Alliance Pharma revenue rises, profits narrow in first half

Alliance Pharma reported see-through revenue of £81.6m in its first half on Tuesday, up slightly from the £80.9m it recorded a year ago, while its statutory revenue improved to £78.8m from £78.6m.

The AIM-traded firm said its gross profit fell to £50.6m for the six months ended 30 June, from £51.6m year-on-year, while its profit before tax narrowed to £19.7m from £20.1m.

Basic earnings per share came in at 2.9p, down marginally from the 2.99p per share it reported in the first six months of 2021.

Free cash flow totalled £5.1m for the period, and cash from operations was £8.4m, as the company reported net debt of £103.6m at period end.

The board declared an interim dividend of 0.592p per share.

“I am pleased with the performance of the group in the first half of 2022 against the backdrop of difficult global trading conditions,” said chief executive officer Peter Butterfield.

“Our portfolio continues to provide a robust platform from which to grow our consumer healthcare brands.

“I was also delighted to close a highly strategic US acquisition in the period, which consolidates our position in the scar reduction market.”

Butterfield said the integration of ScarAway had gone “very smoothly”, adding that Alliance was continuing to evaluate opportunities to acquire “selective complementary new products” to enhance its consumer healthcare platform.

“The second half of 2022 has got off to an encouraging start as lockdowns and supply constraints have eased.

“We anticipate strong sales growth in the second half as our marketing campaigns yield benefits, we integrate our new distribution partners and launch new products to grow our market share.”

Alliance Pharma’s full-year expectations includes “several large distributor orders” in the fourth quarter to meet increased demand, Peter Butterfield said, with the timing of those orders dependent on the rate of recovery in the markets.

“Our base business remains strong with further new product launches expected in 2023 to secure future growth.”

At 0933 BST, shares in Alliance Pharma were down 2.16% at 72.6p.

Reporting by Josh White at Sharecast.com.