(Alliance News) - Alliance Pharma PLC said Tuesday it will not pay a final dividend for 2019 to save cash in the face of the Covid-19 pandemic, in spite of a strong performance for 2019.
For 2019, the pharmaceutical company said pretax profit rose by 36% to GBP31.1 million from GBP22.8 million the year before, mainly due to the non-repeating impairment of an anti-malarial asset in 2018, as well as revenue growth.
Revenue for the year grew by 16% to GBP144.3 million from GBP124.0 million, driven by stronger sales in its International Star brands, as well as the first full year revenue contribution from anti-dandruff shampoo Nizoral, acquired from US pharmaceutical giant Johnson & Johnson in June 2018.
Alliance Pharma's sales from outside of the UK continued to grow, with International sales as a whole rising by 32% to GBP54.2 million, on Nizoral and strong demand for Kelo-cote.
Mainland Europe revenue rose by 28% to GBP32.5 million, and sales in the US increased by 11% to GBP6.1 million.
However, sales in the UK & Ireland declined by 2% to GBP51.4 million on a weaker performance from the group's heritage pharmaceutical products.
Looking ahead, Alliance Pharma said it expects to see some impact on revenue from the ongoing Covid-19 pandemic, however its supply chain has held up well and the group has continued to hold good levels of inventory.
"2019 saw another year of strong sales and profit growth, led by our consumer brands, particularly our International Stars. Cash generation was also very strong, allowing us to significantly reduce our borrowings. We are pleased with the way the Nizoral transition is progressing and look forward to the increased control we will have over the brand as the various territories fully transition to Alliance," said Chief Executive Officer Peter Butterfield.
"Notwithstanding the current uncertainty created by the coronavirus, our underlying business remains resilient, with strong financials, good liquidity and covenant headroom, and we look forward to continuing our path of growth in the years ahead," Butterfield added.
Shares in Alliance Pharma were up 6.5% at 66.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Alliance Pharma (APH)