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(Sharecast News) - Alliance Pharma reported a 2.8% increase in revenue on Monday, to £84.8m on a see-through basis, driven by the robust performance of its Kelo-Cote franchise.
The AIM-traded firm said that at constant exchange rates, revenue growth was 5% for the six months ended 30 June.
Gross profit rose 8.1% to £50.7m, while profit before tax increased 23.3% to £12.7m.
Basic earnings per share were ahead 13.9% to 1.8p.
Consumer healthcare revenues saw a 5.6% increase to £61.4m at constant currency, with strong gains in Kelo-Cote offsetting anticipated declines in Nizoral due to stocking cycles.
Prescription medicine revenues also grew, by 3.4% to £23.3m, driven by strong growth in Hydromol, which rose 9.6%.
Despite a decline of 8.9% in Amberen revenue, the company said it was implementing remedial actions.
Other consumer healthcare products, including MacuShield, posted an 8.9% revenue increase, with MacuShield alone growing 16% to £4.8m at constant exchange rates.
Alliance also reported a 300 basis point improvement in gross margins, contributing to a 6.4% rise in underlying EBITDA to £19.1m.
The company generated free cash flow of £8.8m, down from £11m in the first half of 2023, but still managed to reduce net debt by £8m to £83.2m by the end of June.
Its leverage ratio decreased to 1.81x, and was expected to fall further to around 1.5x by year-end.
The group also highlighted developments including senior management changes aimed at improving efficiency, three product launches from its innovation pipeline, and continued progress on sustainability initiatives.
Additionally, the successful appeal of a Competition and Markets Authority (CMA) decision cleared the company of any wrongdoing, allowing Alliance to release a £7.9m provision.
The board said it remained confident in its outlook for the full year, maintaining its expectations for continued solid cash generation and strong operational performance.
"I am pleased by the performance we delivered in the first half as we continue to see the benefits of our investment in both marketing and innovation," said chief executive officer Nick Sedgwick.
"Our free cash flow is expected to build strongly throughout the remainder of 2024, which we anticipate will enable us to reduce further our net debt and leverage by the end of the year.
"Since the end of the first half, we have strengthened further our marketing campaigns."
Sedgwick said he had also implemented a number of senior management changes to accelerate decision-making and to bring the consumer "closer to the heart" of the business.
"I see further opportunity to deliver efficiency gains and capability improvements over time.
"The board's expectation for full year financial performance is unchanged."
At 1031 BST, shares in Alliance Pharma were down 2.08% at 40.64p.
Reporting by Josh White for Sharecast.com.
