Proactive Investors - Run By Investors For Investors

Alliance Pharma grows strongly as overseas revenues pass domestic sales for the first time

“In 2018 we continued to deliver on our strategy, with strong sales and profit growth, led by our international star brands and acquisitions. 2018 marked a milestone in the internationalisation of Alliance in that, for the first time, our overseas sales exceeded those in the UK,” said CEO Peter Butterfield
map of world drawn using pills
The company now has a truly global footprint

Alliance Pharma PLC (LON:APH) posted strong growth, boosted by acquisitions, as overseas sales surpassed domestic revenues for the first time ever.

The company’s star international brands performed well, led by Kelo-cote, a skin treatment.

Income from Vamousse, for head lice, grew 16% under the company’s ownership, while Nizoral, a Johnson & Johnson medicated shampoo, for which Alliance acquired the Asia-Pacific rights last June for £60mln, traded in line with expectations. Its integration is progressing well, investors were told.

Xonvea, for morning sickness, was launched in October, and it is now starting to gain formulary inclusions, Alliance said.

Further acquisitions

Chief executive Peter Butterfield added that 2019 had started well and hinted at further acquisitions as he told the market the group would look to deploy its strong cash flow to further develop the business.

Turning to the finances, statutory turnover was up 16% to £118.2mln for the year to December 31, while the “see-through” figure was ahead 22% at £124mln. That latter number included a financial contribution from the recently-acquired Nizoral shampoo brand. Like-for-like revenues, which strip out the impact of recent purchases, were up 4%.

Underlying earnings (EBITDA) rose 19% to £32.4mln, while free cash flow was strong at £16.1mln. At the period-end net debt was £85.5mln as leverage fell to 2.33-times from 2.46.

Alliance said it will hike the dividend 10% to 0.977p, giving a total of 1.464p. The payout is covered more than three-times by underlying earnings.

“In 2018 we continued to deliver on our strategy, with strong sales and profit growth, led by our international star brands and acquisitions. 2018 marked a milestone in the internationalisation of Alliance in that, for the first time, our overseas sales exceeded those in the UK,” said CEO Butterfield.

“The acquisition of Nizoral brings increased scale and opportunities for us in the Asia Pacific region and, together with the creation of a trading operation in the US, further increases our international footprint, whilst the UK approval of Xonvea offers further organic growth prospects for the group.”

View full APH profile View Profile

Alliance Pharma PLC Timeline

Newswire
January 21 2019

Related Articles

1550762209_shutterstock_291998651.jpg
February 21 2019
Motif’s lead drug candidate is iclaprim, a next-generation antibiotic for which it was seeking US FDA approval for use in patients with acute bacterial skin and skin structure infections
Surgery
February 20 2019
Earlier this month, Tissue Regenix reported full-year results showing revenues more than doubled last year to £11.6mln, up from £5.2mln a year earlier
lab worker
May 20 2019
Here we take a closer look at Scancell, which is at the vanguard of immuno-oncology
Copyright © Proactiveinvestors.com, 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