Alliance Pharma plc Half Year Report 2021
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Contents
2021 H1 Overview & | 01 | Unaudited Consolidated | 14 |
Financial Highlights | Balance Sheet | ||
Chief Executive's Review | 02 | Unaudited Consolidated | 15 |
Statement of Cash Flows | |||
Financial Review | 08 | ||
Unaudited Consolidated | Unaudited Consolidated | 16 | |
12 | Statement of Changes in Equity | ||
Income Statement | |||
Unaudited Consolidated | Notes to the Half Year Report | 18 | |
13 | |||
Statement of Comprehensive Income | Advisers and Key Service Providers | 28 | |
Alliance Pharma plc - Half Year Report 2021
2021 H1 Financial Highlights
The Group delivered another strong performance in the first half of 2021, with the uplift in revenue from our enlarged Consumer Healthcare business being maintained through to pre-tax profits.
Overview
Strategic Report
Overview
The Group traded strongly in the Period, with an excellent performance from Kelo-cote™, an uplift in revenue from Prescription Medicines and a significant contribution from recently acquired Amberen™.
■ See-through revenue in total up 24% (+28% |
on a constant currency basis ('CCY')) to |
See-through Revenue*
£80.9m +24%
(2020: £65.3m)
2021 £80.9m
2020 £65.3m
Underlying Profit Before Tax
£20.1m +24%
(2020: £16.3m)
2021 £20.1m
2020 £16.3m
Statements
£80.9m; like-for-like ('LFL') see-through |
revenue, which excludes Amberen, up 9% |
(+12% CCY): statutory revenue up 27% to |
£78.6m (H1 2020: £61.7m) |
■ Strong performance from Consumer |
Healthcare brands, with see-through |
revenue up 30% overall (+35% CCY) |
■ Kelo-cote revenue up 54% (+62% CCY) |
■ LFL Consumer Healthcare revenue up 8% |
(+12% CCY) |
■ Prescription Medicines revenue up 12% |
(+12% CCY) |
■ Underlying gross margin up 4.7% to 63.8% |
of see-through revenue (H1 2020: 59.1%), |
reflecting favourable changes in product |
mix; statutory gross margin up 3.1% to |
Underlying Basic EPS*
2.99p +22%
(2020: 2.45p)
2021 2.99p
2020 2.45p
Interim Dividend per Share
0.563p +5%
(2020: 0.536p)
2021 0.563p
2020 0.536p
Free Cash Flow*
£6.5m -38%
(2020: £10.5m)
2021 £6.5m
2020 £10.5m
Leverage
2.21×
(31 December 2020: 2.43x)
Adjusted net debt to EBITDA ratio
Financial
Additional Information
65.6% (H1 2020: 62.5%) |
■ Underlying profit before tax up 24% to |
£20.1m (H1 2020: £16.3m); reported profit |
before tax £16.5m (H1 2020: £0.6m) |
■ Free cash flow £6.5m (H1 2020: £10.5m), |
reflecting the expected reversal of |
favourable working capital movements in |
Q4 2020 and the timing of sales within the |
Period |
■ Leverage reduced to 2.21 times from 2.43 |
times at December 2020 and expected to |
fall below 2.0 times by the end of the year |
■ Amberen integration complete and trading |
in line with management expectations |
■ Interim dividend payment of 0.563p, up 5% |
(interim dividend 2020: 0.536p) |
For more information visit alliancepharmaceuticals.com
- Non-IFRSalternative performance measures (see note 17). See-through revenue includes sales from Nizoral as if they had been invoiced by Alliance. For statutory accounting purposes the product margin on Nizoral sales is included within Revenue, in line with IFRS 15.
01
Chief Executive's Review
Strong growth continues
TRADING PERFORMANCE
Overview
The Group delivered another strong performance in the Period, with see-through revenue up 24% to £80.9m (H1 2020: £65.3m), despite the impact of currency headwinds and continuing lockdowns, particularly in the APAC region; on a constant currency basis, revenue was up 28%. Like-for- like revenue, excluding Amberen, which was acquired by the Group at the end of 2020, was up 9% (up 12% on a constant currency basis).
Gross profit increased by 34% to £51.6m
(H1 2020: £38.6m), the increase outstripping revenue growth due to favourable changes in product mix. This was balanced by an increase in operational costs, primarily reflecting the inclusion of the Amberen cost base. Coupled with small increases in depreciation charges and financing costs, underlying profit before tax increased 24% to £20.1m (H1 2020: £16.3m), with the profit before tax margin being maintained at 25%.
Consumer Healthcare performance
Overall, see-through revenue across our Consumer Healthcare brands increased by 30% in the Period to £56.8m (H1 2020: £43.8m) and by 35% on a constant currency basis. On a like-for-like basis, excluding Amberen, see-through revenue increased by 8% (12% CCY).
Our leading brands generally performed well during the Period, with a particularly strong performance from Kelo-cote and an encouraging start by Amberen since acquisition in December 2020.
02 Alliance Pharma plc - Half Year Report 2021
Kelo-cote - scar prevention and treatment
Kelo-cote growth accelerated strongly in the Period, with sales up 54% to £21.9m (H1 2020: £14.2m), notwithstanding the impact of adverse currency movements. On a constant currency basis, sales were up 62%, due to continued strong demand from China, reflected both in the growth of domestic sales and in significant growth in cross-bordere-commerce ('CBEC') sales.
Kelo-cote is very well established in China, with high brand awareness and usage. The growth in domestic and CBEC sales reflects the increasing trend for consumers in China and elsewhere to buy more of the brand, and healthcare products generally, online. This trend had been accelerated by the global pandemic.
In recognition of the success of CBEC in facilitating export sales from the EU to consumers in China, and the significant opportunity China offers as a growth driver for this key brand, we have recently entered into a new CBEC distribution agreement for Kelo-cote, which gets us closer to the customer and gives us further control of our distribution chain. We expect this to further accelerate top-line growth in this key market in
the medium term.
Performance across the rest of APAC, South America and EMEA was more mixed, primarily due to the continuing impacts of the global pandemic, and the timing of distributor orders. Sales to a number of APAC countries, including Hong Kong and South Korea, benefited from
- post-COVID-19recovery, whilst distributor order phasing benefited sales to South America, notwithstanding the resurgence of the pandemic negatively impacting in-market demand. In EMEA, strong performances from a number of European territories including France (domestic and export sales) and the UK were partially offset by distributor order phasing adversely affecting sales to the Middle East and Africa.
2021 H1
Highlights
- Continued strong performance from our Consumer Healthcare brands (+30%), with Kelo-cote growth accelerating strongly (+54%)
- Encouraging start from Amberen, which traded in line with management expectations; integration now complete
- Opportunity to drive further growth from Kelo-cote through cross-bordere-commerce and to realise the growth potential from Nizoral
See-through Revenue*
£80.9m +24%
(2020: £65.3m)
2021 £80.9m
2020 £65.3m
Underlying Profit Before Tax
£20.1m +24%
(2020: £16.3m)
2021 £20.1m
2020 £16.3m
Overview
Strategic Report
Financial Statements
Additional Information
03
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Alliance Pharma plc published this content on 21 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 September 2021 16:21:11 UTC.