Alliance Pharma plc – Results for the six months ended June 30, 2022

Alliance Pharma S.A. (AIM:APH), the international healthcare group, is pleased to report its half year results for the six months ended June 30, 2022 (‘the period’).

The Group weathered the challenges of the first half well and is on track to accelerate revenues in the second half as supply constraints ease and our marketing and product development initiatives drive increased demand. We remain on track to meet market expectations for full-year financial performance, noting that the timing of some orders in the fourth quarter depends on the rate of recovery in these markets.


H1 revenue growth impacted by lockdown in Shanghaiand the associated temporary supply chain disruption, hence, as previously noted, a more heavily weighted performance in H2 due to order staggering

Consumer health transparent revenue up 1% at £57.4 million (S1 21: £56.8 million) with growth of 15% in Other Consumer Healthcare revenues offset lower performance of key brands

Solid performance of prescription drugs with revenues of £24.1 million in line with the previous year (H1 21: £24.1 million)

Free cash flow of £5.1 million (S1 21: £6.5m). Highly strategic acquisition of ScarAway and U.S. rights to Kelo-cote for $19.4 million (£14.8 million) led to an increase in the Group’s net debt and leverage of 2.05x at the end of the period.


Integration of ScarAway and U.S. rights to Kelo-cote completed, with revenue in line with expectations

Last marketing authorizations for Nizoral transferred from J&J; to Alliance in China and Vietnama new leading Chinese distributor appointed and the consolidation of the manufacturing supply is progressing well, which will result in improvements in efficiency and COGS

Several new complementary exclusive products have been launched or are expected to be launched this year, including Kelo-cote Kids and Kelo-cote Scar Sheets in Chinaand Canker-X in the UNITED STATESwhich will contribute to the continued organic growth

The ERP system has been successfully deployed in other territories, including North America

Scope 1 and 2 emissions target set to reach net zero by 2030, with an interim reduction of 65% by 2025

Commenting on the results, Peter Butterfield, CEO of Alliance, said: “I am pleased with the Group’s performance in the first half of 2022 against a backdrop of challenging global business conditions. Our portfolio continues to provide a strong platform from which to grow our consumer healthcare brands. I was also pleased to complete a highly strategic acquisition in the United States during the period, which solidifies our position in the scar reduction market. The integration of ScarAway has gone very well and we continue to evaluate opportunities to acquire new selective add-on products to enhance our Consumer health Platform.

“The second half of 2022 has gotten off to an encouraging start as blockages and supply constraints have eased. We expect strong sales growth in the second half as our marketing campaigns return profits, we integrate our new distribution partners and launch new products to increase our market share. Our guidance for FY22 includes several orders from large retailers in the fourth quarter to meet increased demand, with the timing of these orders dependent on the rate of recovery in these markets. Our core business remains strong with new product launches expected in 2023 to ensure future growth.

The Group’s performance is assessed using Alternative Performance Measures (“APMs”), which are measures that are not defined by IFRS but are used by management to monitor the ongoing performance of the business by against shorter-term budgets and forecasts and longer-term strategic objectives of the Group. plans. IAPs are defined in note 17.


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About Alliance

Alliance Pharma S.A. (AIM: APH) is an international healthcare group. Our goal is to improve the lives of consumers and patients by providing a range of clinically useful health products.

We are primarily focused on marketing consumer healthcare brands, supplemented by a smaller prescription drug business. In total, we own the marketing rights to approximately 80 brands, with revenue generated through a mix of direct sales, distributors and e-commerce.

Based in the UKthe Group employs around 250 people spread over different sites Europe, North Americaand the Asia Pacific Region. By outsourcing our manufacturing and logistics operations, we remain asset light and focused on maximizing the value of our brands.