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(Sharecast News) - Consumer healthcare group Alliance Pharma has said that 2023 results will be in line with market expectations but said that profits are unlikely to grow this year due to increased investment in sales and marketing.
Consensus estimates for underlying profits in 2023 currently stand at £45m, up from £30m in 2022, but were expected to rise to £50m in 2024.
The company said it delivered record revenues of £182.7m last year, up 6% on 2022, with strong consumer demand in the second half, particularly in China. Free cash flow was up 34% at £21.1m while net debt reduced to £92.4m from £102m.
"Our portfolio continues to provide a robust platform from which to grow our Consumer Healthcare brands. In 2023, we delivered record revenues as we launched new advertising campaigns to accelerate organic sales growth whilst bringing new, innovative, products to market," said chief executive Peter Butterfield. "Our global ecommerce business is building strongly, as we entered several new, high growth geographies in 2023, and look to enter more this year."
However, in order to achieve medium-term objectives, the company said it would raise investment in sales and marketing, both directly and through its distributors. "The company will also continue to deliver innovation in 2024 to further expand the reach of its brands. As a result, the board anticipates that profits in 2024 will be in-line with 2023."
The stock was down 2.2% at 37.65p by 1116 GMT.
