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23 Nov 2022 07:00
For immediate release | 23 November 2022 |
ALLIANCE PHARMA
("Alliance", "Company" or the "Group")
Update on Q4 trading
Alliance Pharma plc (AIM: APH), the international healthcare group, provides the following update on Q4 trading.
The interim results statement on 20 September 2022 indicated that the Company's expectations for the current financial year included several large distributor orders in Q4, with the timing of these orders dependent on the rate of recovery in those markets.
Whilst the B2C market demand for Kelo-cote in China has been strong, the B2B market demand has recovered more slowly than the Company or its distribution partners anticipated. Sales have also been impacted by a one-off destocking effect. As a result, some of the larger Q4 orders referenced in the interim results statement will not materialise. Overall, the rest of the business continues to trade in-line with the Company's expectations.
Assuming no change to the underlying operating environment, the Board now anticipates that revenues for the year ending 31 December 2022 will be at least £170m, with underlying profit before tax of at least £30m and free cash flow of at least £15m. This would result in year-end leverage of c.2.5x, comfortably below the Group's banking covenants of 3.0x.
The Company remains confident that the B2B market for Kelo-cote will recover to pre-pandemic levels during 2023, which, combined with continued strong growth in B2C sales, leaves FY2023 Kelo-cote expectations unchanged.
Further detail regarding FY2022 trading performance and the outlook for FY2023 will be provided in the full year trading update on 17 January 2023.
Andrew Franklin, Chief Financial Officer of Alliance, said:
"Whilst 2022 has presented challenges to Alliance through COVID related lockdowns in China and supply chain disruptions, the underlying business remains robust and the Board remains confident in achieving our medium-term revenue and profit targets."
For further information:
Alliance Pharma plc | + 44 (0)1249 466966 |
Cora McCallum, Head of Investor Relations & Corporate Communications | + 44 (0)1249 705168 |
ir@allianceph.com |
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Buchanan | + 44 (0)20 7466 5000 |
Mark Court / Hannah Ratcliff |
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alliancepharma@buchanan.uk.com |
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Numis Securities Limited | + 44 (0)20 7260 1000 |
Nominated Adviser: Freddie Barnfield / Duncan Monteith |
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Corporate Broking: James Black |
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Investec Bank plc | + 44 (0)20 7597 5970 |
Corporate Finance: Daniel Adams |
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Corporate Broking: Patrick Robb |
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About Alliance
Alliance Pharma plc (AIM: APH) is an international healthcare group. Our purpose is to improve the lives of consumers and patients through making available a range of clinically valuable healthcare products.
Our core focus is on the marketing of Consumer Healthcare brands, complemented by a smaller Prescription Medicines business. In total, we hold marketing rights to around 80 brands, with revenues generated from a mix of direct, distributor and e-commerce sales.
Headquartered in the UK, the Group employs around 250 people based in locations across Europe, North America, and the Asia Pacific region. By outsourcing our manufacturing and logistics operations, we remain asset-light and focused on maximising the value of our brands.
For more information on Alliance, please visit our website: www.alliancepharmaceuticals.com
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