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 GBP182.7m (FY22: GBP172.0m), 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 GBP63.2m, up 29% CER (FY22: GBP50.0m). Nizoral revenues increased 3% CER to GBP21.7m (FY22: GBP21.8m) 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 GBP11.2m (FY22: GBP14.9m) on a reported basis. With Other Consumer brands up 5% CER to GBP40.3m (FY22: GBP38.4m), total see-through Consumer Healthcare revenues increased 11% CER to GBP136.4m. Prescription Medicine revenues were stable at GBP46.3m (FY22: GBP46.8m), 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 GBP21.1m (FY22: GBP15.8m) and net debt reduction continued, falling to GBP92.4m at 31 December 2023 (31 December 2022: GBP102.0m). 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.'
Contact:
Tel: + 44 (0)1249 466966
Tel: + 44 (0)1249 705168
Email: ir@allianceph.com
Buchanan
Tel: + 44 (0)20 7466 5000
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.
ALLIANCE PHARMA PLC 
