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On Thursday, shares of Hikma Pharmaceuticals and WPP PLC fell sharply after poor interim results, and IHG was at the top of the leaderboard following strong results well ahead of market expectations. The below-par FTSE 100 index today hints at a mixed bag of earnings.
Hikma Pharmaceuticals plunged 7.3% after announcing a 25% drop in operating profit for the first half of 2025. Core profits also declined by 6%, raising a more negative outlook. Despite the decline, Hikma raised its interim dividend by 12% and kept its full-year guidance unchanged.
Analyst Seb Jantet from Panmure Liberum pointed out that lowered margin guidance for Injectables could concern some, but the issues are mainly related to currency fluctuations and product mix. Richard Hunter from Interactive Investor highlighted the sector’s pressure, especially with tariff threats from the US.
WPP PLC also faced a tough day, with shares falling 4.2% following its half-year results. The company reported a 7.8% drop in revenue to £6.66 billion. Operating profit tumbled 29%, and the company cut its interim dividend by 50%. WPP is grappling with reduced client spending and slower new business activity.
CEO Mark Read acknowledged the challenging environment but emphasized progress in restructuring its media segment. With Read stepping down at the end of August, new CEO Cindy Rose will review the company’s strategy in September.
In contrast, Intercontinental Hotels Group (IHG) saw its stock rise 6.1% after exceeding expectations. The hotel company posted a pre-tax profit of $633 million, ahead of estimates of $516.9 million.
While revenue per available room (revPAR) growth slowed to 1.8% for the half year, IHG is confident in its full-year targets. CEO Elie Maalouf noted a net system size increase of 5.4% and positive margin progression.
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The FTSE 100 index opened lower on Thursday as blue-chip UK companies were ex-dividend, with AstraZeneca, BT Group, NatWest, Barclays, and Reckitt Benckiser shrinking the index by 18.3 points.
Nevertheless, the rest of the market was supported by gains in tech stocks after a strong overnight performance in the US.
The FTSE 100 continues to face challenges, but investors are more in a mode of economic decision-making, mainly the Bank of England. Businesses such as WPP and Hikma must respond to a changing global economic situation, while IHG has recently had a positive example of resilience.
