Alliance Pharma PLC has released its preliminary results for the year ended 31 December 2023, showcasing a strong second half performance that drove record sales for the year and further underlying profit expansion. The company reported a revenue of £182.7 million on a see-through basis, representing a 6% growth from the previous year. The gross profit stood at £105.0 million, reflecting a 3% increase. The underlying profit before taxation increased by 4% to £31.5 million, while the reported loss before tax was £48.8 million.
The Consumer Healthcare segment saw a significant recovery in Kelo-Cote franchise revenues in the second half, with FY 2023 revenues reaching £63.2 million, a 29% increase at constant exchange rates. The Prescription Medicine performance remained stable with revenues of £46.3 million. However, the company reported non-cash impairments of £79.3 million due to lowered future cash flow expectations and higher cost of capital, with £46.4 million relating to Amberen, £10.3 million to Nizoral, and £22.6 million to twenty smaller assets in aggregate.
Alliance Pharma PLC also highlighted its strong performance from the latest US acquisition, ScarAway, with £9.9 million in revenue, exceeding original expectations. The company is focused on brand innovation, with £3.5 million of revenues from internal development. Additionally, they have leveraged their ecommerce knowledge to broaden the geographic reach of their ecommerce platforms and enter new markets, with further expansion planned in 2024.
The company has reduced its net debt to £91.2 million, moving Group leverage to 2.05x at 31 December 2023. The dividend remains paused while the Board considers a new dividend policy with cash prioritized for reinvestment in the business to drive growth. Alliance Pharma PLC has also strengthened its Board of Directors with new appointments and successfully appealed the Competition and Markets Authority decision, clearing former CEOs of any wrongdoing.
Camillo Pane, Chair of Alliance, expressed his excitement about joining the company at such an important time and emphasized the strong global footprint in fast-growth Consumer Healthcare categories. Andrew Franklin, Chief Financial Officer of Alliance, expressed confidence in the company's medium to long-term performance, focusing resources on market segments where they have a strong presence and expertise to drive solid organic revenue growth.
Looking ahead to 2024, Alliance Pharma PLC remains confident in its medium to long-term performance, focusing resources on market segments where they already have a strong presence and expertise to drive solid organic revenue growth above that of the broader Consumer Healthcare market.