Preliminary Results for the year ended 31 December 2024

Preliminary Results for the year ended 31 December 2024

Performance in line with expectations

Alliance Pharma plc (AIM: APH), the international healthcare group, presents its preliminary results for the year ended 31 December 2024 (the “Year” or the “Period”). As previously communicated in our full year trading update on 31 January 2025, underlying Group profit in FY2024 was in-line with FY2023, in-line with expectations for the Year. With structural changes implemented to improve efficiency, and a number of new senior management hires, the Group is well positioned for growth over the medium term.

FINANCIAL SUMMARY

OPERATING AND FINANCIAL SUMMARY

• Group see-through revenue¹ of £180.3m (2023: £182.7m), up 1% at constant exchange rates (“CER”). Group statutory revenue of £178.8m (2023: £180.7m), up 2% CER.
• Strong growth in Kelo-Cote^TM, Aloclair^TM and MacuShield^TM, although declines in other Consumer Healthcare brands, namely Nizoral^TM, led to see through Consumer Healthcare revenues down 2% CER to £130.7m (2023: £136.4m).
• Prescription Medicine revenues of £49.6m (FY23: £46.3m), up 8% CER, with strong growth in Hydromol^TM and Forceval^TM, offsetting weakness in Lefuzhi^TM and Ashton & Parsons^TM.
• Underlying PBT of £31.5m in-line with prior year (2023: £31.5m) as expected and reported loss before tax of £14.5m (2023: £48.8m loss) following non-underlying items before tax of £46.0m (2023: £80.3m), principally intangible amortisation and impairment charges.
• Free cash flow increased 37% to £29.1m (2023: £21.3m).
• Net debt reduced to £60.1m moving Group leverage to 1.39x at 31 December 2024 (1.81x at 30 June 2024, 2.05x at 31 December 2023).

DEVELOPING OUR BUSINESS

• Senior management changes implemented to improve efficiency, to bring the consumer closer to the heart of the business and to accelerate decision making.
• Portfolio streamlined with the divestment of eight tail-end brands for £2.8m in December 2024 and the discontinuation of six brands.
• Innovation pipeline continues to deliver with 4.9% of consumer health sales from products launched within three years (2023: 2.6%). Significant new launches in the year include Nizoral^TM Derma Daily, Amberen® gummies and MacuShield Omega 3.
• 60% reduction in Scope 1 and 2 emissions (versus 2018 baseline), on track to meet interim 65% reduction target by 2025 and achieve net zero in 2030. 15% reduction in Scope 3 emissions (versus 2022 baseline), on track to meet interim reduction target of 25% by 2030.
• Re-certified as a Great Place To Work® in UK, France, China and Singapore.
• Successful appeal of Competition and Markets Authority (“CMA”) decision in May 2024, clearing Alliance, and former CEOs Peter Butterfield and John Dawson, of any wrongdoing.
• On 10 January 2025 we announced a recommended acquisition of the Group by Aegros Bidco Ltd, a newly incorporated company indirectly owned by DBAY Affiliates, our largest shareholder, and the ERES IV Fund. The requisite number of shareholders voted to accept this offer on 13 March 2025 and we expect that Alliance will cease trading on AIM by end H1 2025.

_{¹ The performance of the Group is assessed using Alternative Performance Measures (“APMs”), which are measures that are not defined under IFRS, but are used by management to monitor ongoing business performance against both shorter term budgets and forecasts and against the Group’s longer term strategic plans. APMs are defined in note 14.}

_{Specifically, see-through revenue includes all sales from Nizoral as if they had been invoiced by Alliance as principal. For statutory accounting purposes the product margin relating to Nizoral sales made on an agency basis is included within Revenue, in line with IFRS 15.}

_{Underlying measures exclude certain items classed as non-underlying to allow the Group’s financial performance to be compared against the majority of its peers. For further detail on non-underlying items please see note 4.}

_{². Not meaningful to show as a percentage movement given the significant changes in numbers which have been explained elsewhere}

_{³ Net debt excludes lease liabilities}

For further information:

Alliance Pharma plc
Head of Investor Relations & Corporate Communications
Cora McCallum
+ 44 (0)1249 466966
+ 44 (0)1249 705168
ir@allianceph.com

Burson Buchanan
Mark Court / Sophie Wills
+ 44 (0)20 7466 5000
alliancepharma@buchanan.uk.com

Deutsche Numis (Nominated Adviser and Joint Broker)
Freddie Barnfield / Duncan Monteith / Sher Shah
+ 44 (0)20 7260 1000

Investec Bank plc (Joint Broker)
Patrick Robb / Maria Gomez de Olea
+ 44 (0) 20 7597 5970

About Alliance

Alliance Pharma plc (AIM: APH) is a growing consumer healthcare company. Our purpose is to empower people to make a positive difference to their health and wellbeing by making our trusted and proven brands available around the world.

We deliver organic growth through investing in our priority brands and channels, in related innovation, and through selective geographic expansion to increase the reach of our brands. Periodically, we may look to enhance our organic growth through selective, complementary acquisitions.

Headquartered in the UK, the Group employs around 290 people based in locations across Europe, North America, and the Asia Pacific region. By outsourcing our manufacturing and logistics we remain asset-light and focused on maximising the value we can bring, both to our stakeholders and to our brands.

For more information on Alliance, please visit our website: www.alliancepharmaceuticals.com