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(Alliance News) - Alliance Pharma PLC said on Wednesday it expects its annual profit to fall, while it announced Chief Executive Officer Peter Butterfield is taking leave from the business for personal reasons.
Shares in Alliance Pharma fell by 31% to 42.01 pence in London on Wednesday morning.
The Wiltshire, England-based healthcare firm said it expected its underlying pretax profit for the year ending December 31 will be at least GBP30 million, down 29% from GBP42.2 million a year prior. Revenue is expected to be at least GBP170 million, up 4.2% from GBP163.2 million.
Alliance Pharma said while the business-to-consumer market demand for its Kelo-cote silicon gel product is strong, the business-to-business market demand recovered more slowly than it or its distribution partners anticipated. Sales have also been hit by a one-off destocking effect.
This means some of its larger fourth quarter orders it expected "will not materialise", Alliance Pharma said.
It added it remains confident the B2B market for Kelo-cote will recover to pre-pandemic levels during 2023, alongside continued growth in B2C sales.
Meanwhile, CEO Peter Butterfield is to take time away from the business for personal reasons. He is expected to return during January 2023.
Chief Financial Officer Andrew Franklin has assumed Butterfield's responsibilities, alongside support from the head of finance and wider leadership team.
By Greg Rosenvinge; gregrosenvinge@alliancenews.com
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