Proactive Investors - Run By Investors For Investors

Alliance Pharma sales rise as star brands perform

Sales were strong in Europe and international markets, especially China
Scar tissue treatment Kelo-cote is booming

A strong performance from its portfolio of international brands boosted first-half sales at Alliance Pharma plc (LON:APH).

Turnover rose by 10% to £54.5m (2017: £49.4m) with scar tissue treatment Kelo-cote seeing sales rise by 77% while eye supplement Macushield was 22% ahead of a year ago.

READ: Alliance Pharma on target to meet market expectations after a solid first-half

Alliance recently boosted its ‘star’ brand portfolio with the acquisition of dandruff shampoo Nizoral and head lice treatment Vamousse, while pregnancy nausea aid Xonvea goes on sale this winter.

Reflecting the strength of the 'stars', sales were good in Europe and international markets, especially China, but smaller brands held back the UK

Alliance has decided to write-off its anti-malarial brands at a cost of £4.3mln after weak first-half sales, while there was also an impact from an increase in the regulated pharmacy product rebate.

Underlying profits rose by 2% to £12.1mln, but fell to £10.9mln from £16.9mln including one-off items. The interim dividend rose by 10% to 0,487p.

Peter Butterfield, chief executive, said the second half of the year has started well and based on trading performance in the year to date revenues and underlying profit before tax for the current financial year should be in line with expectations.

“Strategically, the priorities for the Group continue to be the delivery of organic growth, planning and starting to execute the integration of Nizoral and preparing for the UK launch of Xonvea in Q4 2018.

“We continue to evaluate bolt-on acquisitions with the objective of further driving our growth. Our ability to conclude such acquisitions is facilitated by our good cash generation and operational infrastructure.”

Shares were unchanged at 91p.

View full APH profile View Profile

Alliance Pharma PLC Timeline

January 21 2019

Related Articles

June 24 2019
Long-term fundamentals remain firmly in the seafood specialist's favour
February 01 2019
The cancer detection device is on track to finish a key clinical study in the first quarter of 2019, but in the meantime, it has shown promise in detecting abnormalities in unborn children
dna strand
May 08 2019
The latest update reveals the company significant clinical and commercial milestones in sight
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use