In This Article:
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Revenue Growth: 5% at constant currency, 3% on a reported basis to GBP84.8 million.
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Gross Margin: Increased 300 bps to 59.8%.
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EBITDA: Increased 6% to GBP19.1 million, representing 22.5% of sales.
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Underlying Profit Before Tax: Increased 23% to GBP12.7 million.
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Effective Tax Rate: Increased from 17.3% to 23.4%.
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Underlying Basic Earnings Per Share: Increased 14% to 1.8p per share.
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Free Cash Flow: GBP8.8 million.
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Net Debt: Reduced from GBP91.2 million to GBP83.2 million; leverage lowered to 1.81x.
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Kelo-Cote Franchise Revenue: Increased 18% at constant currency, 14% reported.
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Nizoral Revenue: Decreased 21% at constant currency, 25% reported.
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Amberen Revenue: Decreased 9% at constant currency, 11% reported.
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Other Consumer Healthcare Brands: Increased 9% at both constant currency and reported basis.
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Prescription Medicines Revenue: Increased 3% at both constant currency and reported basis.
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Cash Flow from Operations: GBP16.9 million.
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Tax Payments: GBP2.6 million.
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Interest Payments: GBP4.8 million.
Release Date: September 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alliance Pharma PLC (FRA:DVL) reported a 5% revenue growth at constant currency for the group, driven by strong performance from the Kelo-Cote franchise.
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The company achieved a significant gross margin improvement, increasing by 300 basis points to 59.8%, due to a positive product mix.
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Robust free cash flow generation allowed Alliance Pharma PLC (FRA:DVL) to reduce net debt and lower group leverage to 1.8x.
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The new product development pipeline is gaining momentum, with 6% of consumer revenues in H1 2024 coming from products developed in-house and launched in the last three years.
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The company successfully completed the rollout of its global ERP system, enhancing operational efficiency across the business.
Negative Points
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Amberen revenues declined by 9% at constant currency and 11% on a reported basis due to softer trading on Amazon.
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Nizoral revenues were down 21% at constant currency and 25% on a reported basis, impacted by destocking ahead of a planned manufacturing change.
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The company faced an increase in effective tax rate from 17.3% to 23.4%, which affected the underlying profit before tax.
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High interest rates led to an increase in interest costs, although this was partially offset by net exchange gains.
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The market for menopause relief products, where Amberen operates, is rapidly shifting from bricks-and-mortar to e-commerce, posing a challenge for the brand's traditional sales channels.