This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of
MAR.
For
immediate release
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29 January
2024
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ALLIANCE
PHARMA
("Alliance", "Company" or the
"Group")
Full Year Trading Update
Strong revenues on H2
recovery, leverage reduced
Alliance Pharma plc (AIM: APH), the
international healthcare group, announces its trading update for
the year ended 31 December 2023 (the "Period"), ahead of the
announcement of the Group's audited results in March 2024, which
are anticipated to be in line with market expectations.
Financial summary
The Group delivered record
see-through1 revenues in the Period
of £182.7m (FY22: £172.0m), up 6% versus the prior period and up 7%
at constant exchange rates ("CER"). Excluding sales from ScarAway
and the US rights to Kelo-Cote in Q1 23, both acquired in March
2022 (the "US Acquisition"), like-for-like see-through revenues
increased 6% CER.
Continued strong consumer demand,
particularly in China, drove significant recovery in Kelo-Cote
franchise revenues in H2, leading to FY23 revenues of £63.2m, up
29% CER (FY22: £50.0m). Nizoral revenues increased 3% CER to £21.7m
(FY22: £21.8m) whilst Amberen revenues declined 6% CER on an
underlying basis (excluding the leading discount store account that
was lost in 2022) and decreased 25% CER to £11.2m (FY22: £14.9m) on
a reported basis. With Other Consumer brands up 5% CER to £40.3m
(FY22: £38.4m), total see-through Consumer Healthcare revenues
increased 11% CER to £136.4m. Prescription Medicine revenues were
stable at £46.3m (FY22: £46.8m), reflecting a strong recovery in H2
as expected, as previously out of stock products became
available.
Underlying profit for the Period is
anticipated to be in-line with market expectations.
Cash and debt
Free cash flow in the Period rose
34% to £21.1m (FY22: £15.8m) and net debt reduction continued,
falling to £92.4m at 31 December 2023 (31 December
2022: £102.0m). Group leverage2 (as at 31 December 2023)
is expected to be significantly below that at 30 June 2023 (2.7x),
and in-line with previous guidance.
Outlook
Demand for the Group's brands
remains strong. Alliance's clear focus on the core Consumer
Healthcare business, in addition to our well-established, scalable
platform across EMEA, APAC and the US, is expected to deliver
continued strong organic growth over the medium term. In 2024, the
Board anticipates our Consumer Healthcare revenues to continue to
grow above that of the broader Consumer Healthcare market, with
stable Prescription Medicine revenues.
In order to achieve our medium-term
objectives, in 2024, the Board anticipates increased investment in
sales and marketing, both directly and through the Group's
distributors. The Company will also continue to deliver innovation
in 2024 to further expand the reach of its brands. As a result, the
Board anticipates that profits in 2024 will be in-line with
2023.
Peter Butterfield, Chief Executive Officer of Alliance,
commented:
"Our portfolio continues to provide
a robust platform from which to grow our Consumer Healthcare
brands. In 2023, we delivered record revenues as we launched new
advertising campaigns to accelerate organic sales growth whilst
bringing new, innovative, products to market. Our global ecommerce
business is building strongly, as we entered several new, high
growth geographies in 2023, and look to enter more this
year.
"We remain confident in our
long-term performance as we focus our resources on those market
segments in which we already have a strong presence and expertise
in order to drive solid organic revenue growth above that of the
broader Consumer Healthcare market."
1 See-through revenue includes
sales from Nizoral™ as if they had been invoiced by Alliance as
principal. For statutory accounting purposes the product margin
relating to Nizoral sales made on an agency basis is included
within Revenue, in line with IFRS 15.
2 Adjusted net debt / enlarged
Group EBITDA, calculated using pro forma EBITDA on a trailing
12-month basis.
For
further information:
Alliance Pharma plc
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+ 44 (0)1249
466966
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Cora McCallum, Head of Investor
Relations & Corporate Communications
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+ 44
(0)1249 705168
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ir@allianceph.com
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Buchanan
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+ 44 (0)20 7466
5000
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Mark Court / Sophie Wills
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alliancepharma@buchanan.uk.com
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Deutsche Numis (Nominated Adviser and Joint
Broker)
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+ 44 (0)20 7260
1000
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Freddie Barnfield / Duncan Monteith
/ Sher Shah
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Investec Bank plc (Joint Broker)
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+ 44 (0)20 7597
5970
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Patrick Robb / Maria Gomez de
Olea
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About Alliance
Alliance Pharma plc (AIM: APH) is a
growing consumer healthcare company. Our purpose is to empower
people to make a positive difference to their health and wellbeing
by making our trusted and proven brands available around the
world.
We deliver organic growth through
investing in our priority brands and channels, in related
innovation, and through selective geographic expansion to increase
the reach of our brands. Periodically, we may look to enhance our
organic growth through selective, complementary
acquisitions.
Headquartered in the UK, the Group
employs around 285 people based in locations across Europe, North
America, and the Asia Pacific region. By outsourcing our
manufacturing and logistics we remain asset-light and focused on
maximising the value we can bring, both to our stakeholders and to
our brands.
For more information on Alliance,
please visit our website: www.alliancepharmaceuticals.com