Alliance Pharma PLC has released its trading update for the year ended 31 December 2023, reporting strong revenues and reduced leverage. The Group achieved record see-through revenues of £182.7m, marking a 6% increase from the prior period and a 7% increase at constant exchange rates. The growth was primarily driven by continued strong consumer demand, particularly in China, leading to a significant recovery in Kelo-Cote franchise revenues in the second half of the year.
The company's Consumer Healthcare revenues saw an 11% increase at constant exchange rates to £136.4m, with Nizoral revenues increasing by 3% and Other Consumer brands up by 5%. Prescription Medicine revenues remained stable at £46.3m, reflecting a strong recovery in the second half as previously out-of-stock products became available.
Alliance Pharma also reported a 34% rise in free cash flow to £21.1m, with net debt reduction to £92.4m at 31 December 2023, down from £102.0m at the end of 2022. The Group's leverage is expected to be significantly below that at 30 June 2023, in line with previous guidance.
Looking ahead, the company anticipates continued strong organic growth over the medium term, with a focus on the core Consumer Healthcare business and stable Prescription Medicine revenues. To achieve its medium-term objectives, Alliance Pharma plans to increase investment in sales and marketing in 2024, as well as deliver innovation to expand the reach of its brands. The Board anticipates that profits in 2024 will be in line with 2023.
Peter Butterfield, Chief Executive Officer of Alliance, expressed confidence in the company's long-term performance, stating, "Our portfolio continues to provide a robust platform from which to grow our Consumer Healthcare brands." He highlighted the record revenues achieved in 2023 and the company's global ecommerce business, which is building strongly, as key factors driving solid organic revenue growth.
Alliance Pharma plc (AIM: APH) 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. The Group employs around 285 people and operates across Europe, North America, and the Asia Pacific region, with a strategy of delivering organic growth through investing in priority brands and channels, related innovation, and selective geographic expansion.