LONDON (Alliance News) - Alliance Pharma on Tuesday raised its dividend for 2018 amid a strong revenue performance, though profit fell due to impairments.
The pharmaceutical retailer said pretax profit dropped 19% to GBP22.8 million from GBP28.3 million the year before, partly due to a GBP4.3 million impairment of an anti-malarial asset, as the manufacturer ceased supply due to low volumes.
There was also a GBP2.5 million impairment and write down of the Synthasia joint venture, after the import licence partner of infant milk formula brand Suprememil notified Alliance the licence would not be renewed.
On an underlying basis, however, pretax profit increased by 17% to GBP28.1 million from GBP23.9 million.
Revenue for the year grew by 22% to GBP124.0 million from GBP101.6 million due to stronger sales in its International Star brands as well as a contribution from anti-dandruff shampoo Nizoral, acquired from pharmaceutical giant Johnson & Johnson in June.
Alliance Pharma said for the first time, sales from outside of the UK outperformed those from within the UK.
International sales rose by 59% to GBP41.8 million, Mainland Europe sales grew 25% to GBP25.4 million while sales in the US increased by 10% to GBP4.6 million.
Collectively, sales outside of the UK were around GBP71.8 million, while sales in the UK & Ireland declined 5% to GBP52.3 million.
Alliance Pharma declared a final dividend of 0.977 pence per share, bringing the total payout to 1.464p, up 10% from 1.221p in 2017.
Looking ahead, Alliance Pharma said it made a strong start to 2019, trading in line with expectations for the year.
"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 Chief Executive Peter 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," Butterfield added.
Shares in Alliance Pharma were up 6.4% at 68.76 pence on Tuesday.
Alliance Pharma (APH)