Alliance Pharma reported pre-tax profits increased by 39% from £13m to £18.2m in 2021 due to increased e-commerce activity.
The pharmaceutical company generated revenues of £169.6m, a 26% increase from revenues in 2020, as a result of growth in revenues from the consumer healthcare segment and prescription medicine.
Consumer healthcare saw a rise of 31% in revenues from £93m to £121.8m in 2021 with Kelo-Cote contributing £48.8m.
Amberen has fully integrated with Alliance since its acquisition and has generated £19.2m in revenues adding to consumer healthcare’s income.
Nizoral revenues dropped 2% from £21m to £20.6m due to manufacturing problems and reduced demand as a consequence of Covid-19.
Prescription medicine revenue grew 8% from £44.5m to £47.8m in 2021 as consumers return to their routines earlier disrupted by the pandemic.
Main contributors to the revenue generated under prescription medicine include Forceval, Hydromol, Flammazine and Opus range of stoma care products.
The group saw net debt reduce from £109.4m to £87m in 2021 with a free cash inflow of £30.2m.
The group engaged in a new ERP system which helped rebalance the balance sheet items and improved the ‘visibility across the business’.
Peter Butterfield, Chief Executive Officer, Alliance said, “I’m delighted with the strong operational and financial performance of the Group in 2021.”
“Our Consumer Healthcare business continued to perform well, with Kelo-cote enjoying another excellent year as we capitalised on the opportunities identified for the brand.”
“Group double-digit organic revenue growth was complemented by the acquisition of Amberen which, coupled with solid cost control, resulted in strong cash generation allowing us to reduce both net debt and leverage. “
Future growth is foreseen for the group with increased operating capabilities in the US.
The group will support organic growth in the consumer healthcare segment through innovation and development including a strategic brand plan for Nizoral.
In terms of ESG, Alliance Pharma has committed to being carbon-neutral in scope 1 and 2 emissions from 2021.
“2022 has got off to an encouraging start. We remain confident in our ability to further capitalise on identified organic growth opportunities within the business and to deliver financial performance in line with market expectations.”
“In addition, we continue to evaluate opportunities to selectively add complementary acquisitions to our Consumer Healthcare platform, taking advantage of our strong cash flow and reduced leverage,” commented Butterfield.
Alliance Pharma increased dividends by 5% to 1.69p in 2021.
Alliance Pharma shares gained 3.7% to 115.6p in Tuesday morning trade following the announcement of strong growth in revenue.