Alliance Pharma PLC has released its trading update for the first half of 2024, reporting a 2.8% increase in see-through revenues to £84.8m compared to the same period last year. The Consumer Healthcare segment saw a 5% rise in revenues, driven by a robust performance in the Kelo-Cote franchise, which experienced an 18.4% increase in revenues. However, Nizoral revenues were impacted by destocking, resulting in a 20.9% decline, but are expected to recover in the second half of 2024. Other consumer healthcare revenues increased, with MacuShield up by 16.0%.
Prescription medicine revenues grew by 3.4%, reflecting strong growth in Hydromol and a return to stock of certain products. The company also reported solid free cash flow generation, leading to a reduction in net debt, with Group leverage anticipated to fall below 2.0x.
Looking ahead, the company expects Group revenues to increase in the second half of the year, driving gross margin improvement, which will be used to support further investment in marketing and innovation. The Board maintains its anticipation that Group profitability in FY 2024 will be in line with FY 2023, with net debt and Group leverage expected to decrease further in the second half of the year.
Nick Sedgwick, Chief Executive Officer of Alliance, expressed satisfaction with the performance in H1 2024 and highlighted the benefits of investment in marketing and innovation. He also emphasized the expectation of strong free cash flow throughout 2024, which is anticipated to enable further reduction of net debt and leverage by the end of the year. The Board's expectation for full-year financial performance remains unchanged.
The company's AGM is scheduled to be held today, and a Result of AGM announcement will be issued following the meeting. Alliance Pharma plc is a growing consumer healthcare company with a focus on empowering people to make a positive difference to their health and wellbeing by making trusted and proven brands available worldwide.