financial liabilities are classified in two categories: financial liabilities at
\n
FVTPL or financial debts representing loans and borrowings. The
\n
classification depends on the nature and purpose of the financial
\n
liabilities and is determined at the time of initial recognition.
\n
(i) Financial liabilities at FVTPL
\n
The Group currently has two financial liabilities at FVTPL as below:
\n
\u2013
co-development and earn out payment agreements with third
\n
parties where the Group received payments on certain research and
\n
development milestones. In return for receiving such milestone
\n
payments, the Group has agreed to pay the contracting parties a
\n
certain percentage of future sales of those products
\n
\u2013
contingent consideration arising from the Columbus business
\n
acquisition represent contractual liabilities to make payments to
\n
third parties in the form of milestone payments that are dependent
\n
on the achievement of certain US FDA approval milestones; and
\n
payments based on future sales of certain products
\n
\n
\n\n
Financial liabilities at FVTPL are revalued at the end of each reporting
\n
period to represent the value of expected future cash outflows and the
\n
difference is presented as finance cost/income. These financial
\n
liabilities are currently booked under other non-current liabilities and
\n
other current liabilities in the consolidated balance sheet. (Notes 27
\n
and 30)
\n
(ii) Financial debts
\n
Financial debts are initially measured at fair value, net of transaction
\n
costs and subsequently measured at amortised cost using the effective
\n
interest method, with interest expense recognised on an effective
\n
interest method.
\n
The effective interest method is used for calculating the amortised cost
\n
of a financial liability and of allocating interest expense over the
\n
relevant period. The calculation of effective interest rate is the rate that
\n
exactly discounts estimated future cash payments through the
\n
expected life of the financial liability, or, where appropriate, a shorter
\n
period, to the net carrying amount on initial recognition.
\n
A financial liability is derecognised when the obligation under the
\n
liability is discharged or cancelled or expires. When an existing financial
\n
liability is replaced by another from the same lender on substantially
\n
different terms, or the terms of an existing liability are substantially
\n
modified, such an exchange or modification is treated as the
\n
derecognition of the original liability and the recognition of a new
\n
liability. The difference in the respective carrying amounts is recognised
\nin the consolidated income statement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18341": {
"value": "Provisions
Provisions are recognised when the Group has a present obligation
\n
(legal or constructive) as a result of a past event, it is probable that an
\n
outflow of resources will be required to settle the obligations and a
\nreliable estimate can be made of the amount of the obligation.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18349": {
"value": "Treasury shares
Treasury shares and any direct expenses associated with them are
\n
recognised at cost and deducted from equity. No gain or loss is
\n
recognised in the consolidated income statement on the purchase,
\n
sale, issue or cancellation of the Group\u2019s own equity instruments.
\n(Note 31)",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18358": {
"value": "Cash dividend
The Company recognises a liability to pay a dividend when the
\n
distribution is authorised and no longer at the discretion of the
\n
Company. In accordance with the laws of the United Kingdom, a final
\n
dividend is recognised when it is approved by the majority of
\nshareholders and an interim dividend is recognised when it is paid.",
"dimensions": {
"concept": "hik:DescriptionOfAccountingPolicyForCashDividendExplanatoryPolicyTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18367": {
"value": "Equity instruments
Equity instruments issued by the Group are recorded at the proceeds
received, net of direct issue costs.",
"dimensions": {
"concept": "hik:DescriptionOfAccountingPolicyForEquityInstrumentsExplanatoryPolicyTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18374": {
"value": "3. Critical accounting judgements and key
sources of estimation uncertainty
\n
In the application of the Group\u2019s accounting policies, which are
\n
described in Note 2, the Directors are required to make judgements
\n
and estimates about the carrying amounts of assets and liabilities that
\n
are not readily apparent from other sources. The estimates are based
\n
on historical experience and other factors that are considered to be
\n
relevant. Actual results may differ from these estimates.
\n
The estimates are reviewed on an ongoing basis. Revisions to
\n
accounting estimates are recognised in the period in which the
\n
estimate is revised if the revision affects only that period or in the
\n
period of the revision and future periods if the revision affects both
\n
current and future periods.
\n
The Group\u2019s Directors believe that the following accounting policies
\n
that involve Directors\u2019 judgements and estimates are the most critical
\n
and may have a significant risk resulting in a material adjustment to the
\n
carrying amounts of assets and liabilities within the next financial year.
\n
Revenue recognition estimate
(Notes 4 and 5)
\n
The Group\u2019s revenue recognition policies require Directors to make
\n
estimates of the net selling price, which is made complicated due to
\n
chargebacks, product returns and rebates, which together are
\n
considered to be a critical estimates that may have a significant risk of
\n
resulting in a material adjustment.
\n
These arrangements vary by product arrangement and buying group.
\n
Refer to Notes 21 and 27 for sensitivity analysis.
\n
Chargebacks
\n
Critical estimates
\n
The key inputs and assumptions included in calculating this provision
\n
are estimations of \u2018in channel\u2019 inventory at the wholesalers (including
\n
processing lag), estimated chargeback rates as informed by average
\n
historical chargeback credits adjusted for expected chargeback levels
\n
for new products, changes to pricing and estimated future sales trends
\n
(including customer mix). Refer to Note 21 for sensitivity analysis.
\n
Returns
\n
Critical estimates
\n
The key assumptions included in calculating this provision are
\n
estimations of the product shelf life, returns rate for revenue subject to
\n
returns, as informed by both historical return rates and consideration of
\n
specific factors like product dating and expiration, new product
\n
launches, entrance of new competitors and changes to contractual
\n
terms. Refer to Note 21 for sensitivity analysis.
\n
Rebates
\n
Critical estimates
\n
The key inputs and assumptions included in estimating this provision
\n
are the historical relationship between contractual rebate payments to
\n
revenue, past payment experience, changes to pricing and sales levels,
\n
estimation of \u2018in channel\u2019 inventory at the wholesalers and retail
\n
pharmacies and estimated future sales trends (including customer
\n
mix). Refer to Notes 21 and 27 for sensitivity analysis.
\n
\n
Goodwill and intangible assets \u2013 impairment testing
\n
CGUs
(Note 16)
\n
Testing for impairment of goodwill and other assets included within a
\n
cash generating unit (CGU) to establish the appropriate valuation of the
\n
CGU. The valuation used for comparison to the carrying value of the net
\n
assets of the CGU requires the following key judgements and estimates:
\n
Critical judgement
\n
Determination of the CGU:
\n
\u2013
The Group evaluated generic Advair Diskus\u00ae as a separate CGU,
\n
mainly due to its distinct assets and liabilities and its ability to
\n
generate largely independent cash flows
\n
\u2013
The Group allocated Custopharm Topco Holdings, Inc. associated
\n
goodwill to the Injectables CGU reflecting the integration of the
\n
business, as Custopharm Topco Holdings, Inc. will not be able to
\n
generate cash inflows that are independent from the injectables CGU.
\n
The valuation of the Custopharm net assets acquired and the
\n
goodwill are provisional (Note 36).
\n
Critical estimates
\n
\u2013
Estimating a five-year business plan for the purposes of forecasting cash
\n
flows involves forecasting appropriate sales and operating expenses
\n
taking into consideration both internal and external information
\n
\u2013
Estimating future capital expenditures and working capital
\n
requirements over the five-year period
\n
\u2013
Estimating a discount rate that appropriately reflects the Group\u2019s
\n
weighted average cost of capital as adjusted for specific risk
\n
premiums reflecting risks inherent in achieving the projected future
\n
cash flows
\n
\u2013
Estimating an appropriate terminal growth rate beyond the
\n
forecast period
\n
Product related and marketing rights intangible assets
(Note 16)
\n
Valuing intangible assets upon initial recognition as at the acquisition date
\n
and testing for impairment require the following judgements and estimates:
\n
Critical judgement
\n
\u2013
For pipeline products, establishing the launch date and probability
\n
of a successful product approval are critical judgements
\n
\u2013
Determining whether an impairment indication has occurred for
\n
intangible assets. In such case the Group first assesses the
\n
qualitative factors to determine whether it is more likely than not that
\n
the fair value of the intangible asset is less than its carrying amount
\n
as a basis for determining whether it is necessary to perform a
\n
quantitative impairment test
\n
\u2013
For previously impaired assets, an assessment is made at each
\n
reporting date to determine whether there is an indication that
\n
previously recognised impairment losses no longer exist or have
\n
decreased, if such indication exists, the Group estimates the asset\u2019s
\n
or CGU\u2019s recoverable amount
\n
Critical estimates
\n
\u2013
Estimating revenue forecasts (including market size, estimated
\n
expected market share, number of competitors and net selling prices)
\n
\u2013
Estimating the expected economic useful lives of the product-
\n
related intangibles
\n
\u2013
Estimating the sales and the allocation of marketing, research and
\n
development and other operating costs to the individual product-
\n
related intangibles
\n
\u2013
Estimating a discount rate and specific risk premiums
\n
Based on the annual impairment trigger assessment and impairment
\n
test for product related and marketing rights intangible assets, the
\n
Group have not identified any material impairment on an individual
\n
asset basis, that may have significant risk resulting in a material
\n
adjustment to their carrying amounts within the next financial year.
\n
Therefore, no sensitivity analysis was performed.
\n
Contingent consideration
(Notes 27, 29 and 30)
\n
The determination of the fair value of contingent consideration is
\n
based on discounted cash flows. The critical estimates and judgements
\n
taken into consideration for contingent consideration fair valuation are
\n
the same as applied for forecasting revenue of launched and pipeline
\n
products described in \u2018Product related intangibles\u2019 above. (See Note 29
\n
for sensitivity analysis)
\n
Taxation
(Notes 12 and 13)
\n
Recognition of deferred tax assets
(Note 13)
\n
The recognition of deferred tax assets is based on the current forecast
\n
of taxable profits arising in the jurisdiction in which the deferred tax
\n
asset arises. A deferred tax asset is recognised to the extent that there
\n
are forecast taxable profits within a reasonable period.
\n
This exercise is reviewed each year and, to the extent forecasts change,
\n
an adjustment to the recognised deferred tax asset may be made.
\n
Recognition of deferred tax assets is driven by the Group\u2019s ability to
\n
utilise the deferred tax asset which is reliant on forecast taxable profits
\n
arising in the jurisdiction in which losses are incurred.
\n
Tax and transfer pricing audit risk
\n
In common with most international organisations, the Group is subject
\n
to tax and transfer pricing audits from tax authorities from time to time.
\n
Where an outflow of funds is believed to be probable and a reliable
\n
estimate of the outcome of the dispute can be made, management
\n
provides for its best estimate of the liability in line with IFRIC 23
\n
principles. These estimates take into account the specific
\n
circumstances of each dispute and relevant external advice, and are
\n
inherently judgemental in nature and could change substantially over
\n
time as new facts emerge and each dispute progresses. The Group
\n
regularly takes professional advice to ensure the risks are appropriately
\n
analysed and managed with any ultimate potential liability being
\n
adequately provided, and continues to invest in its financial systems to
\n
improve the quality of the Group\u2019s financial data which reduces the risk
\n
of an adverse tax authority audit.
\n
\n
\n\n
As at 31 December 2022, the Group\u2019s uncertain tax positions amounted
\n
to $50 million (2021: $44 million) (Note 12), while it is not practical to
\n
provide a sensitivity analysis due to the number of uncertain tax
\n
positions held and the number of jurisdictions to which these relate,
\n
the Group reviews material uncertain tax positions on an individual
\n
basis and believes that it has accounted for an adequate provision for
\n
the liabilities likely to arise from open assessments and audits and
\n
continues to re-evaluate existing uncertain positions to determine if a
\n
change in facts and circumstances has occurred that would make it
\n
necessary to adjust.
\n
Tax contingent liabilities
\n
Due to the Group operating across a number of different tax
\n
jurisdictions, it is subject to periodic challenge by local tax authorities
\n
on a range of tax matters arising in the normal course of business.
\n
These challenges generally include transfer pricing arrangements,
\n
other international tax matters and the judgemental interpretation of
\n
local tax legislation.
\n
Contingent liabilities
\n
The promotion, marketing and sale of pharmaceutical products and
\n
medical devices is highly regulated and the operations of market
\n
participants, such as the Group, are closely supervised by regulatory
\n
authorities and law enforcement agencies, including the FDA and the US
\n
Department of Justice. As a result, the Group is subject to certain
\n
investigations by governmental agencies, as well as other various legal
\n
proceedings considered typical to its business relating to employment,
\n
product liability and commercial disputes which may result in a possible
\n
obligation depending on whether some uncertain future event occurs in
\n
relation to legal proceedings and/or governmental agencies investigations.
\n
It is the Group\u2019s policy to provide for amounts related to these legal
\n
matters if it is probable that a liability has been incurred and an amount
\n
is reasonably estimable.
\n
A contingent liability is not provided for and disclosed in Note 37 if:
\n
\u2013
payment is not probable where the Group denies having engaged in
\n
conduct that would give rise to liability with respect to these civil
\n
suits and is vigorously pursuing defence of legal proceedings, or
\n
\u2013
it is a present obligation but the amount cannot be measured reliably",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18645": {
"value": "4. Revenue from contracts with customers
Business and geographical markets
\n
The following tables provide an analysis of the Group\u2019s reported revenue by segment and geographical market, irrespective of the origin of the
\n
goods/services:
\n
Injectables
Generics
Branded
Others
Total
\n
Y
ear ended 31 December 2022
$m
$m
$m
$m
$m
\n
United States
761
672
\u2212
\u2212
1,433
\n
Middle East and North Africa
178
\u2212
681
7
866
\n
Europe and rest of the world
194
\u2212
10
6
210
\n
United Kingdom
8
\u2212
\u2212
\u2212
8
\n
1,141
672
691
13
2,517
\n
Injectables
Generics
Branded
Others
Total
\n
Year ended 31 December 2021
$m
$m
$m
$m
$m
\n
United States
691
820
\u2212
\u2212
1,511
\n
Middle East and North Africa
180
\u2212
661
6
847
\n
Europe and rest of the world
176
\u2212
8
5
189
\n
United Kingdom
6
\u2212
\u2212
\u2212
6
\n
1,053
820
669
11
2,553
\n
The top selling markets are as below:
\n
2022
2021
\n
$m
$m
\n
United States
1,433
1,511
\n
Saudi Arabia
240
218
\n
Algeria
132
112
\n
Egypt
115
127
\n
1,920
1,968
\n
In 2022, included in revenue arising from the Generics and Injectables segments are sales the Group made to three wholesalers in the US, each
\n
accounting for equal to or greater than 10% of the Group\u2019s revenue: $361 million (14% of Group revenue), $330 million (13% of Group revenue) and
\n
$251 million (10% of Group revenue). In 2021, sales to these wholesalers were $402 million (16% of Group revenue), $341 million (13% of Group
\n
revenue) and $230 million (9% of Group revenue), respectively.
\n
The following table provides contract balances related to revenue:
\n
2022
2021
\n
$m
$m
\n
Net trade receivables (Note 21)
777
781
\n
Contract and refund liabilities (Note 27)
193
213
\n
Trade receivables are non-interest bearing and typical credit terms range from 30 to 90 days in the US, 30 to 120 days in Europe and 180 to 360 days
\n
in MENA.
\nContract and refund liabilities relate to returns and free goods provisions.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18646": {
"value": "4. Revenue from contracts with customers
Business and geographical markets
\n
The following tables provide an analysis of the Group\u2019s reported revenue by segment and geographical market, irrespective of the origin of the
\n
goods/services:
\n
Injectables
Generics
Branded
Others
Total
\n
Y
ear ended 31 December 2022
$m
$m
$m
$m
$m
\n
United States
761
672
\u2212
\u2212
1,433
\n
Middle East and North Africa
178
\u2212
681
7
866
\n
Europe and rest of the world
194
\u2212
10
6
210
\n
United Kingdom
8
\u2212
\u2212
\u2212
8
\n
1,141
672
691
13
2,517
\n
Injectables
Generics
Branded
Others
Total
\n
Year ended 31 December 2021
$m
$m
$m
$m
$m
\n
United States
691
820
\u2212
\u2212
1,511
\n
Middle East and North Africa
180
\u2212
661
6
847
\n
Europe and rest of the world
176
\u2212
8
5
189
\n
United Kingdom
6
\u2212
\u2212
\u2212
6
\n
1,053
820
669
11
2,553
\n
The top selling markets are as below:
\n
2022
2021
\n
$m
$m
\n
United States
1,433
1,511
\n
Saudi Arabia
240
218
\n
Algeria
132
112
\n
Egypt
115
127
\n
1,920
1,968
\n
In 2022, included in revenue arising from the Generics and Injectables segments are sales the Group made to three wholesalers in the US, each
\n
accounting for equal to or greater than 10% of the Group\u2019s revenue: $361 million (14% of Group revenue), $330 million (13% of Group revenue) and
\n
$251 million (10% of Group revenue). In 2021, sales to these wholesalers were $402 million (16% of Group revenue), $341 million (13% of Group
\n
revenue) and $230 million (9% of Group revenue), respectively.
\n
The following table provides contract balances related to revenue:
\n
2022
2021
\n
$m
$m
\n
Net trade receivables (Note 21)
777
781
\n
Contract and refund liabilities (Note 27)
193
213
\n
Trade receivables are non-interest bearing and typical credit terms range from 30 to 90 days in the US, 30 to 120 days in Europe and 180 to 360 days
\n
in MENA.
\nContract and refund liabilities relate to returns and free goods provisions.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18795": {
"value": "5. Business segments
For management reporting purposes, the Group is organised into three principal operating divisions \u2013 Injectables, Branded and Generics. These
\n
divisions are the basis on which the Group reports its segmental information. (See business and financial review section on page 24 for more
\n
details on the business segments performance)
\n
Core operating profit, defined as \u2018segment result\u2019, is the principal measure used in the decision-making and resource allocation process of the
\n
chief operating decision maker, who is the Group\u2019s Chief Executive Officer.
\n
Information regarding the Group\u2019s operating segments is reported below:
\n
2022
\n
Core results
\n
2022
\n
Exceptional items
\n
and other
\n
adjustments
\n
(Note 6)
\n
2022
\n
Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional items
\n
and other
\n
adjustments
\n
(Note 6)
\n
2021
\n
Reported
\n
results
\n
Injectables
$m
$m
$m
$m
$m
$m
\n
Revenue
1,141
\u2212
1,141
1,053
\u2212
1,053
\n
Cost of sales
(498)
(26)
(524)
(472)
\u2212
(472)
\n
Gross profit/(loss)
643
(26)
617
581
\u2212
581
\n
Total operating expenses
(215)
(57)
(272)
(186)
(44)
(230)
\n
Segment result
428
(83)
345
395
(44)
351
\n
2022
\n
Core results
\n
2022
\n
Exceptional items
\n
and other
\n
adjustments
\n
(Note 6)
\n
2022
\n
Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional items
\n
and other
\n
adjustments
\n
(Note 6)
\n
2021
\n
Reported
\n
results
\n
Branded
$m
$m
$m
$m
$m
$m
\n
Revenue
691
\u2212
691
669
\u2212
669
\n
Cost of sales
(341)
\u2212
(341)
(341)
\u2212
(341)
\n
Gross profit/(loss)
350
\u2212
350
328
\u2212
328
\n
Total operating expenses
(204)
(10)
(214)
(203)
(21)
(224)
\n
Segment result
146
(10)
136
125
(21)
104
\n
2022
\n
Core results
\n
2022
\n
Exceptional items
\n
and other
\n
adjustments
\n
(Note 6)
\n
2022
\n
Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional items
\n
and other
\n
adjustments
\n
(Note 6)
\n
2021
\n
Reported
\n
results
\n
Generics
$m
$m
$m
$m
$m
$m
\n
Revenue
672
\u2212
672
820
\u2212
820
\n
Cost of sales
(406)
(1)
(407)
(432)
\u2212
(432)
\n
Gross profit/(loss)
266
(1)
265
388
\u2212
388
\n
Total operating expenses
(163)
(219)
(382)
(186)
15
(171)
\n
Segment result
103
(220)
(117)
202
15
217
\n
2022
\n
Core results
\n
2022
\n
Exceptional items
\n
and other
\n
adjustments
\n
(Note 6)
\n
2022
\n
Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional items
\n
and other
\n
adjustments
\n
(Note 6)
\n
2021
\n
Reported
\n
results
\n
Others\u00b9
$m
$m
$m
$m
$m
$m
\n
Revenue
13
\u2212
13
11
\u2212
11
\n
Cost of sales
(6)
\u2212
(6)
(6)
\u2212
(6)
\n
Gross profit/(loss)
7
\u2212
7
5
\u2212
5
\n
Total operating expenses
(4)
\u2212
(4)
(3)
\u2212
(3)
\n
Segment result
3
\u2212
3
2
\u2212
2
\n
1.
Others mainly comprises Arab Medical Containers LLC and International Pharmaceutical Research Centre LLC ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19260": {
"value": "6. 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
\n
Group\u2019s core performance. Exceptional items have been recognised in accordance with our accounting policy outlined in Note 2, the details are
\n
presented below:
\n
Injectables
Branded
Generics
Unallocated
Total
\n
2022
$m
$m
$m
$m
$m
\n
Exceptional items and other adjustments
\n
Gain from investment divestiture
\u2212
\u2212
\u2212
5
5
\n
Reorganisation costs
SG&A
(2)
(2)
(9)
(1)
(14)
\n
Impairment charge on property, plant and equipment and right-of-use assets
Other operating expenses
(4)
\u2212
(76)
\u2212
(80)
\n
Impairment charge on intangible assets
Other operating expenses
(8)
\u2212
(93)
\u2212
(101)
\n
Intangible assets amortisation other than software
SG&A
(43)
(8)
(41)
\u2212
(92)
\n
Unwinding of acquisition related inventory step-up
Cost of sales
(26)
\u2212
(1)
\u2212
(27)
\n
Remeasurement of contingent consideration
Finance income
\u2212
\u2212
\u2212
26
26
\n
Unwinding of contingent consideration and other financial liability
Finance expense
\u2212
\u2212
\u2212
(4)
(4)
\n
Exceptional items and other adjustments included in profit before tax
(83)
(10)
(220)
26
(287)
\n
Tax effect
Tax
69
\n
Impact on profit for the year
(218)
\n
Exceptional items and other adjustments
\n
\u2013
Gain from investment divestiture: represents $8 million from reclassification of translation gains previously included in other comprehensive
\n
income and the $3 million loss on disposal of Hikma Liban S.A.R.L.
\n
\u2013
Reorganisation costs: $14 million of reorganisation costs relate to a one-off global restructuring to align staffing levels with current business
\n
conditions. Management expects to finish the restructuring in 2023
\n
\u2013
Impairment charge on property, plant and equipment and right-of-use assets: $80 million of impairment charge relates to excess capacity and
\n
the rationalisation of the R&D pipeline associated production lines mainly in the Generics CGU, in addition to the impairment of generic Advair
\n
Diskus\u00ae CGU related property, plant and equipment (Notes 9, 16, 17 and 34)
\n
\u2013
Impairment charge on intangible assets: $101 million impairment charge mainly relates to the generic Advair Diskus\u00ae CGU, other product related
\n
intangible assets and marketing rights mainly resulting from decline in performance and forecasted profitability and the rationalisation of the
\n
R&D pipeline in the Generics CGU (Notes 9, 16 and 36)
\n
\u2013
Intangible assets amortisation other than software: $92 million intangible assets amortisation other than software
\n
\u2013
Unwinding of acquisition related inventory step-up: $27 million unwinding of acquisition related inventory step-up reflects the unwinding of the
\n
fair value uplift of the inventory acquired as part of Custopharm Topco Holdings, Inc. business combination and the Teligent Inc. Canadian
\n
assets acquisition ($25 million and $2 million, respectively) (Note 36)
\n
\u2013
Remeasurement of contingent consideration finance income represents the income resulting from the valuation of the liabilities associated with
\n
the future contingent payments in respect of contingent consideration recognised through business combinations (Notes 27, 29 and 30)
\n
\u2013
Unwinding of contingent consideration and other financial liability finance expense represents the expense resulting from the unwinding and
\n
the valuation of the liabilities associated with the future contingent payments in respect of contingent consideration recognised through
\n
business combinations and the financial liability in relation to the co-development earnout payment agreement (Notes 27, 29 and 30)
\n
Tax effect
\n
\u2013
The tax effect represents the tax effect on pre-tax exceptional items and other adjustments which is calculated based on the applicable tax rate
\n
in each jurisdiction
\n
\n
In the previous year, exceptional items and other adjustments were related to the following:
\n
Injectables
Branded
Generics
Unallocated
Total
\n
2021
$m
$m
$m
$m
$m
\n
Exceptional items and other adjustments
\n
Intangible assets write-down
Other operating expenses
(1)
(11)
(1)
\u2212
(13)
\n
Impairment reversal of product related intangibles
Other operating income
\u2212
\u2212
60
\u2212
60
\n
Impairment of product related intangibles
Other operating expenses
(10)
\u2212
(14)
\u2212
(24)
\n
Intangible assets amortisation other than software
SG&A
(33)
(10)
(30)
\u2212
(73)
\n
Remeasurement of contingent consideration
Finance income
\u2212
\u2212
\u2212
29
29
\n
Unwinding and remeasurement of contingent consideration
\n
and other financial liability
Finance expense
\u2212
\u2212
\u2212
(13)
(13)
\n
Exceptional items and other adjustments included in profit before tax
(44)
(21)
15
16
(34)
\n
Tax effect
Tax
5
\n
Impact on profit for the year
(29)
\n
Exceptional items and other adjustments
\n
\u2013
Intangible assets write-down: $13 million write-down of software represented year 2020 impact of the application of the IFRIC April 2021 agenda
\n
decisions regarding cloud computing arrangement customisation and configuration costs treatment. The Group has adopted the IFRIC update
\n
as a change in accounting policy. The impact relating to year 2020 was not material and therefore the application was not retrospectively
\n
applied and was recognised in 2021 consolidated income statement as an exceptional item
\n
\u2013
Impairment reversal of product related intangibles: $60 million impairment reversal mainly related to generic Advair Diskus\u00ae intangible asset as
\n
a result of launching the product following FDA approval in April 2021 following an amendment submitted to its Abbreviated New Drug
\n
Application in January 2021 (Note 16)
\n
\u2013
Impairment of product related intangibles: $24 million impairment charge of different product related intangibles due to a decline in
\n
performance and forecasted profitability (Note 16)
\n
\u2013
Intangible assets amortisation other than software: $73 million intangible assets amortisation other than software
\n
\u2013
Remeasurement of contingent consideration finance income of $29 million represented the income resulting from the valuation of the liabilities
\n
associated with the future contingent payments in respect of contingent consideration recognised through business combinations (Notes 27,
\n
29 and 30)
\n
\u2013
Unwinding and remeasurement of contingent consideration and other financial liability finance expense of $13 million represented the expense
\n
resulting from the unwinding and the valuation of the liabilities associated with the future contingent payments in respect of contingent
\n
consideration recognised through business combinations and the financial liability in relation to the co-development earnout payment
\n
agreement (Notes 27, 29 and 30)
\n
Tax effect
\n
\u2013
The tax effect represented the tax effect on pre-tax exceptional items and other adjustments which is calculated based on the applicable tax
\nrate in each jurisdiction ",
"dimensions": {
"concept": "hik:DisclosureOfExceptionalItemsAndOtherAdjustmentsExplanatoryTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19517": {
"value": "7. Audit remuneration
The Group auditor\u2019s remuneration on a worldwide basis is as below:
\n
2022
2021
\n
1
\n
$m
$m
\n
Fees to the auditor for the audit of the annual accounts
1.4
1.4
\n
Fees to the auditor and its associates for the audit of the Group\u2019s subsidiaries
2.3
2.0
\n
Total audit fees
3.7
3.4
\n
Audit related assurance services
\n
2
\n
0.2
0.2
\n
Total audit and non-audit fees
3.9
3.6
\n
1.
Amounts have been restated to reflect final amounts billed in relation to 2021
\n
2.
Assurance services relate to review procedures in respect to the interim financial information
\n
A description of the work of the Audit Committee is set out in the Audit Committee report on pages 89 to 92 and includes an explanation of how
\nauditor objectivity and independence is safeguarded when non-audit services are provided by the auditor. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19549": {
"value": "8. Staff costs
The average monthly number of employees (including Executive Directors) was:
\n
2022
2021
\n
Number
Number
\n
Production
5,071
4,924
\n
Sales, general and administration
3,234
3,273
\n
Research and development
530
506
\n
8,835
8,703
\n
2022
2021
\n
$m
$m
\n
Aggregate remuneration comprised:
\n
Wages, salaries and bonuses
411
407
\n
Social security costs
37
38
\n
Post-employment benefits
16
15
\n
End of service indemnity
20
9
\n
Share-based payments (Note 38)
22
29
\n
Car and housing allowances
22
22
\n
Health insurance
42
41
\n
Other costs and employee benefits
23
22
\n
593
583",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19615": {
"value": "9. Other operating income/expenses
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
Other operating expense
$m
$m
$m
$m
$m
$m
\n
Impairment charge
1
181
182
1
24
25
\n
Intangible assets write-down
\u2212
\u2212
\u2212
\u2212
13
13
\n
Loss on disposal/damage of property, plant and equipment
1
\u2212
1
1
\u2212
1
\n
Forex and net monetary hyperinflation losses, net
20
\u2212
20
36
\u2212
36
\n
Others
3
\u2212
3
2
\u2212
2
\n
25
181
206
40
37
77
\n
Impairment charges of $182 million primarily related to excess capacity due to the rationalisation of the Generics R&D pipeline and associated
\n
production lines in addition to the impairment of generic Advair Diskus CGU (Notes 6, 16, 17, 34 and 36). In 2021, the impairment charge of $25
\n
million mainly related to certain product related intangible assets.
\n
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
Other operating income
$m
$m
$m
$m
$m
$m
\n
Gain from disposal of property, plant and equipment
1
\u2212
1
\u2212
\u2212
\u2212
\n
Gain from disposal of intangible assets
6
\u2212
6
\u2212
\u2212
\u2212
\n
Impairment reversal of intangible assets
\u2212
\u2212
\u2212
\u2212
60
60
\n
Others
7
\u2212
7
2
\u2212
2
\n
14
\u2212
14
2
60
62
\nIn 2021, $60 million impairment reversal mainly related to generic Advair Diskus\u00ae CGU (Notes 6 and 16). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19616": {
"value": "9. Other operating income/expenses
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
Other operating expense
$m
$m
$m
$m
$m
$m
\n
Impairment charge
1
181
182
1
24
25
\n
Intangible assets write-down
\u2212
\u2212
\u2212
\u2212
13
13
\n
Loss on disposal/damage of property, plant and equipment
1
\u2212
1
1
\u2212
1
\n
Forex and net monetary hyperinflation losses, net
20
\u2212
20
36
\u2212
36
\n
Others
3
\u2212
3
2
\u2212
2
\n
25
181
206
40
37
77
\n
Impairment charges of $182 million primarily related to excess capacity due to the rationalisation of the Generics R&D pipeline and associated
\n
production lines in addition to the impairment of generic Advair Diskus CGU (Notes 6, 16, 17, 34 and 36). In 2021, the impairment charge of $25
\n
million mainly related to certain product related intangible assets.
\n
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
Other operating income
$m
$m
$m
$m
$m
$m
\n
Gain from disposal of property, plant and equipment
1
\u2212
1
\u2212
\u2212
\u2212
\n
Gain from disposal of intangible assets
6
\u2212
6
\u2212
\u2212
\u2212
\n
Impairment reversal of intangible assets
\u2212
\u2212
\u2212
\u2212
60
60
\n
Others
7
\u2212
7
2
\u2212
2
\n
14
\u2212
14
2
60
62
\nIn 2021, $60 million impairment reversal mainly related to generic Advair Diskus\u00ae CGU (Notes 6 and 16).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19617": {
"value": "9. Other operating income/expenses
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
Other operating expense
$m
$m
$m
$m
$m
$m
\n
Impairment charge
1
181
182
1
24
25
\n
Intangible assets write-down
\u2212
\u2212
\u2212
\u2212
13
13
\n
Loss on disposal/damage of property, plant and equipment
1
\u2212
1
1
\u2212
1
\n
Forex and net monetary hyperinflation losses, net
20
\u2212
20
36
\u2212
36
\n
Others
3
\u2212
3
2
\u2212
2
\n
25
181
206
40
37
77
\n
Impairment charges of $182 million primarily related to excess capacity due to the rationalisation of the Generics R&D pipeline and associated
\n
production lines in addition to the impairment of generic Advair Diskus CGU (Notes 6, 16, 17, 34 and 36). In 2021, the impairment charge of $25
\n
million mainly related to certain product related intangible assets.
\n
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
Other operating income
$m
$m
$m
$m
$m
$m
\n
Gain from disposal of property, plant and equipment
1
\u2212
1
\u2212
\u2212
\u2212
\n
Gain from disposal of intangible assets
6
\u2212
6
\u2212
\u2212
\u2212
\n
Impairment reversal of intangible assets
\u2212
\u2212
\u2212
\u2212
60
60
\n
Others
7
\u2212
7
2
\u2212
2
\n
14
\u2212
14
2
60
62
\nIn 2021, $60 million impairment reversal mainly related to generic Advair Diskus\u00ae CGU (Notes 6 and 16). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19754": {
"value": "10. Finance income
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
$m
$m
$m
$m
$m
$m
\n
Interest income
3
\u2212
3
1
\u2212
1
\n
Remeasurement of contingent consideration
\n
(Notes 27 and 30)
\u2212
26
26
\u2212
29
29
\n
3
26
29
1
29
30
\n
\n
\n
11. Finance expense
\n
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
$m
$m
$m
$m
$m
$m
\n
Interest on bank overdrafts and loans
37
\u2212
37
21
\u2212
21
\n
Interest on Eurobond
18
\u2212
18
18
\u2212
18
\n
Unwinding and remeasurement of contingent consideration
\n
and other financial liabilities (Notes 27 and 30)
\u2212
4
4
\u2212
13
13
\n
Other bank charges
11
\u2212
11
13
\u2212
13
\n
Lease accretion of interest
4
\u2212
4
4
\u2212
4
\n
Net foreign exchange loss
7
\u2212
7
\u2212
\u2212
\u2212
\n
77
4
81
56
13
69",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19755": {
"value": "10. Finance income
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
$m
$m
$m
$m
$m
$m
\n
Interest income
3
\u2212
3
1
\u2212
1
\n
Remeasurement of contingent consideration
\n
(Notes 27 and 30)
\u2212
26
26
\u2212
29
29
\n
3
26
29
1
29
30",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19831": {
"value": "11. Finance expense
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
$m
$m
$m
$m
$m
$m
\n
Interest on bank overdrafts and loans
37
\u2212
37
21
\u2212
21
\n
Interest on Eurobond
18
\u2212
18
18
\u2212
18
\n
Unwinding and remeasurement of contingent consideration
\n
and other financial liabilities (Notes 27 and 30)
\u2212
4
4
\u2212
13
13
\n
Other bank charges
11
\u2212
11
13
\u2212
13
\n
Lease accretion of interest
4
\u2212
4
4
\u2212
4
\n
Net foreign exchange loss
7
\u2212
7
\u2212
\u2212
\u2212
\n
77
4
81
56
13
69",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19909": {
"value": "12. Tax
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022 Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021 Reported
\n
results
\n
$m
$m
$m
$m
$m
$m
\n
Current tax
\n
Current year
121
(16)
105
114
(7)
107
\n
Adjustment to prior years
(1)
\u2212
(1)
(13)
\u2212
(13)
\n
Deferred tax (Note 13)
\n
Current year
(5)
(53)
(58)
20
2
22
\n
Adjustment to prior year
(4)
\u2212
(4)
8
\u2013
8
\n
111
(69)
42
129
(5)
124
\n
UK corporation tax is calculated at 19.0% (2021: 19.0%).
\n
The Group incurred a tax expense of $42 million (2021: $124 million), the effective tax rate is 18.0% (2021: 22.8%). The reported effective tax rate is
\n
lower than the statutory rate due to the change in earnings mix, primarily as a result of the impairment in the Generics business in the US.
\n
Taxation for all jurisdictions is calculated at the rates prevailing in the respective jurisdiction.
\n
The charge for the year can be reconciled to profit before tax per the consolidated income statement as follows:
\n
2022
2021
\n
$m
$m
\n
Profit before tax
233
544
\n
Tax at the UK corporation tax rate of 19.0% (2021: 19.0%)
44
104
\n
Profits taxed at different rates
4
7
\n
Permanent differences:
\n
\u2013
Non-deductible expenditure
\n
3
5
\n
\u2013
Other permanent differences
\n
2
2
\n
\u2013
Research and development benefit
(5)
(6)
\n
State and local taxes
(2)
7
\n
Temporary differences:
\n
\u2013
Rate change, tax losses and other deductible temporary differences for which no benefit is recognised
(5)
5
\n
Change in uncertain tax positions
10
2
\n
Unremitted earnings
(4)
3
\n
Prior year adjustments
(5)
(5)
\n
Tax expense for the year
42
124
\n
\n
Profits taxed at different tax rates relate to profits arising in overseas jurisdictions where the tax rate differs from the UK statutory rate. Permanent
\n
differences relate to items which are non-taxable or for which no tax relief is ever likely to be due. The major items are expenses and income
\n
disallowed where they are covered by statutory exemptions, foreign exchange differences in some territories and statutory reliefs such as research
\n
and development.
\n
Rate change, tax losses and other deductible temporary differences for which no benefit is recognised include items for which it is not appropriate
\n
to recognise deferred tax.
\n
The change in the uncertain tax positions relates to the balance the Group holds in the event a revenue authority successfully takes an adverse
\n
view of the positions adopted by the Group in 2022 and prior years, and primarily relates to transfer pricing adjustment. As at 31 December 2022,
\n
the Group\u2019s uncertain tax positions amounted to $50 million (2021: $44 million). The Group released $3 million in 2022 (2021: $ nil million) due to
\n
the statute of limitations and released $2 million (2021: $7 million) following closure of tax audit with no final tax adjustments required by the
\n
relevant tax authorities, this was offset by new provisions and updates of $15 million booked in 2022 (2021: $9 million) arising from new and
\n
ongoing tax audits. $3 million of the reported balance is no longer considered as uncertain tax position (2021: $nil million) and had no impact on
\n
the consolidated income statement. The currency exchange difference for the year is a $1 million reduction (2021: $1 million reduction) to the
\n
aggregate balance. In 2023, no provision is expected to be released due to the statute of limitation or settlements. If all areas of uncertainty were
\n
audited and all areas resulted in an adverse outcome, management does not believe any material additional tax would be payable beyond what
\n
is provided.
\n
Prior year adjustments include differences between the tax liability recorded in the tax returns submitted for previous years and the estimated tax
\n
provision reported in a prior year\u2019s consolidated financial statements. This category also includes adjustments to the tax returns (favourable)
\n
against which an adverse uncertain tax position has been booked and included under \u2018change in uncertain tax positions\u2019 above.
\n
Global minimum tax
\n
During 2021, the OECD published a framework for the introduction of a global minimum effective tax rate of 15%, applicable to large multinational
\n
groups. On 20 July 2022, HM Treasury released draft legislation to implement these \u2018Pillar 2\u2019 rules with effect for accounting periods beginning on
\n
or after 31 December 2023. The Group is reviewing these draft rules to understand any potential impact.
\n
US Section 174 Update
\n
Effective 1 January 2022, section 174 rules in the US require taxpayers to capitalise and amortise specific research or experimental expenditures
\n
over a period of five years (attributable to domestic research) or 15 years (attributable to foreign research). Previously, such expenditures were
\n
deducted in the year paid or incurred.
\n
Implementation of UAE Corporation Tax Law and application of IAS 12 Income Taxes
\n
On 9 December 2022, the UAE Ministry of Finance released Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses to
\n
enact a Federal corporate tax regime in the UAE. The Corporate Tax regime will become effective for accounting periods beginning on or after 1
\n
June 2023. Generally, UAE businesses will be subject to a 9% corporate tax rate, while a rate of 0% will apply to taxable income not exceeding a
\n
particular threshold to be prescribed by way of a Cabinet Decision (expected to be AED 375,00 based on information released by the Ministry of
\n
Finance). On the other hand, no Corporate Tax shall be imposed on a Qualifying Free Zone Person/Entity.
\n
However, there are a number of significant decisions that are yet to be finalised by way of a Cabinet Decision, including the threshold mentioned
\n
above, that are critical for entities to determine their tax status and the amount of tax due. Therefore, pending such important decisions by the
\n
Cabinet, the Group has determined that the Law was not practically operational as at 31 December 2022, and so not enacted or substantively
\n
enacted from the perspective of IAS 12 \u2013 Income Taxes. The Group shall continue to monitor the timing of the issuance of these critical Cabinet
\n
Decisions to determine its tax status and the applicability of IAS 12 \u2013 Income Taxes. The Group is currently in the process of assessing the possible
\n
impact on its financial statements, both from current and deferred tax perspective, once the Law becomes substantively enacted.
\n
Publication of tax strategy
\n
In line with the UK requirement for large UK businesses to publish their tax strategy, the Group\u2019s tax strategy has been made available on the
\nGroup\u2019s website.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20111": {
"value": "13. Deferred tax
Deferred tax assets and liabilities have been offset where it is appropriate to do so. The following is the analysis of the deferred tax balances (after
\n
offset) for financial reporting purposes:
\n
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Deferred tax liabilities
(19)
(24)
\n
Deferred tax assets
192
183
\n
173
159
\n
The table below represents the deferred tax movement in 2022:
\n
Product
\n
related
\n
provision
\n
Intangible
\n
assets
\n
Other provisions
\n
and accruals
\n
Unremitted
\n
earnings
Others
Total
\n
$m
$m
$m
$m
$m
$m
\n
1 January 2022
94
77
12
(8)
(16)
159
\n
Credit/(charge) to income
(5)
21
3
4
39
62
\n
Acquisition of subsidiary
(5)
(53)
1
\u2212
11
(46)
\n
Currency translation and hyperinflation impact
(1)
1
\u2212
\u2212
(2)
(2)
\n
At 31 December 2022
83
46
16
(4)
32
173
\n
The table below represents the deferred tax movement in 2021:
\n
Product
\n
related
\n
provision
\n
Intangible
\n
assets
\n
Other provisions
\n
and accruals
\n
Unremitted
\n
earnings
Others
Total
\n
$m
$m
$m
$m
$m
$m
\n
1 January 2021
111
76
18
(11)
(4)
190
\n
Credit/(charge) to income
(17)
\u2212
(6)
3
(10)
(30)
\n
Currency translation and hyperinflation impact
\u2212
1
\u2212
\u2212
(2)
(1)
\n
At 31 December 2021
94
77
12
(8)
(16)
159
\n
The Group has a potential deferred tax asset of $246 million (2021: $234 million), of which $192 million (2021: $183 million) has been recognised.
\n
No deferred tax asset has been recognised on gross temporary differences totalling $223 million (2021: $208 million) mainly due to the
\n
unpredictability of the related future profit streams. $195 million (2021: $194 million) of these gross temporary differences relate to losses, of which
\n
$189 million are UK losses that don\u2019t expire. No deferred tax is recognised against the losses due to significant uncertainty regarding future taxable
\n
income forecasts in the relevant jurisdictions. $1 million of non-UK losses are expected to expire in 2023. The remaining $28 million represent
\n
other unrecognised gross short-term temporary differences that relate to multiple jurisdictions.
\n
During the year a reduction in the deferred tax liability has been recognised on temporary differences relating to the unremitted earnings of
\n
overseas subsidiaries of $4 million (2021: reduction of $3 million). No deferred tax liability has been recognised on the remaining unremitted
\n
earnings of $294 million (2021: $207 million), as the Group is able to control the timing of the reversal of these temporary differences and it is
\n
probable that they will not reverse in the foreseeable future.
\n
Other deferred taxes mainly relate to property, plant and equipment as well as the difference between book and tax bases in relation to the
\n
research and development expenditures. The current year increase is driven by the effect of change in US tax law (section 174), whereby the tax
\n
base of certain research and development expenditures were capitalised and amortised over a period of time, thereby resulting in a deferred tax
\n
asset. Moreover, the impairment of certain property, plant and equipment within the US Generics business has also resulted in an increase in
\ndeferred tax assets.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20259": {
"value": "14. Dividends
Paid in
\n
2022
\n
Paid in
\n
2021
\n
$m
$m
\n
Amounts recognised as distributions to equity holders in the year:
\n
Final dividend for the year ended 31 December 2021 of 36 cents (31 December 2020: 34 cents) per share
83
78
\n
Interim dividend during the year ended 31 December 2022 of 19 cents (31 December 2021: 18 cents) per share
42
42
\n
125
120
\n
The proposed final dividend for the year ended 31 December 2022 is 37 cents (2021: 36 cents).
\n
The proposed final dividend is subject to approval by shareholders at the Annual General Meeting on 28 April 2023 and has not been included as a
\n
liability in these consolidated financial statements. Based on the number of shares in free issue at 31 December 2022 (220,235,852), the final
\ndividend would be $81 million.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20282": {
"value": "15. Earnings per share (EPS)
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of
\n
Ordinary Shares. Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders by the weighted average number of the
\n
Ordinary Shares outstanding during the year plus the weighted average number of Ordinary Shares that would be issued on conversion of all
\n
potentially dilutive Ordinary Shares. The number of Ordinary Shares used for the basic and diluted calculations is shown in the table below. Core
\n
basic earnings per share and core diluted earnings per share are intended to highlight the core results of the Group before exceptional items and
\n
other adjustments.
\n
2022
\n
Core results
\n
2022
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2022
\n
Reported
\n
results
\n
2021
\n
Core results
\n
2021
\n
Exceptional
\n
items and other
\n
adjustments
\n
(Note 6)
\n
2021
\n
Reported
\n
results
\n
$m
$m
$m
$m
$m
$m
\n
Earnings for the purposes of basic and diluted EPS being
\n
net profit attributable to equity holders of the parent
406
(218)
188
450
(29)
421
\n
Basic earnings per share has been calculated by dividing the profit attributable to shareholders by the weighted average number of shares in issue
\n
during the year after deducting Treasury shares. Treasury shares have no right to receive dividends.
\n
The numbers of shares used in calculating basic and diluted earnings per share are reconciled below:
\n
2022
2021
\n
Number
Number
\n
Number of shares
m
m
\n
Weighted average number of Ordinary Shares for the purposes of basic EPS\u00b9
224
231
\n
Effect of potentially dilutive Ordinary Shares:
\n
Share-based awards
1
2
\n
Weighted average number of Ordinary Shares for the purposes of diluted EPS
225
233
\n
1.
Weighted average number of Ordinary shares has been calculated by the weighted average number of shares in issue during the year after deducting Treasury shares (Note 31)
\n
2022
\n
Core
\n
EPS
\n
2022
\n
Reported
\n
EPS
\n
2021
\n
Core
\n
EPS
\n
2021
\n
Reported
\n
EPS
\n
Cents
Cents
Cents
Cents
\n
Basic
181.3
83.9
194.8
182.3
\n
Diluted
180.4
83.6
193.1
180.7",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20396": {
"value": "16. Goodwill and other intangible assets
The changes in the carrying value of goodwill and other intangible assets for the years ended 31 December 2022 and 31 December 2021 are as follows:
\n
Goodwill
Other intangible assets
\n
Product
\n
related
\n
intangible
\n
assets
Software
\n
Other
\n
identified
\n
intangibles
Total
\n
$m
$m
$m
$m
$m
\n
Cost
\n
Balance at 1 January 2021
697
1,041
145
205
2,088
\n
Write-down
\u2212
\u2212
(14)
\u2212
(14)
\n
Additions
\u2212
14
11
58
83
\n
Reclassification
\u2212
3
\u2212
(3)
\u2212
\n
Translation adjustments
(4)
(2)
\u2212
(3)
(9)
\n
Balance at 1 January 2022
693
1,056
142
257
2,148
\n
Additions
\u2212
48
1
36
85
\n
Disposals
\u2212
\u2212
\u2212
(3)
(3)
\n
Translation adjustments
(15)
(5)
(2)
(5)
(27)
\n
Acquisition of subsidiaries (Note 36)
119
251
\u2212
\u2212
370
\n
Balance at 31 December 2022
797
1,350
141
285
2,573
\n
Accumulated amortisation and impairment
\n
Balance at 1 January 2021
(408)
(629)
(81)
(94)
(1,212)
\n
Write-down
\u2212
\u2212
1
\u2212
1
\n
Charge for the year
\u2212
(59)
(11)
(14)
(84)
\n
Impairment reversal
\u2212
60
\u2212
\u2212
60
\n
Impairment charge
\u2212
(23)
\u2212
(1)
(24)
\n
Translation adjustments
\u2212
1
\u2212
2
3
\n
Balance at 1 January 2022
(408)
(650)
(91)
(107)
(1,256)
\n
Charge for the year
\u2212
(75)
(8)
(17)
(100)
\n
Impairment charge
\u2212
(72)
(1)
(29)
(102)
\n
Translation adjustments
\u2212
4
2
3
9
\n
Balance at 31 December 2022
(408)
(793)
(98)
(150)
(1,449)
\n
Carrying amount
\n
At 31 December 2022
389
557
43
135
1,124
\n
At 31 December 2021
285
406
51
150
892
\n
Of the total intangible assets other than goodwill, $115 million (2021: $132 million) are under development and not yet subject to amortisation.
\n
The addition of product related intangible assets during the year mainly relates to the acquisition of the Canadian assets of Teligent Inc (Note 36).
\n
Goodwill
\n
Goodwill represents the excess of the aggregate of consideration, non-controlling interest and any fair value of previously held equity interest over
\n
the fair value of the identifiable net assets acquired (including acquired contingent liabilities). Goodwill is allocated at acquisition to the CGUs that
\n
are expected to benefit from that business combination. The goodwill of $119 million arising from the acquisition of Custopharm Topco Holdings,
\n
Inc. has been allocated to the Injectables CGU reflecting the integration of the business, as Custopharm Topco Holdings, Inc. will not be able to
\n
generate cash inflows that are independent from the injectables CGU (Note 36).
\n
The carrying amount of goodwill has been allocated as follows:
\n
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Branded
160
170
\n
Injectables
229
115
\n
Total
389
285
\n
In accordance with the Group policy, goodwill is tested annually for impairment during the fourth quarter or more frequently if there are indicators
\n
that goodwill may be impaired.
\n
\n
CGUs
\n
Details related to the discounted cash flow models used in the impairment tests of the CGUs are as follows:
\n
Terminal
\n
growth rate
\n
(perpetuity)
Discount rate
\n
Valuation basis
2022
2021
2022
2021
\n
Valuation basis, terminal
\n
growth rate and discount rate
\n
Branded
VIU
2.2%
2.4%
17.7%
15.4%
Pre\u2212tax
\n
Injectables
VIU
1.6%
2.1%
12.0%
10.2%
Pre\u2212tax
\n
Generics
FVLCD
2.1%
2.3%
9.1%
8.0%
Post\u2212tax
\n
Generic Advair Diskus\u00ae
FVLCD
\u2013\u00b9
\u2013\u00b9
9.1%
8.0%
Post\u2212tax
\n
Key assumptions
Projected cash flows based on:
\n
\u2013
Sales growth rates, informed by pricing and volume assumptions
\n
\u2013
Profit margins and profit margin growth rates for marketed and pipeline products
\n
\u2013
Expected launch dates for pipeline products
\n
Terminal growth rates
\n
Discount rates
\n
Determination of
\n
assumptions
\n
Growth rates are internal forecasts based on both internal and external market information, informed by historical
\n
experience and management\u2019s best estimates of the future
\n
Margins reflect past experience, adjusted for expected changes in the future
\n
Establishing the launch date and probability of a successful product approval for pipeline products
\n
Terminal growth rates and useful lives are based on the Group\u2019s experience in its markets
\n
Discount rates for each CGU are derived from specific regions/countries
\n
Period of specific projected
\n
cash flows
\n
5 years
\n
1.
generic Advair Diskus\u00ae has a remaining useful life of 14 years (2021: 15 years)
\n
The Group performed its annual goodwill and CGU impairment test by calculating the recoverable amount based on discounted cash flows by
\n
applying an appropriate discount rate that reflects the risk factors associated with the cash flows and the CGUs under which these products sit.
\n
These values are then compared to the carrying value of the CGUs to determine whether an impairment is required. In addition, the Group models
\n
sensitivities on the recoverable amounts calculated to determine whether reasonable changes in key assumptions could lead to a potential
\n
impairment. If such reasonable changes would result in an impairment, then in accordance with IAS36 these are disclosed below. For the Branded,
\n
Injectables and Generics CGUs the Group has determined that sufficient headroom
\n
1
\n
still exists under reasonable changes in key assumptions.
\n
Specifically, an evaluation of the CGUs was made assuming an increase of two percentage points in the discount rate, or a 10% decline in the
\n
projected cash flows, or a 5% decline in the projected cash flows in the terminal year or assuming zero terminal growth rate and in all cases
\n
sufficient headroom exists.
\n
The Group evaluated generic Advair Diskus\u00ae as a separate CGU, mainly due to its distinct assets and liabilities and its ability to generate largely
\n
independent cash flows.
\n
The Group evaluated the generic Advair Diskus\u00ae CGU recoverable amount based on a FVLCD model, being the higher value compared to VIU.
\n
The evaluation resulted in an impairment of $75 million ($59 million was allocated to intangible assets and $16 million to property, plant and
\n
equipment on a pro-rata basis (Note 17)) due to the decline in performance and forecasted profitability, bringing the revised carrying value to
\n
$75 million. This valuation methodology uses significant inputs which are not based on observable market data; therefore, this valuation technique
\n
is classified as a level 3 valuation.
\n
The Group performed sensitivity analysis over the valuation of the generic Advair Diskus\u00ae CGU. The sensitivity analysis assumed an increase of
\n
two percentage points in the discount rate or a 10% decline in the projected cash flows. Applying those sensitivities would result in a further
\n
impairment charge against the generic Advair Diskus\u00ae CGU of approximately $4 million and $7 million, respectively.
\n
Climate-related matters: The Group monitors the development of climate related risks. At the current time, climate change is not expected to have
\n
a material impact on the consolidated financial statements (see page 52). The Group conducted a sensitivity for the potential impact of climate
\n
change; such a scenario had a minimal impact on the recoverable amount of all CGUs.
\n
1.
Headroom is defined as the excess of the recoverable amount, over the carrying value of a CGU
\n
\n
\n\n
Product-related intangible assets
\n
In-Process Research and Development (IPR&D)
\n
IPR&D consists of pipeline products of $22 million mainly related to the injectables CGU. These intangibles are not in use and accordingly, no
\n
amortisation has been charged against them. The Group performs an impairment review of IPR&D assets annually. The result of this test was an
\n
impairment charge of $8 million in the Injectables CGU mainly due to the discontinuation of certain products (2021: $9 million in the Injectables CGU).
\n
Product rights
\n
Product rights consists of marketed products of $533 million (2021: $400 million) includes one product in the Injectables CGU of $140 million,
\n
in addition to generic Advair Diskus\u00ae of $97 million (2021: $173 million). The product rights have an average estimated useful life of 12 years.
\n
Whenever impairment indicators are identified for definite life intangible assets, Hikma reconsiders the asset\u2019s estimated economic benefit,
\n
calculates the value of the individual assets or asset group\u2019s cash flows and compares such value against the individual asset\u2019s or asset group\u2019s
\n
carrying amount. If the carrying amount is greater, the Group records an impairment loss for the excess of book value over the valuation which is
\n
based on the discounted cash flows by applying an appropriate discount rate that reflects the risk factors associated with the cash flows and the
\n
CGUs under which these products sit. Furthermore, if there is an indication that previously recognised impairment losses no longer exist or have
\n
decreased, the Group estimates the assets\u2019 recoverable amounts. A previously recognised impairment loss is reversed only if there has been a
\n
sustained and discrete change in the assumptions and indicators used to determine the asset\u2019s recoverable amount since the last impairment
\n
loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the
\n
carrying amount that would have been determined, net of depreciation and amortisation, had no impairment loss been recognised for the asset
\n
in prior years. As at 31 December 2022, the result of this testing was an impairment charge of $64 million (2021: $14 million impairment charge and
\n
$60 million impairment reversal) of which $59 million related to the generic Advair Diskus\u00ae intangible asset (2021: $46 million reversal) due to
\n
decline in performance and forecasted profitability and the remaining amount of $5 million is related to the Generics CGU.
\n
Software
\n
Software intangibles mainly represent the Enterprise Resource Planning solutions that are being implemented in different operations across the
\n
Group in addition to other software applications. The software has an average estimated useful life that varies from three to ten years.
\n
Following a review of impairment indicators for software as at 31 December 2022, there was an impairment charge of $1 million (2021: $nil).
\n
In 2021, the Group recorded a $13 million write-down of software previously capitalised as a result of application of the IFRIC April 2021 agenda
\n
decisions regarding cloud computing arrangement customisation and configuration costs treatment.
\n
Other identified intangibles
\n
Other identified intangibles comprise customer relationships, trade names and marketing rights of $138 million (2021: $150 million). The increase
\n
during the year represents payments made to third parties in relation to marketing rights and licensing agreements. Following a review of
\n
impairment indicators for other identified intangibles as at 31 December 2022, there was an impairment charge of $29 million in the Generics CGU
\n
mainly due to the discontinuation and decline in performance and forecasted profitability of certain marketing rights contracts (2021: $1 million).
\n
Customer relationships
\n
Customer relationships represent the value attributed to existing direct customers that the Group acquired on the acquisition of subsidiaries.
\n
The customer relationships have an average estimated useful life of 15 years.
\n
Trade names
\n
Trade names were mainly recognised on the acquisition of Hikma Germany GmbH (Germany) with estimated useful lives of ten years.
\n
Marketing rights
\n
Marketing rights are amortised over their useful lives commencing in the year in which the rights are ready for use with estimated useful lives
\nvarying from two to ten years.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20397": {
"value": "16. Goodwill and other intangible assets
The changes in the carrying value of goodwill and other intangible assets for the years ended 31 December 2022 and 31 December 2021 are as follows:
\n
Goodwill
Other intangible assets
\n
Product
\n
related
\n
intangible
\n
assets
Software
\n
Other
\n
identified
\n
intangibles
Total
\n
$m
$m
$m
$m
$m
\n
Cost
\n
Balance at 1 January 2021
697
1,041
145
205
2,088
\n
Write-down
\u2212
\u2212
(14)
\u2212
(14)
\n
Additions
\u2212
14
11
58
83
\n
Reclassification
\u2212
3
\u2212
(3)
\u2212
\n
Translation adjustments
(4)
(2)
\u2212
(3)
(9)
\n
Balance at 1 January 2022
693
1,056
142
257
2,148
\n
Additions
\u2212
48
1
36
85
\n
Disposals
\u2212
\u2212
\u2212
(3)
(3)
\n
Translation adjustments
(15)
(5)
(2)
(5)
(27)
\n
Acquisition of subsidiaries (Note 36)
119
251
\u2212
\u2212
370
\n
Balance at 31 December 2022
797
1,350
141
285
2,573
\n
Accumulated amortisation and impairment
\n
Balance at 1 January 2021
(408)
(629)
(81)
(94)
(1,212)
\n
Write-down
\u2212
\u2212
1
\u2212
1
\n
Charge for the year
\u2212
(59)
(11)
(14)
(84)
\n
Impairment reversal
\u2212
60
\u2212
\u2212
60
\n
Impairment charge
\u2212
(23)
\u2212
(1)
(24)
\n
Translation adjustments
\u2212
1
\u2212
2
3
\n
Balance at 1 January 2022
(408)
(650)
(91)
(107)
(1,256)
\n
Charge for the year
\u2212
(75)
(8)
(17)
(100)
\n
Impairment charge
\u2212
(72)
(1)
(29)
(102)
\n
Translation adjustments
\u2212
4
2
3
9
\n
Balance at 31 December 2022
(408)
(793)
(98)
(150)
(1,449)
\n
Carrying amount
\n
At 31 December 2022
389
557
43
135
1,124
\n
At 31 December 2021
285
406
51
150
892
\n
Of the total intangible assets other than goodwill, $115 million (2021: $132 million) are under development and not yet subject to amortisation.
\n
The addition of product related intangible assets during the year mainly relates to the acquisition of the Canadian assets of Teligent Inc (Note 36).
\n
Goodwill
\n
Goodwill represents the excess of the aggregate of consideration, non-controlling interest and any fair value of previously held equity interest over
\n
the fair value of the identifiable net assets acquired (including acquired contingent liabilities). Goodwill is allocated at acquisition to the CGUs that
\n
are expected to benefit from that business combination. The goodwill of $119 million arising from the acquisition of Custopharm Topco Holdings,
\n
Inc. has been allocated to the Injectables CGU reflecting the integration of the business, as Custopharm Topco Holdings, Inc. will not be able to
\n
generate cash inflows that are independent from the injectables CGU (Note 36).
\n
The carrying amount of goodwill has been allocated as follows:
\n
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Branded
160
170
\n
Injectables
229
115
\n
Total
389
285
\n
In accordance with the Group policy, goodwill is tested annually for impairment during the fourth quarter or more frequently if there are indicators
\n
that goodwill may be impaired.
\n
\n
CGUs
\n
Details related to the discounted cash flow models used in the impairment tests of the CGUs are as follows:
\n
Terminal
\n
growth rate
\n
(perpetuity)
Discount rate
\n
Valuation basis
2022
2021
2022
2021
\n
Valuation basis, terminal
\n
growth rate and discount rate
\n
Branded
VIU
2.2%
2.4%
17.7%
15.4%
Pre\u2212tax
\n
Injectables
VIU
1.6%
2.1%
12.0%
10.2%
Pre\u2212tax
\n
Generics
FVLCD
2.1%
2.3%
9.1%
8.0%
Post\u2212tax
\n
Generic Advair Diskus\u00ae
FVLCD
\u2013\u00b9
\u2013\u00b9
9.1%
8.0%
Post\u2212tax
\n
Key assumptions
Projected cash flows based on:
\n
\u2013
Sales growth rates, informed by pricing and volume assumptions
\n
\u2013
Profit margins and profit margin growth rates for marketed and pipeline products
\n
\u2013
Expected launch dates for pipeline products
\n
Terminal growth rates
\n
Discount rates
\n
Determination of
\n
assumptions
\n
Growth rates are internal forecasts based on both internal and external market information, informed by historical
\n
experience and management\u2019s best estimates of the future
\n
Margins reflect past experience, adjusted for expected changes in the future
\n
Establishing the launch date and probability of a successful product approval for pipeline products
\n
Terminal growth rates and useful lives are based on the Group\u2019s experience in its markets
\n
Discount rates for each CGU are derived from specific regions/countries
\n
Period of specific projected
\n
cash flows
\n
5 years
\n
1.
generic Advair Diskus\u00ae has a remaining useful life of 14 years (2021: 15 years)
\n
The Group performed its annual goodwill and CGU impairment test by calculating the recoverable amount based on discounted cash flows by
\n
applying an appropriate discount rate that reflects the risk factors associated with the cash flows and the CGUs under which these products sit.
\n
These values are then compared to the carrying value of the CGUs to determine whether an impairment is required. In addition, the Group models
\n
sensitivities on the recoverable amounts calculated to determine whether reasonable changes in key assumptions could lead to a potential
\n
impairment. If such reasonable changes would result in an impairment, then in accordance with IAS36 these are disclosed below. For the Branded,
\n
Injectables and Generics CGUs the Group has determined that sufficient headroom
\n
1
\n
still exists under reasonable changes in key assumptions.
\n
Specifically, an evaluation of the CGUs was made assuming an increase of two percentage points in the discount rate, or a 10% decline in the
\n
projected cash flows, or a 5% decline in the projected cash flows in the terminal year or assuming zero terminal growth rate and in all cases
\n
sufficient headroom exists.
\n
The Group evaluated generic Advair Diskus\u00ae as a separate CGU, mainly due to its distinct assets and liabilities and its ability to generate largely
\n
independent cash flows.
\n
The Group evaluated the generic Advair Diskus\u00ae CGU recoverable amount based on a FVLCD model, being the higher value compared to VIU.
\n
The evaluation resulted in an impairment of $75 million ($59 million was allocated to intangible assets and $16 million to property, plant and
\n
equipment on a pro-rata basis (Note 17)) due to the decline in performance and forecasted profitability, bringing the revised carrying value to
\n
$75 million. This valuation methodology uses significant inputs which are not based on observable market data; therefore, this valuation technique
\n
is classified as a level 3 valuation.
\n
The Group performed sensitivity analysis over the valuation of the generic Advair Diskus\u00ae CGU. The sensitivity analysis assumed an increase of
\n
two percentage points in the discount rate or a 10% decline in the projected cash flows. Applying those sensitivities would result in a further
\n
impairment charge against the generic Advair Diskus\u00ae CGU of approximately $4 million and $7 million, respectively.
\n
Climate-related matters: The Group monitors the development of climate related risks. At the current time, climate change is not expected to have
\n
a material impact on the consolidated financial statements (see page 52). The Group conducted a sensitivity for the potential impact of climate
\n
change; such a scenario had a minimal impact on the recoverable amount of all CGUs.
\n
1.
Headroom is defined as the excess of the recoverable amount, over the carrying value of a CGU
\n
\n
\n\n
Product-related intangible assets
\n
In-Process Research and Development (IPR&D)
\n
IPR&D consists of pipeline products of $22 million mainly related to the injectables CGU. These intangibles are not in use and accordingly, no
\n
amortisation has been charged against them. The Group performs an impairment review of IPR&D assets annually. The result of this test was an
\n
impairment charge of $8 million in the Injectables CGU mainly due to the discontinuation of certain products (2021: $9 million in the Injectables CGU).
\n
Product rights
\n
Product rights consists of marketed products of $533 million (2021: $400 million) includes one product in the Injectables CGU of $140 million,
\n
in addition to generic Advair Diskus\u00ae of $97 million (2021: $173 million). The product rights have an average estimated useful life of 12 years.
\n
Whenever impairment indicators are identified for definite life intangible assets, Hikma reconsiders the asset\u2019s estimated economic benefit,
\n
calculates the value of the individual assets or asset group\u2019s cash flows and compares such value against the individual asset\u2019s or asset group\u2019s
\n
carrying amount. If the carrying amount is greater, the Group records an impairment loss for the excess of book value over the valuation which is
\n
based on the discounted cash flows by applying an appropriate discount rate that reflects the risk factors associated with the cash flows and the
\n
CGUs under which these products sit. Furthermore, if there is an indication that previously recognised impairment losses no longer exist or have
\n
decreased, the Group estimates the assets\u2019 recoverable amounts. A previously recognised impairment loss is reversed only if there has been a
\n
sustained and discrete change in the assumptions and indicators used to determine the asset\u2019s recoverable amount since the last impairment
\n
loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the
\n
carrying amount that would have been determined, net of depreciation and amortisation, had no impairment loss been recognised for the asset
\n
in prior years. As at 31 December 2022, the result of this testing was an impairment charge of $64 million (2021: $14 million impairment charge and
\n
$60 million impairment reversal) of which $59 million related to the generic Advair Diskus\u00ae intangible asset (2021: $46 million reversal) due to
\n
decline in performance and forecasted profitability and the remaining amount of $5 million is related to the Generics CGU.
\n
Software
\n
Software intangibles mainly represent the Enterprise Resource Planning solutions that are being implemented in different operations across the
\n
Group in addition to other software applications. The software has an average estimated useful life that varies from three to ten years.
\n
Following a review of impairment indicators for software as at 31 December 2022, there was an impairment charge of $1 million (2021: $nil).
\n
In 2021, the Group recorded a $13 million write-down of software previously capitalised as a result of application of the IFRIC April 2021 agenda
\n
decisions regarding cloud computing arrangement customisation and configuration costs treatment.
\n
Other identified intangibles
\n
Other identified intangibles comprise customer relationships, trade names and marketing rights of $138 million (2021: $150 million). The increase
\n
during the year represents payments made to third parties in relation to marketing rights and licensing agreements. Following a review of
\n
impairment indicators for other identified intangibles as at 31 December 2022, there was an impairment charge of $29 million in the Generics CGU
\n
mainly due to the discontinuation and decline in performance and forecasted profitability of certain marketing rights contracts (2021: $1 million).
\n
Customer relationships
\n
Customer relationships represent the value attributed to existing direct customers that the Group acquired on the acquisition of subsidiaries.
\n
The customer relationships have an average estimated useful life of 15 years.
\n
Trade names
\n
Trade names were mainly recognised on the acquisition of Hikma Germany GmbH (Germany) with estimated useful lives of ten years.
\n
Marketing rights
\n
Marketing rights are amortised over their useful lives commencing in the year in which the rights are ready for use with estimated useful lives
\nvarying from two to ten years.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20398": {
"value": "16. Goodwill and other intangible assets
The changes in the carrying value of goodwill and other intangible assets for the years ended 31 December 2022 and 31 December 2021 are as follows:
\n
Goodwill
Other intangible assets
\n
Product
\n
related
\n
intangible
\n
assets
Software
\n
Other
\n
identified
\n
intangibles
Total
\n
$m
$m
$m
$m
$m
\n
Cost
\n
Balance at 1 January 2021
697
1,041
145
205
2,088
\n
Write-down
\u2212
\u2212
(14)
\u2212
(14)
\n
Additions
\u2212
14
11
58
83
\n
Reclassification
\u2212
3
\u2212
(3)
\u2212
\n
Translation adjustments
(4)
(2)
\u2212
(3)
(9)
\n
Balance at 1 January 2022
693
1,056
142
257
2,148
\n
Additions
\u2212
48
1
36
85
\n
Disposals
\u2212
\u2212
\u2212
(3)
(3)
\n
Translation adjustments
(15)
(5)
(2)
(5)
(27)
\n
Acquisition of subsidiaries (Note 36)
119
251
\u2212
\u2212
370
\n
Balance at 31 December 2022
797
1,350
141
285
2,573
\n
Accumulated amortisation and impairment
\n
Balance at 1 January 2021
(408)
(629)
(81)
(94)
(1,212)
\n
Write-down
\u2212
\u2212
1
\u2212
1
\n
Charge for the year
\u2212
(59)
(11)
(14)
(84)
\n
Impairment reversal
\u2212
60
\u2212
\u2212
60
\n
Impairment charge
\u2212
(23)
\u2212
(1)
(24)
\n
Translation adjustments
\u2212
1
\u2212
2
3
\n
Balance at 1 January 2022
(408)
(650)
(91)
(107)
(1,256)
\n
Charge for the year
\u2212
(75)
(8)
(17)
(100)
\n
Impairment charge
\u2212
(72)
(1)
(29)
(102)
\n
Translation adjustments
\u2212
4
2
3
9
\n
Balance at 31 December 2022
(408)
(793)
(98)
(150)
(1,449)
\n
Carrying amount
\n
At 31 December 2022
389
557
43
135
1,124
\n
At 31 December 2021
285
406
51
150
892
\n
Of the total intangible assets other than goodwill, $115 million (2021: $132 million) are under development and not yet subject to amortisation.
\n
The addition of product related intangible assets during the year mainly relates to the acquisition of the Canadian assets of Teligent Inc (Note 36).
\n
Goodwill
\n
Goodwill represents the excess of the aggregate of consideration, non-controlling interest and any fair value of previously held equity interest over
\n
the fair value of the identifiable net assets acquired (including acquired contingent liabilities). Goodwill is allocated at acquisition to the CGUs that
\n
are expected to benefit from that business combination. The goodwill of $119 million arising from the acquisition of Custopharm Topco Holdings,
\n
Inc. has been allocated to the Injectables CGU reflecting the integration of the business, as Custopharm Topco Holdings, Inc. will not be able to
\n
generate cash inflows that are independent from the injectables CGU (Note 36).
\n
The carrying amount of goodwill has been allocated as follows:
\n
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Branded
160
170
\n
Injectables
229
115
\n
Total
389
285
\n
In accordance with the Group policy, goodwill is tested annually for impairment during the fourth quarter or more frequently if there are indicators
\n
that goodwill may be impaired.
\n
\n
CGUs
\n
Details related to the discounted cash flow models used in the impairment tests of the CGUs are as follows:
\n
Terminal
\n
growth rate
\n
(perpetuity)
Discount rate
\n
Valuation basis
2022
2021
2022
2021
\n
Valuation basis, terminal
\n
growth rate and discount rate
\n
Branded
VIU
2.2%
2.4%
17.7%
15.4%
Pre\u2212tax
\n
Injectables
VIU
1.6%
2.1%
12.0%
10.2%
Pre\u2212tax
\n
Generics
FVLCD
2.1%
2.3%
9.1%
8.0%
Post\u2212tax
\n
Generic Advair Diskus\u00ae
FVLCD
\u2013\u00b9
\u2013\u00b9
9.1%
8.0%
Post\u2212tax
\n
Key assumptions
Projected cash flows based on:
\n
\u2013
Sales growth rates, informed by pricing and volume assumptions
\n
\u2013
Profit margins and profit margin growth rates for marketed and pipeline products
\n
\u2013
Expected launch dates for pipeline products
\n
Terminal growth rates
\n
Discount rates
\n
Determination of
\n
assumptions
\n
Growth rates are internal forecasts based on both internal and external market information, informed by historical
\n
experience and management\u2019s best estimates of the future
\n
Margins reflect past experience, adjusted for expected changes in the future
\n
Establishing the launch date and probability of a successful product approval for pipeline products
\n
Terminal growth rates and useful lives are based on the Group\u2019s experience in its markets
\n
Discount rates for each CGU are derived from specific regions/countries
\n
Period of specific projected
\n
cash flows
\n
5 years
\n
1.
generic Advair Diskus\u00ae has a remaining useful life of 14 years (2021: 15 years)
\n
The Group performed its annual goodwill and CGU impairment test by calculating the recoverable amount based on discounted cash flows by
\n
applying an appropriate discount rate that reflects the risk factors associated with the cash flows and the CGUs under which these products sit.
\n
These values are then compared to the carrying value of the CGUs to determine whether an impairment is required. In addition, the Group models
\n
sensitivities on the recoverable amounts calculated to determine whether reasonable changes in key assumptions could lead to a potential
\n
impairment. If such reasonable changes would result in an impairment, then in accordance with IAS36 these are disclosed below. For the Branded,
\n
Injectables and Generics CGUs the Group has determined that sufficient headroom
\n
1
\n
still exists under reasonable changes in key assumptions.
\n
Specifically, an evaluation of the CGUs was made assuming an increase of two percentage points in the discount rate, or a 10% decline in the
\n
projected cash flows, or a 5% decline in the projected cash flows in the terminal year or assuming zero terminal growth rate and in all cases
\n
sufficient headroom exists.
\n
The Group evaluated generic Advair Diskus\u00ae as a separate CGU, mainly due to its distinct assets and liabilities and its ability to generate largely
\n
independent cash flows.
\n
The Group evaluated the generic Advair Diskus\u00ae CGU recoverable amount based on a FVLCD model, being the higher value compared to VIU.
\n
The evaluation resulted in an impairment of $75 million ($59 million was allocated to intangible assets and $16 million to property, plant and
\n
equipment on a pro-rata basis (Note 17)) due to the decline in performance and forecasted profitability, bringing the revised carrying value to
\n
$75 million. This valuation methodology uses significant inputs which are not based on observable market data; therefore, this valuation technique
\n
is classified as a level 3 valuation.
\n
The Group performed sensitivity analysis over the valuation of the generic Advair Diskus\u00ae CGU. The sensitivity analysis assumed an increase of
\n
two percentage points in the discount rate or a 10% decline in the projected cash flows. Applying those sensitivities would result in a further
\n
impairment charge against the generic Advair Diskus\u00ae CGU of approximately $4 million and $7 million, respectively.
\n
Climate-related matters: The Group monitors the development of climate related risks. At the current time, climate change is not expected to have
\n
a material impact on the consolidated financial statements (see page 52). The Group conducted a sensitivity for the potential impact of climate
\n
change; such a scenario had a minimal impact on the recoverable amount of all CGUs.
\n
1.
Headroom is defined as the excess of the recoverable amount, over the carrying value of a CGU
\n
\n
\n\n
Product-related intangible assets
\n
In-Process Research and Development (IPR&D)
\n
IPR&D consists of pipeline products of $22 million mainly related to the injectables CGU. These intangibles are not in use and accordingly, no
\n
amortisation has been charged against them. The Group performs an impairment review of IPR&D assets annually. The result of this test was an
\n
impairment charge of $8 million in the Injectables CGU mainly due to the discontinuation of certain products (2021: $9 million in the Injectables CGU).
\n
Product rights
\n
Product rights consists of marketed products of $533 million (2021: $400 million) includes one product in the Injectables CGU of $140 million,
\n
in addition to generic Advair Diskus\u00ae of $97 million (2021: $173 million). The product rights have an average estimated useful life of 12 years.
\n
Whenever impairment indicators are identified for definite life intangible assets, Hikma reconsiders the asset\u2019s estimated economic benefit,
\n
calculates the value of the individual assets or asset group\u2019s cash flows and compares such value against the individual asset\u2019s or asset group\u2019s
\n
carrying amount. If the carrying amount is greater, the Group records an impairment loss for the excess of book value over the valuation which is
\n
based on the discounted cash flows by applying an appropriate discount rate that reflects the risk factors associated with the cash flows and the
\n
CGUs under which these products sit. Furthermore, if there is an indication that previously recognised impairment losses no longer exist or have
\n
decreased, the Group estimates the assets\u2019 recoverable amounts. A previously recognised impairment loss is reversed only if there has been a
\n
sustained and discrete change in the assumptions and indicators used to determine the asset\u2019s recoverable amount since the last impairment
\n
loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the
\n
carrying amount that would have been determined, net of depreciation and amortisation, had no impairment loss been recognised for the asset
\n
in prior years. As at 31 December 2022, the result of this testing was an impairment charge of $64 million (2021: $14 million impairment charge and
\n
$60 million impairment reversal) of which $59 million related to the generic Advair Diskus\u00ae intangible asset (2021: $46 million reversal) due to
\n
decline in performance and forecasted profitability and the remaining amount of $5 million is related to the Generics CGU.
\n
Software
\n
Software intangibles mainly represent the Enterprise Resource Planning solutions that are being implemented in different operations across the
\n
Group in addition to other software applications. The software has an average estimated useful life that varies from three to ten years.
\n
Following a review of impairment indicators for software as at 31 December 2022, there was an impairment charge of $1 million (2021: $nil).
\n
In 2021, the Group recorded a $13 million write-down of software previously capitalised as a result of application of the IFRIC April 2021 agenda
\n
decisions regarding cloud computing arrangement customisation and configuration costs treatment.
\n
Other identified intangibles
\n
Other identified intangibles comprise customer relationships, trade names and marketing rights of $138 million (2021: $150 million). The increase
\n
during the year represents payments made to third parties in relation to marketing rights and licensing agreements. Following a review of
\n
impairment indicators for other identified intangibles as at 31 December 2022, there was an impairment charge of $29 million in the Generics CGU
\n
mainly due to the discontinuation and decline in performance and forecasted profitability of certain marketing rights contracts (2021: $1 million).
\n
Customer relationships
\n
Customer relationships represent the value attributed to existing direct customers that the Group acquired on the acquisition of subsidiaries.
\n
The customer relationships have an average estimated useful life of 15 years.
\n
Trade names
\n
Trade names were mainly recognised on the acquisition of Hikma Germany GmbH (Germany) with estimated useful lives of ten years.
\n
Marketing rights
\n
Marketing rights are amortised over their useful lives commencing in the year in which the rights are ready for use with estimated useful lives
\nvarying from two to ten years.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20802": {
"value": "17. Property, plant and equipment
Land
\n
and buildings
\n
Machinery and
\n
equipment
\n
Vehicles, fixtures
\n
and equipment
\n
Projects under
\n
construction
Total
\n
Cost
$m
$m
$m
$m
$m
\n
Balance at 1 January 2021
636
761
130
255
1,782
\n
Additions
18
17
7
104
146
\n
Disposals
(3)
(10)
(6)
(10)
(29)
\n
Transfers
28
39
8
(75)
\u2212
\n
Translation adjustment
(3)
(11)
(1)
(3)
(18)
\n
Balance at 1 January 2022
676
796
138
271
1,881
\n
Additions
4
16
7
114
141
\n
Disposals
(1)
(10)
(3)
(1)
(15)
\n
Transfers
74
35
11
(120)
\u2212
\n
Acquisition of subsidiaries (Note 36)
\u2212
1
\u2212
\u2212
1
\n
Transfers to assets classified as held for distribution
(2)
\u2212
\u2212
\u2212
(2)
\n
Translation adjustment
(26)
(19)
(8)
(2)
(55)
\n
Balance at 31 December 2022
725
819
145
262
1,951
\n
Accumulated depreciation and impairment
\n
Balance at 1 January 2021
(219)
(434)
(107)
(13)
(773)
\n
Charge for the year
(15)
(39)
(17)
\u2212
(71)
\n
Disposals
3
8
7
10
28
\n
Impairment
(1)
\u2212
\u2212
\u2212
(1)
\n
Translation adjustment
1
7
\u2212
\u2212
8
\n
Balance at 1 January 2022
(231)
(458)
(117)
(3)
(809)
\n
Charge for the year
(21)
(47)
(12)
\u2212
(80)
\n
Disposals
1
9
3
\u2212
13
\n
Impairment
\u2212
(16)
\u2212
(61)
(77)
\n
Translation adjustment
8
13
5
\u2212
26
\n
Balance at 31 December 2022
(243)
(499)
(121)
(64)
(927)
\n
Carrying amount
\n
At 31 December 2022
482
320
24
198
1,024
\n
At 31 December 2021
445
338
21
268
1,072
\n
Land is not subject to depreciation.
\n
As at 31 December 2022, the Group had pledged property, plant and equipment with a carrying value of $8 million (2021: $8 million) as collateral
\n
for various long-term loans. This amount includes specific items in the net property, plant and equipment of the Group\u2019s businesses in Tunisia.
\n
As at 31 December 2022, the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting to
\n
$40 million (2021: $33 million).
\n
As at 31 December 2022, the Group booked an impairment charge of $77 million (2021: $1 million). $61 million of the impairment charge is in
\n
respect of the excess capacity and the rationalisation of the R&D pipeline associated production lines in the Generics CGU, in addition to
\n$16 million of impairment of generic Advair Diskus\u00ae CGU related property, plant and equipment (Notes 6, 9 and 16).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20805": {
"value": "Land
and buildings
\n
Machinery and
\n
equipment
\n
Vehicles, fixtures
\n
and equipment
\n
Projects under
\n
construction
Total
\n
Cost
$m
$m
$m
$m
$m
\n
Balance at 1 January 2021
636
761
130
255
1,782
\n
Additions
18
17
7
104
146
\n
Disposals
(3)
(10)
(6)
(10)
(29)
\n
Transfers
28
39
8
(75)
\u2212
\n
Translation adjustment
(3)
(11)
(1)
(3)
(18)
\n
Balance at 1 January 2022
676
796
138
271
1,881
\n
Additions
4
16
7
114
141
\n
Disposals
(1)
(10)
(3)
(1)
(15)
\n
Transfers
74
35
11
(120)
\u2212
\n
Acquisition of subsidiaries (Note 36)
\u2212
1
\u2212
\u2212
1
\n
Transfers to assets classified as held for distribution
(2)
\u2212
\u2212
\u2212
(2)
\n
Translation adjustment
(26)
(19)
(8)
(2)
(55)
\n
Balance at 31 December 2022
725
819
145
262
1,951
\n
Accumulated depreciation and impairment
\n
Balance at 1 January 2021
(219)
(434)
(107)
(13)
(773)
\n
Charge for the year
(15)
(39)
(17)
\u2212
(71)
\n
Disposals
3
8
7
10
28
\n
Impairment
(1)
\u2212
\u2212
\u2212
(1)
\n
Translation adjustment
1
7
\u2212
\u2212
8
\n
Balance at 1 January 2022
(231)
(458)
(117)
(3)
(809)
\n
Charge for the year
(21)
(47)
(12)
\u2212
(80)
\n
Disposals
1
9
3
\u2212
13
\n
Impairment
\u2212
(16)
\u2212
(61)
(77)
\n
Translation adjustment
8
13
5
\u2212
26
\n
Balance at 31 December 2022
(243)
(499)
(121)
(64)
(927)
\n
Carrying amount
\n
At 31 December 2022
482
320
24
198
1,024
\n
At 31 December 2021
445
338
21
268
1,072",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21012": {
"value": "18. Investments in joint ventures
The Group\u2019s share in Hubei Haosun Pharmaceutical Co., Ltd. was 49% at 31 December 2022 (31 December 2021: 49%) with an investment balance of
\n
$10 million at 31 December 2022 (31 December 2021: $10 million) and share of the profit for the year ended 31 December 2022 of $nil (2021: $1 million).
\n
The table below represents investment in joint ventures movement during the year.
\n
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Balance at 1 January
10
9
\n
Group\u2019s share of profit of joint ventures
\u2212
1
\n
Balance at 31 December
10
10
\n
Summarised financial information in respect of the Group\u2019s interests in Hubei Haosun Pharmaceutical Co., Ltd. is set out below:
\n
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Total assets
23
24
\n
Total liabilities
(5)
(6)
\n
Net assets
18
18
\n
Group\u2019s share of net assets of joint ventures
9
9
\n
For the
\n
year ended
\n
31 December
\n
2022
\n
For the
\n
year ended
\n
31 December
\n
2021
\n
$m
$m
\n
Total revenue
5
8
\n
Net profit
1
1
\n
Group\u2019s share of profit of joint ventures
\u2212
1",
"dimensions": {
"concept": "hik:DisclosureOfInvestmentsInJointVenturesExplanatoryTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21070": {
"value": "19. Financial and other non-current assets
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Investments at FVTOCI
42
36
\n
Other non-current assets
23
11
\n
65
47
\n
Investments at FVTOCI
include investments through the Group\u2019s venture capital arm, Hikma International Ventures and Development LLC and
\n
Hikma Ventures Limited, which are not held for trading and which the Group has irrevocably elected at initial recognition to recognise in this
\n
category. During the year, the venture arm invested in six new companies and increased investment in two existing ventures.
\n
Most of the investments are unlisted shares without readily determinable fair values that fall under level 3 valuation (Note 29). Their fair value is
\n
measured based on observable price changes in orderly transactions for the identical or a similar investment of the same issuer.
\n
One investment is a listed company with a readily determinable fair value that falls under level 1 valuation (Note 29). Its value is measured at the
\n
share price market value.
\n
During the year, total change in fair value was a net loss of $8 million (2021: $14 million gain) recognised in other comprehensive income.
\n
Other non-current assets
mainly represent long-term receivables, a sublease arrangement in the US and upfront fees on a syndicated revolving
\ncredit facility. At 31 December 2021, the balance mainly represents long-term receivables and a sublease arrangement in the US.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21071": {
"value": "19. Financial and other non-current assets
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Investments at FVTOCI
42
36
\n
Other non-current assets
23
11
\n
65
47
\n
Investments at FVTOCI
include investments through the Group\u2019s venture capital arm, Hikma International Ventures and Development LLC and
\n
Hikma Ventures Limited, which are not held for trading and which the Group has irrevocably elected at initial recognition to recognise in this
\n
category. During the year, the venture arm invested in six new companies and increased investment in two existing ventures.
\n
Most of the investments are unlisted shares without readily determinable fair values that fall under level 3 valuation (Note 29). Their fair value is
\n
measured based on observable price changes in orderly transactions for the identical or a similar investment of the same issuer.
\n
One investment is a listed company with a readily determinable fair value that falls under level 1 valuation (Note 29). Its value is measured at the
\n
share price market value.
\n
During the year, total change in fair value was a net loss of $8 million (2021: $14 million gain) recognised in other comprehensive income.
\n
Other non-current assets
mainly represent long-term receivables, a sublease arrangement in the US and upfront fees on a syndicated revolving
\ncredit facility. At 31 December 2021, the balance mainly represents long-term receivables and a sublease arrangement in the US.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21117": {
"value": "20. Inventories
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Finished goods
284
245
\n
Work-in-progress
103
92
\n
Raw and packing materials
412
373
\n
Goods in transit
25
24
\n
Spare parts
42
38
\n
Provision against Inventory
\n
1
\n
(90)
(77)
\n
776
695
\n
1.
The cost of inventory related provision recognised as an expense in the cost of sales in the consolidated income statement was $42 million (2021: $48 million)
\n
Inventories are stated net of provision as follows:
\n
As at 1 January
Additions
Utilisation
\n
Translation
\n
adjustments
\n
As at 31
\n
December
\n
$m
$m
$m
$m
$m
\n
Provisions against inventory in 2022
77
42
(27)
(2)
90
\n
Provisions against inventory in 2021
92
48
(62)
(1)
77",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInventoriesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21174": {
"value": "21. Trade and other receivables
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Gross trade receivables
1,128
1,107
\n
Chargebacks and other allowances
(298)
(275)
\n
Related allowance for expected credit loss
(53)
(51)
\n
Net trade receivables
777
781
\n
VAT and sales tax recoverable
32
32
\n
Other receivables
\u2212
3
\n
Net trade and other receivables
809
816
\n
The fair value of receivables is estimated to be not significantly different from the respective carrying amounts.
\n
Trade receivables are stated net of provisions for chargebacks and expected credit loss allowance as follows:
\n
As at
\n
31 December
\n
2021
Additions, net
Utilisation
\n
Translation
\n
adjustments
\n
Acquisition of
\n
subsidiaries
\n
As at
\n
31 December
\n
2022
\n
$m
$m
$m
$m
$m
$m
\n
Chargebacks and other allowances
275
2,344
(2,346)
\u2212
25
298
\n
Expected credit loss allowance
51
5
\u2212
(3)
\u2212
53
\n
326
2,349
(2,346)
(3)
25
351
\n
As at
\n
31 December
\n
2020
Additions, net
Utilisation
\n
Translation
\n
adjustments
\n
As at
\n
31 December
\n
2021
\n
$m
$m
$m
$m
$m
\n
Chargebacks and other allowances
256
2,160
(2,141)
\u2212
275
\n
Expected credit loss allowance
55
\u2212
(3)
(1)
51
\n
311
2,160
(2,144)
(1)
326
\n
More details on the Group\u2019s policy for credit and concentration risk are provided in Note 29.
\n
At 31 December 2022, the provision balance relating to chargebacks was $204 million (2021: $201 million). The key inputs and assumptions included
\n
in calculating this provision are estimations of \u2018in channel\u2019 inventory at the wholesalers (including processing lag) of 36 days (2021: 40 days), estimated
\n
chargeback rates as informed by average historical chargeback credits adjusted for expected chargeback levels for new products, changes to pricing
\n
and estimated future sales trends (including customer mix). Based on the conditions existing at the balance sheet date, an increase/decrease in the
\n
estimate of in channel inventory by 1 day increases/decreases the provision by $5 million (2021: $5million), and if the overall chargeback rate of 57%
\n
(2021: 55%) increases/decreases by one percentage point the provision would increase/decrease by $4 million (2021: $4 million).
\n
\n
\n\n
At 31 December 2022, the provision balance relating to customer rebates was $49 million (2021: $55 million). The key inputs and assumptions
\n
included in calculating this provision are the historical relationship between contractual rebate payments to revenue, past payment experience,
\n
changes to pricing and sales levels, estimation of \u2018in channel\u2019 inventory at the wholesalers and retail pharmacies and estimated future sales trends
\n
(including customer mix). Based on the conditions existing at the balance sheet date, a ten basis point increase/decrease in the rebates rate of
\n5.7% (2021: 6.5%) would increase/decrease this provision by approximately $1 million (2021: approximately $1 million).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21318": {
"value": "22. Cash and cash equivalents
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Cash at banks and on hand
\n
1
\n
159
155
\n
Time deposits
110
249
\n
Money market deposits
1
22
\n
270
426
\n
1.
In 2022, cash at banks includes $62 million placed in interest bearing accounts
\n
Cash and cash equivalents include highly liquid investments with maturities of three months or less which are convertible to known amounts of
\n
cash and are subject to insignificant risk of changes in value.
\n
Money market deposits comprise investment in funds at FVTPL that are subject to insignificant risk of changes in fair value and can be readily
\nconverted into cash that fall under level 1 valuation (Note 29). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21345": {
"value": "23. Other current assets
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Prepayments
74
65
\n
Investment at FVTPL
22
24
\n
Others
14
8
\n
110
97
\n
Investment at FVTPL represents the agreement the Group entered into with an asset management firm in 2015 to manage a $20 million portfolio
\n
of underlying debt instruments. The investment comprises a portfolio of assets that are managed by an asset manager and is measured at fair
\n
value; any changes in fair value go through the consolidated income statement. These assets are classified as level 1 as they are based on quoted
\n
prices in active markets (Note 29).
\nOthers balances mainly represent compensation due from suppliers in relation to inventory price adjustment.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21370": {
"value": "24. Short-term financial debts
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Bank overdrafts
11
3
\n
Import and export financing
62
58
\n
Short-term loans
2
3
\n
Current portion of long-term loans (Note 28)
64
48
\n
139
112
\n
2022
2021
\n
%
%
\n
The weighted average interest rates incurred are as follows:
\n
Bank overdrafts
4.78
3.21
\n
Import and export financing
\n
1
\n
5.87
6.39
\n
Short-term loans
4.20
2.10
\n
1.
Import and export financing represents short-term financing for the ordinary trading activities of the Group ",
"dimensions": {
"concept": "hik:DisclosureOfShortTermFinancialsDebtsExplanatoryTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21372": {
"value": "
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Bank overdrafts
11
3
\n
Import and export financing
62
58
\n
Short-term loans
2
3
\n
Current portion of long-term loans (Note 28)
64
48
\n
139
112
\n
2022
2021
\n
%
%
\n
The weighted average interest rates incurred are as follows:
\n
Bank overdrafts
4.78
3.21
\n
Import and export financing
\n
1
\n
5.87
6.39
\n
Short-term loans
4.20
2.10
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Long-term loans
644
207
\n
Long-term borrowings (Eurobond)
494
492
\n
Less: current portion of long-term loans (Note 24)
(64)
(48)
\n
Long-term financial loans
1,074
651
\n
Breakdown by maturity:
\n
Within one year
64
48
\n
In the second year
65
44
\n
In the third year
553
37
\n
In the fourth year
52
524
\n
In the fifth year
401
23
\n
In the sixth year
1
22
\n
Thereafter
2
1
\n
1,138
699
\n
Breakdown by currency:
\n
US dollar
1,068
620
\n
Euro
31
44
\n
Jordanian dinar
16
10
\n
Algerian dinar
16
13
\n
Saudi riyal
\u2212
9
\n
Moroccan dirham
6
3
\n
Tunisian dinar
1
\u2212
\n
1,138
699
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21426": {
"value": "25. Trade and other payables
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Trade payables
291
262
\n
Accrued expenses
171
194
\n
Other payables
14
12
\n
476
468
\nThe fair value of payables is estimated to be not significantly different from the respective carrying amounts.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21447": {
"value": "26. Other provisions
Other provisions represent the end of service indemnity provisions for employees of certain Group subsidiaries including some immaterial
\n
amounts for defined benefit plans. This provision is calculated based on relevant laws in the countries where each Group company operates,
\n
in addition to their own policies. For defined benefit plans, the actuarial valuations performed did not result in any change in the net liability
\n
(2021: Loss of $2 million).
\n
Movements on the provision for end of service indemnity:
\n
2022
2021
\n
$m
$m
\n
1 January
31
28
\n
Additions
8
11
\n
Remeasurement of post-employment benefit obligations
\u2212
2
\n
Utilisation
(7)
(10)
\n
At 31 December
32
31 ",
"dimensions": {
"concept": "hik:DisclosureOfOtherProvisionsExplanatoryTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21475": {
"value": "27. Other current liabilities
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Contract and refund liabilities
193
213
\n
Co-development and earnout payment (Notes 29 and 30)
2
2
\n
Acquired contingent liability (Note 30)
7
15
\n
Contingent consideration (Notes 29 and 30)
24
12
\n
Indirect rebate and other allowances
101
80
\n
Others
21
17
\n
348
339
\n
Contract and refund liabilities: The Group allows customers to return products within a specified period prior to and subsequent to the expiration
\n
date. In addition, free goods are issued to customers as sale incentives, reimbursement of agreed upon expenses incurred by the customer or as
\n
compensation for expired or returned goods.
\n
At 31 December 2022, the provision balance relating to returns was $168 million (2021: $193 million). The key assumptions included in calculating
\n
this provision are estimations of the product shelf life, estimations of revenue estimated to be subject to returns and the estimated returns rate of
\n
1.78% (2021: 1.74%) as informed by both historical return rates and consideration of specific factors like product dating and expiration, new product
\n
launches, entrance of new competitors, and changes to contractual terms. Based on the conditions existing at the balance sheet date, a ten-basis
\n
point increase/decrease in the returns and allowances rate would increase/decrease this provision by approximately $9 million (2021: $11 million).
\n
As at 31
\n
December 2021
Additions
Utilisation
\n
Translation
\n
Adjustment
\n
Acquisition of
\n
subsidiaries
\n
As at 31
\n
December
\n
2022
\n
$m
$m
$m
$m
$m
$m
\n
Contract and refund liabilities
213
50
(76)
(2)
8
193
\n
As at 31
\n
December
\n
2020
Additions
Utilisation
\n
Translation
\n
Adjustment
\n
As at 31
\n
December 2021
\n
$m
$m
$m
$m
$m
\n
Contract and refund liabilities
162
132
(81)
\u2212
213
\n
\n
\n\n
During the year ended 31 December 2022, $15 million (2021: $8 million) revenue was recognised from transferring free goods to the customers.
\n
Indirect rebates and other allowances:
mainly represent rebates granted to healthcare authorities and other parties under contractual
\n
arrangements with certain indirect customers.
\n
At 31 December 2022, the provision balance relating to the indirect rebates was $55 million (2021: $56 million). The key inputs and assumptions
\n
included in calculating this provision are the historical relationship between contractual rebate payments to revenue, past payment experience,
\n
changes to pricing and sales levels, estimation of \u2018in channel inventory at the wholesalers and retail pharmacies and estimated future sales trends
\n
(including customer mix). Based on the conditions existing at the balance sheet date, a ten-basis point increase/decrease in rebates rate of 3.1%
\n(2021: 2.1%) would increase/decrease this provision by approximately $2 million (2021: $3 million).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21595": {
"value": "28. Long-term financial debts
As at 31 December
\n
2022
2021
\n
$m
$m
\n
Long-term loans
644
207
\n
Long-term borrowings (Eurobond)
494
492
\n
Less: current portion of long-term loans (Note 24)
(64)
(48)
\n
Long-term financial loans
1,074
651
\n
Breakdown by maturity:
\n
Within one year
64
48
\n
In the second year
65
44
\n
In the third year
553
37
\n
In the fourth year
52
524
\n
In the fifth year
401
23
\n
In the sixth year
1
22
\n
Thereafter
2
1
\n
1,138
699
\n
Breakdown by currency:
\n
US dollar
1,068
620
\n
Euro
31
44
\n
Jordanian dinar
16
10
\n
Algerian dinar
16
13
\n
Saudi riyal
\u2212
9
\n
Moroccan dirham
6
3
\n
Tunisian dinar
1
\u2212
\n
1,138
699
\n
The loans are held at amortised cost.
\n
Long-term loans amounting to $1 million (31 December 2021: $0.5 million) are secured on certain property, plant and equipment.
\n
Major loan arrangements include:
\n
a)
$1,150 million syndicated revolving credit facility that matures on 04 January 2027 with two extension options of one year each, one of the
\n
extension options was exercised in January 2023 which increased the maturity until January 2028. At 31 December 2022, the facility had an
\n
outstanding balance of $278 million (2021: $nil) and an unutilised amount of $872 million (2021: $870 million). The facility can be used for
\n
general corporate purposes
\n
b)
$108 million outstanding balance at 31 December 2022 (fair value of $98 million) related to a ten-year $150 million loan from the International
\n
Finance Corporation that has been fully utilised since April 2020. Quarterly equal repayments of the loan commenced on 15 March 2021. The
\n
loan was used for general corporate purposes. The facility matures on 15 December 2027
\n
c)
A $500 million (carrying value of $494 million, and fair value of $466 million) 3.25%, five-year Eurobond was issued on 9 July 2020 with a rating
\n
of BBB- (S&P & Fitch) which is due in July 2025. The proceeds of the issuance were used for general corporate purposes
\n
\n
d)
An eight-year $200 million loan facility from the International Finance Corporation and Managed Co-lending Portfolio program. There was no
\n
utilisation of the loan as of December 2022. The facility matures on 15 September 2028 and can be used for general corporate purposes
\n
e)
A five-year $400 million syndicated loan facility entered into on 13 October 2022. The facility is partially utilised, with an outstanding balance at
\n
31 December 2022 of $190 million (fair value of $190 million) and an unutilised amount of $210 million. The facility matures on 13 October 2028
\n
and can be used for general corporate purposes
\n
2022
2021
\n
%
%
\n
The weighted average interest rates incurred are as follows:
\n
Bank loans (including the current bank loans)
2.96
2.83
\n
Eurobond
\n
1
\n
3.69
3.58
\n
1.
The Eurobond effective interest rate includes unwinding of discount amount and upfront fees ",
"dimensions": {
"concept": "hik:DisclosureOfLongTermFinancialDebtsExplanatoryTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21724": {
"value": "29. Financial policies for risk management and their objectives
Credit and concentration of risk
\n
The Group\u2019s principal financial assets are cash and cash equivalents, trade and other receivables, and investments.
\n
The Group\u2019s credit risk is primarily attributable to its trade receivables. The amounts presented in the consolidated balance sheet are net of
\n
allowances for expected credit loss, chargebacks, and other allowances. A provision for impairment is made based on expected credit losses
\n
which are estimated based on previous experience, current events and forecasts of future conditions. A loan or receivable is considered impaired
\n
when there is no reasonable expectation of recovery, or when a debtor fails to make a contractual payment for a specific period which varies
\n
based on the type of debtor and the market in which they operate.
\n
In line with local market practice, customers in the MENA region are offered relatively long payment terms compared to customers in Europe and
\n
the US. During the year ended 31 December 2022, the Group\u2019s largest two customers in the MENA region represented 6.9% of Group revenue
\n
(2021: 5.6%), 5.3% from one customer in Saudi Arabia (2021: 4.3%), and 1.6% from one customer in Egypt (2021: 1.3%). At 31 December 2022, the
\n
amount of receivables due from all customers based in Saudi Arabia was $139 million (2021: $102 million) and the amount of receivables due from
\n
all customers based in Egypt was $41 million (2021: $57 million).
\n
During the year ended 31 December 2022, three key US wholesalers represented 37% of Group revenue (2021: 38%). The amount of receivables
\n
due from all US customers at 31 December 2022 was $325 million (2021: $332 million).
\n
The Group manages this risk through the implementation of stringent credit policies, procedures and certain credit insurance agreements.
\n
Trade receivable exposures are monitored consistently as they arise. Credit limits are set as deemed appropriate for the customer, based on a number
\n
of qualitative and quantitative factors related to the creditworthiness of a particular customer. The Group is exposed to a variety of customers ranging
\n
from government-backed agencies and large private wholesalers to privately owned pharmacies, and the underlying local economic risks vary across
\n
the Group. Typical credit terms in the US range from 30 to 90 days, in Europe 30 to 120 days, and in MENA 180 to 360 days. Where appropriate, the
\n
Group endeavours to minimise risk by the use of trade finance instruments such as letters of credit and insurance.
\n
The following table provides a summary of the age of trade receivables (Note 21):
\n
Past due
\n
Not past due on
\n
the reporting
\n
date
\n
$m
\n
Less than 90
\n
days
\n
$m
\n
Between 91 and
\n
180 days
\n
$m
\n
Between 181
\n
and 360 days
\n
$m
\n
Over one year
\n
$m
\n
Total
\n
$m
\n
At 31 December 2022
\n
Expected credit loss rate
0.01%
0.11%
5.93%
5.99%
57.1%
4.7%
\n
Gross trade receivables as at 31 December 2022
905
94
20
19
90
1,128
\n
Related allowance for expected credit loss
\u2212
\u2212
(1)
(1)
(51)
(53)
\n
Chargebacks and other allowances
(298)
\u2212
\u2212
\u2212
\u2212
(298)
\n
Net trade receivables
607
94
19
18
39
777
\n
\n
\n\n
Past due
\n
Not past due on
\n
the reporting
\n
date
\n
$m
\n
Less than 90
\n
days
\n
$m
\n
Between 91 and
\n
180 days
\n
$m
\n
Between 181 and
\n
360 days
\n
$m
\n
Over one year
\n
$m
\n
Total
\n
$m
At 31 December 2021
\n
Expected credit loss rate
0.01%
0.05%
11.1%
14.3%
53.4%
4.7%
\n
Gross trade receivables as at 31 December 2021
910
72
9
28
88
1,107
\n
Related allowance for expected credit loss
\u2212
\u2212
(1)
(4)
(46)
(51)
\n
Chargebacks and other allowances
(275)
\u2212
\u2212
\u2212
\u2212
(275)
\n
Net trade receivables
635
72
8
24
42
781
\n
Market risk
\n
The Group is exposed to foreign exchange and interest rate risks. The Group\u2019s objective is to reduce, where it is appropriate to do so, fluctuations
\n
in earnings and cash flow associated with changes in interest rates and foreign currency rates. Management actively monitors these exposures to
\n
manage the volatility relating to these exposures by entering into a variety of derivative financial instruments, if needed.
\n
Capital risk management
\n
The Group manages its capital and monitors its liquidity to have reasonable assurance that the Group will be able to continue as a going concern
\n
and deliver its growth strategy objectives, while reducing its cost of capital and maximising the return to shareholders through the optimisation of
\n
the debt and equity mix. The Group regularly reviews the capital structure by considering the level of available capital and the short to medium-
\n
term strategic plans concerning future capital spend, as well as the need to meet dividends, banking covenants, and borrowing ratios.
\n
The Group defines capital as equity plus net debt which includes long and short-term financial debts (Notes 24 and 28), lease liabilities (Note 33),
\n
net of cash and cash equivalents (Note 22). Group net debt excludes co-development and earnout payments, acquired contingent liabilities and
\n
contingent consideration (Notes 27 and 30).
\n
During the year, the Group continued its strategy of obtaining debt financing at both the Group level and at the operating entities level. This
\n
enables the Group to borrow at competitive rates and to build relationships with local, regional and international banks and is therefore deemed
\n
to be the most effective means of raising finance, while maintaining the balance between borrowing cost, asset and liability management, and
\n
consolidated balance sheet currency risk management.
\n
In order to monitor the available net funds, management reviews financial capital reports on a monthly basis, in addition to the continuous review
\n
by the Group treasury function.
\n
At 31 December 2022, the Group\u2019s gearing ratio (total debt/equity) was 60% (2021: 34%). The increase in the Group\u2019s gearing ratio is due to higher
\n
debt utilisation used primarily to finance the acquisitions of Custopharm and the Teligent\u2019s Inc. Canadian assets, as well as lower equity due to the
\n
share buyback carried out in the first half of the year.
\n
Cash management
\n
The Group manages the deployment of cash balances to predefined limits approved by the Board of Directors under the cash/risk management
\n
policy. Per the policy, the Group\u2019s excess cash should be held with highly rated global and regional financial institutions. The aim of the policy is
\n
to mitigate the risk of holding cash in certain currencies, countries and financial institutions, through a specific threshold. The Group reviews the
\n
policy periodically to meet its risk appetite.
\n
Foreign exchange risk and currency risk
\n
The Group uses the US dollar as its reporting currency and is therefore exposed to foreign exchange movements primarily in the Euro, Algerian
\n
dinar, Sudanese pound, Japanese yen, Egyptian pound, Tunisian dinar and Moroccan dirham. Consequently, where possible, the Group enters
\n
into various contracts, which change in value as foreign exchange rates change, to hedge against the risk of movement in foreign denominated
\n
assets and liabilities. Due to the lack of open currency markets, the Algerian dinar, the Sudanese pound, the Tunisian dinar, the Moroccan dirham
\n
and the Egyptian pound cannot be hedged at reasonable cost. Where possible, the Group uses financing facilities denominated in local currencies
\n
to mitigate the risks. The Jordanian dinar and the Saudi riyal had no impact on the consolidated income statement as those currencies are pegged
\n
against the US dollar.
\n
Lebanon and Sudan were considered to be hyperinflationary economies in the year ended 31 December 2022. At 31 December 2022, the prevailing
\n
rate for Sudanese pound was 583.34 per US dollar (2021: 436.28). For Lebanon, the Group disposed of the subsidiary Hikma Liban S.A.R.L. on 8
\n
November 2022 using the prevailing rate at that date which was 30,300 Lebanese pound per US dollar (2021: 1,507.5).
\n
Currency risks, as defined by IFRS 7, arise on account of financial instruments being denominated in a currency that is other than the functional
\n
currency of an entity and being of a monetary nature.
\n
\n
The currencies that have a significant impact on the Group accounts and the exchange rates used are as follows:
\n
Year-end rates
Average rates
\n
2022
2021
2022
2021
\n
US dollar /Euro
0.934
0.880
0.950
0.845
\n
US dollar /Sudanese pound
\n
1
\n
583.342
436.280
\u2013\u00b9
\u2013\u00b9
\n
US dollar /Algerian dinar
137.202
138.719
141.850
135.097
\n
US dollar /Saudi riyal
3.750
3.750
3.750
3.750
\n
US dollar /Pound sterling
0.827
0.739
0.809
0.727
\n
US dollar /Jordanian dinar
0.709
0.709
0.709
0.709
\n
US dollar /Egyptian pound
24.702
15.655
19.240
15.634
\n
US dollar /Japanese yen
131.270
115.080
131.594
109.805
\n
US dollar /Moroccan dirham
10.448
9.280
10.176
8.992
\n
US dollar /Tunisian dinar
3.110
2.887
3.104
2.802
\n
US dollar /Lebanese pound
\n
2
\n
30,300
1,507.5
\u2013
\n
2
\n
\u2013
\n
2
\n
1.
In both years, Sudan has been a hyperinflationary economy and Sudanese operations were translated using the year end rate
\n
2.
On 8 November 2022, the Group disposed of the subsidiary Hikma Liban S.A.R.L. using the prevailing rate at that date which was 30,300 Lebanese pound per US dollar. In 2021, Lebanon has been a
\n
hyperinflationary economy and Lebanese operations were translated using the period end rate
\n
Net foreign currency financial assets/(liabilities)
\n
US dollar
Euro
Japanese yen
Others\u00b9
\n
2
2
0
0
2
2
2
2
$m
$m
$m
$m
\n
Functional currency of entity:
\n
\u2013
Jordanian dinar
166
12
(6)
12
\n
\u2013
Euro
42
\u2212
\u2212
\u2212
\n
\u2013
Algerian dinar
(11)
\u2212
\u2212
\u2212
\n
\u2013
Saudi riyal
12
(11)
\u2212
\u2212
\n
\u2013
Sudanese pound
(40)
1
\u2212
1
\n
\u2013
Egyptian pound
(17)
(4)
\u2212
\u2212
\n
\u2013
Tunisian dinar
(1)
4
\u2212
9
\n
\u2013
Moroccan dirham
(7)
(5)
\u2212
\u2212
\n
\u2013
Canadian dollar
1
\u2212
\u2212
\u2212
\n
\u2013
US dollar
\u2212
(11)
\u2212
6
\n
145
(14)
(6)
28
\n
1.
Others include Saudi riyal, Jordanian dinar and Pound sterling
\n
Net foreign currency financial assets/(liabilities)
\n
US dollar
Euro
Japanese yen
Others\u00b9
\n
2
2
0
0
2
2
1
1
$m
$m
$m
$m
\n
Functional currency of entity:
\n
\u2013
Jordanian dinar
241
21
(6)
17
\n
\u2013
Euro
30
\u2212
\u2212
\u2212
\n
\u2013
Algerian dinar
(2)
\u2212
\u2212
\u2212
\n
\u2013
Saudi riyal
7
(10)
\u2212
\u2212
\n
\u2013
Sudanese pound
(31)
\u2212
\u2212
\u2212
\n
\u2013
Egyptian pound
(12)
1
\u2212
\u2212
\n
\u2013
Tunisian dinar
1
3
\u2212
5
\n
\u2013
Moroccan dirham
(5)
(4)
\u2212
\u2212
\n
\u2013
Lebanese pound
\u2212
\u2212
\u2212
5
\n
229
11
(6)
27
\n
1.
Others include Saudi riyal, Jordanian dinar and Pound sterling
\n
\n
\n\n
A sensitivity analysis based on a 10% movement in foreign exchange rates would result in a $15 million (2021: $26 million) movement in foreign
\n
exchange loss/gain on the Group results.
\n
The Group sets certain limits on liquid funds per currency (other than the US dollar) and per country.
\n
Interest rate risk
\n
As at 31 December 2022
As at 31 December 2021
\n
Fixed rate
Floating rate
Total
Fixed rate
Floating rate
Total
\n
$m
$m
$m
$m
$m
$m
\n
Financial liabilities
\n
Interest-bearing loans and borrowings
638
575
1,213
672
91
763
\n
Lease liabilities
70
\u2212
70
83
\u2212
83
\n
Financial assets
\n
Interest-bearing cash and cash equivalents
\u2212
173
173
\u2212
271
271
\n
An interest rate sensitivity analysis assumes an instantaneous one percentage point change in interest rates in all currencies from their levels
\n
at 31 December 2022, with all other variables held constant. Based on the composition of the Group\u2019s net debt portfolio as at 31 December 2022,
\n
a one percentage point increase/decrease in interest rates would result in $4 million decrease/increase in net finance cost per year (2021:
\n
$2 million increase/decrease).
\n
During 2022, the Group completed the transitioning of most of its USD Libor loans to Term SOFR. As at 31 December 2022, $0.06 million (2021:
\n
$0.05 million) of the Group\u2019s utilised debt portfolio, as well as $93 million (2021: $1,243 million) of the Group\u2019s unutilised debt facilities have USD
\n
LIBOR as the benchmark interest rate.
\n
Fair value of financial assets and liabilities
\n
The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction
\n
between willing parties, other than in a forced or liquidation sale.
\n
The following financial assets/liabilities are presented at their carrying value:
\n
\u2013
Cash at banks and on hand and time deposit \u2013 due to the short-term maturities of these financial instruments and given that generally they
\n
have negligible credit risk, management considers the carrying amounts to be not significantly different from their fair values
\n
\u2013
Short-term loans and overdrafts approximate to their fair value because of the short maturity of these instruments
\n
\u2013
Long-term loans \u2013 loans with variable rates are re-priced in response to any changes in market rates and so management considers their
\n
carrying values to be not significantly different from their fair values
\n
Loans with fixed rates relate mainly to:
\n
\u2013
$500 million (carrying value at 31 December 2022 of $494 million, and fair value at 31 December 2022 of $466 million) Eurobond accounted for
\n
at amortised cost. The fair value is determined with reference to a quoted price in an active market as at the balance sheet date (a level 1 fair
\n
value) (Note 28)
\n
\u2013
A ten-year $150 million loan from the International Finance Corporation with outstanding balance of $108 million (fair value at 31 December 2022 of
\n
$98 million). Fair value is estimated by discounting future cash flows using the current rates at which similar loans would be made to borrowers
\n
with similar credit ratings and for the same remaining maturities of such loans (a level 2 fair value)
\n
\u2013
Receivables and payables \u2013 the fair values of receivables and payables are estimated to not be significantly different from the respective
\n
carrying amounts
\n
Management classifies items that are recognised at fair value based on the level of the inputs used in their fair value determination as described below:
\n
\u2013
Level 1:
Quoted prices in active markets for identical assets or liabilities
\n
\u2013
Level 2:
Inputs that are observable for the asset or liability
\n
\u2013
Level 3:
Inputs that are not based on observable market data
\n
\n
The following financial assets/liabilities are presented at their fair value:
\n
Fair value measurements
\n
At 31 December 2022
Level 1
Level 2
Level 3
Total
\n
Financial assets
\n
Investments at FVTPL (Note 23)
22
\u2212
\u2212
22
\n
Money market deposit (Note 22)
1
\u2212
\u2212
1
\n
Investments in listed companies at FVTOCI (Note 19)
4
\u2212
\u2212
4
\n
Investments in unlisted shares at FVTOCI (Note 19)
\u2212
\u2212
38
38
\n
Total financial assets
27
\u2212
38
65
\n
Financial liabilities
\n
Co-development and earnout payment liabilities (Note 27 and 30)
\u2212
\u2212
3
3
\n
Contingent consideration liability (Note 27 and 30)
\u2212
\u2212
42
42
\n
Total financial liabilities
\u2212
\u2212
45
45
\n
Fair value measurements
\n
At 31 December 2021
Level 1
Level 2
Level 3
Total
\n
Financial assets
\n
Investments at FVTPL (Note 23)
24
\u2212
\u2212
24
\n
Money market deposit (Note 22)
22
\u2212
\u2212
22
\n
Investments in listed companies at FVTOCI (Note 19)
14
\u2212
\u2212
14
\n
Investments in unlisted shares at FVTOCI (Note 19)
\u2212
\u2212
22
22
\n
Total financial assets
60
22
82
\n
Financial liabilities
\n
Co-development and earnout payment liabilities (Note 27 and 30)
\u2212
\u2212
4
4
\n
Contingent consideration liability (Note 27 and 30)
\u2212
\u2212
70
70
\n
Total financial liabilities
\u2212
\u2212
74
74
\n
The following table presents the changes in Level 3 items for the year ended 31 December 2022 and the year ended 31 December 2021:
\n
Financial
\n
assets
\n
Financial
\n
liabilities
\n
$m
$m
\n
1 January 2021
25
94
\n
Settled
\u2212
(4)
\n
Remeasurement of contingent consideration and other financial liability recognised in finance income
\u2212
(29)
\n
Unwinding of contingent consideration and other financial liability recognised in finance expense
\u2212
13
\n
Change in fair value of investments at FVTOCI
24
\u2212
\n
Additions
3
\u2212
\n
Sale of investment at FVTOCI
(30)
\u2212
\n
Balance at 31 December 2021 and 1 January 2022
22
74
\n
Settled
\u2212
(7)
\n
Remeasurement of contingent consideration and other financial liability recognised in finance income
\u2212
(26)
\n
Unwinding of contingent consideration and other financial liability recognised in finance expense
\u2212
4
\n
Change in fair value of investments at FVTOCI
1
\u2212
\n
Additions
15
\u2212
\n
Balance at 31 December 2022
38
45
\n
Contingent consideration liability
represents contractual liability to make payments to third parties in the form of milestone payments that
\n
depend on the achievement of certain US FDA approval milestones; and payments based on future sales of certain products. These liabilities were
\n
recognised as part of the Columbus business acquisition.
\n
The critical areas of estimates in relation to the valuation of the contingent consideration are the probabilities assigned to reaching the success-
\n
based milestones and management\u2019s estimate of future sales. The valuation for the payments that are based on future sales is based on a
\n
discounted cash flow model applied to projected future sales for a period of eight years (2021: nine years) using a post-tax discount rate of 9.1%.
\n
The key assumption used for this valuation is the sales projections informed by pricing and volume assumptions which were determined using
\n
probability weighted average of different possibilities on sales growth rates. The valuation for milestone payments is based on 100% probability
\n
of success and is discounted using a rate of 4.9%.
\n
\n
\n\n
During the year, the contingent consideration liability decreased by $28 million mainly resulting from remeasurement of the liability due to a
\n
decrease in the projected future sales.
\n
If the future sales were 10% higher or lower, the fair value of the contingent consideration will increase/decrease by $4 million (2021: $8 million)
\n
(Notes 27 and 30).
\n
If the probability assigned to reaching the success-based milestones were 5% lower, the fair value of the contingent consideration will decrease by
\n
$1 million (2021: $1 million) (Notes 27 and 30).
\n
Liquidity risk
\n
Undiscounted cash flows for financial liabilities
\n
Less than one
\n
year
\n
One to five
\n
years
\n
More than five
\n
years
Total
\n
2022
$m
$m
$m
$m
\n
Interest-bearing long-term loans and borrowings (Note 28)
(103)
(1,203)
(3)
(1,309)
\n
Interest-bearing short-term loans and borrowings (Note 24)
(2)
\u2212
\u2212
(2)
\n
Interest-bearing overdrafts (Note 24)
(12)
\u2212
\u2212
(12)
\n
Interest-bearing import and export loans (Note 24)
(64)
\u2212
\u2212
(64)
\n
Interest bearing lease liabilities (Note 33)
(10)
(27)
(52)
(89)
\n
Trade payables and accruals (Note 25)
(462)
\u2212
\u2212
(462)
\n
Co-development and earnout payment (Notes 27 and 30)
(4)
(1)
\u2212
(5)
\n
Acquired contingent liability (Notes 27 and 30)
(7)
(26)
(43)
(76)
\n
Contingent consideration (Notes 27 and 30)
(26)
(18)
(6)
(50)
\n
(690)
(1,275)
(104)
(2,069)
\n
Undiscounted cash flows for financial liabilities
\n
Less than one
\n
year
\n
One to five
\n
years
\n
More than five
\n
years
Total
\n
2021
$m
$m
$m
$m
\n
Interest-bearing long-term loans and borrowings (Note 28)
(70)
(710)
(23)
(803)
\n
Interest-bearing short-term loans and borrowings (Note 24)
(3)
\u2212
\u2212
(3)
\n
Interest-bearing overdrafts (Note 24)
(3)
\u2212
\u2212
(3)
\n
Interest-bearing import and export loans (Note 24)
(60)
\u2212
\u2212
(60)
\n
Interest bearing lease liabilities (Note 33)
(12)
(36)
(71)
(119)
\n
Trade payables and accruals (Note 25)
(456)
\u2212
\u2212
(456)
\n
Co-development and earnout payment (Notes 27 and 30)
(2)
(3)
\u2212
(5)
\n
Acquired contingent liability (Notes 27 and 30)
(15)
(38)
(30)
(83)
\n
Contingent consideration (Notes 27 and 30)
(12)
(49)
(27)
(88)
\n
(633)
(836)
(151)
(1,620)
\n
The Group regularly monitors all cash, cash equivalents and debt to maintain liquidity needs. This is done by analysing debt headroom and
\n
expected cash flows. The Group seeks to be proactive in its liquidity management to avoid any adverse liquidity effect.
\n
At 31 December 2022, the Group had undrawn facilities of $1,592 million (2021: $1,413 million). Of these facilities, $1,311 million (2021: $1,086 million)
\nwere committed long-term facilities. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21727": {
"value": "Credit and concentration of risk
The Group\u2019s principal financial assets are cash and cash equivalents, trade and other receivables, and investments.
\n
The Group\u2019s credit risk is primarily attributable to its trade receivables. The amounts presented in the consolidated balance sheet are net of
\n
allowances for expected credit loss, chargebacks, and other allowances. A provision for impairment is made based on expected credit losses
\n
which are estimated based on previous experience, current events and forecasts of future conditions. A loan or receivable is considered impaired
\n
when there is no reasonable expectation of recovery, or when a debtor fails to make a contractual payment for a specific period which varies
\n
based on the type of debtor and the market in which they operate.
\n
In line with local market practice, customers in the MENA region are offered relatively long payment terms compared to customers in Europe and
\n
the US. During the year ended 31 December 2022, the Group\u2019s largest two customers in the MENA region represented 6.9% of Group revenue
\n
(2021: 5.6%), 5.3% from one customer in Saudi Arabia (2021: 4.3%), and 1.6% from one customer in Egypt (2021: 1.3%). At 31 December 2022, the
\n
amount of receivables due from all customers based in Saudi Arabia was $139 million (2021: $102 million) and the amount of receivables due from
\n
all customers based in Egypt was $41 million (2021: $57 million).
\n
During the year ended 31 December 2022, three key US wholesalers represented 37% of Group revenue (2021: 38%). The amount of receivables
\n
due from all US customers at 31 December 2022 was $325 million (2021: $332 million).
\n
The Group manages this risk through the implementation of stringent credit policies, procedures and certain credit insurance agreements.
\n
Trade receivable exposures are monitored consistently as they arise. Credit limits are set as deemed appropriate for the customer, based on a number
\n
of qualitative and quantitative factors related to the creditworthiness of a particular customer. The Group is exposed to a variety of customers ranging
\n
from government-backed agencies and large private wholesalers to privately owned pharmacies, and the underlying local economic risks vary across
\n
the Group. Typical credit terms in the US range from 30 to 90 days, in Europe 30 to 120 days, and in MENA 180 to 360 days. Where appropriate, the
\n
Group endeavours to minimise risk by the use of trade finance instruments such as letters of credit and insurance.
\n
The following table provides a summary of the age of trade receivables (Note 21):
\n
Past due
\n
Not past due on
\n
the reporting
\n
date
\n
$m
\n
Less than 90
\n
days
\n
$m
\n
Between 91 and
\n
180 days
\n
$m
\n
Between 181
\n
and 360 days
\n
$m
\n
Over one year
\n
$m
\n
Total
\n
$m
\n
At 31 December 2022
\n
Expected credit loss rate
0.01%
0.11%
5.93%
5.99%
57.1%
4.7%
\n
Gross trade receivables as at 31 December 2022
905
94
20
19
90
1,128
\n
Related allowance for expected credit loss
\u2212
\u2212
(1)
(1)
(51)
(53)
\n
Chargebacks and other allowances
(298)
\u2212
\u2212
\u2212
\u2212
(298)
\n
Net trade receivables
607
94
19
18
39
777
\n
\n
\n\n
Past due
\n
Not past due on
\n
the reporting
\n
date
\n
$m
\n
Less than 90
\n
days
\n
$m
\n
Between 91 and
\n
180 days
\n
$m
\n
Between 181 and
\n
360 days
\n
$m
\n
Over one year
\n
$m
\n
Total
\n
$m
At 31 December 2021
\n
Expected credit loss rate
0.01%
0.05%
11.1%
14.3%
53.4%
4.7%
\n
Gross trade receivables as at 31 December 2021
910
72
9
28
88
1,107
\n
Related allowance for expected credit loss
\u2212
\u2212
(1)
(4)
(46)
(51)
\n
Chargebacks and other allowances
(275)
\u2212
\u2212
\u2212
\u2212
(275)
\n
Net trade receivables
635
72
8
24
42
781",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21892": {
"value": "Market risk
The Group is exposed to foreign exchange and interest rate risks. The Group\u2019s objective is to reduce, where it is appropriate to do so, fluctuations
\n
in earnings and cash flow associated with changes in interest rates and foreign currency rates. Management actively monitors these exposures to
\nmanage the volatility relating to these exposures by entering into a variety of derivative financial instruments, if needed.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21899": {
"value": "Capital risk management
The Group manages its capital and monitors its liquidity to have reasonable assurance that the Group will be able to continue as a going concern
\n
and deliver its growth strategy objectives, while reducing its cost of capital and maximising the return to shareholders through the optimisation of
\n
the debt and equity mix. The Group regularly reviews the capital structure by considering the level of available capital and the short to medium-
\n
term strategic plans concerning future capital spend, as well as the need to meet dividends, banking covenants, and borrowing ratios.
\n
The Group defines capital as equity plus net debt which includes long and short-term financial debts (Notes 24 and 28), lease liabilities (Note 33),
\n
net of cash and cash equivalents (Note 22). Group net debt excludes co-development and earnout payments, acquired contingent liabilities and
\n
contingent consideration (Notes 27 and 30).
\n
During the year, the Group continued its strategy of obtaining debt financing at both the Group level and at the operating entities level. This
\n
enables the Group to borrow at competitive rates and to build relationships with local, regional and international banks and is therefore deemed
\n
to be the most effective means of raising finance, while maintaining the balance between borrowing cost, asset and liability management, and
\n
consolidated balance sheet currency risk management.
\n
In order to monitor the available net funds, management reviews financial capital reports on a monthly basis, in addition to the continuous review
\n
by the Group treasury function.
\n
At 31 December 2022, the Group\u2019s gearing ratio (total debt/equity) was 60% (2021: 34%). The increase in the Group\u2019s gearing ratio is due to higher
\n
debt utilisation used primarily to finance the acquisitions of Custopharm and the Teligent\u2019s Inc. Canadian assets, as well as lower equity due to the
\nshare buyback carried out in the first half of the year.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21924": {
"value": "Foreign exchange risk and currency risk
The Group uses the US dollar as its reporting currency and is therefore exposed to foreign exchange movements primarily in the Euro, Algerian
\n
dinar, Sudanese pound, Japanese yen, Egyptian pound, Tunisian dinar and Moroccan dirham. Consequently, where possible, the Group enters
\n
into various contracts, which change in value as foreign exchange rates change, to hedge against the risk of movement in foreign denominated
\n
assets and liabilities. Due to the lack of open currency markets, the Algerian dinar, the Sudanese pound, the Tunisian dinar, the Moroccan dirham
\n
and the Egyptian pound cannot be hedged at reasonable cost. Where possible, the Group uses financing facilities denominated in local currencies
\n
to mitigate the risks. The Jordanian dinar and the Saudi riyal had no impact on the consolidated income statement as those currencies are pegged
\n
against the US dollar.
\n
Lebanon and Sudan were considered to be hyperinflationary economies in the year ended 31 December 2022. At 31 December 2022, the prevailing
\n
rate for Sudanese pound was 583.34 per US dollar (2021: 436.28). For Lebanon, the Group disposed of the subsidiary Hikma Liban S.A.R.L. on 8
\n
November 2022 using the prevailing rate at that date which was 30,300 Lebanese pound per US dollar (2021: 1,507.5).
\n
Currency risks, as defined by IFRS 7, arise on account of financial instruments being denominated in a currency that is other than the functional
\n
currency of an entity and being of a monetary nature.
\n
\n
The currencies that have a significant impact on the Group accounts and the exchange rates used are as follows:
\n
Year-end rates
Average rates
\n
2022
2021
2022
2021
\n
US dollar /Euro
0.934
0.880
0.950
0.845
\n
US dollar /Sudanese pound
\n
1
\n
583.342
436.280
\u2013\u00b9
\u2013\u00b9
\n
US dollar /Algerian dinar
137.202
138.719
141.850
135.097
\n
US dollar /Saudi riyal
3.750
3.750
3.750
3.750
\n
US dollar /Pound sterling
0.827
0.739
0.809
0.727
\n
US dollar /Jordanian dinar
0.709
0.709
0.709
0.709
\n
US dollar /Egyptian pound
24.702
15.655
19.240
15.634
\n
US dollar /Japanese yen
131.270
115.080
131.594
109.805
\n
US dollar /Moroccan dirham
10.448
9.280
10.176
8.992
\n
US dollar /Tunisian dinar
3.110
2.887
3.104
2.802
\n
US dollar /Lebanese pound
\n
2
\n
30,300
1,507.5
\u2013
\n
2
\n
\u2013
\n
2
\n
1.
In both years, Sudan has been a hyperinflationary economy and Sudanese operations were translated using the year end rate
\n
2.
On 8 November 2022, the Group disposed of the subsidiary Hikma Liban S.A.R.L. using the prevailing rate at that date which was 30,300 Lebanese pound per US dollar. In 2021, Lebanon has been a
\n
hyperinflationary economy and Lebanese operations were translated using the period end rate
\n
Net foreign currency financial assets/(liabilities)
\n
US dollar
Euro
Japanese yen
Others\u00b9
\n
2
2
0
0
2
2
2
2
$m
$m
$m
$m
\n
Functional currency of entity:
\n
\u2013
Jordanian dinar
166
12
(6)
12
\n
\u2013
Euro
42
\u2212
\u2212
\u2212
\n
\u2013
Algerian dinar
(11)
\u2212
\u2212
\u2212
\n
\u2013
Saudi riyal
12
(11)
\u2212
\u2212
\n
\u2013
Sudanese pound
(40)
1
\u2212
1
\n
\u2013
Egyptian pound
(17)
(4)
\u2212
\u2212
\n
\u2013
Tunisian dinar
(1)
4
\u2212
9
\n
\u2013
Moroccan dirham
(7)
(5)
\u2212
\u2212
\n
\u2013
Canadian dollar
1
\u2212
\u2212
\u2212
\n
\u2013
US dollar
\u2212
(11)
\u2212
6
\n
145
(14)
(6)
28
\n
1.
Others include Saudi riyal, Jordanian dinar and Pound sterling
\n
Net foreign currency financial assets/(liabilities)
\n
US dollar
Euro
Japanese yen
Others\u00b9
\n
2
2
0
0
2
2
1
1
$m
$m
$m
$m
\n
Functional currency of entity:
\n
\u2013
Jordanian dinar
241
21
(6)
17
\n
\u2013
Euro
30
\u2212
\u2212
\u2212
\n
\u2013
Algerian dinar
(2)
\u2212
\u2212
\u2212
\n
\u2013
Saudi riyal
7
(10)
\u2212
\u2212
\n
\u2013
Sudanese pound
(31)
\u2212
\u2212
\u2212
\n
\u2013
Egyptian pound
(12)
1
\u2212
\u2212
\n
\u2013
Tunisian dinar
1
3
\u2212
5
\n
\u2013
Moroccan dirham
(5)
(4)
\u2212
\u2212
\n
\u2013
Lebanese pound
\u2212
\u2212
\u2212
5
\n
229
11
(6)
27
\n
1.
Others include Saudi riyal, Jordanian dinar and Pound sterling
\n
\n
\n\n
A sensitivity analysis based on a 10% movement in foreign exchange rates would result in a $15 million (2021: $26 million) movement in foreign
\n
exchange loss/gain on the Group results.
\nThe Group sets certain limits on liquid funds per currency (other than the US dollar) and per country.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22276": {
"value": "Fair value of financial assets and liabilities
The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction
\n
between willing parties, other than in a forced or liquidation sale.
\n
The following financial assets/liabilities are presented at their carrying value:
\n
\u2013
Cash at banks and on hand and time deposit \u2013 due to the short-term maturities of these financial instruments and given that generally they
\n
have negligible credit risk, management considers the carrying amounts to be not significantly different from their fair values
\n
\u2013
Short-term loans and overdrafts approximate to their fair value because of the short maturity of these instruments
\n
\u2013
Long-term loans \u2013 loans with variable rates are re-priced in response to any changes in market rates and so management considers their
\n
carrying values to be not significantly different from their fair values
\n
Loans with fixed rates relate mainly to:
\n
\u2013
$500 million (carrying value at 31 December 2022 of $494 million, and fair value at 31 December 2022 of $466 million) Eurobond accounted for
\n
at amortised cost. The fair value is determined with reference to a quoted price in an active market as at the balance sheet date (a level 1 fair
\n
value) (Note 28)
\n
\u2013
A ten-year $150 million loan from the International Finance Corporation with outstanding balance of $108 million (fair value at 31 December 2022 of
\n
$98 million). Fair value is estimated by discounting future cash flows using the current rates at which similar loans would be made to borrowers
\n
with similar credit ratings and for the same remaining maturities of such loans (a level 2 fair value)
\n
\u2013
Receivables and payables \u2013 the fair values of receivables and payables are estimated to not be significantly different from the respective
\n
carrying amounts
\n
Management classifies items that are recognised at fair value based on the level of the inputs used in their fair value determination as described below:
\n
\u2013
Level 1:
Quoted prices in active markets for identical assets or liabilities
\n
\u2013
Level 2:
Inputs that are observable for the asset or liability
\n
\u2013
Level 3:
Inputs that are not based on observable market data
\n
\n
The following financial assets/liabilities are presented at their fair value:
\n
Fair value measurements
\n
At 31 December 2022
Level 1
Level 2
Level 3
Total
\n
Financial assets
\n
Investments at FVTPL (Note 23)
22
\u2212
\u2212
22
\n
Money market deposit (Note 22)
1
\u2212
\u2212
1
\n
Investments in listed companies at FVTOCI (Note 19)
4
\u2212
\u2212
4
\n
Investments in unlisted shares at FVTOCI (Note 19)
\u2212
\u2212
38
38
\n
Total financial assets
27
\u2212
38
65
\n
Financial liabilities
\n
Co-development and earnout payment liabilities (Note 27 and 30)
\u2212
\u2212
3
3
\n
Contingent consideration liability (Note 27 and 30)
\u2212
\u2212
42
42
\n
Total financial liabilities
\u2212
\u2212
45
45
\n
Fair value measurements
\n
At 31 December 2021
Level 1
Level 2
Level 3
Total
\n
Financial assets
\n
Investments at FVTPL (Note 23)
24
\u2212
\u2212
24
\n
Money market deposit (Note 22)
22
\u2212
\u2212
22
\n
Investments in listed companies at FVTOCI (Note 19)
14
\u2212
\u2212
14
\n
Investments in unlisted shares at FVTOCI (Note 19)
\u2212
\u2212
22
22
\n
Total financial assets
60
22
82
\n
Financial liabilities
\n
Co-development and earnout payment liabilities (Note 27 and 30)
\u2212
\u2212
4
4
\n
Contingent consideration liability (Note 27 and 30)
\u2212
\u2212
70
70
\n
Total financial liabilities
\u2212
\u2212
74
74
\n
The following table presents the changes in Level 3 items for the year ended 31 December 2022 and the year ended 31 December 2021:
\n
Financial
\n
assets
\n
Financial
\n
liabilities
\n
$m
$m
\n
1 January 2021
25
94
\n
Settled
\u2212
(4)
\n
Remeasurement of contingent consideration and other financial liability recognised in finance income
\u2212
(29)
\n
Unwinding of contingent consideration and other financial liability recognised in finance expense
\u2212
13
\n
Change in fair value of investments at FVTOCI
24
\u2212
\n
Additions
3
\u2212
\n
Sale of investment at FVTOCI
(30)
\u2212
\n
Balance at 31 December 2021 and 1 January 2022
22
74
\n
Settled
\u2212
(7)
\n
Remeasurement of contingent consideration and other financial liability recognised in finance income
\u2212
(26)
\n
Unwinding of contingent consideration and other financial liability recognised in finance expense
\u2212
4
\n
Change in fair value of investments at FVTOCI
1
\u2212
\n
Additions
15
\u2212
\n
Balance at 31 December 2022
38
45
\n
Contingent consideration liability
represents contractual liability to make payments to third parties in the form of milestone payments that
\n
depend on the achievement of certain US FDA approval milestones; and payments based on future sales of certain products. These liabilities were
\n
recognised as part of the Columbus business acquisition.
\n
The critical areas of estimates in relation to the valuation of the contingent consideration are the probabilities assigned to reaching the success-
\n
based milestones and management\u2019s estimate of future sales. The valuation for the payments that are based on future sales is based on a
\n
discounted cash flow model applied to projected future sales for a period of eight years (2021: nine years) using a post-tax discount rate of 9.1%.
\n
The key assumption used for this valuation is the sales projections informed by pricing and volume assumptions which were determined using
\n
probability weighted average of different possibilities on sales growth rates. The valuation for milestone payments is based on 100% probability
\n
of success and is discounted using a rate of 4.9%.
\n
\n
\n\n
During the year, the contingent consideration liability decreased by $28 million mainly resulting from remeasurement of the liability due to a
\n
decrease in the projected future sales.
\n
If the future sales were 10% higher or lower, the fair value of the contingent consideration will increase/decrease by $4 million (2021: $8 million)
\n
(Notes 27 and 30).
\n
If the probability assigned to reaching the success-based milestones were 5% lower, the fair value of the contingent consideration will decrease by
\n$1 million (2021: $1 million) (Notes 27 and 30).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22530": {
"value": "Liquidity risk
Undiscounted cash flows for financial liabilities
\n
Less than one
\n
year
\n
One to five
\n
years
\n
More than five
\n
years
Total
\n
2022
$m
$m
$m
$m
\n
Interest-bearing long-term loans and borrowings (Note 28)
(103)
(1,203)
(3)
(1,309)
\n
Interest-bearing short-term loans and borrowings (Note 24)
(2)
\u2212
\u2212
(2)
\n
Interest-bearing overdrafts (Note 24)
(12)
\u2212
\u2212
(12)
\n
Interest-bearing import and export loans (Note 24)
(64)
\u2212
\u2212
(64)
\n
Interest bearing lease liabilities (Note 33)
(10)
(27)
(52)
(89)
\n
Trade payables and accruals (Note 25)
(462)
\u2212
\u2212
(462)
\n
Co-development and earnout payment (Notes 27 and 30)
(4)
(1)
\u2212
(5)
\n
Acquired contingent liability (Notes 27 and 30)
(7)
(26)
(43)
(76)
\n
Contingent consideration (Notes 27 and 30)
(26)
(18)
(6)
(50)
\n
(690)
(1,275)
(104)
(2,069)
\n
Undiscounted cash flows for financial liabilities
\n
Less than one
\n
year
\n
One to five
\n
years
\n
More than five
\n
years
Total
\n
2021
$m
$m
$m
$m
\n
Interest-bearing long-term loans and borrowings (Note 28)
(70)
(710)
(23)
(803)
\n
Interest-bearing short-term loans and borrowings (Note 24)
(3)
\u2212
\u2212
(3)
\n
Interest-bearing overdrafts (Note 24)
(3)
\u2212
\u2212
(3)
\n
Interest-bearing import and export loans (Note 24)
(60)
\u2212
\u2212
(60)
\n
Interest bearing lease liabilities (Note 33)
(12)
(36)
(71)
(119)
\n
Trade payables and accruals (Note 25)
(456)
\u2212
\u2212
(456)
\n
Co-development and earnout payment (Notes 27 and 30)
(2)
(3)
\u2212
(5)
\n
Acquired contingent liability (Notes 27 and 30)
(15)
(38)
(30)
(83)
\n
Contingent consideration (Notes 27 and 30)
(12)
(49)
(27)
(88)
\n
(633)
(836)
(151)
(1,620)
\n
The Group regularly monitors all cash, cash equivalents and debt to maintain liquidity needs. This is done by analysing debt headroom and
\n
expected cash flows. The Group seeks to be proactive in its liquidity management to avoid any adverse liquidity effect.
\n
At 31 December 2022, the Group had undrawn facilities of $1,592 million (2021: $1,413 million). Of these facilities, $1,311 million (2021: $1,086 million)
were committed long-term facilities. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22678": {
"value": "30. Other non-current liabilities
As at 31 December
\n
2
2
0
0
2
2
2
2
2021
\n
$
$
m
m
$m
\n
Contingent consideration (Note 27 and 29)
18
58
\n
Acquired contingent liability (Note 27)
69
68
\n
Co-development and earnout payment (Notes 27 and 29)
1
2
\n
Others
4
12
\n
92
140
\n
Contingent consideration and acquired contingent liabilities
represent contractual liabilities to make payments to third parties in the form of
\n
milestone payments that depend on the achievement of certain US FDA approval milestones; and payments based on future sales of certain
\n
products. These liabilities were recognised as part of the Columbus business acquisition (see Note 29 for sensitivity analysis). The current portion
\nof these liabilities are recognised in other current liabilities (Note 27).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22716": {
"value": "31. Share capital
Issued and fully paid \u2013 included in shareholders\u2019 equity:
\n
Number
$m
\n
31 December 2021 and 1 January 2022
244,331,288
42
\n
Exercise of employees share scheme
1,237,467
\u2212
\n
Ordinary Shares purchased and cancelled
(12,499,670)
(2)
\n
Issue of Ordinary Bonus Share
1
1,746
\n
Cancellation of Ordinary Bonus Share
(1)
(1,746)
\n
As at 31 December 2022
233,069,085
40
\n
At 31 December 2022, of the issued share capital, 12,833,233 (2021: 12,833,233) are held as Treasury shares and 220,235,852 (2021: 231,498,055)
\n
shares are in free issue.
\n
Bonus Share issuance and cancellation
\n
As a result of the establishment of the Hikma Pharmaceuticals PLC (Company) as the ultimate parent company of Hikma Pharmaceuticals PLC
\n
Group, and the Company\u2019s acquisition of the Columbus business in 2016, a merger reserve of $1,746 million was recorded on the Company\u2019s
\n
balance sheet. This merger reserve did not form part of the Company\u2019s distributable reserves.
\n
At the 20 May 2022 Extraordinary General Meeting (EGM), the Board approved the capitalisation of the merger reserve and the issuance of a
\n
Bonus Share with a $1,746 million nominal value. This share was subsequently cancelled through a capital reduction, creating $1,746 million of
\n
distributable reserves to the Company.
\n
Share buyback programme
\n
During the year, the Group executed a share buyback programme of $300 million. A total of 12,499,670 shares were purchased and cancelled.
\n
The Group incurred $3 million of transaction costs directly attributable to the share buyback which was recognised in equity.
\n
Treasury Shares
\n
At 31 December 2022, the Group holds 12,833,233 as Treasury shares (2021: 12,833,233). The voting rights attached to these Treasury shares are
\nnot capable of exercise.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22752": {
"value": "Treasury Shares
At 31 December 2022, the Group holds 12,833,233 as Treasury shares (2021: 12,833,233). The voting rights attached to these Treasury shares are
not capable of exercise.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22781": {
"value": "32. Non-controlling interests
2022
2021
\n
$m
$m
\n
At 1 January
14
13
\n
Share of profit/(losses)
3
(1)
\n
Dividends paid
(3)
(1)
\n
Acquisition of subsidiaries
2
\u2212
\n
Currency translation and hyperinflation movement
(3)
3
\n
At 31 December
13
14",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22807": {
"value": "33. Right-of-use assets and lease liabilities
The carrying amounts of right-of-use assets recognised and the movements during the year:
\n
Buildings
Vehicles
\n
Machinery and
\n
Equipment
Total
\n
$m
$m
$m
$m
\n
As at 1 January 2021
50
8
1
59
\n
Additions
27
4
\u2212
31
\n
Lease buyout
(4)
\u2212
\u2212
(4)
\n
Depreciation expense
(7)
(4)
(1)
(12)
\n
As at 31 December 2021 and 1 January 2022
66
8
\u2212
74
\n
Additions
4
1
\u2212
5
\n
Adjustments
\n
1
\n
(9)
\u2212
\u2212
(9)
\n
Impairment
(3)
\u2212
\u2212
(3)
\n
Depreciation expense
(7)
(3)
\u2212
(10)
\n
As at 31 December 2022
51
6
\u2212
57
\n
The carrying amounts of lease liabilities and the movements during the year:
\n
2022
2021
\n
$m
$m
\n
As at 1 January
83
82
\n
Additions
5
32
\n
Accretion of interest
4
5
\n
Adjustments1
(9)
\u2212
\n
Settlements
(13)
(36)
\n
As at 31 December
70
83
\n
Current
9
9
\n
Non-current
61
74
\n
1.
Adjustments arise from a change in the expected exercise of optional extension period
\n
\n
The maturity analysis of lease liabilities:
\n
2
2
0
0
2
2
2
2
2021
\n
$
$
m
m
$m
\n
Breakdown by maturity:
\n
Within one year
9
9
\n
In the second year
8
7
\n
In the third year
7
7
\n
In the fourth year
5
6
\n
In the fifth year
3
3
\n
In the sixth year
3
2
\n
Thereafter
35
49
\n
70
83
\n
At 31 December 2022, lease liabilities included optional extension periods amounting to $17 million on a discounted basis (2021: $26 million).
\n
The following are the amounts recognised in the consolidated income statement:
\n
2
2
0
0
2
2
2
2
2021
\n
$
$
m
m
$m
\n
Depreciation expense of right-of-use assets
(10)
(12)
\n
Impairment of right-of-use assets
(3)
\u2212
\n
Interest expense on lease liabilities
(4)
(5)
\n
Expense relating to short-term leases
(2)
(1)
\n
Total amount recognised in the consolidated income statement
(19)
(18)",
"dimensions": {
"concept": "hik:DisclosureOfRightOfUseAssetsAndLeaseLiabilitiesExplanatoryTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22808": {
"value": "33. Right-of-use assets and lease liabilities
The carrying amounts of right-of-use assets recognised and the movements during the year:
\n
Buildings
Vehicles
\n
Machinery and
\n
Equipment
Total
\n
$m
$m
$m
$m
\n
As at 1 January 2021
50
8
1
59
\n
Additions
27
4
\u2212
31
\n
Lease buyout
(4)
\u2212
\u2212
(4)
\n
Depreciation expense
(7)
(4)
(1)
(12)
\n
As at 31 December 2021 and 1 January 2022
66
8
\u2212
74
\n
Additions
4
1
\u2212
5
\n
Adjustments
\n
1
\n
(9)
\u2212
\u2212
(9)
\n
Impairment
(3)
\u2212
\u2212
(3)
\n
Depreciation expense
(7)
(3)
\u2212
(10)
\n
As at 31 December 2022
51
6
\u2212
57
\n
The carrying amounts of lease liabilities and the movements during the year:
\n
2022
2021
\n
$m
$m
\n
As at 1 January
83
82
\n
Additions
5
32
\n
Accretion of interest
4
5
\n
Adjustments1
(9)
\u2212
\n
Settlements
(13)
(36)
\n
As at 31 December
70
83
\n
Current
9
9
\n
Non-current
61
74
\n
1.
Adjustments arise from a change in the expected exercise of optional extension period
\n
\n
The maturity analysis of lease liabilities:
\n
2
2
0
0
2
2
2
2
2021
\n
$
$
m
m
$m
\n
Breakdown by maturity:
\n
Within one year
9
9
\n
In the second year
8
7
\n
In the third year
7
7
\n
In the fourth year
5
6
\n
In the fifth year
3
3
\n
In the sixth year
3
2
\n
Thereafter
35
49
\n
70
83
\n
At 31 December 2022, lease liabilities included optional extension periods amounting to $17 million on a discounted basis (2021: $26 million).
\n
The following are the amounts recognised in the consolidated income statement:
\n
2
2
0
0
2
2
2
2
2021
\n
$
$
m
m
$m
\n
Depreciation expense of right-of-use assets
(10)
(12)
\n
Impairment of right-of-use assets
(3)
\u2212
\n
Interest expense on lease liabilities
(4)
(5)
\n
Expense relating to short-term leases
(2)
(1)
\n
Total amount recognised in the consolidated income statement
(19)
(18)",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22809": {
"value": "33. Right-of-use assets and lease liabilities
The carrying amounts of right-of-use assets recognised and the movements during the year:
\n
Buildings
Vehicles
\n
Machinery and
\n
Equipment
Total
\n
$m
$m
$m
$m
\n
As at 1 January 2021
50
8
1
59
\n
Additions
27
4
\u2212
31
\n
Lease buyout
(4)
\u2212
\u2212
(4)
\n
Depreciation expense
(7)
(4)
(1)
(12)
\n
As at 31 December 2021 and 1 January 2022
66
8
\u2212
74
\n
Additions
4
1
\u2212
5
\n
Adjustments
\n
1
\n
(9)
\u2212
\u2212
(9)
\n
Impairment
(3)
\u2212
\u2212
(3)
\n
Depreciation expense
(7)
(3)
\u2212
(10)
\n
As at 31 December 2022
51
6
\u2212
57
\n
The carrying amounts of lease liabilities and the movements during the year:
\n
2022
2021
\n
$m
$m
\n
As at 1 January
83
82
\n
Additions
5
32
\n
Accretion of interest
4
5
\n
Adjustments1
(9)
\u2212
\n
Settlements
(13)
(36)
\n
As at 31 December
70
83
\n
Current
9
9
\n
Non-current
61
74
\n
1.
Adjustments arise from a change in the expected exercise of optional extension period
\n
\n
The maturity analysis of lease liabilities:
\n
2
2
0
0
2
2
2
2
2021
\n
$
$
m
m
$m
\n
Breakdown by maturity:
\n
Within one year
9
9
\n
In the second year
8
7
\n
In the third year
7
7
\n
In the fourth year
5
6
\n
In the fifth year
3
3
\n
In the sixth year
3
2
\n
Thereafter
35
49
\n
70
83
\n
At 31 December 2022, lease liabilities included optional extension periods amounting to $17 million on a discounted basis (2021: $26 million).
\n
The following are the amounts recognised in the consolidated income statement:
\n
2
2
0
0
2
2
2
2
2021
\n
$
$
m
m
$m
\n
Depreciation expense of right-of-use assets
(10)
(12)
\n
Impairment of right-of-use assets
(3)
\u2212
\n
Interest expense on lease liabilities
(4)
(5)
\n
Expense relating to short-term leases
(2)
(1)
\n
Total amount recognised in the consolidated income statement
(19)
(18)",
"dimensions": {
"concept": "ifrs-full:DisclosureOfQuantitativeInformationAboutRightofuseAssetsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23010": {
"value": "34. Cash generated from operating activities
2022
2021
\n
$m
$m
\n
Profit before tax
233
544
\n
Adjustments for depreciation, amortisation, net impairment charges/reversals and write-down of:
\n
Property, plant and equipment
157
72
\n
Intangible assets
202
61
\n
Right-of-use of assets
13
12
\n
Unwinding of acquisition related inventory step-up
26
-
\n
Reclassification of translation gains on disposal of subsidiary
(5)
\u2212
\n
Loss from investment at FVTPL
2
-
\n
Loss on disposal/damage of property, plant and equipment
\u2212
1
\n
Gain on disposal of intangible assets
(6)
\u2212
\n
Cost of equity-settled employee share scheme
22
29
\n
Finance income
(29)
(30)
\n
Finance expense
81
69
\n
Results from joint venture
\u2212
1
\n
Foreign exchange loss and net monetary hyperinflation impact
20
36
\n
Changes in working capital:
\n
Change in trade and other receivables
4
(166)
\n
Change in other current assets
(19)
27
\n
Change in inventories
(102)
38
\n
Change in trade and other payables
16
14
\n
Change in other current liabilities
(16)
62
\n
Change in other provision
1
2
\n
Change in other non-current liabilities
(6)
(5)
\n
Change in other non-current assets
(9)
\u2212
\n
Cash flow from operating activities
585
767",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23111": {
"value": "35. Reconciliation of movement in net debt
2022
2021
\n
$m
$m
\n
Interest-bearing loans and borrowings (Notes 24 and 28)
\n
Balance at 1 January
763
850
\n
Proceeds from issue of long-term financial debts
1,401
10
\n
Proceeds from issue of short-term financial debts
380
383
\n
Repayment of long-term financial debts
(962)
(45)
\n
Repayment of short-term financial debts
(363)
(431)
\n
Amortisation of upfront fees
2
3
\n
Foreign exchange translation movements
(8)
(7)
\n
Balance at 31 December
1,213
763
\n
Lease liabilities (Note 33)
\n
Balance at 1 January
83
82
\n
New leases
5
32
\n
Adjustments
\n
1
\n
(9)
\u2212
\n
Repayment of lease liabilities
(9)
(31)
\n
Balance at 31 December
70
83
\n
Total debt
1,283
846
\n
Cash and cash equivalents (Note 22)
(270)
(426)
\n
Net debt
1,013
420
\n
1.
Adjustments arise from a change in the expected exercise of optional extension periods ",
"dimensions": {
"concept": "hik:DisclosureOfReconciliationOfNetCashFlowToMovementInNetDebtExplanatoryTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23172": {
"value": "36. Acquisitions
Custopharm Topco Holdings, Inc.
\n
On 21 April 2022, the Group acquired 100% of the issued share capital of Custopharm Topco Holdings, Inc. for a cash consideration of $373 million
\n
on a debt and cash-free basis from Water Street Healthcare Partners (Water Street), following approval from the US Federal Trade Commission.
\n
Custopharm Topco Holdings, Inc. is the parent of five companies including two companies with 16% and 10% non-controlling interests\u2019 ownership.
\n
The net assets acquired in the transaction and the goodwill are provisional. The assets and liabilities recognised as a result of the acquisition are
\n
as follows:
\n
$m
\n
Product related intangible assets (Note 16)
251
\n
Property, plant and equipment (Note 17)
1
\n
Inventories
34
\n
Trade receivables, net of chargebacks and other allowances
31
\n
Cash and cash equivalents
19
\n
Trade and other payables
(6)
\n
Other current liabilities
(9)
\n
Deferred tax liabilities (Note 13)
(46)
\n
Net identifiable assets acquired
275
\n
Add: goodwill (Note 16)
119
\n
Net assets acquired
394
\n
Less: non-controlling interests
(2)
\n
Total consideration
392
\n
Satisfied by:
\n
Cash consideration
392
\n
Less: Cash and cash equivalents acquired
(19)
\n
Net cash outflow arising from acquisition
373
\n
\n
The goodwill arising represents the synergies obtained by integrating Custopharm and its R&D capabilities, adding an experienced team with
\n
a proven ability to develop and commercialise complex sterile injectable products into the existing business and increasing the scale of the
\n
Injectables business. Goodwill is allocated to the Injectables CGU and is not deductible for tax purposes.
\n
For the non-controlling interests, the Group recognised the proportion of the net identifiable assets and liabilities.
\n
Acquisition related costs of $2 million (2021: $2 million) are included in the selling, general and administrative expenses in the consolidated
\n
income statement.
\n
The fair value of acquired trade receivables is $31 million. The gross contractual amount for trade receivables due is $55 million. Chargebacks and
\n
other allowances are deducted from the gross amount to arrive at the trade receivables balance of $31 million.
\n
The business was acquired on 21 April 2022 and contributed $53 million revenue, $26 million reported loss and $19 million core profit for the year
\n
(excluding $20 million amortisation and impairment of intangible assets, in addition to $25 million related to the unwinding of the inventory step-
\n
up). An $8 million impairment charge was recognised as a result of discontinuation of an IPR&D product. The decision to discontinue this product
\n
was made post acquisition due to the launch of an existing recently approved product (Note 6).
\n
If the acquisition had occurred on the first day of the financial year, the acquisition would have contributed approximately $81 million to Group
\n
revenue, $16 million reported loss and $29 million core profit (excluding amortisation and impairment of intangible assets and the unwinding of
\n
the inventory step-up resulting from the fair valuation of those assets).
\n
Teligent asset acquisition
\n
On 2 February 2022, the Group completed the acquisition of the Canadian assets of Teligent Inc. (Teligent) and paid a cash consideration of
\n
$46 million.
\n
The acquisition was assessed under the optional concentration test in IFRS 3 and was determined to be an asset acquisition, as substantially all
\n
the fair value of the gross assets acquired is concentrated in a group of similar identifiable assets. The assets acquired are substantially
\n
concentrated in Intangible assets (product rights), with significantly the same risk characteristics, as they relate to mature products with similar
\nprofit margins and distribution channels (Note 16).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23261": {
"value": "37. Contingent liabilities
Guarantees and letters of credit
\n
A contingent liability existed at the balance sheet date in respect of external guarantees and letters of credit totalling $55 million (31 December 2021:
\n
$45 million) arising in the normal course of business. No provision for these liabilities has been made in these consolidated financial statements.
\n
A contingent liability existed at the balance sheet date for standby letters of credit totalling $14 million (2021: $10 million) for potential stamp duty
\n
obligations that may arise from the repayment of loans by intercompany guarantors. It\u2019s not probable that any repayment will be made by the
\n
intercompany guarantors.
\n
Legal proceedings
\n
The Group is involved in a number of legal proceedings in the ordinary course of its business, including actual or threatened litigation and actual or
\n
potential government investigations relating to employment matters, product liability, commercial disputes, pricing, sales and marketing practices,
\n
infringement of IP rights, the validity of certain patents and competition laws.
\n
\n
\n\n
Most of the claims involve highly complex issues. Often these issues are subject to substantial uncertainties and, therefore, the probability of a
\n
loss, if any, being sustained and/or an estimate of the amount of any loss is difficult to ascertain. It is the Group\u2019s policy to provide for amounts
\n
related to these legal matters if it is probable that a liability has been incurred and an amount is reasonably estimable.
\n
\u2013
Starting in 2016, several complaints have been filed in the United States on behalf of putative classes of direct and indirect purchaser of generic
\n
drug products, as well as several individual direct purchasers opt-out plaintiffs. These complaints, which allege that the defendants engaged in
\n
conspiracies to fix, increase, maintain and/or stabilise the prices of the generic drug products named, have been brought against certain Group
\n
entities and various other defendants. The plaintiffs generally seek damages and injunctive relief under federal antitrust law and damages under
\n
various state laws. The Group denies having engaged in conduct that would give rise to liability with respect to these civil suits and is vigorously
\n
pursuing defence of these cases. At this point, the Group does not believe sufficient evidence exists to make any provision.
\n
\u2013
Starting in June 2020, several complaints have been filed in the United States on behalf of both individual plaintiffs and putative classes of
\n
direct and indirect purchasers of Xyrem\u00ae against certain Group entities and other defendants. Currently twelve such cases are assigned to
\n
multi-district litigation in the Northern District of California, and one case is in California state court. These complaints allege that Jazz
\n
Pharmaceuticals PLC and its subsidiaries entered into unlawful reverse payment agreements with each of the defendants, including Hikma, in
\n
settling patent infringement litigation over Xyrem\u00ae. The plaintiffs in these lawsuits seek treble damages and a permanent injunction. The Group
\n
denies having engaged in conduct that would give rise to liability with respect to these lawsuits and is vigorously pursuing defence of these
\n
cases. At this point, the Group does not believe sufficient evidence exists to make any provision.
\n
\u2013
Numerous complaints have been filed against certain Group entities with respect to the manufacture of opioid products. Those complaints now
\n
total approximately 837 in number. These lawsuits have been filed against distributors, branded pharmaceuticals manufacturers, pharmacies,
\n
hospitals, generic pharmaceuticals manufacturers, individuals, and other defendants by a number of cities, counties, states, other
\n
governmental agencies and private plaintiffs in both state and federal courts. Seven cases have been filed in Canadian courts; two of these were
\n
settled or tentatively settled for a total of less than 200,000 US$ and five remain. Most of the federal cases have been consolidated into a
\n
multidistrict litigation (MDL) in the Northern District of Ohio. These cases assert in general that the defendants allegedly engaged in improper
\n
marketing and distribution of opioids and that defendants failed to develop and implement systems sufficient to identify suspicious orders of
\n
opioid products and prevent the abuse and diversion of such products. Plaintiffs seek a variety of remedies, including restitution, civil penalties,
\n
disgorgement of profits, treble damages, attorneys\u2019 fees and injunctive relief. From time to time, we also receive subpoenas or requests for
\n
information from government entities seeking information related to Hikma\u2019s sale, distribution, or manufacture of opioid products. The Group
\n
denies having engaged in conduct that would give rise to liability with respect to these civil suits and is vigorously pursuing defence of these
\n
cases. Hikma is in the process of finalising a settlement with the State of New Mexico in litigation brought against Hikma and others in New
\n
Mexico state court. Hikma has also agreed to enter into mediation with representatives of the Plaintiffs\u2019 Executive Committee in the federal
\n
MDL. At this point, other than the amounts described above the Group does not believe sufficient evidence exists to make any provision.
\n
\u2013
In November 2020, Amarin Pharmaceuticals filed a patent infringement lawsuit against certain Group entities in the United States District Court
\n
for the District of Delaware (No. 20-cv-1630) alleging that Hikma\u2019s sales and distribution of its generic icosapent ethyl product infringes three
\n
Amarin patents that describe certain methods of using icosapent ethyl. Amarin sought an injunction barring Hikma from selling its generic
\n
product as well as unspecified damages. Hikma\u2019s product is not approved for the patented methods but rather is approved only for a different
\n
indication not covered by any valid patents. In January 2022 the court dismissed the lawsuit, and Amarin has appealed the court\u2019s ruling. The
\n
Group denies the allegations and will vigorously defend against them if necessary. The Group does not believe sufficient evidence exists to
\nmake any provision.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23361": {
"value": "38. Share-based payments
Executive incentive plan
\n
The 2014 Executive Incentive Plan (EIP) was approved by shareholders at the 2014 Annual General Meeting. The EIP is a combined cash bonus
\n
(element A), deferred shares (element B) and restricted shares (element C) scheme. Under the EIP, the Company makes grants of conditional
\n
awards under elements B and C to the Executive Directors and senior executives of the Group. Awards under all elements are dependent on the
\n
achievement of individual and Group KPIs over one year prior to grant. The shares awarded under element B are not released for a period of two
\n
years during which they are subject to forfeiture conditions. The shares awarded under element C are not released for a period of three years but
\n
are not subject to a forfeiture condition. Members of the Executives Committee must retain 100% of the shares received from elements B and C
\n
for a period of five years from the date of grant.
\n
The cost of the EIP of $13 million (2021: $20 million) has been recorded in the consolidated income statement as part of selling, general and
\n
administrative expenses and research and development expenses.
\n
The fair value per share is the face value of shares on the date of grant less the present value of dividends expected to be paid during the vesting
\n
period. Valuation is based on the Black-Scholes methodology for nil-cost options.
\n
The weighted average share price for 2022 is $20.19 (2021: $32.60).
\n
Details of the outstanding grants under this plan are shown below:
\n
2022
\n
grants
\n
2022
\n
grants
\n
2021
\n
grants
\n
2021
\n
grants
\n
2020
\n
grants
\n
2020
\n
grants
\n
2019
\n
grants
\n
2018
\n
grants
\n
2017
\n
grants
\n
2016
\n
grants
\n
2016
\n
grants
\n
2015
\n
grants
Total
\n
25 Feb
25 Feb
25 Feb
25 Feb
27 Feb
27 Feb
12 March
16 May
13 Apr
11 May
17 March
10 April
Number
\n
Y
ear 2022
\n
Beginning balance
\u2212
\u2212
157,644
423,728
184,355
511,453
280,529
14,211
50,107
13,171
51,350
12,012 1,698,560
\n
Granted during the year
176,937
524,858
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
701,795
\n
Exercised during the year
(13,423)
(31,389)
(12,130)
(25,899)
(13,060)
(510,815) (280,529)
\u2212
(6,920)
\u2212
\u2212
\u2212
(894,165)
\n
Forfeited during the year
(37,375)
(71,521)
(36,410)
(63,745)
(37,257)
(638)
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
(246,946)
\n
Outstanding at 31 December
126,139
421,948
109,104
334,084
134,038
\u2212
\u2212
14,211
43,187
13,171
51,350
12,012
1,259,244
\n
Exercisable at 31 December
\u2212
5,502
\u2212
4,756
\u2212
\u2212
\u2212
14,211
43,187
13,171
51,350
12,012
144,189
\n
Weighted average remaining
\n
contractual life (years)
2.16
1.15
1.15
0.15
0.16
\u2212
\u2212
5.38
4.36
3.36
3.21
2.28
1.16
\n
Y
ear 2021
\n
Beginning balance
\u2212
\u2212
184,355
550,745
280,529
140,484
50,107
13,171
51,350
12,012
1,812,875
\n
Granted during the year
157,644
432,098
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
589,742
\n
Exercised during the year
\u2212
\u2212
\u2212
(16,496)
\u2212
(126,273)
\u2212
\u2212
\u2212
\u2212
(661,520)
\n
Forfeited during the year
\u2212
(8,370)
\u2212
(22,796)
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
(42,537)
\n
Outstanding at 31 December
157,644
423,728
184,355
511,453
280,529
14,211
50,107
13,171
51,350
12,012
1,698,560
\n
Exercisable at 31 December
\u2212
\u2212
\u2212
\u2212
\u2212
14,211
50,107
13,171
51,350
12,012
140,851
\n
Weighted average remaining
\n
contractual life (years)
2.15
1.15
1.16
0.16
0.19
6.38
5.36
4.36
4.21
3.28
0.56
\n
Fair value of each share $
25.00
25.38
31.71
32.17
23.70
24.10
20.63
18.45
23.52
31.69
26.21
32.78
\n
The share price at grant date $
26.14
26.14
33.09
33.09
24.91
24.91
21.75
19.09
23.98
32.15
26.98
33.24
\n
Expected dividends yield %
1.50%
1.50%
1.43%
1.43%
1.67%
1.67%
1.79%
1.71%
0.97%
0.73%
0.71%
0.81%
\n
\n
\n
Management incentive plan
\n
The 2009 Management Incentive Plan (MIP) was approved by shareholders at the 2010 Annual General Meeting and the 2018 MIP was approved
\n
by shareholders at the 2018 Annual General Meeting. Under the MIP, the Company makes grants of conditional awards to management across the
\n
Group below senior management level. Awards are dependent on the achievement of individual and Group KPIs over one year and are then
\n
subject to a two-year holding period.
\n
The cost of the MIP of $9 million (2021: $9 million) has been recorded in the consolidated income statement as part of selling, general and
\n
administrative expenses, cost of sales and research and development expenses.
\n
The fair value per share is the face value of shares on the date of grant less the present value of dividends expected to be paid during the vesting
\n
period. Valuation is based on the Black-Scholes methodology for nil-cost options.
\n
The weighted average share price for 2022 is $20.19 (2021: $32.60).
\n
Details of the outstanding grants under this plan are shown below:
\n
2022
\n
grants
\n
2021
\n
grants
\n
2020
\n
grants
\n
2019
\n
grants
\n
2018
\n
grants
\n
2017
\n
grants
\n
2016
\n
grants
\n
2015
\n
grants
\n
2014
\n
grants
\n
2013
\n
grants
Total
\n
25 Feb
25 Feb
27 Feb
17 May
16 May
19 May
11 May
14 May
11 June
17 May
Number
\n
Y
ear 2022
\n
Outstanding at 1 January
\u2212
337,487
358,249
\u2212
13,198
35,884
6,690
7,645
5,890
1,688
766,731
\n
Granted during the year
396,630
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
396,630
\n
Exercised during the year
(5,647)
(14,815)
(322,540)
\u2212
(300)
\u2212
\u2212
\u2212
\u2212
\u2212
(343,302)
\n
Expired during the year
(43,188)
(32,022)
(35,709)
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
(110,919)
\n
Outstanding at 31 December
347,795
290,650
\u2212
\u2212
12,898
35,884
6,690
7,645
5,890
1,688
709,140
\n
Exercisable at 31 December
3,725
12,698
\u2212
\u2212
12,898
35,884
6,690
7,645
5,890
1,688
87,118
\n
Weighted average remaining
\n
contractual life (years)
1.15
0.15
\u2212
\u2212
5.38
4.38
3.36
2.37
1.45
0.38
1.03
\n
Y
ear 2021
\n
Outstanding at 1 January
\u2212
377,913
394,263
17,445
36,990
8,254
8,854
5,890
3,013
852,622
\n
Granted during the year
341,422
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
\u2212
341,422
\n
Exercised during the year
(1,376)
(4,118)
(363,799)
(3,922)
(1,106)
(1,564)
(1,209)
\u2212
(1,325)
(378,419)
\n
Expired during the year
(2,559)
(15,546)
(30,464)
(325)
\u2212
\u2212
\u2212
\u2212
\u2212
(48,894)
\n
Outstanding at 31 December
337,487
358,249
-
13,198
35,884
6,690
7,645
5,890
1,688
766,731
\n
Exercisable at 31 December
\u2212
\u2212
\u2212
13,198
35,884
6,690
7,645
5,890
1,688
70,995
\n
Weighted average remaining
\n
contractual life (years)
1.15
0.16
\u2212
6.38
5.38
4.36
3.37
2.45
1.38
1.04
\n
Fair value of each share $
25.38
32.17
24.10
21.41
18.45
22.09
31.73
32.17
27.73
14.61
\n
The share price at grant date $
26.14
33.09
24.91
22.18
19.09
22.54
32.20
32.63
28.33
14.93
\n
Expected dividends yield %
1.50
1.43
1.67
1.79
1.71
1.01
0.73
0.71
0.71
1.10",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23926": {
"value": "39. Related parties
Transactions between Hikma Pharmaceuticals PLC (Hikma) and its subsidiaries (together, the Group) have been eliminated on consolidation and
\n
are not disclosed in this Note. Transactions between the Group and its joint venture and other related parties are disclosed below.
\n
Trading transactions:
\n
During the year ended 31 December 2022, the Group entered into the following transactions with related parties:
\n
Darhold Limited (Darhold):
is a related party of Hikma because three Directors of Hikma jointly constitute the majority of Directors and
\n
shareholders (with immediate family members) in Darhold and because Darhold owns 25.74% (2021: 24.56%) of the share capital and 27.24%
\n
(2021: 25.92%) of the voting capital of Hikma. Other than dividends (as paid to all shareholders), there were no transactions between the Group
\n
and Darhold Limited during the year.
\n
Hubei Haosun Pharmaceutical Co., Ltd.:
is a related party of Hikma because the Group holds a non-controlling interest of 49% in the joint venture
\n
(JV) with Haosun (2021: 49%). During the year, total direct purchases from Haosun were $0.6 million (2021: $nil). At 31 December 2022, the amount
\n
owed from the Group to Haosun amounted to $0.2 million (2021: $nil). In addition, in certain countries the Group purchases from Haosun
\n
indirectly. During the year total indirect purchases from Haosun were $1.1 million (2021: $0.7 million).
\n
Labatec Pharma (Labatec):
is a related party of the Group because Labatec is owned by the family of two Directors of Hikma. During the year,
\n
total Group sales to Labatec amounted to $2 million (2021: $2 million), and total Group purchases amounted to $1 million (2021: $0.5 million).
\n
At 31 December 2022, the amount owed by Labatec to the Group was $0.4 million (2021: $0.6 million).
\n
Remuneration of key management personnel
\n
The remuneration of the key management personnel (comprising the Executive Directors, Non-Executive Directors and the senior management
\n
as set out in the Governance report) of the Group is set out below in aggregate for each of the categories specified in IAS 24 \u2018Related Party
\n
Disclosures\u2019. Further information about the remuneration of the individual Directors is provided in the audited part of the Remuneration
\n
Committee report on pages 95 to 124.
\n
2022
2021
\n
$m
$m
\n
Short-term employee benefits
13.3
18.0
\n
Share-based payments
7.2
12.9
\n
Post-employment benefits
\u2013
0.1
\n
Other benefits
0.5
0.6
\n
21.0
31.6",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23947": {
"value": "Remuneration of key management personnel
The remuneration of the key management personnel (comprising the Executive Directors, Non-Executive Directors and the senior management
\n
as set out in the Governance report) of the Group is set out below in aggregate for each of the categories specified in IAS 24 \u2018Related Party
\n
Disclosures\u2019. Further information about the remuneration of the individual Directors is provided in the audited part of the Remuneration
\n
Committee report on pages 95 to 124.
\n
2022
2021
\n
$m
$m
\n
Short-term employee benefits
13.3
18.0
\n
Share-based payments
7.2
12.9
\n
Post-employment benefits
\u2013
0.1
\n
Other benefits
0.5
0.6
\n
21.0
31.6",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23996": {
"value": "40. Subsidiaries and joint ventures
The subsidiaries and joint venture of Hikma Pharmaceuticals PLC are as follows:
\n
Owned by the Group
\n
Ownership %
\n
Ordinary Shares
\n
Ownership%
\n
Ordinary Shares
\n
Company\u2019s name
Incorporated in
Address of the registered office
\n
At 31 December
\n
2022
\n
At 31 December
\n
2021
\n
Al Jazeera Pharmaceutical Industry S.A.R.L
Algeria
Zone d'Activit\u00e9, Propri\u00e9t\u00e9 N\u00b0 379 Section N\u00b0 04 Staoueli,
\n
Algeria
\n
99%
99%
\n
Algerie Industrie Mediterraneene Du Medicament S.A.R.L.
Algeria
Zone d'Activit\u00e9 16/15 Staoueli, Algeria
97%
97%
\n
Hikma Pharma Algeria S.A.R.L.
Algeria
Zone d'Activit\u00e9 16/15 Staoueli, Algeria
100%
100%
\n
SPA Al Dar Al Arabia pour la Fabrication de M\u00e9dicaments
Algeria
Zone d\u2019Activit\u00e9 El Boustane N\u00b0 78, Sidi Abdellah,
\n
Al Rahmania, Algeria
\n
100%
100%
\n
Hubei Haosun Pharmaceutical Co., Ltd.
\n
1
\n
China
No 20 Juxian Road, Gedian Economic and Technology
\n
Development Area, Hubei, China
\n
49%
49%
\n
Hikma Canada Limited
Canada
Blaney McMurtry LLP, Suite 15000
\n
2 Queen Street, Toronto ON M5C 3G5
\n
100%
100%
\n
Hikma Pharma S.A.E
Egypt
12 El-Esraa Street, El-Mohandeseen, Lebanon Square,
\n
Giza, Egypt
\n
100%
100%
\n
Hikma Pharmaceuticals Industries S.A.E
Egypt
16 Ahmed Hosny Street, First Zone, Naser City,
\n
Cairo, Egypt
\n
100%
100%
\n
Hikma Specialised Pharmaceuticals (S.A.E)
Egypt
10 D, 11 D, Industrial Zone, Badr City, Cairo, Egypt
98%
98%
\n
Hikma for Importation Co. LLC
Egypt
16 Ahmed Hosny Street, First Zone, Naser City,
\n
Cairo, Egypt
\n
99%
99%
\n
Hikma Pharma GmbH
Germany
Lochhamer Strasse 13, 82152, Martinsried, Germany
100%
100%
\n
Thymoorgan Pharmazie GmbH
Germany
Schiffgraben 23, DE-38690, Goslar, OT Vienenburg,
\n
Germany
\n
100%
100%
\n
Hikma Italia S.p.A
Italy
Viale Certosa 10, 27100, Pavia, Italy
100%
100%
\n
Hikma Pharma Limited*
\n
2
\n
Jersey
47 Esplanade, St Helier, JE1 0BD, Jersey
100%
100%
\n
Arab Medical Containers LLC
Jordan
P.O. Box 80, Sahab Industrial Estate, 11512, Jordan
100%
100%
\n
Arab Pharmaceutical Manufacturing PSC
Jordan
Al Buhaira \u2013 Salt, P.O. Box 42, Jordan
100%
100%
\n
Hikma International Pharmaceuticals LLC (Exempt)
Jordan
122 Queen Zain AlSharaf Street, Bayader Wadi Al-Seer,
\n
Amman, Jordan
\n
100%
100%
\n
Hikma International Ventures and Development LLC
\n
(Exempt)
\n
Jordan
Bayader Wadi Al-Seer, Industrial Area, Saleem Bin Al-
\n
Hareth Street, Building 21, P.O. Box 182400, Amman,
\n
11118, Jordan
\n
100%
100%
\n
Hikma Investment LLC*
Jordan
Bayader Wadi Al-Seer, Industrial Area, Saleem Bin Al-
\n
Hareth Street, Building 21, P.O. Box 182400, Amman,
\n
11118, Jordan
\n
100%
100%
\n
Hikma Pharmaceuticals LLC
Jordan
Bayader Wadi Al-Seer, Industrial Area, Saleem Bin Al-
\n
Hareth Street, Building 21, P.O. Box 182400, Amman,
\n
11118, Jordan
\n
100%
100%
\n
Hikma Pharmaceuticals LLC (Jordan) (FREE ZONE)
Jordan
Al-Mushatta \u2212 Al Qastal Free Zone
\n
P.O. Box 182400 11118 Amman, Jordan
\n
100%
100%
\n
International Pharmaceutical Research Centre LLC
Jordan
P.O. Box 963166, Amman, 11196, Jordan
51%
51%
\n
Sofia Travel and Tourism
Jordan
Mustafa Semreen Complex Building No. 29, Jamal
\n
Qaytoqa Street, Bayader Wadi Al-Seer, Amman, Jordan
\n
100%
100%
\n
Specialised for Pharmaceutical Industries LLC
Jordan
Bayader Wadi Al-Seer, Industrial Area, Saleem Bin Al-
\n
Hareth Street, Building 21, P.O. Box 182400, Amman,
\n
11118, Jordan
\n
100%
100%
\n
Hikma Pharmaceuticals Co. Ltd., Almaty (Kazakhtan)
\n
Representative Office
\n
Kazakhstan
Apt. 1, House 7, Building-28, \u2018Kereme\u2019 Microdistrict,
\n
Bostandykskiy District, Almaty,A15C8X2, Kazakhstan
\n
\u2212
100%
\n
Al Jazeera Pharmaceutical Industries Ltd
KSA
P.O. Box 106229
\n
11666 Riyadh, Saudi Arabia
\n
100%
100%
\n
Hikma Liban S.A.R.L.
Lebanon
Saria Building, Ground Floor, Embassies Street,
\n
Bir Hassan, Beirut, Lebanon
\n
\u2212
67%
\n
Soci\u00e9t\u00e9 de Promotion Pharmaceutique du Maghreb
\n
(Promopharm S.A.)
\n
Morocco
Zone Industrielle du Sahel, Rue N. 7, Had Soualem,
\n
Province de Settat, Morocco
\n
94%
94%
\n
Hikma Pharma Benelux B.V
Netherlands
Nieuwe Steen 36, 1625 HV, Hoorn, Netherlands
100%
100%
\n
\n
Owned by the Group
\n
Ownership %
\n
Ordinary Shares
\n
Ownership%
\n
Ordinary Shares
\n
Company\u2019s name
Incorporated in
Address of the registered office
\n
At 31 December
\n
2022
\n
At 31 December
\n
2021
\n
Hikma Farmaceutica, (Portugal) S.A
Portugal
Estrada Rio Da Mo no.8, 8a, 8B-Fervenca, 2705-906,
\n
Terugem SNT, Portugal
\n
100%
100%
\n
Lifotec Farmaceutica S.G.P.S S.A*
Portugal
Estrada Nacional 9, Ferven\u00e7a, S\u00e3o Jo\u00e3o das Lampas e
\n
Terrugem, Sintra, Portugal
\n
100%
100%
\n
Hikma Care for Medicines and Medical Supplies Company
Palestine
West Bank Al Birah, Ramallah
51%
51%
\n
Hikma Pharmaceuticals
Palestine
West Bank Al Birah, Ramallah
100%
100%
\n
Hikma Slovakia s.r.o
Slovakia
Seber\u00edniho 1
\n
821 03 Bratislava, Slovakia
\n
100%
100%
\n
Hikma Espana S.L
Spain
CALLE MALDONADO, 4 \u2013 BJ D
\n
28006, MADRID Spain
\n
100%
100%
\n
Pharma Ixir Co. Ltd
Sudan
Riyad Area, Obied Khatim Street, P.O. Box 10461,
\n
Block No. 21, House No. 420, Khartoum, Sudan
\n
51%
51%
\n
Savannah Pharmaceutical Industries Co. Ltd
Sudan
Riyad Area, Obied Khatim Street, P.O. Box 10461,
\n
Block No. 21, House No. 420, Khartoum, Sudan
\n
100%
100%
\n
Eurohealth International S.A.R.L.
\n
2
\n
Switzerland
Rue des Battoirs 7, 1205 Gen\u00e8ve, Switzerland
100%
100%
\n
APM Tunisie S.A.R.L.
Tunisia
Impasse N\u00b04-Energie Solaire, Zone Industrielle La
\n
Charguia 1, Tunis-Carthage, 2035, Tunisia
\n
99%
99%
\n
STE D'Industrie Pharmaceutique Ibn Al Baytar*
\n
3
\n
Tunisia
11 Rue 8610 Charguia 1-2035 Tunis-Carthage, Tunisia
100%
100%
\n
STE Medicef
Tunisia
Avenue Habib Bourguiba, Sidi Thabet, 2020 Ariana,
\n
Tunisia
\n
100%
100%
\n
Hikma Emerging Markets and Asia Pacific FZ-LLC
United Arab
\n
Emirates
\n
Premises 202-204, Floor 2, Building 26, Dubai,
\n
United Arab Emirates
\n
100%
100%
\n
Hikma International Trading Limited2
United Arab
\n
Emirates
\n
The Oberoi Centre, Level 15, Business Bay,
\n
P.O. Box 36282, Dubai, United Arab Emirates
\n
100%
100%
\n
Hikma MENA FZE*
\n
2
\n
United Arab
\n
Emirates
\n
The Oberoi Centre, Level 15, Business Bay,
\n
P.O. Box 36282, Dubai, United Arab Emirates
\n
100%
100%
\n
Hikma UK Limited*
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
Hikma Ventures Limited
\n
2
\n
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
West-Ward Holdings Limited*
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
Hikma Pharmaceuticals International Limited*
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
Hikma Intelligence Limited
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
Eurohealth (U.S.A.) Inc
United States
200 Connell Drive, 4th Floor Berkeley Heights, NJ 07922
100%
100%
\n
Hikma Speciality USA, Inc.
United States
1900 Arlingate Lane, Columbus, Ohio 43228
100%
100%
\n
Hikma Labs Inc.
United States
1809 Wilson Road, Columbus, Ohio 43228
100%
100%
\n
West-Ward Columbus Inc.
United States
1809 Wilson Road, Columbus, Ohio 43228
100%
100%
\n
Hikma Injectables USA, Inc.
United States
36 Stults Road, Dayton, New Jersey 08810
100%
100%
\n
Hikma Pharmaceuticals USA Inc.
United States
200 Connell Drive, 4th Floor Berkeley Heights, NJ 07922
100%
100%
\n
Hikma Finance USA LLC
United States
200 Connell Drive, 4th Floor Berkeley Heights, NJ 07922
100%
100%
\n
Hikma France
France
Tour Cb21 16 Place de l'Iris, Courbevoie 92400
100%
100%
\n
Hikma Cali Inc. (Delaware)
United States
Corporation Trust Center, 1209 Orange Street,
\n
Wilmington DE 19801, United States
\n
\u2212
100%
\n
TACCA, LLC
United States
1902 Wright Place, Carlsbad, California 92008
90%
\u2212
\n
Pytrione LLC
United States
1902 Wright Place, Carlsbad, California 92011
84%
\u2212
\n
Hikma Services India Private Limited
India
502/503, Matharu Arcade, Subhash Road
\n
Vile Parle East, Mumbai, Maharashtra \u2013 4000 57
\n
100%
\u2212
\n
1.
The investments in joint ventures are accounted for using the equity method (Note 18)
\n
2. Owned by PLC \u2018the Company\u2019
\n
3.
In 2021, STE Hikma Pharma Tunisie was merged into STE D'Industrie Pharmaceutique Ibn Al Baytar
\n
The investments in subsidiaries are all stated at cost in Hikma Pharmaceuticals PLC and are consolidated in line with IFRS 10.
\n
The Group\u2019s subsidiaries principally operate in trading pharmaceuticals products and associated goods and services, except for Sofia Travel and
\n
Tourism subsidiary which coordinates employees travel arrangements.
\nCompanies marked (*) were incorporated as holding companies.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23997": {
"value": "40. Subsidiaries and joint ventures
The subsidiaries and joint venture of Hikma Pharmaceuticals PLC are as follows:
\n
Owned by the Group
\n
Ownership %
\n
Ordinary Shares
\n
Ownership%
\n
Ordinary Shares
\n
Company\u2019s name
Incorporated in
Address of the registered office
\n
At 31 December
\n
2022
\n
At 31 December
\n
2021
\n
Al Jazeera Pharmaceutical Industry S.A.R.L
Algeria
Zone d'Activit\u00e9, Propri\u00e9t\u00e9 N\u00b0 379 Section N\u00b0 04 Staoueli,
\n
Algeria
\n
99%
99%
\n
Algerie Industrie Mediterraneene Du Medicament S.A.R.L.
Algeria
Zone d'Activit\u00e9 16/15 Staoueli, Algeria
97%
97%
\n
Hikma Pharma Algeria S.A.R.L.
Algeria
Zone d'Activit\u00e9 16/15 Staoueli, Algeria
100%
100%
\n
SPA Al Dar Al Arabia pour la Fabrication de M\u00e9dicaments
Algeria
Zone d\u2019Activit\u00e9 El Boustane N\u00b0 78, Sidi Abdellah,
\n
Al Rahmania, Algeria
\n
100%
100%
\n
Hubei Haosun Pharmaceutical Co., Ltd.
\n
1
\n
China
No 20 Juxian Road, Gedian Economic and Technology
\n
Development Area, Hubei, China
\n
49%
49%
\n
Hikma Canada Limited
Canada
Blaney McMurtry LLP, Suite 15000
\n
2 Queen Street, Toronto ON M5C 3G5
\n
100%
100%
\n
Hikma Pharma S.A.E
Egypt
12 El-Esraa Street, El-Mohandeseen, Lebanon Square,
\n
Giza, Egypt
\n
100%
100%
\n
Hikma Pharmaceuticals Industries S.A.E
Egypt
16 Ahmed Hosny Street, First Zone, Naser City,
\n
Cairo, Egypt
\n
100%
100%
\n
Hikma Specialised Pharmaceuticals (S.A.E)
Egypt
10 D, 11 D, Industrial Zone, Badr City, Cairo, Egypt
98%
98%
\n
Hikma for Importation Co. LLC
Egypt
16 Ahmed Hosny Street, First Zone, Naser City,
\n
Cairo, Egypt
\n
99%
99%
\n
Hikma Pharma GmbH
Germany
Lochhamer Strasse 13, 82152, Martinsried, Germany
100%
100%
\n
Thymoorgan Pharmazie GmbH
Germany
Schiffgraben 23, DE-38690, Goslar, OT Vienenburg,
\n
Germany
\n
100%
100%
\n
Hikma Italia S.p.A
Italy
Viale Certosa 10, 27100, Pavia, Italy
100%
100%
\n
Hikma Pharma Limited*
\n
2
\n
Jersey
47 Esplanade, St Helier, JE1 0BD, Jersey
100%
100%
\n
Arab Medical Containers LLC
Jordan
P.O. Box 80, Sahab Industrial Estate, 11512, Jordan
100%
100%
\n
Arab Pharmaceutical Manufacturing PSC
Jordan
Al Buhaira \u2013 Salt, P.O. Box 42, Jordan
100%
100%
\n
Hikma International Pharmaceuticals LLC (Exempt)
Jordan
122 Queen Zain AlSharaf Street, Bayader Wadi Al-Seer,
\n
Amman, Jordan
\n
100%
100%
\n
Hikma International Ventures and Development LLC
\n
(Exempt)
\n
Jordan
Bayader Wadi Al-Seer, Industrial Area, Saleem Bin Al-
\n
Hareth Street, Building 21, P.O. Box 182400, Amman,
\n
11118, Jordan
\n
100%
100%
\n
Hikma Investment LLC*
Jordan
Bayader Wadi Al-Seer, Industrial Area, Saleem Bin Al-
\n
Hareth Street, Building 21, P.O. Box 182400, Amman,
\n
11118, Jordan
\n
100%
100%
\n
Hikma Pharmaceuticals LLC
Jordan
Bayader Wadi Al-Seer, Industrial Area, Saleem Bin Al-
\n
Hareth Street, Building 21, P.O. Box 182400, Amman,
\n
11118, Jordan
\n
100%
100%
\n
Hikma Pharmaceuticals LLC (Jordan) (FREE ZONE)
Jordan
Al-Mushatta \u2212 Al Qastal Free Zone
\n
P.O. Box 182400 11118 Amman, Jordan
\n
100%
100%
\n
International Pharmaceutical Research Centre LLC
Jordan
P.O. Box 963166, Amman, 11196, Jordan
51%
51%
\n
Sofia Travel and Tourism
Jordan
Mustafa Semreen Complex Building No. 29, Jamal
\n
Qaytoqa Street, Bayader Wadi Al-Seer, Amman, Jordan
\n
100%
100%
\n
Specialised for Pharmaceutical Industries LLC
Jordan
Bayader Wadi Al-Seer, Industrial Area, Saleem Bin Al-
\n
Hareth Street, Building 21, P.O. Box 182400, Amman,
\n
11118, Jordan
\n
100%
100%
\n
Hikma Pharmaceuticals Co. Ltd., Almaty (Kazakhtan)
\n
Representative Office
\n
Kazakhstan
Apt. 1, House 7, Building-28, \u2018Kereme\u2019 Microdistrict,
\n
Bostandykskiy District, Almaty,A15C8X2, Kazakhstan
\n
\u2212
100%
\n
Al Jazeera Pharmaceutical Industries Ltd
KSA
P.O. Box 106229
\n
11666 Riyadh, Saudi Arabia
\n
100%
100%
\n
Hikma Liban S.A.R.L.
Lebanon
Saria Building, Ground Floor, Embassies Street,
\n
Bir Hassan, Beirut, Lebanon
\n
\u2212
67%
\n
Soci\u00e9t\u00e9 de Promotion Pharmaceutique du Maghreb
\n
(Promopharm S.A.)
\n
Morocco
Zone Industrielle du Sahel, Rue N. 7, Had Soualem,
\n
Province de Settat, Morocco
\n
94%
94%
\n
Hikma Pharma Benelux B.V
Netherlands
Nieuwe Steen 36, 1625 HV, Hoorn, Netherlands
100%
100%
\n
\n
Owned by the Group
\n
Ownership %
\n
Ordinary Shares
\n
Ownership%
\n
Ordinary Shares
\n
Company\u2019s name
Incorporated in
Address of the registered office
\n
At 31 December
\n
2022
\n
At 31 December
\n
2021
\n
Hikma Farmaceutica, (Portugal) S.A
Portugal
Estrada Rio Da Mo no.8, 8a, 8B-Fervenca, 2705-906,
\n
Terugem SNT, Portugal
\n
100%
100%
\n
Lifotec Farmaceutica S.G.P.S S.A*
Portugal
Estrada Nacional 9, Ferven\u00e7a, S\u00e3o Jo\u00e3o das Lampas e
\n
Terrugem, Sintra, Portugal
\n
100%
100%
\n
Hikma Care for Medicines and Medical Supplies Company
Palestine
West Bank Al Birah, Ramallah
51%
51%
\n
Hikma Pharmaceuticals
Palestine
West Bank Al Birah, Ramallah
100%
100%
\n
Hikma Slovakia s.r.o
Slovakia
Seber\u00edniho 1
\n
821 03 Bratislava, Slovakia
\n
100%
100%
\n
Hikma Espana S.L
Spain
CALLE MALDONADO, 4 \u2013 BJ D
\n
28006, MADRID Spain
\n
100%
100%
\n
Pharma Ixir Co. Ltd
Sudan
Riyad Area, Obied Khatim Street, P.O. Box 10461,
\n
Block No. 21, House No. 420, Khartoum, Sudan
\n
51%
51%
\n
Savannah Pharmaceutical Industries Co. Ltd
Sudan
Riyad Area, Obied Khatim Street, P.O. Box 10461,
\n
Block No. 21, House No. 420, Khartoum, Sudan
\n
100%
100%
\n
Eurohealth International S.A.R.L.
\n
2
\n
Switzerland
Rue des Battoirs 7, 1205 Gen\u00e8ve, Switzerland
100%
100%
\n
APM Tunisie S.A.R.L.
Tunisia
Impasse N\u00b04-Energie Solaire, Zone Industrielle La
\n
Charguia 1, Tunis-Carthage, 2035, Tunisia
\n
99%
99%
\n
STE D'Industrie Pharmaceutique Ibn Al Baytar*
\n
3
\n
Tunisia
11 Rue 8610 Charguia 1-2035 Tunis-Carthage, Tunisia
100%
100%
\n
STE Medicef
Tunisia
Avenue Habib Bourguiba, Sidi Thabet, 2020 Ariana,
\n
Tunisia
\n
100%
100%
\n
Hikma Emerging Markets and Asia Pacific FZ-LLC
United Arab
\n
Emirates
\n
Premises 202-204, Floor 2, Building 26, Dubai,
\n
United Arab Emirates
\n
100%
100%
\n
Hikma International Trading Limited2
United Arab
\n
Emirates
\n
The Oberoi Centre, Level 15, Business Bay,
\n
P.O. Box 36282, Dubai, United Arab Emirates
\n
100%
100%
\n
Hikma MENA FZE*
\n
2
\n
United Arab
\n
Emirates
\n
The Oberoi Centre, Level 15, Business Bay,
\n
P.O. Box 36282, Dubai, United Arab Emirates
\n
100%
100%
\n
Hikma UK Limited*
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
Hikma Ventures Limited
\n
2
\n
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
West-Ward Holdings Limited*
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
Hikma Pharmaceuticals International Limited*
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
Hikma Intelligence Limited
United Kingdom
1 New Burlington Place, London, W1S 2HR,
\n
United Kingdom
\n
100%
100%
\n
Eurohealth (U.S.A.) Inc
United States
200 Connell Drive, 4th Floor Berkeley Heights, NJ 07922
100%
100%
\n
Hikma Speciality USA, Inc.
United States
1900 Arlingate Lane, Columbus, Ohio 43228
100%
100%
\n
Hikma Labs Inc.
United States
1809 Wilson Road, Columbus, Ohio 43228
100%
100%
\n
West-Ward Columbus Inc.
United States
1809 Wilson Road, Columbus, Ohio 43228
100%
100%
\n
Hikma Injectables USA, Inc.
United States
36 Stults Road, Dayton, New Jersey 08810
100%
100%
\n
Hikma Pharmaceuticals USA Inc.
United States
200 Connell Drive, 4th Floor Berkeley Heights, NJ 07922
100%
100%
\n
Hikma Finance USA LLC
United States
200 Connell Drive, 4th Floor Berkeley Heights, NJ 07922
100%
100%
\n
Hikma France
France
Tour Cb21 16 Place de l'Iris, Courbevoie 92400
100%
100%
\n
Hikma Cali Inc. (Delaware)
United States
Corporation Trust Center, 1209 Orange Street,
\n
Wilmington DE 19801, United States
\n
\u2212
100%
\n
TACCA, LLC
United States
1902 Wright Place, Carlsbad, California 92008
90%
\u2212
\n
Pytrione LLC
United States
1902 Wright Place, Carlsbad, California 92011
84%
\u2212
\n
Hikma Services India Private Limited
India
502/503, Matharu Arcade, Subhash Road
\n
Vile Parle East, Mumbai, Maharashtra \u2013 4000 57
\n
100%
\u2212
\n
1.
The investments in joint ventures are accounted for using the equity method (Note 18)
\n
2. Owned by PLC \u2018the Company\u2019
\n
3.
In 2021, STE Hikma Pharma Tunisie was merged into STE D'Industrie Pharmaceutique Ibn Al Baytar
\n
The investments in subsidiaries are all stated at cost in Hikma Pharmaceuticals PLC and are consolidated in line with IFRS 10.
\n
The Group\u2019s subsidiaries principally operate in trading pharmaceuticals products and associated goods and services, except for Sofia Travel and
\n
Tourism subsidiary which coordinates employees travel arrangements.
\nCompanies marked (*) were incorporated as holding companies.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f24444": {
"value": "41. Defined contribution retirement benefit plan
The Group has defined contribution retirement plans in four of its subsidiaries: Hikma Pharmaceuticals PLC \u2013 United Kingdom, Hikma
\n
Pharmaceuticals Limited (Jordan), Arab Pharmaceutical Manufacturing PSC and Hikma Pharmaceuticals USA Inc. The details of each contribution
\n
plan are as follows:
\n
Hikma Pharmaceuticals PLC
\n
Hikma Pharmaceuticals PLC currently has a defined contribution pension plan available for staff working in the United Kingdom whereby Hikma
\n
Pharmaceuticals PLC contributes 10% of basic salary. Employees are immediately entitled to 100% of the contributions. Hikma Pharmaceuticals
\n
PLC contributions for the year ended 31 December 2022 were $0.3 million (2021: $0.3 million).
\n
Hikma Pharmaceuticals LLC
\n
Hikma Pharmaceuticals LLC currently has an employee savings plan whereby Hikma Pharmaceuticals LLC fully matches employees\u2019 contributions,
\n
which are fixed at 10% of basic salary. Employees are entitled to 100% of Hikma Pharmaceuticals LLC contributions after three years of
\n
employment with the Company. Hikma Pharmaceuticals LLC contributions for the year ended 31 December 2022 were $3.4 million (2021: $3.2
\n
million).
\n
Arab Pharmaceutical Manufacturing PSC
\n
Arab Pharmaceuticals Manufacturing PSC currently has an employee savings plan whereby Arab Pharmaceuticals Manufacturing PSC fully
\n
matches employees\u2019 contributions, which are fixed at 10% of basic salary. Employees are entitled to 100% of Arab Pharmaceuticals Manufacturing
\n
PSC contributions after three years of employment with the Company. Arab Pharmaceuticals Manufacturing PSC contributions for the year ended
\n
31 December 2022 were $0.5 million (2021: $0.5 million).
\n
Hikma Pharmaceuticals USA Inc.: (401 (k) Retirement Plan)
\n
Hikma Pharmaceuticals USA Inc. has a 401(k)-defined contribution plan, which allows all eligible employees to defer a portion of their income
\n
through contributions to the plan. Eligible employees can begin contributing to the plan after being employed for 90 days. Employees can defer
\n
up to 95% of their eligible income into the plan, not to exceed $20,500 (2021: $19,500), not including catch-up contributions available to eligible
\n
employees as outlined by the Internal Revenue Service. The company matches the employees\u2019 eligible contribution dollar-for-dollar on the first
\n
6% of eligible pay contributed to the plan. Employer contributions vest 50% after two years of service and 100% after three years of service.
\n
Employees are considered to have completed one year of service for the purposes of vesting upon the completion of 1,000 hours of service at any
\n
time during a plan year. Employer contributions to the plan for the year ended 31 December 2022 were $9 million (2021: $10 million). The assets of
this plan are held separately from those of the Group. The only obligation of the Group with respect to this plan is to make specified contributions.",
"dimensions": {
"concept": "hik:DisclosureOfDefinedContributionRetirementBenefitPlanExplanatoryTextBlock",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25280": {
"value": "Registered o\ufb03ce:
1 New Burlington Place
\n
London W1S 2HR
\n UK",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:549300BNS685UXH4JI75",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}