Alliance Pharma (APH) H2 2024 earnings summary

Executive summary

• Statutory revenue for 2024 was £178.8m, down 1% year-over-year; see-through revenue was £180.3m, also down 1%.

• Underlying profit before tax remained flat at £31.5m; underlying EBITDA decreased 4% to £43.1m.

• Free cash flow increased 37% to £29.1m; net debt reduced by 34% to £60.1m.

• Major portfolio simplification, with 14 brands divested or discontinued, generating £2.8m in cash.

• Recommended cash offer by DBAY Advisors accepted; delisting from AIM expected by mid-2025.

Financial highlights

• Gross profit rose 4% to £109.3m, with gross margin up 310bps to 60.6%.

• Underlying basic EPS fell 4% to 4.4p; reported basic EPS improved to a loss of 1.99p from a loss of 6.13p.

• No dividend declared for 2024; cash prioritized for investment and debt reduction.

• Operating costs increased 9% due to higher investment in key brands.

Outlook and guidance

• Focus on predictable organic revenue growth and strong EBITDA expansion.

• Leverage expected to fall below 1.0x by end of 2025.

• Strategy pivoted to five priority categories: scar care, scalp care, dry skin care, eye health, and women's health.

• Further investment in innovation and development planned, targeting 10% of net consumer sales from new products.