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.
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.