- Sales were stronger in consumer brands than prescription medicines, after Covid-19 impact
- Pre-tax profits knocked by impairment and acquisition costs
As experienced at the half-year mark, annual sales for Alliance Pharma (APH) diverged along two lines – consumer and prescription medicines.
On the one hand, the healthcare group’s larger consumer brands business proved relatively resilient, with revenues from anti-dandruff shampoo Nizoral up 4 per cent and scar treatment Kelo-Cote up 12 per cent. On the other hand, prescription medicine sales dropped 14 per cent to £44.5m as routine appointments were delayed by the coronavirus pandemic.
Further down the income statement, pre-tax profits were knocked by impairment and amortisation charges linked to medicines along with acquisition costs. To the latter point, Alliance bought Biogix and its Amberen brand – used to treat menopause symptoms – for $110m. It said the acquisition “fits perfectly with our strategy of acquiring established consumer healthcare brands in territories in which we already have a presence”.
On the back of this deal, brokerage Numis lifted its cash profit forecast by a tenth to £44.9m for 2021, up from £38.6m in 2020. Hold.
| ALLIANCE PHARMA (APH) | ||||
| ORD PRICE: | 88p | MARKET VALUE: | £ 471m | |
| TOUCH: | 87.7-88.9p | 12-MONTH HIGH: | 91p | LOW: 52p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 59 | |
| NET ASSET VALUE: | 53p | NET DEBT: | 39% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 97.5 | 22.2 | 3.9 | 1.20 |
| 2017 | 102 | 28.3 | 6.1 | 1.30 |
| 2018 | 118 | 22.8 | 3.7 | 1.50 |
| 2019 | 136 | 31.1 | 4.8 | 0.536 |
| 2020 | 130 | 13.0 | 1.5 | 1.61 |
| % change | -5 | -58 | -69 | +200 |
| Ex-div: | 10 Jun | |||
| Payment: | 08 Jul |
