Alliance Pharma PLC Half Year Trading Update (7420F)
July 20 2021 - 2:00AM
UK Regulatory
TIDMAPH
RNS Number : 7420F
Alliance Pharma PLC
20 July 2021
For immediate release 20 July 2021
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Half Year Trading Update
Strong revenue growth continues
Amberen performance since acquisition in line with expectations
and integration now complete
Alliance Pharma plc (AIM: APH), the international healthcare
group, announces its trading update for the six months ended 30
June 2021 (the "Period"), ahead of the expected announcement of the
Group's interim results on 21 September 2021.
The Group traded strongly with see-through revenue(1) of
GBP80.9m, 24% higher than the same period last year (H1 2020:
GBP65.3m) and 28% higher on a constant currency basis. Excluding
Amberen (TM) , acquired in December 2020, like for like see-through
revenue(1) was GBP71.4m, 9% higher than the same period last year
(12% on a constant currency basis). Based on trading in the year to
date, the Board expects underlying profit before tax for the full
year to be in line with market expectations.
Our Consumer Healthcare brands continue to perform strongly,
with total Consumer Healthcare revenues for the Period up 30% to
GBP56.8m (H1 2020: GBP43.8m) and like for like revenues, excluding
Amberen, up 8% to GBP47.3m (12% on a constant currency basis) .
Kelo-cote(TM) delivered another very strong performance, with
revenues in the Period up 54% to GBP21.9m (H1 2020: GBP14.2m), 62 %
on a constant currency basis. Amberen continues to trade in line
with our pre-acquisition expectations, generating revenues of
GBP9.5m in the Period, a constant currency increase of 10% versus
the last six-months under its previous ownership. Nizoral(TM)
revenues were 8% lower than the same period last year, at GBP9.0m
(H1 2020: GBP9.8m), 7% lower on a constant currency basis,
primarily due to the phasing of distributor orders .
We saw an uplift in our Prescription Medicines business in the
Period, with revenues increasing 12% to GBP24.1m (H1 2020:
GBP21.5m), as some of the negative impact of COVID-19 on the
delivery of routine treatments eased.
Free cash flow for the Period was GBP6.5m (H1 2020: GBP10.5m),
the reduction reflecting the expected reversal of the favourable
working capital movements in Q4 2020 and the timing of sales within
the Period. Net debt reduced by GBP2.7m to GBP106.7m as at 30 June
2021 and Group leverage(2) reduced to 2.21 times at the end of June
(31 December 2020: 2.43 times). We continue to expect this to fall
below 2.0 times by the end of the year.
Peter Butterfield, Chief Executive Officer of Alliance,
commented:
"I am pleased to report that the Group continued to deliver a
strong performance in the first half of 2021. Our Consumer
Healthcare business continues to perform well - Kelo-cote in
particular enjoyed a very strong first half. We were pleased with
the first half performance from Amberen, and the integration of the
brand into our US-based operations is now complete .
"We expect the Group's strong performance will continue
throughout the second half and anticipate this will have a positive
impact on cash generation and our ability to further deleverage by
the year end."
(1) See-through revenue includes sales from Nizoral(TM) as if
they had been invoiced by Alliance. Under the terms of the
transitional services agreement with Johnson & Johnson
(J&J), Alliance receives the benefit of the net profit on sales
of Nizoral from the date of acquisition up until the product
licences in the Asia-Pacific territories transfer from J&J to
Alliance. Revenue for H1 2021, on a statutory-reported basis, is
expected to be GBP78.6m, an increase of 27% on the same period last
year
(2) Adjusted net debt / enlarged Group EBITDA, calculated using
pro forma EBITDA on a trailing 12-month basis
For further information:
Alliance Pharma plc + 44 (0)1249 466966
Peter Butterfield, Chief Executive
Officer
Andrew Franklin, Chief Financial Officer
www.alliancepharma.co.uk
Buchanan + 44 (0)20 7466 5000
Mark Court / Sophie Wills / Hannah
Ratcliff
Numis Securities Limited + 44 (0)20 7260 1000
Nominated Adviser: Freddie Barnfield
/ Oliver Steele
Corporate Broking: James Black
Investec Bank plc + 44 (0) 20 7597 5970
Corporate Finance: Daniel Adams
Corporate Broking: Patrick Robb
About Alliance
Alliance Pharma plc (AIM: APH) is an international healthcare
group, headquartered in the UK with subsidiaries in Europe, the Far
East and the US and wide international reach through an extensive
network of distributors, generating sales in more than 100
countries.
We hold the marketing rights to around 80 Consumer Healthcare
brands and Prescription Medicines, which are managed on a portfolio
basis according to their growth potential. Promotional investment
is focused primarily on our Consumer healthcare brands, many of
which have significant international or multi-territory reach. Our
Prescription Medicines are generally sold in a more limited number
of local markets, and most require little or no promotional
investment.
Our strategy allows us to deliver good organic growth and to
enhance our growth rate through carefully selected
acquisitions.
For more information on Alliance, please visit our website:
www.alliancepharmaceuticals.com
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